GILEAD SCIENCES INC (GIS.DE) Stock Fundamental Analysis
FRA:GIS - Deutsche Boerse Ag - US3755581036 - Common Stock - Currency: EUR
Taking everything into account, GIS scores 6 out of 10 in our fundamental rating. GIS was compared to 72 industry peers in the Biotechnology industry. While GIS has a great profitability rating, there are some minor concerns on its financial health. GIS is cheap, but on the other hand it scores bad 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.
GIS had positive earnings in each of the past 5 years.
GIS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 0.81%, GIS is doing good in the industry, outperforming 75.00% of the companies in the same industry.
With a decent Return On Equity value of 2.48%, GIS is doing good in the industry, outperforming 76.39% of the companies in the same industry.
With an excellent Return On Invested Capital value of 17.45%, GIS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GIS is above the industry average of 11.80%.
The 3 year average ROIC (15.57%) for GIS is below the current ROIC(17.45%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.81% | ||
| ROE | 2.48% | ||
| ROIC | 17.45% |
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 1.67% is fine compared to the rest of the industry. GIS outperforms 76.39% of its industry peers.
In the last couple of years the Profit Margin of GIS has declined.
Looking at the Operating Margin, with a value of 37.70%, GIS belongs to the top of the industry, outperforming 98.61% of the companies in the same industry.
GIS's Operating Margin has improved in the last couple of years.
GIS has a Gross Margin of 78.26%. This is in the better half of the industry: GIS outperforms 79.17% 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 | 37.7% | ||
| PM (TTM) | 1.67% | ||
| GM | 78.26% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GIS is creating value.
GIS has about the same amout of shares outstanding than it did 1 year ago.
GIS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, GIS has a worse debt to assets ratio.
2.2 Solvency
GIS has an Altman-Z score of 3.72. This indicates that GIS is financially healthy and has little risk of bankruptcy at the moment.
GIS has a Altman-Z score of 3.72. This is amongst the best in the industry. GIS outperforms 83.33% of its industry peers.
GIS has a debt to FCF ratio of 2.59. This is a good value and a sign of high solvency as GIS would need 2.59 years to pay back of all of its debts.
GIS's Debt to FCF ratio of 2.59 is amongst the best of the industry. GIS outperforms 90.28% of its industry peers.
GIS has a Debt/Equity ratio of 1.29. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.29, GIS is not doing good in the industry: 61.11% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 2.59 | ||
| Altman-Z | 3.72 |
ROIC/WACC1.97
WACC8.85%
2.3 Liquidity
A Current Ratio of 1.60 indicates that GIS should not have too much problems paying its short term obligations.
GIS has a Current ratio (1.60) which is comparable to the rest of the industry.
GIS has a Quick Ratio of 1.45. 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 Quick ratio (1.45) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
GIS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.52%.
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.
The Revenue has been growing slightly by 6.04% in the past 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)-34.52%
EPS 3Y-14.17%
EPS 5Y-7.01%
EPS Q2Q%10.47%
Revenue 1Y (TTM)6.04%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%6.38%
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 15.97% on average per year.
Based on estimates for the next years, GIS will show a small growth in Revenue. The Revenue will grow by 3.15% on average per year.
EPS Next Y75.31%
EPS Next 2Y35.27%
EPS Next 3Y24.57%
EPS Next 5Y15.97%
Revenue Next Year1.31%
Revenue Next 2Y2.41%
Revenue Next 3Y3.2%
Revenue Next 5Y3.15%
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
The Price/Earnings ratio is 25.39, which means the current valuation is very expensive for GIS.
Based on the Price/Earnings ratio, GIS is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
GIS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.50 indicates a correct valuation of GIS.
Based on the Price/Forward Earnings ratio, GIS is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of GIS to the average of the S&P500 Index (22.10), we can say GIS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.39 | ||
| Fwd PE | 14.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GIS is valued cheaper than 86.11% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GIS is valued cheaper than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.16 | ||
| EV/EBITDA | 11.95 |
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.
A more expensive valuation may be justified as GIS's earnings are expected to grow with 24.57% in the coming years.
PEG (NY)0.34
PEG (5Y)N/A
EPS Next 2Y35.27%
EPS Next 3Y24.57%
5. Dividend
5.1 Amount
GIS has a Yearly Dividend Yield of 2.72%.
