Gilead Sciences
Market Cap
€86.1b
Last Updated
2020/04/01 21:53 UTC
Data Sources
Company Financials +
Executive Summary
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.
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet and fair value.
Similar Companies
Share Price & News
How has Gilead Sciences's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: GIS has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.4%
GIS
5.1%
DE Biotechs
-2.7%
DE Market
1 Year Return
12.7%
GIS
-10.6%
DE Biotechs
-20.4%
DE Market
Return vs Industry: GIS exceeded the German Biotechs industry which returned -10.6% over the past year.
Return vs Market: GIS exceeded the German Market which returned -20.4% over the past year.
Shareholder returns
| GIS | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.4% | 5.1% | -2.7% |
| 30 Day | 0.5% | -5.4% | -18.4% |
| 90 Day | 13.9% | -22.4% | -26.7% |
| 1 Year | 17.0%12.7% | -10.4%-10.6% | -18.1%-20.4% |
| 3 Year | 16.9%5.9% | 16.0%14.8% | -19.1%-25.9% |
| 5 Year | -17.8%-28.7% | -6.3%-8.8% | -19.5%-30.4% |
Price Volatility Vs. Market
How volatile is Gilead Sciences's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Gilead Sciences undervalued compared to its fair value and its price relative to the market?
40.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GIS (€66.52) is trading below our estimate of fair value (€111.24)
Significantly Below Fair Value: GIS is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: GIS is good value based on its PE Ratio (17.1x) compared to the Biotechs industry average (39.4x).
PE vs Market: GIS is poor value based on its PE Ratio (17.1x) compared to the German market (16.2x).
Price to Earnings Growth Ratio
PEG Ratio: GIS is poor value based on its PEG Ratio (3x)
Price to Book Ratio
PB vs Industry: GIS is overvalued based on its PB Ratio (4.1x) compared to the DE Biotechs industry average (3.5x).
Next Steps
Future Growth
How is Gilead Sciences forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?
5.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GIS's forecast earnings growth (5.6% per year) is above the savings rate (-0.4%).
Earnings vs Market: GIS's earnings (5.6% per year) are forecast to grow slower than the German market (14.3% per year).
High Growth Earnings: GIS's earnings are forecast to grow, but not significantly.
Revenue vs Market: GIS's revenue (1.3% per year) is forecast to grow slower than the German market (4% per year).
High Growth Revenue: GIS's revenue (1.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: GIS's Return on Equity is forecast to be high in 3 years time (21.9%)
Next Steps
Past Performance
How has Gilead Sciences performed over the past 5 years?
-30.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GIS has high quality earnings.
Growing Profit Margin: GIS's current net profit margins (24%) are lower than last year (24.7%).
Past Earnings Growth Analysis
Earnings Trend: GIS's earnings have declined by -30.1% per year over the past 5 years.
Accelerating Growth: GIS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: GIS had negative earnings growth (-1.3%) over the past year, making it difficult to compare to the Biotechs industry average (16.1%).
Return on Equity
High ROE: Whilst GIS's Return on Equity (23.68%) is high, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is Gilead Sciences's financial position?
Financial Position Analysis
Short Term Liabilities: GIS's short term assets ($30.3B) exceed its short term liabilities ($9.8B).
Long Term Liabilities: GIS's short term assets ($30.3B) exceed its long term liabilities ($29.2B).
Debt to Equity History and Analysis
Debt Level: GIS's debt to equity ratio (108.6%) is considered high.
Reducing Debt: GIS's debt to equity ratio has increased from 78.2% to 108.6% over the past 5 years.
Debt Coverage: GIS's debt is well covered by operating cash flow (37.2%).
Interest Coverage: GIS's interest payments on its debt are well covered by EBIT (5.1x coverage).
Balance Sheet
Inventory Level: GIS has a low level of unsold assets or inventory.
Debt Coverage by Assets: GIS's debt is covered by short term assets (assets are 1.2x debt).
Next Steps
Dividend
What is Gilead Sciences's current dividend yield, its reliability and sustainability?
3.75%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: GIS's dividend (3.75%) is higher than the bottom 25% of dividend payers in the German market (1.65%).
High Dividend: GIS's dividend (3.75%) is low compared to the top 25% of dividend payers in the German market (4.86%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, GIS has been paying a dividend for less than 10 years.
Growing Dividend: GIS's dividend payments have increased, but the company has only paid a dividend for 5 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (59.4%), GIS's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: GIS's dividends in 3 years are forecast to be well covered by earnings (46.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.4yrs
Average management tenure
CEO
Dan O'Day (55yo)
1.08s
Tenure
US$29,361,392
Compensation
Mr. Daniel P. O'Day, also known as Dan, has been a Non-Independent Director at Galapagos NV since October 22, 2019. Mr. O'Day has been the Chairman and Chief Executive Officer of Gilead Sciences, Inc. sinc ...
