GILEAD SCIENCES INC (GIS.DE) Stock Fundamental Analysis
Europe - FRA:GIS - US3755581036 - Common Stock
100.66 EUR
-1.06 (-1.04%)
GIS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 73 industry peers in the Biotechnology industry. While GIS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. GIS may be a bit undervalued, certainly considering the very reasonable score on growth This makes GIS very considerable for value 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.
Each year in the past 5 years GIS has been profitable.
GIS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 11.33%, GIS belongs to the best of the industry, outperforming 86.30% of the companies in the same industry.
GIS has a better Return On Equity (32.08%) than 94.52% of its industry peers.
With an excellent Return On Invested Capital value of 18.69%, GIS belongs to the best of the industry, outperforming 93.15% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GIS is in line with the industry average of 14.02%.
The last Return On Invested Capital (18.69%) for GIS is above the 3 year average (15.57%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.33% | ||
| ROE | 32.08% | ||
| ROIC | 18.69% |
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 has a Profit Margin of 21.87%. This is amongst the best in the industry. GIS outperforms 87.67% of its industry peers.
GIS's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 38.12%, GIS belongs to the best of the industry, outperforming 93.15% of the companies in the same industry.
In the last couple of years the Operating Margin of GIS has grown nicely.
GIS's Gross Margin of 78.53% is fine compared to the rest of the industry. GIS outperforms 71.23% 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 | 38.12% | ||
| PM (TTM) | 21.87% | ||
| GM | 78.53% |
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
GIS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for GIS remains at a similar level compared to 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
An Altman-Z score of 3.97 indicates that GIS is not in any danger for bankruptcy at the moment.
The Altman-Z score of GIS (3.97) is better than 78.08% of its industry peers.
GIS has a debt to FCF ratio of 2.66. This is a good value and a sign of high solvency as GIS would need 2.66 years to pay back of all of its debts.
GIS has a better Debt to FCF ratio (2.66) than 84.93% of its industry peers.
GIS has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
GIS has a Debt to Equity ratio (1.13) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 2.66 | ||
| Altman-Z | 3.97 |
ROIC/WACC2.36
WACC7.91%
2.3 Liquidity
GIS has a Current Ratio of 1.32. This is a normal value and indicates that GIS is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.32, GIS is not doing good in the industry: 64.38% of the companies in the same industry are doing better.
GIS has a Quick Ratio of 1.15. This is a normal value and indicates that GIS is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.15, GIS is not doing good in the industry: 64.38% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 64.68% over the past year.
GIS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.01% yearly.
Looking at the last year, GIS shows a small growth in Revenue. The Revenue has grown by 3.81% 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)64.68%
EPS 3Y-14.17%
EPS 5Y-7.01%
EPS Q2Q%0%
Revenue 1Y (TTM)3.81%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%1.84%
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 19.75% yearly.
GIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.34% yearly.
EPS Next Y77.74%
EPS Next 2Y37.95%
EPS Next 3Y27.38%
EPS Next 5Y19.75%
Revenue Next Year1.79%
Revenue Next 2Y2.77%
Revenue Next 3Y3.74%
Revenue Next 5Y4.34%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.11 indicates a correct valuation of GIS.
Based on the Price/Earnings ratio, GIS is valued cheaper than 87.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.00, GIS is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 13.34, the valuation of GIS can be described as correct.
Based on the Price/Forward Earnings ratio, GIS is valued cheaply inside the industry as 90.41% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of GIS to the average of the S&P500 Index (22.87), we can say GIS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.11 | ||
| Fwd PE | 13.34 |
4.2 Price Multiples
84.93% of the companies in the same industry are more expensive than GIS, based on the Enterprise Value to EBITDA ratio.
89.04% 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 | 15.5 | ||
| EV/EBITDA | 12.08 |
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 27.38% in the coming years.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y37.95%
EPS Next 3Y27.38%
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 10.16. GIS pays more dividend than 93.15% of the companies in the same industry.
