GILEAD SCIENCES INC (GIS.DE) Stock Fundamental Analysis
FRA:GIS - Deutsche Boerse Ag - US3755581036 - Common Stock - Currency: EUR
Taking everything into account, GIS scores 6 out of 10 in our fundamental rating. GIS was compared to 67 industry peers in the Biotechnology industry. GIS scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on GIS. This makes GIS very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year GIS was profitable.
In the past year GIS had a positive cash flow from operations.
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
The Return On Assets of GIS (10.57%) is better than 91.04% of its industry peers.
GIS's Return On Equity of 31.13% is amongst the best of the industry. GIS outperforms 94.03% of its industry peers.
With an excellent Return On Invested Capital value of 18.81%, GIS belongs to the best of the industry, outperforming 95.52% of the companies in the same industry.
GIS had an Average Return On Invested Capital over the past 3 years of 15.57%. This is above the industry average of 12.64%.
The last Return On Invested Capital (18.81%) for GIS is above the 3 year average (15.57%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.57% | ||
| ROE | 31.13% | ||
| ROIC | 18.81% |
ROA(3y)5.73%
ROA(5y)5.31%
ROE(3y)16.3%
ROE(5y)15.83%
ROIC(3y)15.57%
ROIC(5y)13.08%
1.3 Margins
GIS has a better Profit Margin (20.76%) than 89.55% 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 38.17%, GIS belongs to the top of the industry, outperforming 94.03% of the companies in the same industry.
GIS's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 78.29%, GIS is doing good in the industry, outperforming 73.13% of the companies in the same industry.
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 | 38.17% | ||
| PM (TTM) | 20.76% | ||
| GM | 78.29% |
OM growth 3Y1.21%
OM growth 5Y13.65%
PM growth 3Y-58.16%
PM growth 5Y-41.32%
GM growth 3Y1.06%
GM growth 5Y-0.23%
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.
The number of shares outstanding for GIS has been reduced compared to 5 years ago.
GIS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.80 indicates that GIS is not in any danger for bankruptcy at the moment.
The Altman-Z score of GIS (3.80) is better than 77.61% of its industry peers.
The Debt to FCF ratio of GIS is 2.53, which is a good value as it means it would take GIS, 2.53 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 2.53, GIS belongs to the best of the industry, outperforming 89.55% of the companies in the same industry.
A Debt/Equity ratio of 1.16 is on the high side and indicates that GIS has dependencies on debt financing.
The Debt to Equity ratio of GIS (1.16) is worse than 61.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 2.53 | ||
| Altman-Z | 3.8 |
ROIC/WACC2.05
WACC9.19%
2.3 Liquidity
A Current Ratio of 1.37 indicates that GIS should not have too much problems paying its short term obligations.
GIS has a Current ratio of 1.37. This is in the lower half of the industry: GIS underperforms 68.66% of its industry peers.
A Quick Ratio of 1.23 indicates that GIS should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.23, GIS is not doing good in the industry: 67.16% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 77.93% over the past year.
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.
Looking at the last year, GIS shows a small growth in Revenue. The Revenue has grown by 4.68% in the last year.
GIS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.08% yearly.
EPS 1Y (TTM)77.93%
EPS 3Y-14.17%
EPS 5Y-7.01%
EPS Q2Q%237.12%
Revenue 1Y (TTM)4.68%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%-0.28%
3.2 Future
The Earnings Per Share is expected to grow by 18.00% on average over the next years. This is quite good.
GIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.58% yearly.
EPS Next Y76.08%
EPS Next 2Y36.75%
EPS Next 3Y26.02%
EPS Next 5Y18%
Revenue Next Year1.14%
Revenue Next 2Y2.39%
Revenue Next 3Y3.28%
Revenue Next 5Y3.58%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.30, the valuation of GIS can be described as correct.
89.55% of the companies in the same industry are more expensive than GIS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of GIS to the average of the S&P500 Index (27.30), we can say GIS is valued slightly cheaper.
A Price/Forward Earnings ratio of 12.84 indicates a correct valuation of GIS.
GIS's Price/Forward Earnings ratio is rather cheap when compared to the industry. GIS is cheaper than 95.52% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. GIS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.3 | ||
| Fwd PE | 12.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GIS is valued cheaply inside the industry as 85.07% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GIS is valued cheaply inside the industry as 88.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.98 | ||
| EV/EBITDA | 11.57 |
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 26.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y36.75%
EPS Next 3Y26.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.83%, 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 14.28. GIS pays more dividend than 94.03% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, GIS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
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
66.02% of the earnings are spent on dividend by GIS. This is not a sustainable payout ratio.