CEO Compensation Analysis
Compensation vs Market: Dan's total compensation ($USD29.36M) is above average for companies of similar size in the German market ($USD5.21M).
Compensation vs Earnings: Insufficient data to compare Dan's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 1.08yrs | US$29.36m | 0.0038% $3.3m | |
| Executive VP & CFO | 0.42yr | US$9.62m | 0.00091% $783.3k | |
| Executive VP of Corporate Affairs | 4.75yrs | US$5.03m | 0.0012% $998.5k | |
| Chief Commercial Officer | 0.75yr | US$8.05m | no data | |
| Chief Medical Officer | 0.42yr | US$3.12m | no data | |
| Senior VP | 4.17yrs | no data | 0.00097% $834.9k | |
| Executive Vice President of Human Resources | 0.67yr | no data | no data | |
| Executive Vice President of Research | 19.42yrs | US$569.78k | no data | |
| Executive Vice President of Pharmaceutical Development & Manufacturing | 14.75yrs | no data | no data | |
| Senior Vice President of HIV & Emerging Viral Infections | 1.67yrs | no data | no data |
1.4yrs
Average Tenure
55.5yo
Average Age
Experienced Management: GIS's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 1.08yrs | US$29.36m | 0.0038% $3.3m | |
| Independent Director | 10.25yrs | US$449.98k | 0.0078% $6.7m | |
| Board Advisor & Director Emeritus | no data | no data | no data | |
| Member of Scientific Advisory Board | no data | US$16.00k | no data | |
| Independent Director | 18.5yrs | US$429.98k | 0.026% $22.3m | |
| Member of the Scientific Advisory Board | no data | no data | no data | |
| Member of the Scientific Advisory Board | no data | no data | no data | |
| Lead Independent Director | 6.92yrs | US$454.98k | 0.0044% $3.8m | |
| Independent Director | 3.67yrs | US$414.98k | 0.00011% $94.7k | |
| Chairperson of Scientific Advisory Board | no data | no data | no data |
6.9yrs
Average Tenure
72yo
Average Age
Experienced Board: GIS's board of directors are considered experienced (6.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Gilead Sciences, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Gilead Sciences, Inc.
- Ticker: GIS
- Exchange: DB
- Founded: 1987
- Industry: Biotechnology
- Sector: Pharmaceuticals & Biotech
- Market Cap: US$94.124b
- Listing Market Cap: US$86.076b
- Shares outstanding: 1.26b
- Website: https://www.gilead.com
Number of Employees
Location
- Gilead Sciences, Inc.
- 333 Lakeside Drive
- Foster City
- California
- 94404
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| GILD | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Jan 1992 |
| GIS | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Jan 1992 |
| GILD * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 1992 |
| GIS | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1992 |
| GILD | SNSE (Santiago Stock Exchange) | Yes | Common Stock | CL | USD | Jan 1992 |
| GILD | SWX (SIX Swiss Exchange) | Yes | Common Stock | CH | CHF | Jan 1992 |
| 0QYQ | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1992 |
| GILD | BIT (Borsa Italiana) | Yes | Common Stock | IT | EUR | Jan 1992 |
| GILD | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Jan 1992 |
| GILD34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1/2 COM USD0.001 | BR | BRL | Apr 2016 | |
| GILD | BASE (Buenos Aires Stock Exchange) | CEDEAR EACH 4 REP 1 SHS (USD) | AR | ARS | Apr 2019 |
Biography
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; and Zydelig, a kinase inhibitor for the treatment of patients with relapsed chronic lymphocytic leukemia, relapsed follicular B-cell non-Hodgkin lymphoma, and relapsed small lymphocytic lymphoma. In addition, the company offers 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. Further, it provides its products under the name Cayston, Emtriva, Hepsera, Sovaldi, and Tybost. Additionally, the company focuses to develop product for the treatment of viral diseases, inflammatory and fibrotic diseases, and oncology. It markets its products through its commercial teams; and in conjunction with third-party distributors and corporate partners. Gilead Sciences, Inc. has collaboration agreements with The Rockefeller University; Novartis AG; Lyndra Therapeutics, Inc.; Kyverna Therapeutics, Inc.; Glympse Bio, Inc.; Renown Institute; Goldfinch Bio, Inc.; Insitro, Inc.; Novo Nordisk A/S; Yuhan Corporation; Eisai Co., Ltd.; Galapagos NV; Carna Biosciences Inc.; Nurix Therapeutics, Inc.; Humanigen, Inc.; and Kiniksa Pharmaceuticals, Ltd. The company was founded in 1987 and is headquartered in Foster City, California.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/01 21:53 |
| End of Day Share Price | 2020/04/01 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.