GILEAD SCIENCES INC (GIS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:GIS - US3755581036 - Common Stock
107.04 EUR
-0.9 (-0.83%)
GIS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 81 industry peers in the Biotechnology industry. While GIS belongs to the best of the industry regarding profitability, 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! This makes GIS very considerable for value investing!
1. Profitability
1.1 Basic Checks
GIS had positive earnings in the past year.
In the past year GIS had a positive cash flow from operations.
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 (13.86%) than 85.19% of its industry peers.
GIS's Return On Equity of 37.80% is amongst the best of the industry. GIS outperforms 97.53% of its industry peers.
With an excellent Return On Invested Capital value of 18.54%, GIS belongs to the best of the industry, outperforming 93.83% of the companies in the same industry.
GIS had an Average Return On Invested Capital over the past 3 years of 16.22%. This is above the industry average of 13.22%.
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
Looking at the Profit Margin, with a value of 27.88%, GIS belongs to the top of the industry, outperforming 85.19% of the companies in the same industry.
In the last couple of years the Profit Margin of GIS has declined.
With an excellent Operating Margin value of 38.96%, GIS belongs to the best of the industry, outperforming 95.06% of the companies in the same industry.
GIS's Operating Margin has improved in the last couple of years.
The Gross Margin of GIS (78.72%) is better than 66.67% 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
GIS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
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/WACC2.29
WACC8.1%
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.
Looking at the Current ratio, with a value of 1.53, GIS is doing worse than 61.73% of the companies in the same industry.
A Quick Ratio of 1.17 indicates that GIS should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.17, GIS is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| 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.
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 2.78% in the last year.
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
GIS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.55% yearly.
GIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.01% yearly.
EPS Next Y80.38%
EPS Next 2Y38.31%
EPS Next 3Y27.21%
EPS Next 5Y19.55%
Revenue Next Year2.59%
Revenue Next 2Y2.94%
Revenue Next 3Y3.77%
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.
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
A Price/Earnings ratio of 15.12 indicates a correct valuation of GIS.
Compared to the rest of the industry, the Price/Earnings ratio of GIS indicates a rather cheap valuation: GIS is cheaper than 87.65% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.11, GIS is valued a bit cheaper.
The Price/Forward Earnings ratio is 14.04, which indicates a correct valuation of GIS.
GIS's Price/Forward Earnings ratio is rather cheap when compared to the industry. GIS is cheaper than 95.06% of the companies in the same industry.
GIS is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.12 | ||
| Fwd PE | 14.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GIS is valued cheaply inside the industry as 86.42% of the companies are valued more expensively.
GIS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GIS is cheaper than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.13 | ||
| EV/EBITDA | 10.32 |
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.
GIS has an outstanding profitability rating, which may justify a higher PE ratio.
GIS's earnings are expected to grow with 27.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y38.31%
EPS Next 3Y27.21%
5. Dividend
5.1 Amount
GIS has a Yearly Dividend Yield of 2.48%.
Compared to an average industry Dividend Yield of 10.20, GIS pays a better dividend. On top of this GIS pays more dividend than 95.06% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, GIS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
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 2Y38.31%
EPS Next 3Y27.21%
FRA:GIS (12/1/2025, 4:28:40 PM)
107.04
-0.9 (-0.83%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners90.76%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap132.80B
Revenue(TTM)29.09B
Net Income(TTM)8.11B
Analysts81.11
Price Target114.37 (6.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
Yearly Dividend2.72
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)5.36%
PT rev (3m)4.33%
EPS NQ rev (1m)-10.12%
EPS NQ rev (3m)-12.51%
EPS NY rev (1m)1.49%
EPS NY rev (3m)0.67%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)0.8%
Revenue NY rev (1m)0.78%
Revenue NY rev (3m)1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.12 | ||
| Fwd PE | 14.04 | ||
| P/S | 5.28 | ||
| P/FCF | 16.13 | ||
| P/OCF | 15.89 | ||
| P/B | 7.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.32 |
EPS(TTM)7.08
EY6.61%
EPS(NY)7.62
Fwd EY7.12%
FCF(TTM)6.63
FCFY6.2%
OCF(TTM)6.74
OCFY6.29%
SpS20.27
BVpS14.95
TBVpS-3.36
PEG (NY)0.19
PEG (5Y)N/A
Graham Number48.8
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
WACC8.1%
ROIC/WACC2.29
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 Y80.38%
EPS Next 2Y38.31%
EPS Next 3Y27.21%
EPS Next 5Y19.55%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%2.97%
Revenue Next Year2.59%
Revenue Next 2Y2.94%
Revenue Next 3Y3.77%
Revenue Next 5Y4.01%
EBIT growth 1Y4.49%
EBIT growth 3Y2.36%
EBIT growth 5Y12.88%
EBIT Next Year75.69%
EBIT Next 3Y25.29%
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 80.38% in the next year.