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Gilead Sciences

Nasdaq:GILD
Snowflake Description

Adequate balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GILD
Nasdaq
$82B
Market Cap
  1. Home
  2. US
  3. Pharmaceuticals & Biotech
Company description

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 last earnings update was 49 days ago. More info.


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GILD Share Price and Events
7 Day Returns
-2.3%
NasdaqGS:GILD
-2.8%
US Biotechs
0.4%
US Market
1 Year Returns
-14.5%
NasdaqGS:GILD
1.7%
US Biotechs
6.8%
US Market
GILD Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Gilead Sciences (GILD) -2.3% -1.7% -4.6% -14.5% -35.1% -11.4%
US Biotechs -2.8% -2.9% -0% 1.7% 5.7% 20.6%
US Market 0.4% 2.6% 11% 6.8% 38.1% 45.7%
1 Year Return vs Industry and Market
  • GILD underperformed the Biotechs industry which returned 1.7% over the past year.
  • GILD underperformed the Market in United States of America which returned 6.8% 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 25 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

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 2.7%
Equity Risk Premium S&P Global 6%
Biotechs Unlevered Beta Simply Wall St/ S&P Global 1.45
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.453 (1 + (1- 21%) (33.21%))
1.559
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.56
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.559 * 5.96%)
12.02%

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 try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:GILD DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 12.02%)
2019 8,744.75 Analyst x8 7,806.51
2020 8,990.25 Analyst x8 7,164.58
2021 8,928.67 Analyst x6 6,352.07
2022 8,995.33 Analyst x6 5,712.88
2023 9,417.50 Analyst x6 5,339.28
2024 9,592.56 Est @ 1.86% 4,855.02
2025 9,795.94 Est @ 2.12% 4,426.01
2026 10,021.56 Est @ 2.3% 4,042.14
2027 10,265.20 Est @ 2.43% 3,696.18
2028 10,523.97 Est @ 2.52% 3,382.78
Present value of next 10 years cash flows $52,777.44
NasdaqGS:GILD DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $10,523.97 × (1 + 2.73%) ÷ (12.02% – 2.73%)
$116,391.65
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $116,391.65 ÷ (1 + 12.02%)10
$37,412.46
NasdaqGS:GILD Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $52,777.44 + $37,412.46
$90,189.91
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $90,189.91 / 1,274.90
$70.74
NasdaqGS:GILD Discount to Share Price
Calculation Result
Value per share (USD) From above. $70.74
Current discount Discount to share price of $64.54
= -1 x ($64.54 - $70.74) / $70.74
8.8%

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

Current Discount
Amount off the current price Gilead Sciences is available for.
Intrinsic value
9%
Share price is $64.54 vs Future cash flow value of $70.74
Current Discount Checks
For Gilead Sciences to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Gilead Sciences's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Gilead Sciences's share price is below the future cash flow value, but not at a substantial discount (< 40%).
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 (2018-12-31) in USD $4.20
NasdaqGS:GILD Share Price ** NasdaqGS (2019-04-16) in USD $64.54
United States of America Biotechs Industry PE Ratio Median Figure of 35 Publicly-Listed Biotechs Companies 20.5x
United States of America Market PE Ratio Median Figure of 3,072 Publicly-Listed Companies 18.08x

* 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)

= 64.54 ÷ 4.20

15.36x

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

  • Gilead Sciences is good value based on earnings compared to the US Biotechs industry average.
  • Gilead Sciences is good value 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 15.36x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts
5.7%per year
United States of America Biotechs Industry PEG Ratio Median Figure of 28 Publicly-Listed Biotechs Companies 1.73x
United States of America Market PEG Ratio Median Figure of 2,107 Publicly-Listed Companies 1.56x

