GILEAD SCIENCES INC (GIS.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:GIS • US3755581036
117.14 EUR
+0.22 (+0.19%)
Last: Jan 30, 2026, 12:48 PM
We assign a fundamental rating of 6 out of 10 to GIS. GIS was compared to 85 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. 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.
- GIS had positive earnings in each of the past 5 years.
- 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 88.24% of its industry peers.
- Looking at the Return On Equity, with a value of 37.80%, GIS belongs to the top of the industry, outperforming 97.65% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 18.54%, GIS belongs to the top of the industry, outperforming 97.65% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for GIS is above the industry average of 11.71%.
- 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
- GIS has a better Profit Margin (27.88%) than 85.88% of its industry peers.
- GIS's Profit Margin has declined in the last couple of years.
- GIS has a Operating Margin of 38.96%. This is amongst the best in the industry. GIS outperforms 95.29% of its industry peers.
- In the last couple of years the Operating Margin of GIS has grown nicely.
- With a decent Gross Margin value of 78.72%, GIS is doing good in the industry, outperforming 67.06% of the companies in the same industry.
- 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
- GIS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, GIS has about the same amount of shares outstanding.
- 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/WACC2.22
WACC8.35%
2.3 Liquidity
- A Current Ratio of 1.53 indicates that GIS should not have too much problems paying its short term obligations.
- GIS has a Current ratio of 1.53. This is in the lower half of the industry: GIS underperforms 60.00% of its industry peers.
- A Quick Ratio of 1.17 indicates that GIS should not have too much problems paying its short term obligations.
- The Quick ratio of GIS (1.17) is worse than 62.35% 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.
- The Earnings Per Share has been decreasing by -7.01% on average over the past years.
- Looking at the last year, GIS shows a small growth in Revenue. The Revenue has grown by 2.78% 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)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 Y80.49%
EPS Next 2Y39.19%
EPS Next 3Y27.36%
EPS Next 5Y19.03%
Revenue Next Year3.2%
Revenue Next 2Y3.26%
Revenue Next 3Y3.79%
Revenue Next 5Y3.76%
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.
- 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
- GIS is valuated rather expensively with a Price/Earnings ratio of 17.13.
- GIS's Price/Earnings ratio is rather cheap when compared to the industry. GIS is cheaper than 89.41% 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 28.39.
- A Price/Forward Earnings ratio of 15.70 indicates a correct valuation of GIS.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of GIS indicates a rather cheap valuation: GIS is cheaper than 89.41% of the companies listed in the same industry.
- GIS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.13 | ||
| Fwd PE | 15.7 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GIS indicates a rather cheap valuation: GIS is cheaper than 87.06% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, GIS is valued cheaper than 90.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.27 | ||
| EV/EBITDA | 11.65 |
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.
- The excellent profitability rating of GIS may justify a higher PE ratio.
- GIS's earnings are expected to grow with 27.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.21
PEG (5Y)N/A
EPS Next 2Y39.19%
EPS Next 3Y27.36%
5. Dividend
5.1 Amount
- GIS has a Yearly Dividend Yield of 2.41%. Purely for dividend investing, there may be better candidates out there.
- GIS's Dividend Yield is rather good when compared to the industry average which is at 0.70. GIS pays more dividend than 92.94% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, GIS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
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 2Y39.19%
EPS Next 3Y27.36%
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 80.49% in the next year.