GILEAD SCIENCES INC (GIS.DE) Stock Fundamental Analysis
Europe - FRA:GIS - US3755581036 - Common Stock
96.1 EUR
+1.53 (+1.62%)
Overall GIS gets a fundamental rating of 6 out of 10. We evaluated GIS against 75 industry peers in the Biotechnology industry. GIS has an excellent profitability rating, but there are some minor concerns on its financial health. GIS may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, GIS could be worth investigating further for value 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.
In the past 5 years GIS has always been profitable.
In the past 5 years GIS always reported a positive cash flow from operatings.
1.2 Ratios
GIS's Return On Assets of 11.33% is amongst the best of the industry. GIS outperforms 85.33% of its industry peers.
With an excellent Return On Equity value of 32.08%, GIS belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
GIS's Return On Invested Capital of 18.69% is amongst the best of the industry. GIS outperforms 93.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GIS is in line with the industry average of 13.78%.
The last Return On Invested Capital (18.69%) for GIS 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
GIS's Profit Margin of 21.87% is amongst the best of the industry. GIS outperforms 84.00% of its industry peers.
GIS's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 38.12%, GIS belongs to the best of the industry, outperforming 90.67% of the companies in the same industry.
GIS's Operating Margin has improved in the last couple of years.
GIS has a better Gross Margin (78.53%) than 69.33% of its industry peers.
GIS'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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GIS is creating value.
Compared to 1 year ago, GIS has about the same amount of shares outstanding.
Compared to 5 years ago, GIS has less shares outstanding
GIS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.88 indicates that GIS is not in any danger for bankruptcy at the moment.
GIS has a Altman-Z score of 3.88. This is amongst the best in the industry. GIS outperforms 81.33% of its industry peers.
GIS has a debt to FCF ratio of 2.66. This is a good value and a sign of high solvency as GIS would need 2.66 years to pay back of all of its debts.
GIS's Debt to FCF ratio of 2.66 is amongst the best of the industry. GIS outperforms 84.00% of its industry peers.
GIS has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
GIS has a Debt to Equity ratio of 1.13. This is in the lower half of the industry: GIS underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 2.66 | ||
| Altman-Z | 3.88 |
ROIC/WACC2.05
WACC9.1%
2.3 Liquidity
A Current Ratio of 1.32 indicates that GIS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.32, GIS is doing worse than 66.67% of the companies in the same industry.
GIS has a Quick Ratio of 1.15. This is a normal value and indicates that GIS is financially healthy and should not expect problems in meeting its short term obligations.
GIS's Quick ratio of 1.15 is on the low side compared to the rest of the industry. GIS is outperformed by 69.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 64.68% over the past year.
GIS 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, GIS shows a small growth in Revenue. The Revenue has grown by 3.81% in the last year.
Measured over the past years, GIS 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
GIS 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
GIS is valuated correctly with a Price/Earnings ratio of 14.67.
Based on the Price/Earnings ratio, GIS is valued cheaper than 86.67% of the companies in the same industry.
GIS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.41.
The Price/Forward Earnings ratio is 12.95, which indicates a correct valuation of GIS.
Based on the Price/Forward Earnings ratio, GIS is valued cheaply inside the industry as 88.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, GIS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.67 | ||
| Fwd PE | 12.95 |
4.2 Price Multiples
84.00% of the companies in the same industry are more expensive than GIS, based on the Enterprise Value to EBITDA ratio.
GIS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GIS is cheaper than 85.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.04 | ||
| EV/EBITDA | 11.66 |
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 27.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y37.95%
EPS Next 3Y27.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.68%, GIS has a reasonable but not impressive dividend return.
GIS's Dividend Yield is rather good when compared to the industry average which is at 17.12. GIS pays more dividend than 94.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, GIS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
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
62.75% of the earnings are spent on dividend by GIS. This is not a sustainable payout ratio.
GIS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.75%
EPS Next 2Y37.95%
EPS Next 3Y27.34%
FRA:GIS (9/18/2025, 7:00:00 PM)
96.1
+1.53 (+1.62%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners89.93%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap119.24B
Analysts81.11
Price Target108.34 (12.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
Yearly Dividend2.68
Dividend Growth(5Y)4.45%
DP62.75%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
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)4.7%
PT rev (3m)4.81%
EPS NQ rev (1m)-0.61%
EPS NQ rev (3m)0.42%
EPS NY rev (1m)1.72%
EPS NY rev (3m)1.76%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.67 | ||
| Fwd PE | 12.95 | ||
| P/S | 4.88 | ||
| P/FCF | 15.04 | ||
| P/OCF | 14.28 | ||
| P/B | 7.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.66 |
EPS(TTM)6.55
EY6.82%
EPS(NY)7.42
Fwd EY7.72%
FCF(TTM)6.39
FCFY6.65%
OCF(TTM)6.73
OCFY7%
SpS19.68
BVpS13.42
TBVpS-4.91
PEG (NY)0.19
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 | 3.88 |
F-Score8
WACC9.1%
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)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%