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Gilead Sciences

Nasdaq:GILD
Snowflake Description

Adequate balance sheet with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GILD
Nasdaq
$85B
Market Cap
  1. Home
  2. US
  3. Pharmaceuticals & Biotech
Company description

Gilead Sciences, Inc. discovers, develops, and commercializes therapeutics in the areas of unmet medical needs in the United States, Europe, and internationally. The last earnings update was 41 days ago. More info.


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GILD Share Price and Events
7 Day Returns
-3.5%
NasdaqGS:GILD
-1.7%
US Biotechs
-1.5%
US Market
1 Year Returns
-13.3%
NasdaqGS:GILD
-7.7%
US Biotechs
-4.2%
US Market
GILD Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Gilead Sciences (GILD) -3.5% -5.9% -11.6% -13.3% -36.5% -13.2%
US Biotechs -1.7% -2.9% -12.7% -7.7% -14.8% 17.7%
US Market -1.5% -5.2% -11.2% -4.2% 27.3% 35.3%
1 Year Return vs Industry and Market
  • GILD underperformed the Biotechs industry which returned -7.7% over the past year.
  • GILD underperformed the Market in United States of America which returned -4.2% over the past year.
Price Volatility
GILD
Industry
5yr Volatility vs Market

GILD Value

 Is Gilead Sciences undervalued based on future cash flows and its price relative to the stock market?

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Gilead Sciences.

NasdaqGS:GILD Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 23 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 14.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:GILD
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Biotechs Unlevered Beta Simply Wall St/ S&P Global 1.35
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.346 (1 + (1- 21%) (32.2%))
1.688
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.69
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.688 * 7.05%)
14.85%

Discounted Cash Flow Calculation for NasdaqGS:GILD 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 use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:GILD DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 9,179.13 9,506.17 9,332.00 9,499.67 10,368.35
Source Analyst x8 Analyst x6 Analyst x6 Analyst x6 Est @ 9.14%
Present Value
Discounted (@ 14.85%)
7,992.31 7,206.89 6,160.11 5,460.01 5,188.79
Present value of next 5 years cash flows $32,008.10
NasdaqGS:GILD DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $10,368.35 × (1 + 2.95%) ÷ (14.85% – 2.95%)
$89,703.71
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $89,703.71 ÷ (1 + 14.85%)5
$44,891.73
NasdaqGS:GILD Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $32,008.10 + $44,891.73
$76,899.84
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $76,899.84 / 1,293.62
$59.45
NasdaqGS:GILD Discount to Share Price
Calculation Result
Value per share (USD) From above. $59.45
Current discount Discount to share price of $65.12
= -1 x ($65.12 - $59.45) / $59.45
-9.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Gilead Sciences is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
NasdaqGS:GILD PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in USD $1.22
NasdaqGS:GILD Share Price ** NasdaqGS (2018-12-17) in USD $65.12
United States of America Biotechs Industry PE Ratio Median Figure of 32 Publicly-Listed Biotechs Companies 24.92x
United States of America Market PE Ratio Median Figure of 3,017 Publicly-Listed Companies 16.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Gilead Sciences.

NasdaqGS:GILD PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:GILD Share Price ÷ EPS (both in USD)

= 65.12 ÷ 1.22

53.48x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Gilead Sciences is overvalued based on earnings compared to the US Biotechs industry average.
  • Gilead Sciences is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Gilead Sciences's expected growth come at a high price?
Raw Data
NasdaqGS:GILD PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 53.48x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 23 Analysts
8.2%per year
United States of America Biotechs Industry PEG Ratio Median Figure of 26 Publicly-Listed Biotechs Companies 1.84x
United States of America Market PEG Ratio Median Figure of 2,105 Publicly-Listed Companies 1.16x

*Line of best fit is calculated by linear regression .

NasdaqGS:GILD PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 53.48x ÷ 8.2%

6.48x

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?
Raw Data
NasdaqGS:GILD PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in USD $17.67
NasdaqGS:GILD Share Price * NasdaqGS (2018-12-17) in USD $65.12
United States of America Biotechs Industry PB Ratio Median Figure of 398 Publicly-Listed Biotechs Companies 3.13x
United States of America Market PB Ratio Median Figure of 5,082 Publicly-Listed Companies 1.7x
NasdaqGS:GILD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:GILD Share Price ÷ Book Value per Share (both in USD)

= 65.12 ÷ 17.67

3.69x

* 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 US Biotechs industry average.
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Value checks
We assess Gilead Sciences's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Biotechs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Biotechs industry average (and greater than 0)? (1 check)
  5. Gilead Sciences has a total score of 0/6, 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.

