Gilead Sciences
Gilead Sciences, Inc., a research-based biopharmaceutical company, discovers, develops, and commercializes medicines in the areas of unmet medical needs in the United States, Europe, and internationally. The last earnings update was 55 days ago. More info.
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GIS Share Price and Events
7 Day Returns
1 Year Returns
GIS Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Gilead Sciences (GIS) | -5.1% | -3.9% | -9.2% | -9.3% | -39.6% | 2.4% |
| DE Biotechs | -2.4% | 3.8% | -8.6% | -10.2% | 51.2% | 10.1% |
| DE Market | 1.8% | 6% | 7.8% | -6% | 10.1% | 15.3% |
1 Year Return vs Industry and Market
- GIS underperformed the Market in Germany which returned -6% over the past year.
Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Gilead Sciences
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Gilead Sciences.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 25 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 9.5% |
| Perpetual Growth Rate | 10-Year DE Government Bond Rate | 0.2% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year DE Govt Bond Rate | 0.2% |
| Equity Risk Premium | S&P Global | 6% |
| Biotechs Unlevered Beta | Simply Wall St/ S&P Global | 1.45 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.448 (1 + (1- 21%) (34.04%)) |
1.561 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.56 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.561 * 5.96%) |
9.53% |
Discounted Cash Flow Calculation for DB:GIS using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Gilead Sciences is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 9.53%) |
|
|---|---|---|---|
| 2019 | 8,744.75 | Analyst x8 | 7,983.84 |
| 2020 | 8,990.25 | Analyst x8 | 7,493.77 |
| 2021 | 8,928.67 | Analyst x6 | 6,794.85 |
| 2022 | 8,995.33 | Analyst x6 | 6,249.93 |
| 2023 | 9,417.50 | Analyst x6 | 5,973.90 |
| 2024 | 9,521.87 | Est @ 1.11% | 5,514.53 |
| 2025 | 9,602.26 | Est @ 0.84% | 5,077.20 |
| 2026 | 9,665.57 | Est @ 0.66% | 4,665.98 |
| 2027 | 9,716.79 | Est @ 0.53% | 4,282.55 |
| 2028 | 9,759.48 | Est @ 0.44% | 3,927.09 |
| Present value of next 10 years cash flows | $57,963.63 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $9,759.48 × (1 + 0.23%) ÷ (9.53% – 0.23%) |
$105,150.16 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $105,150.16 ÷ (1 + 9.53%)10 |
$42,311.07 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $57,963.63 + $42,311.07 |
$100,274.71 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $100,274.71 / 1,274.90 |
$78.65 |
| Calculation | Result | |
|---|---|---|
| Non-primary Listing Adjustment Factor |
1 share in DB:GIS
represents 0.88573x
of
NasdaqGS:GILD
(This could be a different class, a depositary receipt, a different currency, or all of these things.) |
0.88573x |
| Value per Share (Listing Adjusted, EUR) |
= Value per Share (USD) x Listing Adjustment Factor
= $ 78.65 x 0.88573 |
€69.67 |
| Value per share (EUR) | From above. | €69.67 |
| Current discount | Discount to share price of
€54.80
= -1 x (€54.80 - €69.67) / €69.67 |
21.3% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Gilead Sciences's share price is below the future cash flow value, and at a moderate discount (> 20%).
- Gilead Sciences's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Gilead Sciences's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Gilead Sciences's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $4.20 |
| NasdaqGS:GILD Share Price ** | NasdaqGS (2019-04-18) in USD | $61.87 |
| Europe Biotechs Industry PE Ratio | Median Figure of 30 Publicly-Listed Biotechs Companies | 22.44x |
| Germany Market PE Ratio | Median Figure of 424 Publicly-Listed Companies | 19.59x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Gilead Sciences.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NasdaqGS:GILD Share Price ÷ EPS (both in USD) = 61.87 ÷ 4.20 |
14.72x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Gilead Sciences is good value based on earnings compared to the Europe Biotechs industry average.
