GILEAD SCIENCES INC (GIS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:GIS - US3755581036 - Common Stock
106.46 EUR
+0.44 (+0.42%)
We assign a fundamental rating of 6 out of 10 to GIS. 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on GIS. Finally GIS also has an excellent dividend rating. This makes GIS very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
- GIS had positive earnings in the past year.
- In the past year GIS had a positive cash flow from operations.
- 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
- Looking at the Return On Assets, with a value of 13.86%, GIS belongs to the top of the industry, outperforming 86.75% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 37.80%, GIS belongs to the top of the industry, outperforming 97.59% 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 95.18% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for GIS is above the industry average of 12.74%.
- 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's Profit Margin of 27.88% is amongst the best of the industry. GIS outperforms 86.75% of its industry peers.
- GIS's Profit Margin has declined in the last couple of years.
- GIS's Operating Margin of 38.96% is amongst the best of the industry. GIS outperforms 95.18% of its industry peers.
- GIS's Operating Margin has improved in the last couple of years.
- GIS has a Gross Margin of 78.72%. This is in the better half of the industry: GIS outperforms 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GIS is creating value.
- GIS has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for GIS has been reduced compared to 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/WACC2.27
WACC8.17%
2.3 Liquidity
- A Current Ratio of 1.53 indicates that GIS should not have too much problems paying its short term obligations.
- GIS's Current ratio of 1.53 is on the low side compared to the rest of the industry. GIS is outperformed by 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 Quick ratio of 1.17. This is in the lower half of the industry: GIS underperforms 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.
- The Earnings Per Share has been decreasing by -7.01% on average over the past years.
- The Revenue has been growing slightly by 2.78% in the past year.
- 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
- The Earnings Per Share is expected to grow by 19.03% on average over the next years. This is quite good.
- Based on estimates for the next years, GIS will show a small growth in Revenue. The Revenue will grow by 3.76% on average per year.
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
- The Price/Earnings ratio is 15.10, which indicates a correct valuation of GIS.
- 90.36% 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 27.47.
- A Price/Forward Earnings ratio of 13.95 indicates a correct valuation of GIS.
- 93.98% of the companies in the same industry are more expensive than GIS, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. GIS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.1 | ||
| Fwd PE | 13.95 |
4.2 Price Multiples
- 87.95% of the companies in the same industry are more expensive than GIS, based on the Enterprise Value to EBITDA ratio.
- 91.57% 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 | 16.13 | ||
| EV/EBITDA | 10.18 |
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.
- GIS's earnings are expected to grow with 27.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y38.7%
EPS Next 3Y27.13%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.62%, 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 0.76. GIS pays more dividend than 93.98% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.89, GIS pays a bit more dividend than the S&P500 average.
| 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.
- The dividend of GIS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP12%
EPS Next 2Y38.7%
EPS Next 3Y27.13%
FRA:GIS (1/16/2026, 5:20:40 PM)
106.46
+0.44 (+0.42%)
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 Cap132.08B
Revenue(TTM)29.09B
Net Income(TTM)8.11B
Analysts81.08
Price Target116.75 (9.67%)
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 | 15.1 | ||
| Fwd PE | 13.95 | ||
| P/S | 5.28 | ||
| P/FCF | 16.13 | ||
| P/OCF | 15.88 | ||
| P/B | 7.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.18 |
EPS(TTM)7.05
EY6.62%
EPS(NY)7.63
Fwd EY7.17%
FCF(TTM)6.6
FCFY6.2%
OCF(TTM)6.7
OCFY6.3%
SpS20.17
BVpS14.88
TBVpS-3.35
PEG (NY)0.19
PEG (5Y)N/A
Graham Number48.58
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
WACC8.17%
ROIC/WACC2.27
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.