GILEAD SCIENCES INC (GIS.DE) Stock Fundamental Analysis
FRA:GIS - Deutsche Boerse Ag - US3755581036 - Common Stock - Currency: EUR
Overall GIS gets a fundamental rating of 6 out of 10. We evaluated GIS against 72 industry peers in the Biotechnology industry. While GIS has a great profitability rating, there are some minor concerns on its financial health. GIS has a valuation in line with the averages, but on the other hand it scores bad on growth.
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 (0.23%) than 79.69% of its industry peers.
The Return On Equity of GIS (0.69%) is better than 79.69% of its industry peers.
Looking at the Return On Invested Capital, with a value of 20.34%, GIS belongs to the top of the industry, outperforming 100.00% 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 10.31%.
The last Return On Invested Capital (20.34%) for GIS is above the 3 year average (15.05%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.23% | ||
| ROE | 0.69% | ||
| ROIC | 20.34% |
ROA(3y)8.52%
ROA(5y)6.89%
ROE(3y)25.33%
ROE(5y)20.11%
ROIC(3y)15.05%
ROIC(5y)11.55%
1.3 Margins
GIS has a better Profit Margin (0.45%) than 81.25% of its industry peers.
In the last couple of years the Profit Margin of GIS has declined.
The Operating Margin of GIS (38.38%) is better than 98.44% of its industry peers.
In the last couple of years the Operating Margin of GIS has remained more or less at the same level.
GIS has a better Gross Margin (77.80%) than 75.00% of its industry peers.
GIS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.38% | ||
| PM (TTM) | 0.45% | ||
| GM | 77.8% |
OM growth 3Y30.17%
OM growth 5Y-0.79%
PM growth 3Y247.42%
PM growth 5Y-3.26%
GM growth 3Y-1.53%
GM growth 5Y-0.07%
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.
GIS has about the same amout of shares outstanding than it did 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
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/WACC1.99
WACC10.21%
2.3 Liquidity
GIS has a Current Ratio of 1.11. 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 1.11, GIS is not doing good in the industry: 73.44% of the companies in the same industry are doing better.
GIS has a Quick Ratio of 1.11. This is a bad value and indicates that GIS is not financially healthy enough and could expect problems in meeting its short term obligations.
GIS's Quick ratio of 0.82 is on the low side compared to the rest of the industry. GIS is outperformed by 76.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
GIS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -36.62%.
Measured over the past 5 years, GIS shows a small growth in Earnings Per Share. The EPS has been growing by 1.09% on average per year.
GIS shows a small growth in Revenue. In the last year, the Revenue has grown by 3.31%.
The Revenue has been growing slightly by 4.15% on average over the past years.
EPS 1Y (TTM)-36.62%
EPS 3Y-0.24%
EPS 5Y1.09%
EPS Q2Q%-11.79%
Revenue 1Y (TTM)3.31%
Revenue growth 3Y3.17%
Revenue growth 5Y4.15%
Sales Q2Q%7.01%
3.2 Future
The Earnings Per Share is expected to grow by 5.14% on average over the next years.
GIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.22% yearly.
EPS Next Y-36.08%
EPS Next 2Y4.56%
EPS Next 3Y4.8%
EPS Next 5Y5.14%
Revenue Next Year4.47%
Revenue Next 2Y2.4%
Revenue Next 3Y2.61%
Revenue Next 5Y3.22%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 21.97, the valuation of GIS can be described as rather expensive.
85.94% of the companies in the same industry are more expensive than GIS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.47, GIS is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 12.65, the valuation of GIS can be described as correct.
GIS's Price/Forward Earnings ratio is rather cheap when compared to the industry. GIS is cheaper than 90.63% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, GIS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.97 | ||
| Fwd PE | 12.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GIS is valued cheaply inside the industry as 89.06% of the companies are valued more expensively.
92.19% 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 | 12.38 | ||
| EV/EBITDA | 8.58 |
4.3 Compensation for Growth
GIS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)20.23
EPS Next 2Y4.56%
EPS Next 3Y4.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.18%, 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 4.52. GIS pays more dividend than 95.31% of the companies in the same industry.
GIS's Dividend Yield is a higher than the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
5.2 History
The dividend of GIS has a limited annual growth rate of 5.90%.
Dividend Growth(5Y)5.9%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
748.41% of the earnings are spent on dividend by GIS. This is not a sustainable payout ratio.
