GILEAD SCIENCES INC (GIS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:GIS - US3755581036 - Common Stock
104.62 EUR
+0.72 (+0.69%)
Taking everything into account, GIS scores 6 out of 10 in our fundamental rating. GIS was compared to 83 industry peers in the Biotechnology industry. GIS scores excellent on profitability, but 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 could make GIS a good candidate 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.
Each year in the past 5 years GIS has been profitable.
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 95.18% of its industry peers.
GIS's Return On Invested Capital of 18.54% is amongst the best of the industry. GIS outperforms 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 12.51%.
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
With an excellent Profit Margin value of 27.88%, GIS belongs to the best of the industry, outperforming 85.54% of the companies in the same industry.
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 93.98% of the companies in the same industry.
In the last couple of years the Operating Margin of GIS has grown nicely.
GIS has a Gross Margin of 78.72%. This is in the better half of the industry: GIS outperforms 66.27% 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.
Compared to 1 year ago, GIS has about the same amount of shares outstanding.
GIS has less shares outstanding than it did 5 years ago.
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/WACC2.28
WACC8.14%
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 of 1.53. This is in the lower half of the industry: GIS underperforms 60.24% of its industry peers.
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.
GIS has a worse Quick ratio (1.17) than 65.06% of its industry peers.
| 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.
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
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.
Based on estimates for the next years, GIS will show a small growth in Revenue. The Revenue will grow by 4.01% on average per year.
EPS Next Y80.6%
EPS Next 2Y38.67%
EPS Next 3Y27.13%
EPS Next 5Y19.55%
Revenue Next Year3.16%
Revenue Next 2Y3.07%
Revenue Next 3Y3.72%
Revenue Next 5Y4.01%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 14.88, the valuation of GIS can be described as correct.
Based on the Price/Earnings ratio, GIS is valued cheaper than 86.75% of the companies in the same industry.
When comparing the Price/Earnings ratio of GIS to the average of the S&P500 Index (26.34), we can say GIS is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.74, the valuation of GIS can be described as correct.
GIS's Price/Forward Earnings ratio is rather cheap when compared to the industry. GIS is cheaper than 93.98% of the companies in the same industry.
GIS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.88 | ||
| Fwd PE | 13.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GIS is valued cheaper than 85.54% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GIS indicates a rather cheap valuation: GIS is cheaper than 86.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.88 | ||
| EV/EBITDA | 9.98 |
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.
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 27.13% in the coming years.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y38.67%
EPS Next 3Y27.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.58%, GIS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 8.14, GIS pays a better dividend. On top of this GIS pays more dividend than 92.77% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, GIS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
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.
The dividend of GIS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP12%
EPS Next 2Y38.67%
EPS Next 3Y27.13%
FRA:GIS (12/8/2025, 7:00:00 PM)
104.62
+0.72 (+0.69%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners91.32%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap129.80B
Revenue(TTM)29.09B
Net Income(TTM)8.11B
Analysts81.08
Price Target116.1 (10.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
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)3.73%
PT rev (3m)5.91%
EPS NQ rev (1m)-0.63%
EPS NQ rev (3m)-12.49%
EPS NY rev (1m)0.12%
EPS NY rev (3m)0.79%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)0.81%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.88 | ||
| Fwd PE | 13.74 | ||
| P/S | 5.2 | ||
| P/FCF | 15.88 | ||
| P/OCF | 15.64 | ||
| P/B | 7.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.98 |
EPS(TTM)7.03
EY6.72%
EPS(NY)7.61
Fwd EY7.28%
FCF(TTM)6.59
FCFY6.3%
OCF(TTM)6.69
OCFY6.4%
SpS20.13
BVpS14.85
TBVpS-3.34
PEG (NY)0.18
PEG (5Y)N/A
Graham Number48.47
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
WACC8.14%
ROIC/WACC2.28
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 2Y38.67%
EPS Next 3Y27.13%
EPS Next 5Y19.55%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%2.97%
Revenue Next Year3.16%
Revenue Next 2Y3.07%
Revenue Next 3Y3.72%
Revenue Next 5Y4.01%
EBIT growth 1Y4.49%
EBIT growth 3Y2.36%
EBIT growth 5Y12.88%
EBIT Next Year76.52%
EBIT Next 3Y25.36%
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 80.6% in the next year.