GILD Future Performance

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

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!
Annual Growth Rate
8.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Gilead Sciences expected to grow at an attractive rate?
  • Gilead Sciences's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
  • Gilead Sciences's earnings growth is positive but not above the United States of America market average.
  • Gilead Sciences's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:GILD Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:GILD Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 23 Analysts 8.2%
NasdaqGS:GILD Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 23 Analysts 2.2%
United States of America Biotechs Industry Earnings Growth Rate Market Cap Weighted Average 21.8%
United States of America Biotechs Industry Revenue Growth Rate Market Cap Weighted Average 15.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*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
Raw Data
NasdaqGS:GILD Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 23 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:GILD Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 23,758 9,475 8,670 9
2021-12-31 22,965 9,428 8,445 10
2020-12-31 22,196 9,312 7,803 16
2019-12-31 21,595 9,059 7,316 23
2018-12-31 21,740 9,962 7,135 23
NasdaqGS:GILD Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
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
2015-12-31 32,639 21,250 18,108

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Gilead Sciences's earnings are expected to grow by 8.2% yearly, however this is not considered high growth (20% yearly).
  • Gilead Sciences's revenue is expected to grow by 2.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:GILD Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 23 Analyst Estimates (S&P Global) See Below

All data from Gilead Sciences Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:GILD Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 6.12 6.99 5.44 4.00
2021-12-31 6.71 9.53 5.36 5.00
2020-12-31 6.17 8.36 5.25 7.00
2019-12-31 5.66 6.57 5.00 11.00
2018-12-31 5.50 5.83 5.35 11.00
NasdaqGS:GILD Past Financials Data
Date (Data in USD Millions) EPS *
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
2015-12-31 12.37

*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%).
X
Future performance checks
We assess Gilead Sciences's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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.

GILD 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
Below we compare Gilead Sciences's growth in the last year to its industry (Biotechs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 is negative, it can't be compared to the 5-year average.
  • Gilead Sciences's 1-year earnings growth is negative, it can't be compared to the US Biotechs industry average.
Earnings and Revenue History
Gilead Sciences's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Gilead Sciences Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:GILD Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 22,281.00 1,587.00 3,891.00 4,218.00
2018-06-30 23,197.00 2,208.00 3,822.00 4,068.00
2018-03-31 24,690.00 3,464.00 3,739.00 3,740.00
2017-12-31 26,107.00 4,628.00 3,592.00 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
2012-03-31 8,741.74 2,594.45 1,263.08 1,332.82
2011-12-31 8,385.39 2,803.64 1,213.52 1,229.15

*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.
  • Gilead Sciences has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Gilead Sciences used its assets less efficiently than the US 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).
X
Past performance checks
We assess Gilead Sciences's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Biotechs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Gilead Sciences has a total score of 0/6, 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.

GILD 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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Gilead Sciences's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from Gilead Sciences Company Filings, last reported 2 months ago.

NasdaqGS:GILD Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
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 26,145.00
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
2012-03-31 7,364.08 9,427.25 1,451.94
2011-12-31 6,867.35 7,605.73 9,900.27
  • Gilead Sciences's level of debt (118.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (65.2% vs 118.7% today).
  • Debt is well covered by operating cash flow (32.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.6x coverage).
X
Financial health checks
We assess Gilead Sciences's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Gilead Sciences has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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.

GILD 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
Dividend payments
3.5%
Current annual income from Gilead Sciences dividends. Estimated to be 3.83% next year.
If you bought $2,000 of Gilead Sciences shares you are expected to receive $70 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Gilead Sciences's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).
  • Gilead Sciences's dividend is below the markets top 25% of dividend payers in United States of America (3.77%).
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.
Raw Data
NasdaqGS:GILD Annualized Past and Future Dividends
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 23 Analyst Estimates (S&P Global) See Below
Global Biotechs Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 2.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1983 Stocks 2.6%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.9%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:GILD Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 2.94 2.00
2021-12-31 2.77 2.00
2020-12-31 2.63 7.00
2019-12-31 2.47 11.00
2018-12-31 2.29 11.00
NasdaqGS:GILD Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-10-25 2.280 3.293
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 not well covered by earnings (0.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).
X
Income/ dividend checks
We assess Gilead Sciences's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. Gilead Sciences has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

GILD Management

 What is the CEO of Gilead Sciences's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Milligan
COMPENSATION $15,438,459
AGE 57
TENURE AS CEO 2.8 years
CEO Bio

