GILEAD SCIENCES INC (GIS.DE) Stock Fundamental Analysis
Europe - FRA:GIS - US3755581036 - Common Stock
107.74 EUR
+3.7 (+3.56%)
We assign a fundamental rating of 6 out of 10 to GIS. GIS was compared to 74 industry peers in the Biotechnology industry. While GIS has a great profitability rating, 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. These ratings would make GIS suitable 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.
Each year in the past 5 years GIS had a positive operating cash flow.
1.2 Ratios
GIS's Return On Assets of 13.86% is amongst the best of the industry. GIS outperforms 87.84% of its industry peers.
With an excellent Return On Equity value of 37.80%, GIS belongs to the best of the industry, outperforming 97.30% of the companies in the same industry.
GIS has a Return On Invested Capital of 18.54%. This is amongst the best in the industry. GIS outperforms 94.59% 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 12.80%.
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 Profit Margin of 27.88%. This is amongst the best in the industry. GIS outperforms 87.84% 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 94.59% of the companies in the same industry.
GIS's Operating Margin has improved in the last couple of years.
The Gross Margin of GIS (78.72%) is better than 71.62% of its industry peers.
In the last couple of years the Gross Margin of GIS has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GIS is creating value.
The number of shares outstanding for GIS remains at a similar level compared to 1 year ago.
GIS has less shares outstanding than it did 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/WACC2.29
WACC8.1%
2.3 Liquidity
A Current Ratio of 1.53 indicates that GIS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.53, GIS is in line with its industry, outperforming 40.54% of the companies in the same industry.
GIS has a Quick Ratio of 1.17. This is a normal value and indicates that GIS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.17, GIS is doing worse than 66.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 84.88% over the past year.
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.
GIS shows a small growth in Revenue. In the last year, the Revenue has grown by 2.78%.
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
Based on estimates for the next years, GIS will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.49% on average per year.
GIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.34% yearly.
EPS Next Y80.38%
EPS Next 2Y38.31%
EPS Next 3Y27.21%
EPS Next 5Y19.49%
Revenue Next Year2.59%
Revenue Next 2Y2.94%
Revenue Next 3Y3.77%
Revenue Next 5Y4.34%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.22, GIS is valued correctly.
87.84% of the companies in the same industry are more expensive than GIS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.35, GIS is valued a bit cheaper.
A Price/Forward Earnings ratio of 14.14 indicates a correct valuation of GIS.
Based on the Price/Forward Earnings ratio, GIS is valued cheaper than 94.59% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GIS to the average of the S&P500 Index (33.72), we can say GIS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.22 | ||
| Fwd PE | 14.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GIS is valued cheaper than 86.49% 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 89.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.25 | ||
| EV/EBITDA | 9.93 |
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.
GIS has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as GIS's earnings are expected to grow with 27.21% in the coming years.
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 2.56%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 11.17, GIS pays a better dividend. On top of this GIS pays more dividend than 94.59% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, GIS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
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 (11/12/2025, 5:25:18 PM)
107.74
+3.7 (+3.56%)
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 Cap133.68B
Revenue(TTM)29.09B
Net Income(TTM)8.11B
Analysts81.11
Price Target113.8 (5.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
Yearly Dividend2.72
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)4.84%
PT rev (3m)10.7%
EPS NQ rev (1m)-11.93%
EPS NQ rev (3m)-7.64%
EPS NY rev (1m)0.65%
EPS NY rev (3m)2.4%
Revenue NQ rev (1m)0.7%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)0.96%
Revenue NY rev (3m)1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.22 | ||
| Fwd PE | 14.14 | ||
| P/S | 5.32 | ||
| P/FCF | 16.25 | ||
| P/OCF | 16.01 | ||
| P/B | 7.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.93 |
EPS(TTM)7.08
EY6.57%
EPS(NY)7.62
Fwd EY7.07%
FCF(TTM)6.63
FCFY6.15%
OCF(TTM)6.73
OCFY6.25%
SpS20.25
BVpS14.94
TBVpS-3.36
PEG (NY)0.19
PEG (5Y)N/A
Graham Number48.78
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
WACC8.1%
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 5Y19.49%
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 5Y4.34%
EBIT growth 1Y4.49%
EBIT growth 3Y2.36%
EBIT growth 5Y12.88%
EBIT Next Year75.69%
EBIT Next 3Y25.29%
EBIT Next 5Y19.03%
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.