- Gilead Sciences is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does
Gilead Sciences's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 14.72x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts |
6.3%per year |
| Europe Biotechs Industry PEG Ratio | Median Figure of 22 Publicly-Listed Biotechs Companies | 1.3x |
| Germany Market PEG Ratio | Median Figure of 270 Publicly-Listed Companies | 1.56x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 14.72x ÷ 6.3% |
2.35x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Gilead Sciences is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Gilead Sciences's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $16.68 |
| NasdaqGS:GILD Share Price * | NasdaqGS (2019-04-18) in USD | $61.87 |
| Germany Biotechs Industry PB Ratio | Median Figure of 15 Publicly-Listed Biotechs Companies | 3.71x |
| Germany Market PB Ratio | Median Figure of 574 Publicly-Listed Companies | 1.84x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGS:GILD Share Price ÷ Book Value per Share (both in USD) = 61.87 ÷ 16.68 |
3.71x |
* Primary Listing of Gilead Sciences.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Gilead Sciences is overvalued based on assets compared to the DE Biotechs industry average.
Value checks
We assess Gilead Sciences's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Biotechs industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Biotechs industry average (and greater than 0)? (1 check) Gilead Sciences has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Gilead Sciences's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
- Gilead Sciences's earnings growth is positive but not above the Germany market average.
- Gilead Sciences's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| DB:GIS Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts | 6.3% |
| DB:GIS Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 25 Analysts | 0.8% |
| Germany Biotechs Industry Earnings Growth Rate | Market Cap Weighted Average | 47.5% |
| Germany Biotechs Industry Revenue Growth Rate | Market Cap Weighted Average | 26% |
| Germany Market Earnings Growth Rate | Market Cap Weighted Average | 11.6% |
| Germany Market Revenue Growth Rate | Market Cap Weighted Average | 4.8% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 25 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 22,720 | 10,043 | 7,842 | 11 |
| 2022-12-31 | 22,698 | 10,628 | 7,370 | 12 |
| 2021-12-31 | 22,576 | 10,475 | 7,447 | 16 |
| 2020-12-31 | 22,532 | 9,413 | 7,159 | 23 |
| 2019-12-31 | 21,865 | 9,048 | 6,555 | 25 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 22,127 | 8,400 | 5,455 |
| 2018-09-30 | 22,281 | 8,808 | 1,587 |
| 2018-06-30 | 23,197 | 9,290 | 2,208 |
| 2018-03-31 | 24,690 | 11,243 | 3,464 |
| 2017-12-31 | 26,107 | 11,898 | 4,628 |
| 2017-09-30 | 27,478 | 12,684 | 11,601 |
| 2017-06-30 | 28,466 | 14,383 | 12,213 |
| 2017-03-31 | 29,101 | 15,842 | 12,637 |
| 2016-12-31 | 30,390 | 17,047 | 13,501 |
| 2016-09-30 | 31,576 | 18,382 | 15,076 |
| 2016-06-30 | 32,371 | 18,085 | 16,346 |
| 2016-03-31 | 32,839 | 18,758 | 17,341 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 25 Analyst Estimates (S&P Global) | See Below |
All data from Gilead Sciences Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 6.60 | 10.51 | 4.62 | 5.00 |
| 2022-12-31 | 6.07 | 9.44 | 3.95 | 5.00 |
| 2021-12-31 | 5.96 | 8.14 | 4.82 | 7.00 |
| 2020-12-31 | 5.66 | 7.06 | 4.78 | 11.00 |
| 2019-12-31 | 5.11 | 5.35 | 4.74 | 12.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | 4.20 |
| 2018-09-30 | 1.22 |
| 2018-06-30 | 1.69 |
| 2018-03-31 | 2.65 |
| 2017-12-31 | 3.54 |
| 2017-09-30 | 8.86 |
| 2017-06-30 | 9.30 |
| 2017-03-31 | 9.57 |
| 2016-12-31 | 10.08 |
| 2016-09-30 | 11.01 |
| 2016-06-30 | 11.65 |
| 2016-03-31 | 12.06 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Gilead Sciences is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
Future performance checks
We assess Gilead Sciences's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Gilead Sciences has a total score of 2/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Gilead Sciences performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Gilead Sciences's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
- Gilead Sciences's 1-year earnings growth exceeds its 5-year average (17.9% vs -9.1%)
- Gilead Sciences's earnings growth has not exceeded the Europe Biotechs industry average in the past year (17.9% vs 18.2%).
