GILEAD SCIENCES INC (GIS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:GIS - US3755581036 - Common Stock
109.86 EUR
+0.08 (+0.07%)
Taking everything into account, GIS scores 6 out of 10 in our fundamental rating. GIS was compared to 78 industry peers in the Biotechnology industry. While GIS has a great profitability rating, there are some minor concerns on its financial health. GIS may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make GIS suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year GIS was profitable.
In the past year GIS had a positive cash flow from operations.
In the past 5 years GIS has always been profitable.
Each year in the past 5 years GIS had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 13.86%, GIS belongs to the best of the industry, outperforming 88.46% of the companies in the same industry.
GIS has a better Return On Equity (37.80%) than 97.44% of its industry peers.
GIS has a Return On Invested Capital of 18.54%. This is amongst the best in the industry. GIS outperforms 94.87% of its industry peers.
GIS had an Average Return On Invested Capital over the past 3 years of 16.22%. This is above the industry average of 12.34%.
The 3 year average ROIC (16.22%) for GIS is below the current ROIC(18.54%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.86% | ||
| ROE | 37.8% | ||
| ROIC | 18.54% |
ROA(3y)5.73%
ROA(5y)5.31%
ROE(3y)16.3%
ROE(5y)15.83%
ROIC(3y)16.22%
ROIC(5y)15.08%
1.3 Margins
GIS has a better Profit Margin (27.88%) than 88.46% of its industry peers.
In the last couple of years the Profit Margin of GIS has declined.
GIS has a better Operating Margin (38.96%) than 94.87% of its industry peers.
GIS's Operating Margin has improved in the last couple of years.
GIS has a better Gross Margin (78.72%) than 70.51% of its industry peers.
GIS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.96% | ||
| PM (TTM) | 27.88% | ||
| GM | 78.72% |
OM growth 3Y0.61%
OM growth 5Y7.43%
PM growth 3Y-58.16%
PM growth 5Y-41.32%
GM growth 3Y1.06%
GM growth 5Y-0.95%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GIS is creating value.
The number of shares outstanding for GIS remains at a similar level compared to 1 year ago.
Compared to 5 years ago, GIS has less shares outstanding
The debt/assets ratio for GIS is higher compared to a year ago.
2.2 Solvency
GIS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC2.29
WACC8.11%
2.3 Liquidity
GIS has a Current Ratio of 1.53. This is a normal value and indicates that GIS is financially healthy and should not expect problems in meeting its short term obligations.
GIS has a Current ratio (1.53) which is in line with its industry peers.
A Quick Ratio of 1.17 indicates that GIS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.17, GIS is doing worse than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
GIS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 84.88%, which is quite impressive.
Measured over the past years, GIS shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.01% on average per year.
Looking at the last year, GIS shows a small growth in Revenue. The Revenue has grown by 2.78% in the last year.
The Revenue has been growing slightly by 5.08% on average over the past years.
EPS 1Y (TTM)84.88%
EPS 3Y-14.17%
EPS 5Y-7.01%
EPS Q2Q%22.28%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%2.97%
3.2 Future
GIS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.55% yearly.
The Revenue is expected to grow by 4.01% on average over the next years.
EPS Next Y80.38%
EPS Next 2Y38.31%
EPS Next 3Y27.21%
EPS Next 5Y19.55%
Revenue Next Year2.59%
Revenue Next 2Y2.94%
Revenue Next 3Y3.77%
Revenue Next 5Y4.01%
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 15.54, GIS is valued correctly.
Based on the Price/Earnings ratio, GIS is valued cheaply inside the industry as 89.74% of the companies are valued more expensively.
GIS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.43 indicates a correct valuation of GIS.
Based on the Price/Forward Earnings ratio, GIS is valued cheaply inside the industry as 96.15% of the companies are valued more expensively.
GIS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.54 | ||
| Fwd PE | 14.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GIS is valued cheaper than 87.18% of the companies in the same industry.
GIS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GIS is cheaper than 89.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.59 | ||
| EV/EBITDA | 10.54 |
4.3 Compensation for Growth
GIS'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 GIS may justify a higher PE ratio.
GIS's earnings are expected to grow with 27.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y38.31%
EPS Next 3Y27.21%
5. Dividend
5.1 Amount
GIS has a Yearly Dividend Yield of 2.53%.
GIS's Dividend Yield is rather good when compared to the industry average which is at 12.49. GIS pays more dividend than 94.87% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, GIS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
5.2 History
The dividend of GIS has a limited annual growth rate of 4.45%.
Dividend Growth(5Y)4.45%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
12.00% of the earnings are spent on dividend by GIS. This is a low number and sustainable payout ratio.
