GILEAD SCIENCES INC (GIS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:GIS - US3755581036 - Common Stock
115.36 EUR
+0.86 (+0.75%)
Taking everything into account, GIS scores 6 out of 10 in our fundamental rating. GIS was compared to 85 industry peers in the Biotechnology industry. GIS has an excellent profitability rating, but 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! Finally GIS also has an excellent dividend rating. With these ratings, GIS could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
- GIS had positive earnings in the past year.
- GIS had a positive operating cash flow in the past year.
- In the past 5 years GIS has always been profitable.
- In the past 5 years GIS always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 13.86%, GIS belongs to the top of the industry, outperforming 87.06% 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 96.47% 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 96.47% 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 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 Profit Margin of 27.88%. This is amongst the best in the industry. GIS outperforms 84.71% of its industry peers.
- GIS's Profit Margin has declined in the last couple of years.
- GIS has a better Operating Margin (38.96%) than 94.12% of its industry peers.
- In the last couple of years the Operating Margin of GIS has grown nicely.
- GIS has a better Gross Margin (78.72%) than 65.88% 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.
- The number of shares outstanding for GIS remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, GIS has less shares outstanding
- 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/WACC2.23
WACC8.33%
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 61.18% 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 worse Quick ratio (1.17) than 63.53% 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.
- Measured over the past years, GIS shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.01% on average per year.
- 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
- GIS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.03% yearly.
- The Revenue is expected to grow by 3.76% on average over the next years.
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
- With a Price/Earnings ratio of 16.55, GIS is valued correctly.
- Compared to the rest of the industry, the Price/Earnings ratio of GIS indicates a rather cheap valuation: GIS is cheaper than 90.59% of the companies listed in the same industry.
- GIS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 15.17, GIS is valued correctly.
- GIS's Price/Forward Earnings ratio is rather cheap when compared to the industry. GIS is cheaper than 89.41% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, GIS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.55 | ||
| Fwd PE | 15.17 |
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 88.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.65 | ||
| EV/EBITDA | 11.17 |
4.3 Compensation for Growth
- GIS's 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
- With a Yearly Dividend Yield of 2.41%, 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 0.70. GIS pays more dividend than 92.94% of the companies in the same industry.
- GIS's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| 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.