Earnings and Revenue History
All data from Gilead Sciences Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 22,127.00 | 5,455.00 | 4,056.00 | 4,198.00 |
| 2018-09-30 | 22,281.00 | 1,587.00 | 4,129.00 | 4,218.00 |
| 2018-06-30 | 23,197.00 | 2,208.00 | 4,060.00 | 4,068.00 |
| 2018-03-31 | 24,690.00 | 3,464.00 | 3,977.00 | 3,740.00 |
| 2017-12-31 | 26,107.00 | 4,628.00 | 3,878.00 | 3,734.00 |
| 2017-09-30 | 27,478.00 | 11,601.00 | 3,618.00 | 3,591.00 |
| 2017-06-30 | 28,466.00 | 12,213.00 | 3,570.00 | 3,826.00 |
| 2017-03-31 | 29,101.00 | 12,637.00 | 3,563.00 | 4,446.00 |
| 2016-12-31 | 30,390.00 | 13,501.00 | 3,398.00 | 4,666.00 |
| 2016-09-30 | 31,576.00 | 15,076.00 | 3,472.00 | 4,416.00 |
| 2016-06-30 | 32,371.00 | 16,346.00 | 3,544.00 | 4,135.00 |
| 2016-03-31 | 32,839.00 | 17,341.00 | 3,466.00 | 3,469.00 |
| 2015-12-31 | 32,639.00 | 18,108.00 | 3,426.00 | 3,014.00 |
| 2015-09-30 | 31,447.00 | 16,912.00 | 3,236.00 | 2,952.00 |
| 2015-06-30 | 29,194.00 | 15,043.00 | 3,278.00 | 2,839.00 |
| 2015-03-31 | 27,485.00 | 14,207.00 | 3,080.00 | 2,608.00 |
| 2014-12-31 | 24,890.00 | 12,101.00 | 2,983.00 | 2,854.00 |
| 2014-09-30 | 20,696.14 | 9,405.60 | 2,560.85 | 2,408.66 |
| 2014-06-30 | 17,436.97 | 7,463.21 | 2,022.71 | 2,294.91 |
| 2014-03-31 | 13,669.37 | 4,579.81 | 1,813.70 | 2,220.39 |
| 2013-12-31 | 11,202.00 | 3,075.00 | 1,699.00 | 2,120.00 |
| 2013-09-30 | 10,585.15 | 3,045.94 | 1,538.33 | 1,952.04 |
| 2013-06-30 | 10,228.91 | 2,932.84 | 1,451.05 | 1,901.63 |
| 2013-03-31 | 9,866.70 | 2,871.80 | 1,378.57 | 1,785.39 |
| 2012-12-31 | 9,702.00 | 2,592.00 | 1,280.00 | 1,652.00 |
| 2012-09-30 | 9,314.61 | 2,494.17 | 1,314.97 | 1,622.42 |
| 2012-06-30 | 9,009.67 | 2,559.79 | 1,291.31 | 1,446.66 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Whilst Gilead Sciences has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
- Gilead Sciences used its assets less efficiently than the Europe Biotechs industry average last year based on Return on Assets.
- Gilead Sciences's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Gilead Sciences's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Biotechs industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Gilead Sciences has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Gilead Sciences's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Gilead Sciences's finances.
The net worth of a company is the difference between its assets and liabilities.
