NasdaqGS:GILD

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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. More Details


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


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: GILD's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.1%

GILD

-3.4%

US Biotechs

-2.4%

US Market


1 Year Return

-8.0%

GILD

35.9%

US Biotechs

18.2%

US Market

Return vs Industry: GILD underperformed the US Biotechs industry which returned 39.3% over the past year.

Return vs Market: GILD underperformed the US Market which returned 19.5% over the past year.


Shareholder returns

GILDIndustryMarket
7 Day-6.1%-3.4%-2.4%
30 Day-6.9%0.7%4.2%
90 Day-20.6%-4.7%6.3%
1 Year-4.5%-8.0%38.3%35.9%20.9%18.2%
3 Year-16.1%-24.4%18.5%12.5%41.2%31.8%
5 Year-36.4%-45.4%17.2%8.9%84.8%63.9%

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?

40.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GILD ($60.57) is trading below our estimate of fair value ($101.5)

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


Price To Earnings Ratio

PE vs Industry: GILD is unprofitable, so we can't compare its PE Ratio to the US Biotechs industry average.

PE vs Market: GILD is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GILD's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GILD is overvalued based on its PB Ratio (4.2x) compared to the US Biotechs industry average (3.6x).


Next Steps

Future Growth

How is Gilead Sciences forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

23.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GILD is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: GILD is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GILD's is expected to become profitable in the next 3 years.

Revenue vs Market: GILD's revenue (1.1% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: GILD's revenue (1.1% 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 (26.3%)


Next Steps

Past Performance

How has Gilead Sciences performed over the past 5 years?

-38.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GILD is currently unprofitable.

Growing Profit Margin: GILD is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GILD is unprofitable, and losses have increased over the past 5 years at a rate of 38% per year.

Accelerating Growth: Unable to compare GILD's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GILD is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-3.2%).


Return on Equity

High ROE: GILD has a negative Return on Equity (-1.58%), as it is currently unprofitable.


Next Steps

Financial Health

How is Gilead Sciences's financial position?


Financial Position Analysis

Short Term Liabilities: GILD's short term assets ($24.6B) exceed its short term liabilities ($10.6B).

Long Term Liabilities: GILD's short term assets ($24.6B) do not cover its long term liabilities ($27.2B).


Debt to Equity History and Analysis

Debt Level: GILD's debt to equity ratio (128.9%) is considered high.

Reducing Debt: GILD's debt to equity ratio has increased from 74.9% to 128.9% over the past 5 years.

Debt Coverage: GILD's debt is well covered by operating cash flow (39.5%).

Interest Coverage: GILD is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

4.49%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GILD's dividend (4.49%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: GILD's dividend (4.49%) is low compared to the top 25% of dividend payers in the US market (4.66%).


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: GILD is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: GILD's dividends in 3 years are forecast to be well covered by earnings (45% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Dan O'Day (56 yo)

1.58yrs

Tenure

US$29,361,392

Compensation

Mr. Daniel P. O'Day, also known as Dan, serves as Member of Supervisory Board at Galapagos NV since April 28, 2020. He served as Non-Independent Director at Galapagos NV since October 22, 2019 until April ...


CEO Compensation Analysis

Compensation vs Market: Dan's total compensation ($USD29.36M) is above average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Insufficient data to compare Dan's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Daniel P. O'Day
Chairman & CEO1.58yrsUS$29.36m0.0038%
$ 2.9m
Andrew Dickinson
Executive VP & CFO0.92yrUS$9.62m0.0012%
$ 888.5k
Brett Pletcher
Executive VP of Corporate Affairs5.25yrsUS$5.03m0.0012%
$ 888.5k
Johanna Mercier
Chief Commercial Officer1.25yrsUS$8.05m0.00031%
$ 235.4k
Merdad Parsey
Chief Medical Officer0.92yrUS$3.12mno data
Diane Wilfong
Senior VP4.67yrsno data0.0011%
$ 812.5k
Jyoti Mehra
Executive Vice President of Human Resources1.17yrsno datano data
William Lee
Executive Vice President of Research19.92yrsUS$569.78kno data
Taiyin Yang
Executive Vice President of Pharmaceutical Development & Manufacturing15.25yrsno datano data
Diana Brainard
Senior Vice President of HIV & Emerging Viral Infections2.17yrsno datano data
John Sundy
Senior Vice President of Clinical Researchno datano datano data
Michael Quigley
Senior Vice President of Research Biology0.67yrno datano data

1.6yrs

Average Tenure

56.5yo

Average Age

Experienced Management: GILD's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Daniel P. O'Day
Chairman & CEO1.58yrsUS$29.36m0.0038%
$ 2.9m
Per Wold-Olsen
Independent Director10.75yrsUS$449.98k0.0080%
$ 6.1m
Paul Berg
Member of Scientific Advisory Boardno dataUS$16.00kno data
Jacqueline Barton
Independent Director2.67yrsUS$394.98k0.0011%
$ 835.3k
Eugene Schiff
Member of the Scientific Advisory Boardno datano datano data
Richard Whitley
Independent Director & Member of Independent Health Policy Advisory Boardno dataUS$429.98k0.0025%
$ 1.9m
John Mellors
Member of the Scientific Advisory Boardno datano datano data
Francis Chisari
Member of the Scientific Advisory Boardno datano datano data
Paul Klotman
Member of the Scientific Advisory Boardno datano datano data
Kevin Lofton
Lead Independent Director0.42yrUS$414.98k0.0071%
$ 5.4m
Kelly Kramer
Independent Director4.17yrsUS$414.98k0.00011%
$ 83.5k
Joel Huff
Chairperson of Scientific Advisory Boardno datano datano data

2.7yrs

Average Tenure

70yo

Average Age

Experienced Board: GILD's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


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$75.938b
  • Shares outstanding: 1.25b
  • 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 2 REP 1 COMBRBRLApr 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. T ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 00:17
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
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.