GILEAD SCIENCES INC (GILD) Stock Fundamental Analysis
NASDAQ:GILD - Nasdaq - US3755581036 - Common Stock - Currency: USD
GILD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 556 industry peers in the Biotechnology industry. GILD scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on GILD. This makes GILD very considerable for value investing!
1. Profitability
1.1 Basic Checks
GILD had positive earnings in the past year.
GILD had a positive operating cash flow in the past year.
GILD had positive earnings in each of the past 5 years.
Each year in the past 5 years GILD had a positive operating cash flow.
1.2 Ratios
GILD has a better Return On Assets (10.57%) than 94.59% of its industry peers.
The Return On Equity of GILD (31.13%) is better than 98.02% of its industry peers.
GILD has a better Return On Invested Capital (18.81%) than 97.30% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GILD is in line with the industry average of 14.78%.
The 3 year average ROIC (15.57%) for GILD is below the current ROIC(18.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.57% | ||
| ROE | 31.13% | ||
| ROIC | 18.81% |
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
GILD has a Profit Margin of 20.76%. This is amongst the best in the industry. GILD outperforms 95.50% of its industry peers.
In the last couple of years the Profit Margin of GILD has declined.
GILD has a Operating Margin of 38.17%. This is amongst the best in the industry. GILD outperforms 99.10% of its industry peers.
In the last couple of years the Operating Margin of GILD has grown nicely.
Looking at the Gross Margin, with a value of 78.29%, GILD belongs to the top of the industry, outperforming 84.32% of the companies in the same industry.
In the last couple of years the Gross Margin of GILD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.17% | ||
| PM (TTM) | 20.76% | ||
| GM | 78.29% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GILD is creating value.
GILD has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, GILD has less shares outstanding
Compared to 1 year ago, GILD has a worse debt to assets ratio.
2.2 Solvency
GILD has an Altman-Z score of 3.76. This indicates that GILD is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.76, GILD is doing good in the industry, outperforming 74.41% of the companies in the same industry.
GILD has a debt to FCF ratio of 2.53. This is a good value and a sign of high solvency as GILD would need 2.53 years to pay back of all of its debts.
GILD has a better Debt to FCF ratio (2.53) than 94.23% of its industry peers.
GILD has a Debt/Equity ratio of 1.16. This is a high value indicating a heavy dependency on external financing.
GILD has a worse Debt to Equity ratio (1.16) than 78.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 2.53 | ||
| Altman-Z | 3.76 |
ROIC/WACC2.05
WACC9.18%
2.3 Liquidity
GILD has a Current Ratio of 1.37. This is a normal value and indicates that GILD is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of GILD (1.37) is worse than 82.88% of its industry peers.
GILD has a Quick Ratio of 1.23. This is a normal value and indicates that GILD is financially healthy and should not expect problems in meeting its short term obligations.
GILD has a Quick ratio of 1.23. This is amonst the worse of the industry: GILD underperforms 84.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
GILD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 77.93%, which is quite impressive.
Measured over the past years, GILD shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.01% on average per year.
GILD shows a small growth in Revenue. In the last year, the Revenue has grown by 4.68%.
The Revenue has been growing slightly by 5.08% on average over the past years.
EPS 1Y (TTM)77.93%
EPS 3Y-14.17%
EPS 5Y-7.01%
EPS Q2Q%237.12%
Revenue 1Y (TTM)4.68%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%-0.28%
3.2 Future
Based on estimates for the next years, GILD will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.00% on average per year.
The Revenue is expected to grow by 3.58% on average over the next years.
EPS Next Y76.08%
EPS Next 2Y36.75%
EPS Next 3Y26.02%
EPS Next 5Y18%
Revenue Next Year1.14%
Revenue Next 2Y2.39%
Revenue Next 3Y3.28%
Revenue Next 5Y3.58%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.44 indicates a correct valuation of GILD.
Based on the Price/Earnings ratio, GILD is valued cheaply inside the industry as 95.50% of the companies are valued more expensively.
GILD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.45.
A Price/Forward Earnings ratio of 12.96 indicates a correct valuation of GILD.
GILD's Price/Forward Earnings ratio is rather cheap when compared to the industry. GILD is cheaper than 95.32% of the companies in the same industry.