*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

= 15.36x ÷ 5.7%

2.68x

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 (2018-12-31) in USD $16.68
NasdaqGS:GILD Share Price * NasdaqGS (2019-04-16) in USD $64.54
United States of America Biotechs Industry PB Ratio Median Figure of 412 Publicly-Listed Biotechs Companies 3.33x
United States of America Market PB Ratio Median Figure of 5,176 Publicly-Listed Companies 1.91x
NasdaqGS:GILD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 64.54 ÷ 16.68

3.87x

* 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.
X
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 2/6, 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 25 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
5.7%
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 2.7%.
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 25 Analysts 5.7%
NasdaqGS:GILD Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 25 Analysts 0.7%
United States of America Biotechs Industry Earnings Growth Rate Market Cap Weighted Average 18.5%
United States of America Biotechs Industry Revenue Growth Rate Market Cap Weighted Average 15.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*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 (3 months ago) See Below
Future Estimates Average of up to 25 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
2023-12-31 22,655 10,043 7,715 11
2022-12-31 22,639 10,628 7,330 12
2021-12-31 22,478 10,475 7,446 15
2020-12-31 22,511 9,413 7,208 23
2019-12-31 21,845 9,048 6,604 25
NasdaqGS:GILD Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 22,127 8,400 5,455
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

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Gilead Sciences's earnings are expected to grow by 5.7% yearly, however this is not considered high growth (20% yearly).
  • Gilead Sciences's revenue is expected to grow by 0.7% 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 (3 months ago) See Below
Future Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below

All data from Gilead Sciences Company Filings, last reported 3 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
2023-12-31 6.45 10.51 4.62 6.00
2022-12-31 6.01 9.44 3.95 6.00
2021-12-31 5.96 8.14 4.82 7.00
2020-12-31 5.69 7.06 4.78 11.00
2019-12-31 5.14 5.51 4.74 13.00
NasdaqGS:GILD Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 4.20
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

*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 exceeds its 5-year average (17.9% vs -9.1%)
  • Gilead Sciences's earnings growth has not exceeded the US Biotechs industry average in the past year (17.9% vs 39.3%).
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 3 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
2018-12-31 22,127.00 5,455.00 4,056.00 4,198.00
2018-09-30 22,281.00 1,587.00 4,129.00 4,218.00
2018-06-30 23,197.00 2,208.00 4,060.00 4,068.00
2018-03-31 24,690.00 3,464.00 3,977.00 3,740.00
2017-12-31 26,107.00 4,628.00 3,878.00 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

*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.
  • Whilst Gilead Sciences has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • 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 1/6, 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 3 months ago.

NasdaqGS:GILD Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 21,534.00 27,322.00 30,711.00
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 25,510.00
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
  • Gilead Sciences's level of debt (126.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (56.4% vs 126.9% today).
  • Debt is well covered by operating cash flow (30.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.4x 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
3.9%
Current annual income from Gilead Sciences dividends. Estimated to be 4.24% next year.
If you bought $2,000 of Gilead Sciences shares you are expected to receive $78 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 (1.41%).
  • Gilead Sciences's dividend is above the markets top 25% of dividend payers in United States of America (3.63%).
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 25 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 2008 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

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
2023-12-31 3.35 2.00
2022-12-31 3.13 2.00
2021-12-31 2.82 6.00
2020-12-31 2.72 10.00
2019-12-31 2.52 11.00
NasdaqGS:GILD Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-04 2.520 3.837
2018-10-25 2.280 3.356
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 covered by earnings (1.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.5x 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 0.8%) - 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 4/6, 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
Dan O'Day
AGE 54
TENURE AS CEO 0.1 years
CEO Bio