- Gilead Sciences is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Gilead Sciences's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 1.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Gilead Sciences Company Filings, last reported 3 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 21,534.00 | 27,322.00 | 30,711.00 |
| 2018-09-30 | 23,007.00 | 27,317.00 | 29,765.00 |
| 2018-06-30 | 21,734.00 | 29,060.00 | 27,103.00 |
| 2018-03-31 | 20,651.00 | 29,054.00 | 24,679.00 |
| 2017-12-31 | 20,501.00 | 33,542.00 | 25,510.00 |
| 2017-09-30 | 25,254.00 | 29,262.00 | 29,070.00 |
| 2017-06-30 | 23,091.00 | 26,296.00 | 21,610.00 |
| 2017-03-31 | 20,917.00 | 26,321.00 | 14,708.00 |
| 2016-12-31 | 19,363.00 | 26,346.00 | 11,895.00 |
| 2016-09-30 | 17,360.00 | 27,071.00 | 12,266.00 |
| 2016-06-30 | 16,115.00 | 22,127.00 | 8,752.00 |
| 2016-03-31 | 14,019.00 | 22,030.00 | 8,319.00 |
| 2015-12-31 | 19,115.00 | 22,055.00 | 14,607.00 |
| 2015-09-30 | 17,948.00 | 22,225.00 | 15,714.00 |
| 2015-06-30 | 16,641.00 | 12,274.00 | 8,611.00 |
| 2015-03-31 | 17,599.00 | 12,363.00 | 14,514.00 |
| 2014-12-31 | 15,834.00 | 12,404.00 | 10,128.00 |
| 2014-09-30 | 13,890.99 | 9,410.06 | 6,316.33 |
| 2014-06-30 | 16,465.22 | 9,504.54 | 8,799.07 |
| 2014-03-31 | 13,747.96 | 9,803.77 | 6,469.03 |
| 2013-12-31 | 11,809.00 | 6,636.00 | 2,132.00 |
| 2013-09-30 | 11,192.47 | 7,313.42 | 2,090.49 |
| 2013-06-30 | 11,343.38 | 7,337.72 | 2,287.37 |
| 2013-03-31 | 10,392.47 | 7,997.56 | 1,942.78 |
| 2012-12-31 | 9,550.87 | 8,223.99 | 1,862.25 |
| 2012-09-30 | 8,750.16 | 8,771.22 | 1,695.49 |
| 2012-06-30 | 8,083.39 | 9,099.14 | 1,707.54 |
- Gilead Sciences's level of debt (126.9%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (56.4% vs 126.9% today).
- Debt is well covered by operating cash flow (30.7%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 8.4x coverage).
Financial health checks
We assess Gilead Sciences's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Gilead Sciences has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Gilead Sciences's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
€2,000 of
Gilead Sciences
shares you are expected to receive
€81
in your first year as a dividend.
Dividend Amount
- Gilead Sciences's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.43%).
- Gilead Sciences's dividend is above the markets top 25% of dividend payers in Germany (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 25 Analyst Estimates (S&P Global) | See Below |
| Europe Biotechs Industry Average Dividend Yield | Market Cap Weighted Average of 9 Stocks | 0.9% |
| Germany Market Average Dividend Yield | Market Cap Weighted Average of 327 Stocks | 3% |
| Germany Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| Germany Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| Germany Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-12-31 | 3.35 | 2.00 |
| 2022-12-31 | 3.13 | 2.00 |
| 2021-12-31 | 2.83 | 7.00 |
| 2020-12-31 | 2.72 | 10.00 |
| 2019-12-31 | 2.52 | 11.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-02-04 | 2.520 | 3.844 |
| 2018-10-25 | 2.280 | 3.356 |
| 2018-07-25 | 2.280 | 3.039 |
| 2018-05-01 | 2.280 | 3.224 |
| 2018-02-06 | 2.280 | 2.958 |
| 2017-10-26 | 2.080 | 2.744 |
| 2017-07-28 | 2.080 | 2.632 |
| 2017-05-02 | 2.080 | 3.063 |
| 2017-02-07 | 2.080 | 3.057 |
| 2016-11-01 | 1.880 | 2.553 |
| 2016-07-25 | 1.880 | 2.408 |
| 2016-04-28 | 1.880 | 2.211 |
| 2016-02-02 | 1.720 | 1.874 |
| 2015-10-27 | 1.720 | 1.713 |
| 2015-07-28 | 1.720 | 1.612 |
| 2015-04-30 | 1.720 | 1.518 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Whilst dividend payments have been stable, Gilead Sciences has been paying a dividend for less than 10 years.
- Dividend payments have increased, but Gilead Sciences only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of
Gilead Sciences's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are covered by earnings (1.8x coverage).
- Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).
