NasdaqGS:GILD

Stock Analysis Report

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Market Cap

US$83.5b

Last Updated

2021/06/20 22:01 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 need in the United States, Europe, and internationally. More Details


Snowflake Analysis

Adequate balance sheet second-rate dividend payer.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: GILD's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-3.1%

GILD

-3.2%

US Biotechs

-1.9%

US Market


1 Year Return

-14.0%

GILD

18.9%

US Biotechs

38.2%

US Market

Return vs Industry: GILD underperformed the US Biotechs industry which returned 18.9% over the past year.

Return vs Market: GILD underperformed the US Market which returned 38.2% over the past year.


Shareholder returns

GILDIndustryMarket
7 Day-3.1%-3.2%-1.9%
30 Day-3.1%2.9%1.0%
90 Day1.6%0.3%3.8%
1 Year-10.2%-14.0%20.6%18.9%40.4%38.2%
3 Year5.2%-6.3%9.2%4.7%57.5%47.8%
5 Year-1.7%-17.2%60.4%47.8%127.2%101.7%

Long-Term 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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GILD ($66.61) is trading below our estimate of fair value ($139.35)

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


Price To Earnings Ratio

PE vs Industry: GILD is poor value based on its PE Ratio (277.8x) compared to the US Biotechs industry average (23.6x).

PE vs Market: GILD is poor value based on its PE Ratio (277.8x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: GILD is poor value based on its PEG Ratio (30.2x)


Price to Book Ratio

PB vs Industry: GILD is overvalued based on its PB Ratio (4.4x) compared to the US Biotechs industry average (3.4x).


Future Growth

How is Gilead Sciences forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GILD's forecast earnings growth (9.2% per year) is above the savings rate (2%).

Earnings vs Market: GILD's earnings (9.2% per year) are forecast to grow slower than the US market (15.7% per year).

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

Revenue vs Market: GILD's revenue (1.2% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: GILD's revenue (1.2% 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 (28%)


Past Performance

How has Gilead Sciences performed over the past 5 years?

-47.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GILD has a large one-off loss of $8.9B impacting its March 31 2021 financial results.

Growing Profit Margin: GILD's current net profit margins (1.2%) are lower than last year (21.8%).


Past Earnings Growth Analysis

Earnings Trend: GILD's earnings have declined by 47.9% 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 (-93.9%) over the past year, making it difficult to compare to the Biotechs industry average (-7.7%).


Return on Equity

High ROE: GILD's Return on Equity (1.4%) is considered low.


Financial Health

How is Gilead Sciences's financial position?


Financial Position Analysis

Short Term Liabilities: GILD's short term assets ($13.3B) exceed its short term liabilities ($9.7B).

Long Term Liabilities: GILD's short term assets ($13.3B) do not cover its long term liabilities ($38.8B).


Debt to Equity History and Analysis

Debt Level: GILD's debt to equity ratio (155.3%) is considered high.

Reducing Debt: GILD's debt to equity ratio has reduced from 156.9% to 155.3% over the past 5 years.

Debt Coverage: GILD's debt is well covered by operating cash flow (31.7%).

Interest Coverage: GILD's interest payments on its debt are well covered by EBIT (11.7x coverage).


Balance Sheet


Dividend

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

4.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GILD's dividend (4.26%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: GILD's dividend (4.26%) is in the top 25% of dividend payers in the US market (3.49%)


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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (1147.1%), GILD's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GILD's dividends in 3 years are forecast to be well covered by earnings (44.1% payout ratio).


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Dan O'Day (56 yo)

2.25yrs

Tenure

US$18,998,095

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Dan's total compensation ($USD19.00M) is above average for companies of similar size in the US market ($USD11.31M).

Compensation vs Earnings: Dan's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: GILD's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: GILD's board of directors are not considered experienced ( 2.3 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: GILD insiders have only sold shares 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$83.541b
  • 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


Biography

Gilead Sciences, Inc., a research-based biopharmaceutical company, discovers, develops, and commercializes medicines in the areas of unmet medical need in the United States, Europe, and internationally. Th...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/20 22:01
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.