GILEAD SCIENCES INC (GILD) Stock Fundamental Analysis
USA - NASDAQ:GILD - US3755581036 - Common Stock
112.54 USD
-2.01 (-1.75%)
112.3 USD
-0.24 (-0.21%)
Overall GILD gets a fundamental rating of 6 out of 10. We evaluated GILD against 540 industry peers in the Biotechnology industry. GILD has an excellent profitability rating, but there are some minor concerns on its financial health. GILD scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make GILD suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year GILD was profitable.
In the past year GILD had a positive cash flow from operations.
GILD had positive earnings in each of the past 5 years.
GILD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GILD has a better Return On Assets (11.33%) than 94.07% of its industry peers.
Looking at the Return On Equity, with a value of 32.08%, GILD belongs to the top of the industry, outperforming 97.59% of the companies in the same industry.
The Return On Invested Capital of GILD (18.69%) is better than 97.22% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GILD is in line with the industry average of 15.95%.
The last Return On Invested Capital (18.69%) for GILD is above the 3 year average (15.57%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.33% | ||
| ROE | 32.08% | ||
| ROIC | 18.69% |
ROA(3y)5.73%
ROA(5y)5.31%
ROE(3y)16.3%
ROE(5y)15.83%
ROIC(3y)15.57%
ROIC(5y)13.08%
1.3 Margins
Looking at the Profit Margin, with a value of 21.87%, GILD belongs to the top of the industry, outperforming 95.19% of the companies in the same industry.
In the last couple of years the Profit Margin of GILD has declined.
GILD has a better Operating Margin (38.12%) than 98.15% of its industry peers.
GILD's Operating Margin has improved in the last couple of years.
GILD has a better Gross Margin (78.53%) than 83.89% of its industry peers.
GILD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.12% | ||
| PM (TTM) | 21.87% | ||
| GM | 78.53% |
OM growth 3Y1.21%
OM growth 5Y13.65%
PM growth 3Y-58.16%
PM growth 5Y-41.32%
GM growth 3Y1.06%
GM growth 5Y-0.23%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GILD is creating value.
Compared to 1 year ago, GILD has about the same amount of shares outstanding.
The number of shares outstanding for GILD has been reduced compared to 5 years ago.
The debt/assets ratio for GILD is higher compared to a year ago.
2.2 Solvency
GILD has an Altman-Z score of 3.90. This indicates that GILD is financially healthy and has little risk of bankruptcy at the moment.
GILD has a Altman-Z score of 3.90. This is in the better half of the industry: GILD outperforms 72.96% of its industry peers.
GILD has a debt to FCF ratio of 2.66. This is a good value and a sign of high solvency as GILD would need 2.66 years to pay back of all of its debts.
The Debt to FCF ratio of GILD (2.66) is better than 94.26% of its industry peers.
GILD has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
GILD has a worse Debt to Equity ratio (1.13) than 77.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 2.66 | ||
| Altman-Z | 3.9 |
ROIC/WACC2.04
WACC9.17%
2.3 Liquidity
GILD has a Current Ratio of 1.32. This is a normal value and indicates that GILD is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.32, GILD is not doing good in the industry: 82.96% of the companies in the same industry are doing better.
A Quick Ratio of 1.15 indicates that GILD should not have too much problems paying its short term obligations.
GILD has a worse Quick ratio (1.15) than 85.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
GILD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 64.68%, which is quite impressive.
GILD shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.01% yearly.
Looking at the last year, GILD shows a small growth in Revenue. The Revenue has grown by 3.81% in the last year.
Measured over the past years, GILD shows a small growth in Revenue. The Revenue has been growing by 5.08% on average per year.
EPS 1Y (TTM)64.68%
EPS 3Y-14.17%
EPS 5Y-7.01%
EPS Q2Q%0%
Revenue 1Y (TTM)3.81%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%1.84%
3.2 Future
GILD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.19% yearly.
The Revenue is expected to grow by 4.06% on average over the next years.
EPS Next Y79.18%
EPS Next 2Y37.95%
EPS Next 3Y27.34%
EPS Next 5Y19.19%
Revenue Next Year1.61%
Revenue Next 2Y2.77%
Revenue Next 3Y3.72%
Revenue Next 5Y4.06%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.54, GILD is valued correctly.
GILD's Price/Earnings ratio is rather cheap when compared to the industry. GILD is cheaper than 95.56% of the companies in the same industry.
GILD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.27.
GILD is valuated correctly with a Price/Forward Earnings ratio of 12.83.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GILD indicates a rather cheap valuation: GILD is cheaper than 95.93% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of GILD to the average of the S&P500 Index (22.77), we can say GILD is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.54 | ||
| Fwd PE | 12.83 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GILD indicates a rather cheap valuation: GILD is cheaper than 95.74% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GILD is valued cheaply inside the industry as 96.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.9 | ||
| EV/EBITDA | 11.75 |
4.3 Compensation for Growth
GILD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of GILD may justify a higher PE ratio.
GILD's earnings are expected to grow with 27.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y37.95%
EPS Next 3Y27.34%
5. Dividend
5.1 Amount
GILD has a Yearly Dividend Yield of 2.68%. Purely for dividend investing, there may be better candidates out there.