GILD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.44 | ||
| Fwd PE | 12.96 |
4.2 Price Multiples
GILD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GILD is cheaper than 96.58% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GILD indicates a rather cheap valuation: GILD is cheaper than 95.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.12 | ||
| EV/EBITDA | 11.35 |
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.
GILD has an outstanding profitability rating, which may justify a higher PE ratio.
GILD's earnings are expected to grow with 26.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y36.75%
EPS Next 3Y26.02%
5. Dividend
5.1 Amount
GILD has a Yearly Dividend Yield of 2.94%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 96.18, GILD pays a better dividend. On top of this GILD pays more dividend than 98.74% of the companies listed in the same industry.
GILD's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
5.2 History
The dividend of GILD has a limited annual growth rate of 4.45%.
GILD has been paying a dividend for at least 10 years, so it has 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
GILD pays out 66.02% of its income as dividend. This is not a sustainable payout ratio.
GILD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP66.02%
EPS Next 2Y36.75%
EPS Next 3Y26.02%
111.75
+0.24 (+0.22%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners89.59%
Inst Owner Change-0.1%
Ins Owners0.07%
Ins Owner Change3.2%
Market Cap139.01B
Analysts80
Price Target119 (6.49%)
Short Float %1.85%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
Yearly Dividend3.14
Dividend Growth(5Y)4.45%
DP66.02%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.4%
Min EPS beat(2)-0.59%
Max EPS beat(2)9.39%
EPS beat(4)3
Avg EPS beat(4)14.86%
Min EPS beat(4)-0.59%
Max EPS beat(4)27.44%
EPS beat(8)5
Avg EPS beat(8)10.6%
EPS beat(12)8
Avg EPS beat(12)9.55%
EPS beat(16)11
Avg EPS beat(16)7.89%
Revenue beat(2)1
Avg Revenue beat(2)-0.05%
Min Revenue beat(2)-3.96%
Max Revenue beat(2)3.87%
Revenue beat(4)3
Avg Revenue beat(4)1.75%
Min Revenue beat(4)-3.96%
Max Revenue beat(4)5.61%
Revenue beat(8)6
Avg Revenue beat(8)1.33%
Revenue beat(12)9
Avg Revenue beat(12)2.97%
Revenue beat(16)13
Avg Revenue beat(16)3.85%
PT rev (1m)1.47%
PT rev (3m)8.37%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)0.52%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.44 | ||
| Fwd PE | 12.96 | ||
| P/S | 4.84 | ||
| P/FCF | 14.12 | ||
| P/OCF | 13.41 | ||
| P/B | 7.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.35 |
EPS(TTM)7.74
EY6.93%
EPS(NY)8.62
Fwd EY7.71%
FCF(TTM)7.91
FCFY7.08%
OCF(TTM)8.33
OCFY7.46%
SpS23.1
BVpS15.4
TBVpS-6.84
PEG (NY)0.19
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.57% | ||
| ROE | 31.13% | ||
| ROCE | 24.88% | ||
| ROIC | 18.81% | ||
| ROICexc | 22.94% | ||
| ROICexgc | 97.64% | ||
| OM | 38.17% | ||
| PM (TTM) | 20.76% | ||
| GM | 78.29% | ||
| FCFM | 34.26% |
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 Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 2.53 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 18.82% | ||
| Cap/Sales | 1.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.43% | ||
| Profit Quality | 165.03% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 3.76 |
F-Score8
WACC9.18%
ROIC/WACC2.05
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)77.93%
EPS 3Y-14.17%
EPS 5Y-7.01%
EPS Q2Q%237.12%
EPS Next Y76.08%
EPS Next 2Y36.75%
EPS Next 3Y26.02%
EPS Next 5Y18%
Revenue 1Y (TTM)4.68%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%-0.28%
Revenue Next Year1.14%
Revenue Next 2Y2.39%
Revenue Next 3Y3.28%
Revenue Next 5Y3.58%
EBIT growth 1Y8.48%
EBIT growth 3Y2.97%
EBIT growth 5Y19.42%
EBIT Next Year72.29%
EBIT Next 3Y24.91%
EBIT Next 5Y17.27%
FCF growth 1Y17.4%
FCF growth 3Y-1.57%
FCF growth 5Y4.37%
OCF growth 1Y15.5%
OCF growth 3Y-1.66%
OCF growth 5Y3.44%