Income/ dividend checks
We assess Gilead Sciences's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Gilead Sciences afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Gilead Sciences has a total score of 4/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| AGE | 54 |
| TENURE AS CEO | 0.1 years |
CEO Bio
Mr. Daniel O'Day, also known as Dan, has been the Chairman and Chief Executive Officer of Gilead Sciences, Inc. since March 01, 2019. Mr. O'Day was an Executive of Roche Holding AG since December 31, 2018 until February 2019. Mr. O'Day served as the Chief Executive Officer of Roche Pharmaceuticals at Roche Holding AG since June 3, 2016 until December 31, 2018. Mr. O'Day served as the Chief Operating Officer of Roche Pharma AG since September 1, 2012 until June 3, 2016. Mr. O'Day served as the Chief Operating Officer of Roche Diagnostics GmbH at Hoffmann-La Roche Ltd from 2010 to 2012. He has nearly three decades of operating expertise at Roche. He served as the Chief Executive Officer and President of Roche Molecular Diagnostics USA at Roche Carolina Inc. and Roche Holding AG from 2006 to 2010. He served as the Chief Executive Officer and President of Roche Diagnostics GmbH. Mr. O'Day was with Roche for more than 20 years, following positions of increasing responsibility in sales, marketing and human resources. He began his career in 1987 at Roche in the U.S. Pharmaceuticals organization in Sales and Marketing. Afterwards, he held various positions in Roche Pharma in Switzerland, Japan and Denmark. He served as Director of Human Resources at Roche Pharma U.S.A. since 1995. He served as Director of Product Marketing at Roche Pharma U.S.A. since 1996. He served as Business Unit Head of Arthritis and Respiratory, Roche Pharma Headquarters since 1998. He served as Lifecycle Leader Tamiflu, Roche Pharma Headquarters since 1999. He served as Head of Corporate Planning at Nippon Roche K.K. since 2001. In 2006, Mr. O'Day joined Roche Diagnostics and became Head of the Business Area Molecular Diagnostics. Since January 1 2010, he served as Chief Operating Officer for Roche's global diagnostics business. He worked 11 years managing international assignments that included life cycle leadership at Roche Pharmaceuticals in Basel, Switzerland; strategic planning and involvement in the Chugai merger in Tokyo, Japan; and prior to joining the molecular diagnostics unit, served as General Manager of Roche Pharmaceuticals in Denmark since 2003. He was a Director of Chugai Pharmaceutical Co. Ltd. since March 27, 2013 until February 2019. He has been a Director of Flatiron Health, Inc. since January 11, 2016 and Foundation Medicine, Inc. since April 2015. He served on the board of directors of Genentech USA, Inc. from August 2012 to December 2013 and Roche Diagnostics GmbH from January 2010 to November 2012. He serves as a Director of Genentech, Inc. since 2012, Shanghai Roche Pharmaceuticals Ltd., and California Life Sciences Association (also known as California Healthcare Institute). Mr. O'Day holds an BS in Biology from Georgetown University and a Master of Business Administration from Columbia University.
CEO Compensation
- Insufficient data for Dan to compare compensation growth.
- Insufficient data for Dan to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the Gilead Sciences management team in years:
- The tenure for the Gilead Sciences management team is about average.
Management Team
Robin Washington
CFO & Executive VP
$6M
55
10.9 yrs
John McHutchison
Chief Scientific Officer and Head of Research & Development
$7M
60
Gregg Alton
Chief Patient Officer
$5M
52
13.8 yrs
Laura Hamill
Executive Vice President of Worldwide Commercial Operations
$10M
53
0.7 yrs
Dan O'Day
Chairman & CEO
54
0.1 yrs
Sung Lee
VP of Investor Relations
2.8 yrs
Brett Pletcher
Executive VP
50
3.8 yrs
Andrew Dickinson
Executive Vice President of Corporate Development & Strategy
48
0.8 yrs
Katie Watson
Executive Vice President of Human Resources
3.2 yrs
Bill Lee
Executive Vice President of Research
$570K
63
18.4 yrs
Board of Directors Tenure
Average tenure and age of the Gilead Sciences board of directors in years:
- The tenure for the Gilead Sciences board of directors is about average.
