GILEAD SCIENCES INC (GIS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:GIS - US3755581036 - Common Stock
116.54 EUR
+1.18 (+1.02%)
Overall GIS gets a fundamental rating of 6 out of 10. We evaluated GIS against 85 industry peers in the Biotechnology industry. While GIS has a great profitability rating, 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! GIS also has an excellent dividend rating. This makes GIS very considerable for value and dividend 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.
- Each year in the past 5 years GIS has been profitable.
- Each year in the past 5 years GIS had a positive operating cash flow.
1.2 Ratios
- GIS's Return On Assets of 13.86% is amongst the best of the industry. GIS outperforms 87.06% of its industry peers.
- GIS has a Return On Equity of 37.80%. This is amongst the best in the industry. GIS outperforms 96.47% of its industry peers.
- GIS has a Return On Invested Capital of 18.54%. This is amongst the best in the industry. GIS outperforms 96.47% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital 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 better Profit Margin (27.88%) than 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.
- GIS's Operating Margin has improved in the last couple of years.
- GIS's Gross Margin of 78.72% is fine compared to the rest of the industry. GIS outperforms 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GIS is creating value.
- GIS has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for GIS has been reduced compared to 5 years ago.
- 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
WACC8.32%
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.
- GIS has a worse Current ratio (1.53) than 61.18% of its industry peers.
- A Quick Ratio of 1.17 indicates that GIS should not have too much problems paying its short term obligations.
- GIS has a Quick ratio of 1.17. This is in the lower half of the industry: GIS underperforms 63.53% 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.
- 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.
- 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
- A Price/Earnings ratio of 16.84 indicates a correct valuation of GIS.
- Based on the Price/Earnings ratio, GIS is valued cheaper than 90.59% of the companies 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.
- A Price/Forward Earnings ratio of 15.44 indicates a correct valuation of GIS.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of GIS indicates a rather cheap valuation: GIS is cheaper than 89.41% of the companies listed in the same industry.
- GIS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.84 | ||
| Fwd PE | 15.44 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GIS is valued cheaper than 87.06% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, GIS is valued cheaply inside the industry as 88.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.98 | ||
| EV/EBITDA | 11.35 |
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.
- A more expensive valuation may be justified as GIS's earnings are expected to grow with 27.36% in the coming years.
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.
- Compared to an average industry Dividend Yield of 0.70, GIS pays a better dividend. On top of this GIS pays more dividend than 92.94% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, GIS pays a bit more dividend than the S&P500 average.
| 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.
- GIS's earnings are growing more than its dividend. This makes the dividend growth 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.