Mr. Daniel O'Day, also known as Dan, has been the Chairman and Chief Executive Officer of Gilead Sciences, Inc. since March 01, 2019. Mr. O'Day was an Executive of Roche Holding AG since December 31, 2018 until February 2019. Mr. O'Day served as the Chief Executive Officer of Roche Pharmaceuticals at Roche Holding AG since June 3, 2016 until December 31, 2018. Mr. O'Day served as the Chief Operating Officer of Roche Pharma AG since September 1, 2012 until June 3, 2016. Mr. O'Day served as the Chief Operating Officer of Roche Diagnostics GmbH at Hoffmann-La Roche Ltd from 2010 to 2012. He has nearly three decades of operating expertise at Roche. He served as the Chief Executive Officer and President of Roche Molecular Diagnostics USA at Roche Carolina Inc. and Roche Holding AG from 2006 to 2010. He served as the Chief Executive Officer and President of Roche Diagnostics GmbH. Mr. O'Day was with Roche for more than 20 years, following positions of increasing responsibility in sales, marketing and human resources. He began his career in 1987 at Roche in the U.S. Pharmaceuticals organization in Sales and Marketing. Afterwards, he held various positions in Roche Pharma in Switzerland, Japan and Denmark. He served as Director of Human Resources at Roche Pharma U.S.A. since 1995. He served as Director of Product Marketing at Roche Pharma U.S.A. since 1996. He served as Business Unit Head of Arthritis and Respiratory, Roche Pharma Headquarters since 1998. He served as Lifecycle Leader Tamiflu, Roche Pharma Headquarters since 1999. He served as Head of Corporate Planning at Nippon Roche K.K. since 2001. In 2006, Mr. O'Day joined Roche Diagnostics and became Head of the Business Area Molecular Diagnostics. Since January 1 2010, he served as Chief Operating Officer for Roche's global diagnostics business. He worked 11 years managing international assignments that included life cycle leadership at Roche Pharmaceuticals in Basel, Switzerland; strategic planning and involvement in the Chugai merger in Tokyo, Japan; and prior to joining the molecular diagnostics unit, served as General Manager of Roche Pharmaceuticals in Denmark since 2003. He was a Director of Chugai Pharmaceutical Co. Ltd. since March 27, 2013 until February 2019. He has been a Director of Flatiron Health, Inc. since January 11, 2016 and Foundation Medicine, Inc. since April 2015. He served on the board of directors of Genentech USA, Inc. from August 2012 to December 2013 and Roche Diagnostics GmbH from January 2010 to November 2012. He serves as a Director of Genentech, Inc. since 2012, Shanghai Roche Pharmaceuticals Ltd., and California Life Sciences Association (also known as California Healthcare Institute). Mr. O'Day holds an BS in Biology from Georgetown University and a Master of Business Administration from Columbia University.

CEO Compensation
  • Insufficient data for Dan to compare compensation growth.
  • Insufficient data for Dan to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

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

3.2
Average Tenure
53.5
Average Age
  • The tenure for the Gilead Sciences management team is about average.
Management Team

Robin Washington

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

John McHutchison

TITLE
Chief Scientific Officer and Head of Research & Development
COMPENSATION
$7M
AGE
60

Gregg Alton

TITLE
Chief Patient Officer
COMPENSATION
$5M
AGE
52
TENURE
13.8 yrs

Laura Hamill

TITLE
Executive Vice President of Worldwide Commercial Operations
COMPENSATION
$10M
AGE
53
TENURE
0.7 yrs

Dan O'Day

TITLE
Chairman & CEO
AGE
54
TENURE
0.1 yrs

Sung Lee

TITLE
VP of Investor Relations
TENURE
2.8 yrs

Brett Pletcher

TITLE
Executive VP
AGE
50
TENURE
3.8 yrs

Andrew Dickinson

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

Katie Watson

TITLE
Executive Vice President of Human Resources
TENURE
3.2 yrs

Bill Lee

TITLE
Executive Vice President of Research
COMPENSATION
$570K
AGE
63
TENURE
18.4 yrs
Board of Directors Tenure

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

5.9
Average Tenure
71.5
Average Age
  • The tenure for the Gilead Sciences board of directors is about average.
Board of Directors

Dan O'Day

TITLE
Chairman & CEO
AGE
54
TENURE
0.1 yrs

Gayle Wilson

TITLE
Independent Director
COMPENSATION
$430K
AGE
75
TENURE
17.5 yrs

Rich Whitley

TITLE
Independent Director & Member of Independent Health Policy Advisory Board
COMPENSATION
$430K
AGE
72