Dr. John F. Milligan, Ph.D., has been the President of Pharmasset, Inc. since January 17, 2012. Dr. Milligan has been the Chief Executive Officer at Gilead Sciences, Inc. since March 10, 2016 and has been its President since May 2008. He was appointed as the Chief Operating Officer at Gilead Sciences, Inc. from March 09, 2007 to March 10, 2016. Dr. Milligan serves as the Chief Financial Officer of Gilead Sciences, Inc. since March 2002 and its Executive Vice President since July 2003, Principal Accounting Officer until May 2008 and Senior Vice President from March 2002 to July 2003. He joined Gilead Sciences in 1990 as a Research Scientist. He is the President of Gilead Sciences and Chief Operating Officer of Gilead Sciences at Gilead Palo Alto, Inc. Since 1996, he was made Director of Project Management and Project Team Leader for Gilead and Hoffmann-La Roche collaboration on Tamiflu®. In 1998, he transitioned to Corporate Development of Gilead and since March 2000, he served as its Vice President Corporate Development with responsibility for licensing, corporate partnerships and mergers and acquisitions. He was named Bay Area Chief Financial Officer of the Year in 2006 for companies with revenues greater than $500 million. He has been a Director of Gilead Sciences, Inc. since January 2016. He has been a Director of Pharmasset, Inc. since January 17, 2012 and Pacific Biosciences of California, Inc. since July 18, 2013. He was named the top biotechnology industry Chief Financial Officer in the United States by Institutional Investor magazine in 2007 and 2006. He was an American Cancer Society Postdoctoral Fellow at the University of California at San Francisco. Dr. Milligan is a Trustee of Ohio Wesleyan University. Dr. Milligan received his BA from Ohio Wesleyan University, his PhD in biochemistry from the University of Illinois.

CEO Compensation
  • John's compensation has been consistent with company performance over the past year.
  • John's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Gilead Sciences management team in years:

2.8
Average Tenure
56
Average Age
  • The tenure for the Gilead Sciences management team is about average.
Management Team

John Milligan

TITLE
CEO, President & Director
COMPENSATION
$15M
AGE
57
TENURE
2.8 yrs

Robin Washington

TITLE
CFO & Executive VP
COMPENSATION
$6M
AGE
55
TENURE
10.6 yrs

Kevin Young

TITLE
Advisory
COMPENSATION
$6M
AGE
60
TENURE
0.9 yrs

John McHutchison

TITLE
Executive VP of Research
TENURE
0.7 yrs

Sung Lee

TITLE
VP of Investor Relations
TENURE
2.5 yrs

Brett Pletcher

TITLE
Executive VP
TENURE
3.4 yrs

Andrew Dickinson

TITLE
Executive Vice President of Corporate Development & Strategy
AGE
48
TENURE
0.5 yrs

Katie Watson

TITLE
Executive Vice President of Human Resources
TENURE
2.8 yrs

Bill Lee

TITLE
Executive Vice President of Research
COMPENSATION
$570K
AGE
63
TENURE
18.1 yrs

Gregg Alton

TITLE
Chief Patient Officer
COMPENSATION
$5M
AGE
52
TENURE
13.4 yrs
Board of Directors Tenure

Average tenure and age of the Gilead Sciences board of directors in years:

7.3
Average Tenure
71
Average Age
  • The tenure for the Gilead Sciences board of directors is about average.
Board of Directors

John Martin

TITLE
Chairman of the Board
COMPENSATION
$7M
AGE
66
TENURE
2.8 yrs

John Milligan

TITLE
CEO, President & Director
COMPENSATION
$15M
AGE
57
TENURE
2.9 yrs

Gayle Wilson

TITLE
Independent Director
COMPENSATION
$431K
AGE
75
TENURE
17.2 yrs

Rich Whitley

TITLE
Independent Director & Member of Independent Health Policy Advisory Board
COMPENSATION
$431K
AGE
72
TENURE
10.4 yrs

Per Wold-Olsen

TITLE
Independent Director
COMPENSATION
$451K
AGE
71
TENURE
8.9 yrs

Joel Huff

TITLE
Chairperson of Scientific Advisory Board

Kelly Kramer

TITLE
Director
COMPENSATION
$396K
AGE
50
TENURE
2.3 yrs

John Cogan

TITLE
Lead Independent Director
COMPENSATION
$456K
AGE
71
TENURE
5.6 yrs

Paul Berg

TITLE
Member of Scientific Advisory Board
COMPENSATION
$16K
AGE
91

George Shultz

TITLE
Advisor & Director Emeritus
AGE
97
TENURE
12.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
02. Mar 18 Sell Robin Washington Individual 28. Feb 18 28. Feb 18 -5,000 $80.31 $-401,566
21. Feb 18 Sell Gregg Alton Individual 20. Feb 18 20. Feb 18 -14,435 $81.54 $-1,176,992
X
Management checks
We assess Gilead Sciences's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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.

GILD News

External News
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Simply Wall St News

Should You Be Worried About Insider Transactions At Gilead Sciences, Inc. (NASDAQ:GILD)?