The dividend of GIS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP748.41%
EPS Next 2Y4.56%
EPS Next 3Y4.8%
GILEAD SCIENCES INC
FRA:GIS (2/4/2025, 7:00:00 PM)
94.23
-2.17 (-2.25%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners87.91%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap117.44B
Analysts77.37
Price Target97.06 (3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
Yearly Dividend3.06
Dividend Growth(5Y)5.9%
DP748.41%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.31%
Min EPS beat(2)23.18%
Max EPS beat(2)27.44%
EPS beat(4)3
Avg EPS beat(4)14.95%
Min EPS beat(4)-4.16%
Max EPS beat(4)27.44%
EPS beat(8)5
Avg EPS beat(8)9.12%
EPS beat(12)8
Avg EPS beat(12)5.27%
EPS beat(16)10
Avg EPS beat(16)7.18%
Revenue beat(2)2
Avg Revenue beat(2)3.54%
Min Revenue beat(2)1.47%
Max Revenue beat(2)5.61%
Revenue beat(4)3
Avg Revenue beat(4)2.18%
Min Revenue beat(4)-1.77%
Max Revenue beat(4)5.61%
Revenue beat(8)6
Avg Revenue beat(8)2.27%
Revenue beat(12)10
Avg Revenue beat(12)3.78%
Revenue beat(16)12
Avg Revenue beat(16)3.39%
PT rev (1m)0.21%
PT rev (3m)18.01%
EPS NQ rev (1m)-1.23%
EPS NQ rev (3m)-9.03%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)15.24%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-2.28%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)2.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.97 | ||
| Fwd PE | 12.65 | ||
| P/S | 4.29 | ||
| P/FCF | 12.38 | ||
| P/OCF | 12.11 | ||
| P/B | 6.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.58 |
EPS(TTM)4.29
EY4.55%
EPS(NY)7.45
Fwd EY7.9%
FCF(TTM)7.61
FCFY8.08%
OCF(TTM)7.78
OCFY8.26%
SpS21.97
BVpS14.28
TBVpS-8.13
PEG (NY)N/A
PEG (5Y)20.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.23% | ||
| ROE | 0.69% | ||
| ROCE | 25.37% | ||
| ROIC | 20.34% | ||
| ROICexc | 23.06% | ||
| ROICexgc | 97.8% | ||
| OM | 38.38% | ||
| PM (TTM) | 0.45% | ||
| GM | 77.8% | ||
| FCFM | 34.65% |
ROA(3y)8.52%
ROA(5y)6.89%
ROE(3y)25.33%
ROE(5y)20.11%
ROIC(3y)15.05%
ROIC(5y)11.55%
ROICexc(3y)17.6%
ROICexc(5y)14.47%
ROICexgc(3y)105.86%
ROICexgc(5y)78.76%
ROCE(3y)18.77%
ROCE(5y)14.41%
ROICexcg growth 3Y46.33%
ROICexcg growth 5Y-10.66%
ROICexc growth 3Y42.83%
ROICexc growth 5Y-8.07%
OM growth 3Y30.17%
OM growth 5Y-0.79%
PM growth 3Y247.42%
PM growth 5Y-3.26%
GM growth 3Y-1.53%
GM growth 5Y-0.07%
F-Score5
Asset Turnover0.52
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 | 73.95% | ||
| Profit Quality | 7783.33% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | N/A |
F-Score5
WACC10.21%
ROIC/WACC1.99
Cap/Depr(3y)28.19%
Cap/Depr(5y)37.45%
Cap/Sales(3y)2.32%
Cap/Sales(5y)2.65%
Profit Quality(3y)162.09%
Profit Quality(5y)1350.59%
High Growth Momentum
Growth
EPS 1Y (TTM)-36.62%
EPS 3Y-0.24%
EPS 5Y1.09%
EPS Q2Q%-11.79%
EPS Next Y-36.08%
EPS Next 2Y4.56%
EPS Next 3Y4.8%
EPS Next 5Y5.14%
Revenue 1Y (TTM)3.31%
Revenue growth 3Y3.17%
Revenue growth 5Y4.15%
Sales Q2Q%7.01%
Revenue Next Year4.47%
Revenue Next 2Y2.4%
Revenue Next 3Y2.61%
Revenue Next 5Y3.22%
EBIT growth 1Y6.92%
EBIT growth 3Y34.3%
EBIT growth 5Y3.33%
EBIT Next Year-16.29%
EBIT Next 3Y10.03%
EBIT Next 5Y9.23%
FCF growth 1Y8.88%
FCF growth 3Y-0.43%
FCF growth 5Y-0.15%
OCF growth 1Y3.21%
OCF growth 3Y-0.67%
OCF growth 5Y-0.96%