GILEAD SCIENCES INC (GIS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:GIS - US3755581036 - Common Stock
106.06 EUR
+0.04 (+0.04%)
Overall GIS gets a fundamental rating of 6 out of 10. We evaluated GIS against 83 industry peers in the Biotechnology industry. While GIS has a great profitability rating, there are some minor concerns on its financial health. GIS scores decently on growth, while it is valued quite cheap. This could make an interesting 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
- 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
- Looking at the Return On Assets, with a value of 13.86%, GIS belongs to the top of the industry, outperforming 86.75% of the companies in the same industry.
- With an excellent Return On Equity value of 37.80%, GIS belongs to the best of the industry, outperforming 97.59% of the companies in the same industry.
- The Return On Invested Capital of GIS (18.54%) is better than 95.18% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for GIS is above the industry average of 12.74%.
- 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 better Profit Margin (27.88%) than 86.75% 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 95.18% 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 78.72% is fine compared to the rest of the industry. GIS outperforms 67.47% 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 | 38.96% | ||
| 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.
- Compared to 5 years ago, GIS has less shares outstanding
- GIS has a worse debt/assets ratio than last year.
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
WACC8.15%
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 60.24% 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.
- The Quick ratio of GIS (1.17) is worse than 62.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 84.88% 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.
- GIS shows a small growth in Revenue. In the last year, the Revenue has grown by 2.78%.
- GIS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.08% yearly.
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
- Based on estimates for the next years, GIS will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.03% on average per year.
- Based on estimates for the next years, GIS will show a small growth in Revenue. The Revenue will grow by 3.76% on average per year.
EPS Next Y80.6%
EPS Next 2Y38.7%
EPS Next 3Y27.13%
EPS Next 5Y19.03%
Revenue Next Year3.16%
Revenue Next 2Y3.13%
Revenue Next 3Y3.74%
Revenue Next 5Y3.76%
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
- GIS is valuated correctly with a Price/Earnings ratio of 15.04.
- GIS's Price/Earnings ratio is rather cheap when compared to the industry. GIS is cheaper than 90.36% of the companies in the same industry.
- GIS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.54.
- Based on the Price/Forward Earnings ratio of 13.90, the valuation of GIS can be described as correct.
- Based on the Price/Forward Earnings ratio, GIS is valued cheaper than 93.98% of the companies in the same industry.
- GIS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.04 | ||
| Fwd PE | 13.9 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GIS is valued cheaper than 87.95% 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 91.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.07 | ||
| EV/EBITDA | 10.18 |
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.
- GIS has an outstanding profitability rating, which 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)0.19
PEG (5Y)N/A
EPS Next 2Y38.7%
EPS Next 3Y27.13%
5. Dividend
5.1 Amount
- GIS has a Yearly Dividend Yield of 2.62%. Purely for dividend investing, there may be better candidates out there.
- 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 1.92.
| 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
- 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 2Y38.7%
EPS Next 3Y27.13%
FRA:GIS (1/16/2026, 2:00:49 PM)
106.06
+0.04 (+0.04%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)10-30 2025-10-30/amc
Earnings (Next)02-09 2026-02-09/amc
Inst Owners91.58%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap131.59B
Revenue(TTM)29.09B
Net Income(TTM)8.11B
Analysts81.08
Price Target116.75 (10.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
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)0.56%
PT rev (3m)7.56%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-12.46%
EPS NY rev (1m)0%
EPS NY rev (3m)0.77%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.04 | ||
| Fwd PE | 13.9 | ||
| P/S | 5.26 | ||
| P/FCF | 16.07 | ||
| P/OCF | 15.82 | ||
| P/B | 7.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.18 |
EPS(TTM)7.05
EY6.65%
EPS(NY)7.63
Fwd EY7.19%
FCF(TTM)6.6
FCFY6.22%
OCF(TTM)6.7
OCFY6.32%
SpS20.17
BVpS14.88
TBVpS-3.35
PEG (NY)0.19
PEG (5Y)N/A
Graham Number48.58
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
WACC8.15%
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 2Y38.7%
EPS Next 3Y27.13%
EPS Next 5Y19.03%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%2.97%
Revenue Next Year3.16%
Revenue Next 2Y3.13%
Revenue Next 3Y3.74%
Revenue Next 5Y3.76%
EBIT growth 1Y4.49%
EBIT growth 3Y2.36%
EBIT growth 5Y12.88%
EBIT Next Year76.48%
EBIT Next 3Y25.45%
EBIT Next 5Y19.27%
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.
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 80.6% in the next year.