GILEAD SCIENCES INC (GIS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:GIS - US3755581036 - Common Stock
103.6 EUR
-1.36 (-1.3%)
GIS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 83 industry peers in the Biotechnology industry. GIS has an excellent profitability rating, but there are some minor concerns on its financial health. GIS may be a bit undervalued, certainly considering the very reasonable score on growth GIS also has an excellent dividend rating. These ratings would make GIS suitable for value and dividend 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.
GIS had positive earnings in each of the past 5 years.
In the past 5 years GIS always reported a positive cash flow from operatings.
1.2 Ratios
GIS's Return On Assets of 13.86% is amongst the best of the industry. GIS outperforms 86.75% 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 96.39% of the companies in the same industry.
GIS has a better Return On Invested Capital (18.54%) than 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 12.28%.
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
The Profit Margin of GIS (27.88%) is better than 83.13% 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 93.98% of its industry peers.
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.
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
There is no outstanding debt for GIS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC2.27
WACC8.17%
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.
The Current ratio of GIS (1.53) is worse than 62.65% 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 65.06% 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.
GIS shows a small growth in Revenue. In the last year, the Revenue has grown by 2.78%.
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 19.55% 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 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
With a Price/Earnings ratio of 14.84, GIS is valued correctly.
Based on the Price/Earnings ratio, GIS is valued cheaper than 84.34% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.56. GIS is valued slightly cheaper when compared to this.
GIS is valuated correctly with a Price/Forward Earnings ratio of 13.71.
Based on the Price/Forward Earnings ratio, GIS is valued cheaply inside the industry as 95.18% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.79. GIS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.84 | ||
| Fwd PE | 13.71 |
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 84.34% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GIS is valued cheaply inside the industry as 86.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.84 | ||
| EV/EBITDA | 10.17 |
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 27.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y38.67%
EPS Next 3Y27.13%
5. Dividend
5.1 Amount
GIS has a Yearly Dividend Yield of 2.56%.
Compared to an average industry Dividend Yield of 0.76, GIS pays a better dividend. On top of this GIS pays more dividend than 93.98% of the companies listed in the same industry.
GIS's Dividend Yield is a higher than the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
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 2Y38.67%
EPS Next 3Y27.13%
FRA:GIS (12/15/2025, 2:32:18 PM)
103.6
-1.36 (-1.3%)
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 Cap128.53B
Revenue(TTM)29.09B
Net Income(TTM)8.11B
Analysts81.08
Price Target116.1 (12.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
Yearly Dividend2.68
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)2.02%
PT rev (3m)7.17%
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)1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.84 | ||
| Fwd PE | 13.71 | ||
| P/S | 5.18 | ||
| P/FCF | 15.84 | ||
| P/OCF | 15.6 | ||
| P/B | 7.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.17 |
EPS(TTM)6.98
EY6.74%
EPS(NY)7.56
Fwd EY7.29%
FCF(TTM)6.54
FCFY6.31%
OCF(TTM)6.64
OCFY6.41%
SpS19.98
BVpS14.74
TBVpS-3.32
PEG (NY)0.18
PEG (5Y)N/A
Graham Number48.12
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 2Y38.67%
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.