That means that an insider was selling shares at around the current price of US$67.72. … We usually pause to reflect on the potential that a stock has a high valuation, if insiders have been selling at around the current price. … All up, insiders sold more shares in Gilead Sciences than they bought, over the last year

Simply Wall St -

Does Gilead Sciences Inc's (NASDAQ:GILD) CEO Pay Reflect Performance?

First, this article will compare CEO compensation with compensation at other large companies. … How Does John Milligan's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Gilead Sciences Inc has a market cap of US$86b, and is paying total annual CEO compensation of US$15m.

Simply Wall St -

How Much Of Gilead Sciences Inc (NASDAQ:GILD) Do Institutions Own?

The big shareholder groups in Gilead Sciences Inc (NASDAQ:GILD) have power over the company. … Gilead Sciences is a pretty big company. … Taking a look at the our data on the ownership groups (below), it's seems that.

Simply Wall St -

A Look At The Intrinsic Value Of Gilead Sciences Inc (NASDAQ:GILD)

I am going to run you through how I calculated the intrinsic value of Gilead Sciences Inc (NASDAQ:GILD). … by taking the expected future cash flows and discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

With An ROE Of 10.3%, Can Gilead Sciences Inc (NASDAQ:GILD) Catch Up To The Industry?

and want to learn about Return on Equity using a real-life example. … Gilead Sciences Inc’s (NASDAQ:GILD) most recent return on equity was a substandard 10.3% relative to its industry performance of 18.1% over the past year. … See our latest analysis for Gilead Sciences

Simply Wall St -

Does Gilead Sciences Inc's (NASDAQ:GILD) CEO Salary Reflect Performance?

Understanding how CEOs are incentivised to run and grow their company is an important aspect of investing in a stock. … Incentives can be in the form of compensation, which should always be structured in a way that promotes value-creation to shareholders. … CEOs leading companies of similar size and profitability

Simply Wall St -

What You Must Know About Gilead Sciences Inc's (NASDAQ:GILD) Major Investors

In this article, I will take a quick look at Gilead Sciences Inc’s (NASDAQ:GILD) recent ownership structure – an unconventional investing subject, but an important one. … When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. … The effect of an active institutional investor with a similar ownership as a passive pension-fund can be vastly different on a company's corporate governance and accountability to shareholders.

Simply Wall St -

What Should You Know About Gilead Sciences Inc's (NASDAQ:GILD) Future?

In March 2018, Gilead Sciences Inc (NASDAQ:GILD) released its most recent earnings update. … the consensus outlook from analysts appear highly confident, … as a 90.49% rise in profits is expected in the upcoming year,

Simply Wall St -

Gilead Sciences Inc (NASDAQ:GILD): Can Growth Justify Its June Share Price?

Gilead Sciences Inc (NASDAQ:GILD) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of $68.64 is based on unrealistic expectations. … What can we expect from Gilead Sciences in the future. … Investors in Gilead Sciences have been patiently waiting for the uptick in earnings.

Simply Wall St -

What Is Driving Gilead Sciences Inc's (NASDAQ:GILD) Margins In The Years Ahead?

Gilead Sciences Inc (NASDAQ:GILD) to … earnings growth of 12.25% annualised … over the couple of years ahead,

Simply Wall St -

GILD Company Info

Map
Description

Gilead Sciences, Inc. discovers, develops, and commercializes therapeutics 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, Truvada, Viread, Emtriva, and Tybost for the treatment of human immunodeficiency virus (HIV) infection in adults; and Vosevi, Vemlidy, Epclusa, Harvoni, Sovaldi, Viread, and Hepsera 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 PI3K delta inhibitor for certain blood cancers; Letairis, an oral formulation of an endothelin receptor antagonist for pulmonary arterial hypertension; Ranexa, a tablet to treat chronic angina; and Lexiscan, an injection for use as a pharmacologic stress agent in radionuclide myocardial perfusion imaging. In addition, the company offers Cayston, an inhaled antibiotic for the treatment of respiratory systems in cystic fibrosis patients; Tamiflu, an oral antiviral capsule for the treatment and prevention of influenza A and B; AmBisome, an antifungal agent to treat serious invasive fungal infections; and Macugen, an anti-angiogenic oligonucleotide to treat neovascular age-related macular degeneration. Further, it has product candidates in various stages of development 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; Tango Therapeutics, Inc.; AELIX Therapeutics S.L.; and TARGET PharmaSolutions, Inc. The company was founded in 1987 and is headquartered in Foster City, California.

Details
Name: Gilead Sciences, Inc.
GILD
Exchange: NasdaqGS
Founded: 1987
$84,822,637,958
1,293,619,612
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
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
Staff numbers
10,000
Gilead Sciences employees.
Industry
Biotechnology
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/12/17 23:36
End of day share price update: 2018/12/17 00:00
Last estimates confirmation: 2018/12/14
Last earnings filing: 2018/11/06
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


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.