The dividend of GIS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP12%
EPS Next 2Y38.31%
EPS Next 3Y27.21%
FRA:GIS (11/27/2025, 7:00:00 PM)
109.86
+0.08 (+0.07%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners90.76%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap136.30B
Revenue(TTM)29.09B
Net Income(TTM)8.11B
Analysts81.11
Price Target114.37 (4.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
Yearly Dividend2.73
Dividend Growth(5Y)4.45%
DP12%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.14%
Min EPS beat(2)0.6%
Max EPS beat(2)13.68%
EPS beat(4)3
Avg EPS beat(4)5.77%
Min EPS beat(4)-0.59%
Max EPS beat(4)13.68%
EPS beat(8)6
Avg EPS beat(8)10.36%
EPS beat(12)8
Avg EPS beat(12)8%
EPS beat(16)11
Avg EPS beat(16)5.39%
Revenue beat(2)1
Avg Revenue beat(2)0.99%
Min Revenue beat(2)-0.31%
Max Revenue beat(2)2.29%
Revenue beat(4)2
Avg Revenue beat(4)0.47%
Min Revenue beat(4)-3.96%
Max Revenue beat(4)3.87%
Revenue beat(8)5
Avg Revenue beat(8)1.32%
Revenue beat(12)8
Avg Revenue beat(12)1.67%
Revenue beat(16)12
Avg Revenue beat(16)2.95%
PT rev (1m)5.36%
PT rev (3m)10.52%
EPS NQ rev (1m)-9.99%
EPS NQ rev (3m)-12.01%
EPS NY rev (1m)1.49%
EPS NY rev (3m)2.4%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0.78%
Revenue NY rev (3m)1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.54 | ||
| Fwd PE | 14.43 | ||
| P/S | 5.43 | ||
| P/FCF | 16.59 | ||
| P/OCF | 16.34 | ||
| P/B | 7.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.54 |
EPS(TTM)7.07
EY6.44%
EPS(NY)7.61
Fwd EY6.93%
FCF(TTM)6.62
FCFY6.03%
OCF(TTM)6.73
OCFY6.12%
SpS20.24
BVpS14.93
TBVpS-3.36
PEG (NY)0.19
PEG (5Y)N/A
Graham Number48.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.86% | ||
| ROE | 37.8% | ||
| ROCE | 24.51% | ||
| ROIC | 18.54% | ||
| ROICexc | 23.24% | ||
| ROICexgc | 80.87% | ||
| OM | 38.96% | ||
| PM (TTM) | 27.88% | ||
| GM | 78.72% | ||
| FCFM | 32.73% |
ROA(3y)5.73%
ROA(5y)5.31%
ROE(3y)16.3%
ROE(5y)15.83%
ROIC(3y)16.22%
ROIC(5y)15.08%
ROICexc(3y)19.38%
ROICexc(5y)17.72%
ROICexgc(3y)93.83%
ROICexgc(5y)93.24%
ROCE(3y)21.45%
ROCE(5y)19.94%
ROICexgc growth 3Y-0.46%
ROICexgc growth 5Y15.06%
ROICexc growth 3Y13.04%
ROICexc growth 5Y6.39%
OM growth 3Y0.61%
OM growth 5Y7.43%
PM growth 3Y-58.16%
PM growth 5Y-41.32%
GM growth 3Y1.06%
GM growth 5Y-0.95%
F-Score7
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.56% | ||
| Profit Quality | 117.39% | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | N/A |
F-Score7
WACC8.11%
ROIC/WACC2.29
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)84.88%
EPS 3Y-14.17%
EPS 5Y-7.01%
EPS Q2Q%22.28%
EPS Next Y80.38%
EPS Next 2Y38.31%
EPS Next 3Y27.21%
EPS Next 5Y19.55%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%2.97%
Revenue Next Year2.59%
Revenue Next 2Y2.94%
Revenue Next 3Y3.77%
Revenue Next 5Y4.01%
EBIT growth 1Y4.49%
EBIT growth 3Y2.36%
EBIT growth 5Y12.88%
EBIT Next Year75.69%
EBIT Next 3Y25.29%
EBIT Next 5Y19.13%
FCF growth 1Y21.23%
FCF growth 3Y-1.57%
FCF growth 5Y4.37%
OCF growth 1Y15.03%
OCF growth 3Y-1.66%
OCF growth 5Y3.44%
GILEAD SCIENCES INC / GIS.DE FAQ
What is the fundamental rating for GIS stock?
ChartMill assigns a fundamental rating of 6 / 10 to GIS.DE.
Can you provide the valuation status for GILEAD SCIENCES INC?
ChartMill assigns a valuation rating of 8 / 10 to GILEAD SCIENCES INC (GIS.DE). This can be considered as Undervalued.
How profitable is GILEAD SCIENCES INC (GIS.DE) stock?
GILEAD SCIENCES INC (GIS.DE) has a profitability rating of 8 / 10.
Can you provide the financial health for GIS stock?
The financial health rating of GILEAD SCIENCES INC (GIS.DE) is 5 / 10.
What is the expected EPS growth for GILEAD SCIENCES INC (GIS.DE) stock?
The Earnings per Share (EPS) of GILEAD SCIENCES INC (GIS.DE) is expected to grow by 80.38% in the next year.