GILEAD SCIENCES INC (GIS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:GIS - US3755581036 - Common Stock
114.5 EUR
+2.1 (+1.87%)
Taking everything into account, GIS scores 6 out of 10 in our fundamental rating. GIS was compared to 85 industry peers in the Biotechnology industry. While GIS has a great profitability rating, there are some minor concerns on its financial health. GIS may be a bit undervalued, certainly considering the very reasonable score on growth Finally GIS also has an excellent dividend rating. This makes GIS very considerable for value and dividend 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.
- In the past 5 years GIS has always been profitable.
- GIS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- GIS has a better Return On Assets (13.86%) than 88.64% of its industry peers.
- GIS has a Return On Equity of 37.80%. This is amongst the best in the industry. GIS outperforms 96.59% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 18.54%, GIS belongs to the top of the industry, outperforming 97.73% 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 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's Profit Margin of 27.88% is amongst the best of the industry. GIS outperforms 86.36% of its industry peers.
- In the last couple of years the Profit Margin of GIS has declined.
- GIS has a better Operating Margin (38.96%) than 95.45% of its industry peers.
- In the last couple of years the Operating Margin of GIS has grown nicely.
- GIS has a better Gross Margin (78.72%) than 69.32% 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.
- The number of shares outstanding for GIS remains at a similar level compared to 1 year ago.
- GIS has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, GIS has a worse debt to assets ratio.
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/WACC2.22
WACC8.34%
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.
- With a Current ratio value of 1.53, GIS is not doing good in the industry: 61.36% of the companies in the same industry are doing better.
- 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.
- With a Quick ratio value of 1.17, GIS is not doing good in the industry: 62.50% 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.
- The Earnings Per Share has been decreasing by -7.01% on average over the past years.
- Looking at the last year, GIS shows a small growth in Revenue. The Revenue has grown by 2.78% 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)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
- The Earnings Per Share is expected to grow by 19.03% on average over the next years. This is quite good.
- 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
- GIS is valuated correctly with a Price/Earnings ratio of 16.43.
- Based on the Price/Earnings ratio, GIS is valued cheaper than 89.77% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, GIS is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 15.05, the valuation of GIS can be described as correct.
- Based on the Price/Forward Earnings ratio, GIS is valued cheaper than 89.77% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. GIS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.43 | ||
| Fwd PE | 15.05 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GIS is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, GIS is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.52 | ||
| EV/EBITDA | 11.17 |
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.
- A more expensive valuation may be justified as GIS's earnings are expected to grow with 27.36% in the coming years.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y39.19%
EPS Next 3Y27.36%
5. Dividend
5.1 Amount
- GIS has a Yearly Dividend Yield of 2.41%.
- Compared to an average industry Dividend Yield of 0.70, GIS pays a better dividend. On top of this GIS pays more dividend than 93.18% of the companies listed in the same industry.
- GIS's Dividend Yield is a higher than the S&P500 average which is at 1.81.
| 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
- GIS pays out 12.00% of its income as dividend. This is a 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.