Board of Directors
Dan O'Day
Chairman & CEO
54
0.1 yrs
Gayle Wilson
Independent Director
$430K
75
17.5 yrs
Rich Whitley
Independent Director & Member of Independent Health Policy Advisory Board
$430K
72
Per Wold-Olsen
Independent Director
$450K
71
9.3 yrs
Joel Huff
Chairperson of Scientific Advisory Board
Kelly Kramer
Director
$418K
50
2.7 yrs
John Cogan
Lead Independent Director
$455K
71
5.9 yrs
Paul Berg
Member of Scientific Advisory Board
$16K
91
George Shultz
Board Advisor & Director Emeritus
97
Eugene Schiff
Member of the Scientific Advisory Board
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (€) | Value (€) | |
|---|---|---|---|---|---|---|---|---|---|---|
Management checks
We assess Gilead Sciences's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Gilead Sciences has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
Company Info
Description
Gilead Sciences, Inc., a research-based biopharmaceutical company, discovers, develops, and commercializes medicines in the areas of unmet medical needs in the United States, Europe, and internationally. The company’s products include Biktarvy, Descovy, Odefsey, Genvoya, Stribild, Complera/Eviplera, Atripla, and Truvada for the treatment of human immunodeficiency virus (HIV) infection in adults; and Vosevi, Vemlidy, Epclusa, Harvoni, and Viread products for treating liver diseases. It also provides Yescarta, a chimeric antigen receptor T cell therapy for adult patients with relapsed or refractory large B-cell lymphoma; Zydelig, a kinase inhibitor; Letairis, an oral formulation of an endothelin receptor antagonist for pulmonary arterial hypertension; Ranexa, a tablet to treat chronic angina; and AmBisome, an antifungal agent to treat serious invasive fungal infections. In addition, the company offers its products under the name Cayston, Emtriva, Hepsera, Sovaldi, and Tybost. Further, it develops product candidates for the treatment of HIV/AIDS and liver diseases, hematology/oncology, inflammation/respiratory diseases, and others. The company markets its products through its commercial teams; and in conjunction with third-party distributors and corporate partners. Gilead Sciences, Inc. has collaboration agreements with Bristol-Myers Squibb Company; Janssen Sciences Ireland UC; Japan Tobacco Inc.; Galapagos NV; Scholar Rock Holding Corporation; Tango Therapeutics; National Cancer Institute; Pfizer, Inc.; Sangamo Therapeutics, Inc.; Gadeta B.V.; HiFiBiO Therapeutics; Agenus Inc.; and insitro Inc. The company was founded in 1987 and is headquartered in Foster City, California.
Details
| Name: | Gilead Sciences, Inc. |
| GIS | |
| Exchange: | DB |
| Founded: | 1987 |
| $71,282,227,382 | |
| 1,274,896,000 | |
| Website: | http://www.gilead.com |
| Address: |
Gilead Sciences, Inc. 333 Lakeside Drive, Foster City, California, 94404, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NasdaqGS | GILD | Common Stock | Nasdaq Global Select | US | USD | 22. Jan 1992 | |
| DB | GIS | Common Stock | Deutsche Boerse AG | DE | EUR | 22. Jan 1992 | |
| XTRA | GIS | Common Stock | XETRA Trading Platform | DE | EUR | 22. Jan 1992 | |
| LSE | 0QYQ | Common Stock | London Stock Exchange | GB | USD | 22. Jan 1992 | |
| SWX | GILD | Common Stock | SIX Swiss Exchange | CH | CHF | 22. Jan 1992 | |
| BIT | GILD | Common Stock | Borsa Italiana | IT | EUR | 22. Jan 1992 | |
| WBAG | GILD | Common Stock | Wiener Boerse AG | AT | EUR | 22. Jan 1992 | |
| SNSE | GILD | Common Stock | Santiago Stock Exchange | CL | USD | 22. Jan 1992 | |
| BMV | GILD * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 22. Jan 1992 | |
| BASE | GILD | CEDEAR EACH 4 REP 1 COM USD0.001 | Buenos Aires Stock Exchange | AR | ARS | 12. Apr 2019 | |
| BOVESPA | GILD34 | BDR EACH REPR 1/2 COM USD0.001 | Bolsa de Valores de Sao Paulo | BR | BRL | 25. Apr 2016 |
Number of employees
Current staff
Industry
| Biotechnology | |
| Pharmaceuticals & Biotech |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/22 21:37 |
| End of day share price update: | 2019/04/18 00:00 |
| Last estimates confirmation: | 2019/04/22 |
| Last earnings filing: | 2019/02/26 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