GILD's Dividend Yield is rather good when compared to the industry average which is at 178.49. GILD pays more dividend than 98.33% of the companies in the same industry.
GILD's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
5.2 History
The dividend of GILD has a limited annual growth rate of 4.45%.
GILD has paid a dividend for at least 10 years, which is a reliable track record.
GILD has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)4.45%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
62.75% of the earnings are spent on dividend by GILD. This is not a sustainable payout ratio.
GILD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.75%
EPS Next 2Y37.95%
EPS Next 3Y27.34%
112.54
-2.01 (-1.75%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners89.93%
Inst Owner Change-0.99%
Ins Owners0.08%
Ins Owner Change-0.31%
Market Cap139.64B
Analysts81.11
Price Target128.04 (13.77%)
Short Float %1.47%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
Yearly Dividend3.14
Dividend Growth(5Y)4.45%
DP62.75%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.01%
Min EPS beat(2)-0.59%
Max EPS beat(2)0.6%
EPS beat(4)3
Avg EPS beat(4)9.21%
Min EPS beat(4)-0.59%
Max EPS beat(4)27.44%
EPS beat(8)6
Avg EPS beat(8)10.79%
EPS beat(12)8
Avg EPS beat(12)9.42%
EPS beat(16)11
Avg EPS beat(16)7.57%
Revenue beat(2)0
Avg Revenue beat(2)-2.14%
Min Revenue beat(2)-3.96%
Max Revenue beat(2)-0.31%
Revenue beat(4)2
Avg Revenue beat(4)1.3%
Min Revenue beat(4)-3.96%
Max Revenue beat(4)5.61%
Revenue beat(8)5
Avg Revenue beat(8)1.24%
Revenue beat(12)8
Avg Revenue beat(12)2.54%
Revenue beat(16)12
Avg Revenue beat(16)3.8%
PT rev (1m)6.11%
PT rev (3m)8.96%
EPS NQ rev (1m)-0.61%
EPS NQ rev (3m)-0.7%
EPS NY rev (1m)1.72%
EPS NY rev (3m)1.76%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.54 | ||
| Fwd PE | 12.83 | ||
| P/S | 4.84 | ||
| P/FCF | 14.9 | ||
| P/OCF | 14.15 | ||
| P/B | 7.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.75 |
EPS(TTM)7.74
EY6.88%
EPS(NY)8.77
Fwd EY7.8%
FCF(TTM)7.55
FCFY6.71%
OCF(TTM)7.95
OCFY7.07%
SpS23.26
BVpS15.86
TBVpS-5.81
PEG (NY)0.18
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.33% | ||
| ROE | 32.08% | ||
| ROCE | 24.71% | ||
| ROIC | 18.69% | ||
| ROICexc | 21.16% | ||
| ROICexgc | 66.9% | ||
| OM | 38.12% | ||
| PM (TTM) | 21.87% | ||
| GM | 78.53% | ||
| FCFM | 32.46% |
ROA(3y)5.73%
ROA(5y)5.31%
ROE(3y)16.3%
ROE(5y)15.83%
ROIC(3y)15.57%
ROIC(5y)13.08%
ROICexc(3y)18.96%
ROICexc(5y)15.63%
ROICexgc(3y)99.97%
ROICexgc(5y)86.01%
ROCE(3y)20.58%
ROCE(5y)17.3%
ROICexcg growth 3Y0.13%
ROICexcg growth 5Y21.72%
ROICexc growth 3Y13.71%
ROICexc growth 5Y12.55%
OM growth 3Y1.21%
OM growth 5Y13.65%
PM growth 3Y-58.16%
PM growth 5Y-41.32%
GM growth 3Y1.06%
GM growth 5Y-0.23%
F-Score8
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 2.66 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 18.01% | ||
| Cap/Sales | 1.73% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.64% | ||
| Profit Quality | 148.46% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 3.9 |
F-Score8
WACC9.17%
ROIC/WACC2.04
Cap/Depr(3y)25.08%
Cap/Depr(5y)29.48%
Cap/Sales(3y)2.21%
Cap/Sales(5y)2.28%
Profit Quality(3y)819.86%
Profit Quality(5y)1749.07%
High Growth Momentum
Growth
EPS 1Y (TTM)64.68%
EPS 3Y-14.17%
EPS 5Y-7.01%
EPS Q2Q%0%
EPS Next Y79.18%
EPS Next 2Y37.95%
EPS Next 3Y27.34%
EPS Next 5Y19.19%
Revenue 1Y (TTM)3.81%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%1.84%
Revenue Next Year1.61%
Revenue Next 2Y2.77%
Revenue Next 3Y3.72%
Revenue Next 5Y4.06%
EBIT growth 1Y5.92%
EBIT growth 3Y2.97%
EBIT growth 5Y19.42%
EBIT Next Year73.23%
EBIT Next 3Y24.47%
EBIT Next 5Y19.07%
FCF growth 1Y4.96%
FCF growth 3Y-1.57%
FCF growth 5Y4.37%
OCF growth 1Y3.74%
OCF growth 3Y-1.66%
OCF growth 5Y3.44%