Compared to an average industry Dividend Yield of 3.73, GIS pays a better dividend. On top of this GIS pays more dividend than 93.06% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, GIS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
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 816.25% of its income as dividend. This is not a sustainable payout ratio.
GIS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP816.25%
EPS Next 2Y35.27%
EPS Next 3Y24.57%
FRA:GIS (3/7/2025, 7:00:00 PM)
107.92
+1.1 (+1.03%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners89.69%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap134.40B
Analysts80
Price Target104.05 (-3.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
Yearly Dividend2.9
Dividend Growth(5Y)4.45%
DP816.25%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.42%
Min EPS beat(2)9.39%
Max EPS beat(2)27.44%
EPS beat(4)4
Avg EPS beat(4)18.34%
Min EPS beat(4)9.39%
Max EPS beat(4)27.44%
EPS beat(8)5
Avg EPS beat(8)9.1%
EPS beat(12)9
Avg EPS beat(12)10.84%
EPS beat(16)11
Avg EPS beat(16)7.78%
Revenue beat(2)2
Avg Revenue beat(2)4.74%
Min Revenue beat(2)3.87%
Max Revenue beat(2)5.61%
Revenue beat(4)4
Avg Revenue beat(4)3.59%
Min Revenue beat(4)1.47%
Max Revenue beat(4)5.61%
Revenue beat(8)6
Avg Revenue beat(8)1.62%
Revenue beat(12)10
Avg Revenue beat(12)3.55%
Revenue beat(16)13
Avg Revenue beat(16)3.68%
PT rev (1m)7.21%
PT rev (3m)9.56%
EPS NQ rev (1m)-2.54%
EPS NQ rev (3m)0.48%
EPS NY rev (1m)5.01%
EPS NY rev (3m)5.75%
Revenue NQ rev (1m)1.59%
Revenue NQ rev (3m)1.8%
Revenue NY rev (1m)0.93%
Revenue NY rev (3m)1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.39 | ||
| Fwd PE | 14.5 | ||
| P/S | 5.07 | ||
| P/FCF | 14.16 | ||
| P/OCF | 13.48 | ||
| P/B | 7.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.95 |
EPS(TTM)4.25
EY3.94%
EPS(NY)7.44
Fwd EY6.9%
FCF(TTM)7.62
FCFY7.06%
OCF(TTM)8.01
OCFY7.42%
SpS21.27
BVpS14.3
TBVpS-6.61
PEG (NY)0.34
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.81% | ||
| ROE | 2.48% | ||
| ROCE | 23.07% | ||
| ROIC | 17.45% | ||
| ROICexc | 22.16% | ||
| ROICexgc | 93.82% | ||
| OM | 37.7% | ||
| PM (TTM) | 1.67% | ||
| GM | 78.26% | ||
| FCFM | 35.84% |
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-Score7
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 2.59 | ||
| Debt/EBITDA | 1.83 | ||
| Cap/Depr | 18.9% | ||
| Cap/Sales | 1.82% | ||
| Interest Coverage | 11.4 | ||
| Cash Conversion | 79.57% | ||
| Profit Quality | 2146.88% | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 3.72 |
F-Score7
WACC8.85%
ROIC/WACC1.97
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)-34.52%
EPS 3Y-14.17%
EPS 5Y-7.01%
EPS Q2Q%10.47%
EPS Next Y75.31%
EPS Next 2Y35.27%
EPS Next 3Y24.57%
EPS Next 5Y15.97%
Revenue 1Y (TTM)6.04%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%6.38%
Revenue Next Year1.31%
Revenue Next 2Y2.41%
Revenue Next 3Y3.2%
Revenue Next 5Y3.15%
EBIT growth 1Y9.93%
EBIT growth 3Y2.97%
EBIT growth 5Y19.42%
EBIT Next Year66.28%
EBIT Next 3Y23.87%
EBIT Next 5Y15.92%
FCF growth 1Y38.86%
FCF growth 3Y-1.57%
FCF growth 5Y4.37%
OCF growth 1Y35.25%
OCF growth 3Y-1.66%
OCF growth 5Y3.44%