GILEAD SCIENCES INC (GIS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:GIS - US3755581036 - Common Stock
109.78 EUR
-0.52 (-0.47%)
GIS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 77 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 is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make GIS suitable 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.
Each year in the past 5 years GIS has been profitable.
In the past 5 years GIS always reported a positive cash flow from operatings.
1.2 Ratios
GIS has a better Return On Assets (13.86%) than 88.00% of its industry peers.
With an excellent Return On Equity value of 37.80%, GIS belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 18.54%, GIS belongs to the best of the industry, outperforming 94.67% 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 12.96%.
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 Profit Margin of 27.88%. This is amongst the best in the industry. GIS outperforms 88.00% 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 38.96%, GIS belongs to the top of the industry, outperforming 94.67% of the companies in the same industry.
GIS's Operating Margin has improved in the last couple of years.
The Gross Margin of GIS (78.72%) is better than 72.00% 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
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.
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 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
WACC8.16%
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.
Looking at the Current ratio, with a value of 1.53, GIS is in line with its industry, outperforming 41.33% of the companies in the same industry.
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.
The Quick ratio of GIS (1.17) is worse than 64.00% 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.
GIS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.01% yearly.
GIS shows a small growth in Revenue. In the last year, the Revenue has grown by 2.78%.
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
GIS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.49% yearly.
Based on estimates for the next years, GIS will show a small growth in Revenue. The Revenue will grow by 4.34% on average per year.
EPS Next Y80.38%
EPS Next 2Y38.31%
EPS Next 3Y27.21%
EPS Next 5Y19.49%
Revenue Next Year2.59%
Revenue Next 2Y2.94%
Revenue Next 3Y3.77%
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
Based on the Price/Earnings ratio of 15.44, the valuation of GIS can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of GIS indicates a rather cheap valuation: GIS is cheaper than 84.00% of the companies listed in the same industry.
GIS is valuated rather cheaply when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
GIS is valuated correctly with a Price/Forward Earnings ratio of 14.33.
94.67% of the companies in the same industry are more expensive than GIS, based on the Price/Forward Earnings ratio.
GIS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.44 | ||
| Fwd PE | 14.33 |
4.2 Price Multiples
GIS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GIS is cheaper than 86.67% of the companies in the same industry.
GIS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GIS is cheaper than 88.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.47 | ||
| EV/EBITDA | 10.51 |
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 27.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y38.31%
EPS Next 3Y27.21%
5. Dividend
5.1 Amount
GIS has a Yearly Dividend Yield of 2.52%. 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 9.47. GIS pays more dividend than 93.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, GIS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
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.
GIS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP12%
EPS Next 2Y38.31%
EPS Next 3Y27.21%
FRA:GIS (11/21/2025, 7:00:00 PM)
109.78
-0.52 (-0.47%)
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 Cap136.22B
Revenue(TTM)29.09B
Net Income(TTM)8.11B
Analysts81.11
Price Target113.8 (3.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
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)4.84%
PT rev (3m)9.98%
EPS NQ rev (1m)-10.56%
EPS NQ rev (3m)-7.64%
EPS NY rev (1m)0.65%
EPS NY rev (3m)2.4%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)0.96%
Revenue NY rev (3m)1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.44 | ||
| Fwd PE | 14.33 | ||
| P/S | 5.39 | ||
| P/FCF | 16.47 | ||
| P/OCF | 16.22 | ||
| P/B | 7.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.51 |
EPS(TTM)7.11
EY6.48%
EPS(NY)7.66
Fwd EY6.98%
FCF(TTM)6.66
FCFY6.07%
OCF(TTM)6.77
OCFY6.16%
SpS20.36
BVpS15.02
TBVpS-3.38
PEG (NY)0.19
PEG (5Y)N/A
Graham Number49.02
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
WACC8.16%
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 Y80.38%
EPS Next 2Y38.31%
EPS Next 3Y27.21%
EPS Next 5Y19.49%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%2.97%
Revenue Next Year2.59%
Revenue Next 2Y2.94%
Revenue Next 3Y3.77%
Revenue Next 5Y4.34%
EBIT growth 1Y4.49%
EBIT growth 3Y2.36%
EBIT growth 5Y12.88%
EBIT Next Year75.69%
EBIT Next 3Y25.29%
EBIT Next 5Y19.03%
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 80.38% in the next year.