Per Wold-Olsen

TITLE
Independent Director
COMPENSATION
$450K
AGE
71
TENURE
9.3 yrs

Joel Huff

TITLE
Chairperson of Scientific Advisory Board

Kelly Kramer

TITLE
Director
COMPENSATION
$418K
AGE
50
TENURE
2.7 yrs

John Cogan

TITLE
Lead Independent Director
COMPENSATION
$455K
AGE
71
TENURE
5.9 yrs

Paul Berg

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

George Shultz

TITLE
Board Advisor & Director Emeritus
AGE
97

Eugene Schiff

TITLE
Member of the Scientific Advisory Board
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 ($) Value ($)
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

Simply Wall St News

How Do Analysts See Gilead Sciences, Inc. (NASDAQ:GILD) Performing In The Year Ahead?

Based on Gilead Sciences, Inc.'s (NASDAQ:GILD) earnings update in December 2018,. … analyst consensus outlook appear cautiously optimistic, … the past 5-year average growth rate of -9.1%

Simply Wall St -

Gilead Sciences, Inc. (NASDAQ:GILD): What Are The Future Prospects?

Gilead Sciences, Inc.'s (NASDAQ:GILD) most recent earnings update in December 2018a … showed

Simply Wall St -

Why Gilead Sciences, Inc. (NASDAQ:GILD) Could Have A Place In Your Portfolio

Today I've chosen to put the spotlight on Gilead Sciences, Inc. … that has been able to sustain great financial health over the past … Below, I've touched on some key aspects you should know on a high level

Simply Wall St -

Gilead Sciences, Inc. (NASDAQ:GILD): 3 Days To Buy Before The Ex-Dividend Date

Investors who want to cash in on Gilead Sciences, Inc.'s (NASDAQ:GILD) upcoming dividend of US$0.63 per share have only 3 days left to buy the shares before its ex-dividend date, 14 March 2019, in time for dividends payable on the 28 March 2019. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Gilead Sciences's latest financial data to analyse its dividend characteristics. … If you are a dividend investor, you should always assess these five key metrics:?

Simply Wall St -

Did You Manage To Avoid Gilead Sciences's 26% Share Price Drop?

Unfortunately, that's been the case for longer term Gilead Sciences, Inc. … (NASDAQ:GILD) shareholders, since the share price is down 26% in the last three years, falling well short of the market return of around 51%. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Simply Wall St -

What Investors Should Know About Gilead Sciences, Inc.'s (NASDAQ:GILD) Financial Strength

the health of the financials determines whether the company continues to succeed. … Today we will look at Gilead Sciences’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Note that this information is centred entirely on financial health and is a high-level overview, so I encourage you to look further

Simply Wall St -

Calculating The Fair Value Of Gilead Sciences, Inc. (NASDAQ:GILD)

by estimating the company's future cash flows and discounting them to their present value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

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 -

GILD Company Info

Description

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.; Galapagos NV; Scholar Rock Holding Corporation; Tango Therapeutics; National Cancer Institute; Pfizer, Inc.; Sangamo Therapeutics, Inc.; Gadeta B.V.; HiFiBiO Therapeutics; and Agenus Inc. The company was founded in 1987 and is headquartered in Foster City, California.

Details
Name: Gilead Sciences, Inc.
GILD
Exchange: NasdaqGS
Founded: 1987
$82,281,787,840
1,274,896,000
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
BASE GILD CEDEAR EACH 4 REP 1 COM USD0.001 Buenos Aires Stock Exchange AR ARS 12. Apr 2019
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
11,000
Gilead Sciences employees.
Industry
Biotechnology
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/16 23:38
End of day share price update: 2019/04/16 00:00
Last estimates confirmation: 2019/04/15
Last earnings filing: 2019/02/26
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


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.