GIS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP66.02%
EPS Next 2Y36.75%
EPS Next 3Y26.02%
FRA:GIS (7/11/2025, 7:00:00 PM)
94.51
-2.96 (-3.04%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners89.59%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap117.56B
Analysts80
Price Target103.57 (9.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
Yearly Dividend2.67
Dividend Growth(5Y)4.45%
DP66.02%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.4%
Min EPS beat(2)-0.59%
Max EPS beat(2)9.39%
EPS beat(4)3
Avg EPS beat(4)14.86%
Min EPS beat(4)-0.59%
Max EPS beat(4)27.44%
EPS beat(8)5
Avg EPS beat(8)10.6%
EPS beat(12)8
Avg EPS beat(12)9.55%
EPS beat(16)11
Avg EPS beat(16)7.89%
Revenue beat(2)1
Avg Revenue beat(2)-0.05%
Min Revenue beat(2)-3.96%
Max Revenue beat(2)3.87%
Revenue beat(4)3
Avg Revenue beat(4)1.75%
Min Revenue beat(4)-3.96%
Max Revenue beat(4)5.61%
Revenue beat(8)6
Avg Revenue beat(8)1.33%
Revenue beat(12)9
Avg Revenue beat(12)2.97%
Revenue beat(16)13
Avg Revenue beat(16)3.85%
PT rev (1m)0.23%
PT rev (3m)-0.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.19%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.06%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.3 | ||
| Fwd PE | 12.84 | ||
| P/S | 4.79 | ||
| P/FCF | 13.98 | ||
| P/OCF | 13.28 | ||
| P/B | 7.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.57 |
EPS(TTM)6.61
EY6.99%
EPS(NY)7.36
Fwd EY7.79%
FCF(TTM)6.76
FCFY7.15%
OCF(TTM)7.12
OCFY7.53%
SpS19.73
BVpS13.16
TBVpS-5.84
PEG (NY)0.19
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.57% | ||
| ROE | 31.13% | ||
| ROCE | 24.88% | ||
| ROIC | 18.81% | ||
| ROICexc | 22.94% | ||
| ROICexgc | 97.64% | ||
| OM | 38.17% | ||
| PM (TTM) | 20.76% | ||
| GM | 78.29% | ||
| FCFM | 34.26% |
ROA(3y)5.73%
ROA(5y)5.31%
ROE(3y)16.3%
ROE(5y)15.83%
ROIC(3y)15.57%
ROIC(5y)13.08%
ROICexc(3y)18.96%
ROICexc(5y)15.63%
ROICexgc(3y)99.97%
ROICexgc(5y)86.01%
ROCE(3y)20.58%
ROCE(5y)17.3%
ROICexcg growth 3Y0.13%
ROICexcg growth 5Y21.72%
ROICexc growth 3Y13.71%
ROICexc growth 5Y12.55%
OM growth 3Y1.21%
OM growth 5Y13.65%
PM growth 3Y-58.16%
PM growth 5Y-41.32%
GM growth 3Y1.06%
GM growth 5Y-0.23%
F-Score8
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 2.53 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 18.82% | ||
| Cap/Sales | 1.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.43% | ||
| Profit Quality | 165.03% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 3.8 |
F-Score8
WACC9.19%
ROIC/WACC2.05
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)77.93%
EPS 3Y-14.17%
EPS 5Y-7.01%
EPS Q2Q%237.12%
EPS Next Y76.08%
EPS Next 2Y36.75%
EPS Next 3Y26.02%
EPS Next 5Y18%
Revenue 1Y (TTM)4.68%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%-0.28%
Revenue Next Year1.14%
Revenue Next 2Y2.39%
Revenue Next 3Y3.28%
Revenue Next 5Y3.58%
EBIT growth 1Y8.48%
EBIT growth 3Y2.97%
EBIT growth 5Y19.42%
EBIT Next Year72.29%
EBIT Next 3Y24.91%
EBIT Next 5Y17.27%
FCF growth 1Y17.4%
FCF growth 3Y-1.57%
FCF growth 5Y4.37%
OCF growth 1Y15.5%
OCF growth 3Y-1.66%
OCF growth 5Y3.44%