GIS's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| 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
62.75% of the earnings are spent on dividend by GIS. This is not a sustainable payout ratio.
GIS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.75%
EPS Next 2Y37.95%
EPS Next 3Y27.38%
FRA:GIS (10/29/2025, 12:28:19 PM)
100.66
-1.06 (-1.04%)
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 Cap124.90B
Revenue(TTM)28.86B
Net Income(TTM)6.31B
Analysts81.11
Price Target108.55 (7.84%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
Yearly Dividend2.71
Dividend Growth(5Y)4.45%
DP62.75%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.01%
Min EPS beat(2)-0.59%
Max EPS beat(2)0.6%
EPS beat(4)3
Avg EPS beat(4)9.21%
Min EPS beat(4)-0.59%
Max EPS beat(4)27.44%
EPS beat(8)6
Avg EPS beat(8)10.79%
EPS beat(12)8
Avg EPS beat(12)9.42%
EPS beat(16)11
Avg EPS beat(16)7.57%
Revenue beat(2)0
Avg Revenue beat(2)-2.14%
Min Revenue beat(2)-3.96%
Max Revenue beat(2)-0.31%
Revenue beat(4)2
Avg Revenue beat(4)1.3%
Min Revenue beat(4)-3.96%
Max Revenue beat(4)5.61%
Revenue beat(8)5
Avg Revenue beat(8)1.24%
Revenue beat(12)8
Avg Revenue beat(12)2.54%
Revenue beat(16)12
Avg Revenue beat(16)3.8%
PT rev (1m)0.19%
PT rev (3m)5.59%
EPS NQ rev (1m)-0.18%
EPS NQ rev (3m)-0.8%
EPS NY rev (1m)-0.83%
EPS NY rev (3m)0.9%
Revenue NQ rev (1m)0.68%
Revenue NQ rev (3m)0.58%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.11 | ||
| Fwd PE | 13.34 | ||
| P/S | 5.03 | ||
| P/FCF | 15.5 | ||
| P/OCF | 14.72 | ||
| P/B | 7.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.08 |
EPS(TTM)6.66
EY6.62%
EPS(NY)7.54
Fwd EY7.49%
FCF(TTM)6.49
FCFY6.45%
OCF(TTM)6.84
OCFY6.79%
SpS20
BVpS13.63
TBVpS-4.99
PEG (NY)0.19
PEG (5Y)N/A
Graham Number45.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.33% | ||
| ROE | 32.08% | ||
| ROCE | 24.71% | ||
| ROIC | 18.69% | ||
| ROICexc | 21.16% | ||
| ROICexgc | 66.9% | ||
| OM | 38.12% | ||
| PM (TTM) | 21.87% | ||
| GM | 78.53% | ||
| FCFM | 32.46% |
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%
ROICexgc growth 3Y0.13%
ROICexgc 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-Score8
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 2.66 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 18.01% | ||
| Cap/Sales | 1.73% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.64% | ||
| Profit Quality | 148.46% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 3.97 |
F-Score8
WACC7.91%
ROIC/WACC2.36
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)64.68%
EPS 3Y-14.17%
EPS 5Y-7.01%
EPS Q2Q%0%
EPS Next Y77.74%
EPS Next 2Y37.95%
EPS Next 3Y27.38%
EPS Next 5Y19.75%
Revenue 1Y (TTM)3.81%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%1.84%
Revenue Next Year1.79%
Revenue Next 2Y2.77%
Revenue Next 3Y3.74%
Revenue Next 5Y4.34%
EBIT growth 1Y5.92%
EBIT growth 3Y2.97%
EBIT growth 5Y19.42%
EBIT Next Year75.69%
EBIT Next 3Y25.29%
EBIT Next 5Y19.07%
FCF growth 1Y4.96%
FCF growth 3Y-1.57%
FCF growth 5Y4.37%
OCF growth 1Y3.74%
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 77.74% in the next year.