NasdaqGS:GILD

Stock Analysis Report

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

Trading at 23% below its fair value

Earnings are forecast to grow 5.76% per year

Risk Analysis

High level of non-cash earnings

Has a high level of debt

Unstable dividend track record



Snowflake Analysis

Good value with adequate balance sheet and pays a dividend.


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Celgene

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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: GILD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.8%

GILD

0.7%

US Biotechs

0.5%

US Market


1 Year Return

2.7%

GILD

15.7%

US Biotechs

20.3%

US Market

Return vs Industry: GILD underperformed the US Biotechs industry which returned 15.7% over the past year.

Return vs Market: GILD underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

GILDIndustryMarket
7 Day0.8%0.7%0.5%
30 Day7.5%2.7%2.0%
90 Day3.2%8.7%9.4%
1 Year6.7%2.7%16.6%15.7%22.8%20.3%
3 Year7.1%-2.9%25.3%21.9%50.1%40.4%
5 Year-26.2%-35.4%2.8%-1.9%73.1%54.1%

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

Valuation

Is Gilead Sciences undervalued compared to its fair value and its price relative to the market?

23.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GILD ($67.35) is trading below our estimate of fair value ($87.43)

Significantly Below Fair Value: GILD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GILD is good value based on its PE Ratio (15.9x) compared to the Biotechs industry average (19.9x).

PE vs Market: GILD is good value based on its PE Ratio (15.9x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: GILD is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: GILD is overvalued based on its PB Ratio (3.8x) compared to the US Biotechs industry average (3.2x).


Next Steps

Future Growth

How is Gilead Sciences forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GILD's forecast earnings growth (5.8% per year) is above the savings rate (1.7%).

Earnings vs Market: GILD's earnings (5.8% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: GILD's earnings are forecast to grow, but not significantly.

Revenue vs Market: GILD's revenue (1% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: GILD's revenue (1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GILD'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: GILD has a high level of non-cash earnings.

Growing Profit Margin: GILD's current net profit margins (24%) are lower than last year (24.7%).


Past Earnings Growth Analysis

Earnings Trend: GILD's earnings have declined by -30.1% per year over the past 5 years.

Accelerating Growth: GILD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GILD had negative earnings growth (-1.3%) over the past year, making it difficult to compare to the Biotechs industry average (64%).


Return on Equity

High ROE: Whilst GILD's Return on Equity (23.68%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Gilead Sciences's financial position?


Financial Position Analysis

Short Term Liabilities: GILD's short term assets ($31.5B) exceed its short term liabilities ($9.8B).

Long Term Liabilities: GILD's short term assets ($31.5B) exceed its long term liabilities ($29.2B).


Debt to Equity History and Analysis

Debt Level: GILD's debt to equity ratio (125.9%) is considered high.

Reducing Debt: GILD's debt to equity ratio has increased from 78.2% to 125.9% over the past 5 years.

Debt Coverage: GILD's debt is well covered by operating cash flow (31.3%).

Interest Coverage: GILD's interest payments on its debt are well covered by EBIT (5.1x coverage).


Balance Sheet

Inventory Level: GILD has a low level of unsold assets or inventory.

Debt Coverage by Assets: GILD's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

What is Gilead Sciences's current dividend yield, its reliability and sustainability?

4.04%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Gilead Sciences before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years4.4%

Current dividend yield vs market & industry

Notable Dividend: GILD's dividend (4.04%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: GILD's dividend (4.04%) is in the top 25% of dividend payers in the US market (3.73%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, GILD has been paying a dividend for less than 10 years.

Growing Dividend: GILD'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%), GILD's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GILD's dividends in 3 years are forecast to be well covered by earnings (46.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure


CEO

Dan O'Day (55yo)

0.9yrs

Tenure

0

Mr. Daniel 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. since M ...


Leadership Team

NamePositionTenureCompensationOwnership
Robin Washington
0yrsUS$6.34m0.011% $9.4m
Daniel O'Day
Chairman & CEO0.9yrsno data0.0015% $1.3m
Andrew Dickinson
CFO and Executive VP of Corporate Development & Strategy0.3yrsno data0.00084% $715.7k
Diane Wilfong
Senior VP4yrsno data0.00084% $715.7k
Brett Pletcher
Executive VP of Corporate Affairs4.6yrsno data0.0019% $1.7m
Jyoti Mehra
Executive Vice President of Human Resources0.5yrsno datano data
William Lee
Executive Vice President of Research19.3yrsUS$569.78kno data
Taiyin Yang
Executive Vice President of Pharmaceutical Development & Manufacturing14.6yrsno datano data
Diana Brainard
Senior Vice President of HIV & Emerging Viral Infections1.5yrsno datano data
Johanna Mercier
Executive VP & Chief Commercial Officer0.6yrsno datano data

1.5yrs

Average Tenure

56yo

Average Age

Experienced Management: GILD's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Daniel O'Day
Chairman & CEO0.9yrsno data0.0015% $1.3m
Per Wold-Olsen
Independent Director10.1yrsUS$449.96k0.0077% $6.6m
George Shultz
Board Advisor & Director Emeritus0yrsno datano data
Paul Berg
Member of Scientific Advisory Board0yrsUS$16.00kno data
Gayle Wilson
Independent Director18.3yrsUS$429.96k0.026% $22.0m
Eugene Schiff
Member of the Scientific Advisory Board0yrsno datano data
Paul Klotman
Member of the Scientific Advisory Board0yrsno datano data
John Cogan
Lead Independent Director6.8yrsUS$454.96k0.0043% $3.7m
Kelly Kramer
Independent Director3.5yrsUS$417.87k0.00011% $93.7k
Joel Huff
Chairperson of Scientific Advisory Board0yrsno datano data

6.8yrs

Average Tenure

72yo

Average Age

Experienced Board: GILD's board of directors are considered experienced (6.8 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: GILD
  • Exchange: NasdaqGS
  • Founded: 1987
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$85.208b
  • Shares outstanding: 1.27b
  • Website: https://www.gilead.com

Number of Employees


Location

  • Gilead Sciences, Inc.
  • 333 Lakeside Drive
  • Foster City
  • California
  • 94404
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GILDNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1992
GISXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1992
GILD *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1992
GISDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
GILDSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 1992
GILDSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1992
0QYQLSE (London Stock Exchange)YesCommon StockGBUSDJan 1992
GILDBIT (Borsa Italiana)YesCommon StockITEURJan 1992
GILDWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1992
GILD34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1/2 COM USD0.001BRBRLApr 2016
GILDBASE (Buenos Aires Stock Exchange)CEDEAR EACH 4 REP 1 COM USD0.001ARARSApr 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; 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.; Scholar Rock Holding Corporation; Tango Therapeutics; National Cancer Institute; Pfizer, Inc.; Sangamo Therapeutics, Inc.; Gadeta B.V.; HiFiBiO Therapeutics; Agenus Inc.; HOOKIPA Pharma Inc.; Goldfinch Bio, Inc.; insitro Inc.; Nurix Therapeutics, Inc.; Lyndra Therapeutics; Carna Biosciences Inc.; Kyverna Therapeutics, Inc.; and Glympse Bio, Inc., as well as the Chengdu Hi-tech Zone. The company was founded in 1987 and is headquartered in Foster City, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 00:12
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.