GILEAD SCIENCES INC (GIS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:GIS - US3755581036 - Common Stock
105.24 EUR
-0.08 (-0.08%)
Overall GIS gets a fundamental rating of 6 out of 10. We evaluated GIS against 83 industry peers in the Biotechnology industry. GIS has an excellent profitability rating, but there are some minor concerns on its financial health. GIS scores decently on growth, while it is valued quite cheap. This could make an interesting combination. GIS also has an excellent dividend rating. These ratings could make GIS a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
- In the past year GIS was profitable.
- GIS had a positive operating cash flow in the past year.
- GIS had positive earnings in each of the past 5 years.
- Each year in the past 5 years GIS had a positive operating cash flow.
1.2 Ratios
- GIS has a better Return On Assets (13.86%) than 86.75% of its industry peers.
- GIS's Return On Equity of 37.80% is amongst the best of the industry. GIS outperforms 97.59% of its industry peers.
- The Return On Invested Capital of GIS (18.54%) is better than 95.18% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for GIS is above the industry average of 12.74%.
- The last Return On Invested Capital (18.54%) for GIS is above the 3 year average (16.22%), which is a sign of increasing profitability.
| 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 Profit Margin of 27.88%. This is amongst the best in the industry. GIS outperforms 86.75% of its industry peers.
- GIS's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 38.96%, GIS belongs to the top of the industry, outperforming 95.18% of the companies in the same industry.
- In the last couple of years the Operating Margin of GIS has grown nicely.
- GIS has a better Gross Margin (78.72%) than 67.47% 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.
- The number of shares outstanding for GIS has been reduced compared to 5 years ago.
- GIS has a worse debt/assets ratio than last year.
2.2 Solvency
- There is no outstanding debt for GIS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC2.26
WACC8.2%
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.
- The Current ratio of GIS (1.53) is worse than 60.24% of its industry peers.
- A Quick Ratio of 1.17 indicates that GIS should not have too much problems paying its short term obligations.
- GIS's Quick ratio of 1.17 is on the low side compared to the rest of the industry. GIS is outperformed by 62.65% of its industry peers.
| 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.
- GIS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.08% yearly.
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
- The Earnings Per Share is expected to grow by 19.03% on average over the next years. This is quite good.
- GIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.76% yearly.
EPS Next Y80.6%
EPS Next 2Y38.7%
EPS Next 3Y27.13%
EPS Next 5Y19.03%
Revenue Next Year3.16%
Revenue Next 2Y3.13%
Revenue Next 3Y3.74%
Revenue Next 5Y3.76%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- GIS is valuated correctly with a Price/Earnings ratio of 14.97.
- 89.16% of the companies in the same industry are more expensive than GIS, based on the Price/Earnings ratio.
- GIS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.33.
- The Price/Forward Earnings ratio is 13.83, which indicates a correct valuation of GIS.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of GIS indicates a rather cheap valuation: GIS is cheaper than 93.98% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.12. GIS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.97 | ||
| Fwd PE | 13.83 |
4.2 Price Multiples
- GIS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GIS is cheaper than 87.95% of the companies in the same industry.
- 92.77% of the companies in the same industry are more expensive than GIS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.98 | ||
| EV/EBITDA | 10.13 |
4.3 Compensation for Growth
- The 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.
- A more expensive valuation may be justified as GIS's earnings are expected to grow with 27.13% in the coming years.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y38.7%
EPS Next 3Y27.13%
5. Dividend
5.1 Amount
- GIS has a Yearly Dividend Yield of 2.62%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.76, GIS pays a better dividend. On top of this GIS pays more dividend than 93.98% of the companies listed in the same industry.
- GIS's Dividend Yield is a higher than the S&P500 average which is at 1.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
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
- GIS pays out 12.00% of its income as dividend. This is a sustainable payout ratio.
- GIS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP12%
EPS Next 2Y38.7%
EPS Next 3Y27.13%
FRA:GIS (1/14/2026, 7:00:00 PM)
105.24
-0.08 (-0.08%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)10-30 2025-10-30/amc
Earnings (Next)02-09 2026-02-09/amc
Inst Owners91.58%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap130.57B
Revenue(TTM)29.09B
Net Income(TTM)8.11B
Analysts81.08
Price Target116.75 (10.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
Yearly Dividend2.7
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)0.56%
PT rev (3m)7.56%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-12.46%
EPS NY rev (1m)0%
EPS NY rev (3m)0.77%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.97 | ||
| Fwd PE | 13.83 | ||
| P/S | 5.23 | ||
| P/FCF | 15.98 | ||
| P/OCF | 15.74 | ||
| P/B | 7.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.13 |
EPS(TTM)7.03
EY6.68%
EPS(NY)7.61
Fwd EY7.23%
FCF(TTM)6.59
FCFY6.26%
OCF(TTM)6.69
OCFY6.35%
SpS20.12
BVpS14.84
TBVpS-3.34
PEG (NY)0.19
PEG (5Y)N/A
Graham Number48.45
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
WACC8.2%
ROIC/WACC2.26
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 Y80.6%
EPS Next 2Y38.7%
EPS Next 3Y27.13%
EPS Next 5Y19.03%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%2.97%
Revenue Next Year3.16%
Revenue Next 2Y3.13%
Revenue Next 3Y3.74%
Revenue Next 5Y3.76%
EBIT growth 1Y4.49%
EBIT growth 3Y2.36%
EBIT growth 5Y12.88%
EBIT Next Year76.48%
EBIT Next 3Y25.45%
EBIT Next 5Y19.27%
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.
What is the valuation status of GILEAD SCIENCES INC (GIS.DE) stock?
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.
What is the financial health of GILEAD SCIENCES INC (GIS.DE) stock?
The financial health rating of GILEAD SCIENCES INC (GIS.DE) is 5 / 10.
Can you provide the expected EPS growth for GIS stock?
The Earnings per Share (EPS) of GILEAD SCIENCES INC (GIS.DE) is expected to grow by 80.6% in the next year.