NasdaqGS:GILD

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Good value with adequate balance sheet and pays a dividend.


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


Market Performance


7 Day Return

2.0%

GILD

0.8%

US Biotechs

1.0%

US Market


1 Year Return

-12.1%

GILD

-8.3%

US Biotechs

6.7%

US Market

Return vs Industry: GILD underperformed the US Biotechs industry which returned -8.3% over the past year.

Return vs Market: GILD underperformed the US Market which returned 6.7% over the past year.


Share holder returns

GILDIndustryMarket
7 Day2.0%0.8%1.0%
30 Day-3.8%-3.9%-1.8%
90 Day-4.4%-3.5%-1.8%
1 Year-8.8%-12.1%-7.5%-8.3%9.1%6.7%
3 Year-3.2%-11.9%13.6%9.6%46.1%36.6%
5 Year-29.2%-37.4%3.3%-1.7%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

27%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: GILD ($63.99) is trading below our estimate of fair value ($87.32)

Significantly Undervalued: GILD is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: GILD is good value based on its PE Ratio (13.8x) compared to the Biotechs industry average (17.2x).

PE vs Market: GILD is good value based on its PE Ratio (13.8x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: GILD is good value based on its PEG Ratio (1x)


Price Based on Value of Assets

PB vs Industry: GILD is overvalued based on its PB Ratio (3.6x) compared to the US Biotechs industry average (2.5x).


Next Steps

Future Growth

How is Gilead Sciences expected to perform in the next 1 to 3 years based on estimates from 24 analysts?

14.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: GILD's forecast earnings growth (14.2% per year) is above the savings rate (2.7%).

Earnings vs Market: GILD's earnings (14.2% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: GILD's revenue (1.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: GILD's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if GILD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Gilead Sciences performed over the past 5 years?

-20.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GILD's earnings have declined by -20.4% per year over the past 5 years.

Accelerating Growth: GILD's earnings growth over the past year (169.7%) exceeds its 5-year average (-20.4% per year).

Earnings vs Industry: GILD earnings growth over the past year (169.7%) exceeded the Biotechs industry 78.4%.


Return on Equity

High ROE: Whilst GILD's Return on Equity (26.13%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: GILD's Return on Assets is below or equal to the Biotechs industry average last year.


Return on Capital Employed

ROCE Improving: GILD's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Gilead Sciences's financial position?


Financial Position Analysis

Short Term Liabilities: GILD's short term assets ($33.7B) exceeds its short term liabilities ($9.0B)

Long Term Liabilities: GILD's short term assets (33.7B) exceeds its long term liabilities (31.5B)


Debt to Equity History and Analysis

Debt Level: GILD's debt to equity ratio (114.6%) is considered high

Reducing Debt: GILD's debt to equity ratio has increased from 57.8% to 114.6% over the past 5 years.

Debt Coverage: GILD's debt is well covered by operating cash flow (31.5%).

Interest Coverage: GILD's interest payments on its debt are well covered by EBIT (9x coverage).


Balance Sheet

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

Debt Coverage by Assets: GILD's debt is covered by short term assets (assets are 1.293060x debt).


Next Steps

Dividend

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

4.34%

Expected Dividend Yield


Dividend Yield vs Market

company3.9%marketbottom25%1.5%markettop25%3.8%industryaverage1.0%forecastin3Years4.3%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: GILD's dividend (3.94%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: GILD's dividend (3.94%) is in the top 25% of dividend payers in the US market (3.77%)

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 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.7%), GILD's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GILD's dividends in 3 years are forecast to be well covered by earnings (40.4% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Dan O'Day (55yo)

0.6yrs

Tenure

0

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  ...


Management Age and Tenure

2.3yrs

Average Tenure

55.5yo

Average Age

Experienced Management: GILD's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

6.4yrs

Average Tenure

72.5yo

Average Age

Experienced Board: GILD's board of directors are considered experienced (6.4 years average tenure).


Insider Trading

Insider Buying: GILD insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$39,12320 Aug 19
Brett Pletcher
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares608
Max PriceUS$64.35

Ownership Breakdown


Management Team

  • Bill Lee (64yo)

    Executive Vice President of Research

    • Tenure: 18.9yrs
    • Compensation: US$569.78k
  • Andrew Dickinson (49yo)

    Executive Vice President of Corporate Development & Strategy

    • Tenure: 1.3yrs
  • Robin Washington (56yo)

    CFO & Executive VP

    • Tenure: 11.4yrs
    • Compensation: US$6.34m
  • Taiyin Yang (65yo)

    Executive Vice President of Pharmaceutical Development & Manufacturing

    • Tenure: 14.3yrs
  • Dan O'Day (55yo)

    Chairman & CEO

    • Tenure: 0.6yrs
  • Brett Pletcher (51yo)

    Executive VP

    • Tenure: 4.3yrs
  • Johanna Mercier

    Executive VP & Chief Commercial Officer

    • Tenure: 0.3yrs
  • Sung Lee

    VP of Investor Relations

    • Tenure: 3.3yrs
  • Diana Brainard

    Senior Vice President of HIV & Emerging Viral Infections

    • Tenure: 1.2yrs
  • Jyoti Mehra

    Executive Vice President of Human Resources

    • Tenure: 0.2yrs

Board Members

  • Per Wold-Olsen (72yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$449.96k
  • George Shultz (98yo)

    Board Advisor & Director Emeritus

    • Tenure: 0yrs
  • Paul Berg (92yo)

    Member of Scientific Advisory Board

    • Tenure: 0yrs
    • Compensation: US$16.00k
  • Gayle Wilson (76yo)

    Independent Director

    • Tenure: 18yrs
    • Compensation: US$429.96k
  • Eugene Schiff

    Member of the Scientific Advisory Board

    • Tenure: 0yrs
  • Rich Whitley (73yo)

    Independent Director & Member of Independent Health Policy Advisory Board

    • Tenure: 0yrs
    • Compensation: US$429.96k
  • John Cogan (72yo)

    Lead Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$454.96k
  • Kelly Kramer (51yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$417.87k
  • Dan O'Day (55yo)

    Chairman & CEO

    • Tenure: 0.6yrs
  • Joel Huff

    Chairperson of Scientific Advisory Board

    • Tenure: 0yrs

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$81.040b
  • Shares outstanding: 1.27b
  • Website: https://www.gilead.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GILDSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1992
GILDNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1992
GILD *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1992
GISDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
GILDSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 1992
GISXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1992
0QYQLSE (London Stock Exchange)YesCommon StockGBUSDJan 1992
GILDWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1992
GILDBIT (Borsa Italiana)YesCommon StockITEURJan 1992
GILD34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1/2 COM USD0.001BRBRLApr 2016
GILDBASE (Buenos Aires Stock Exchange)CEDEAR EACH 4 REP 1 COM USD0.001ARARSApr 2019

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:23
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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