Gilead Sciences, Inc.
Gilead Sciences, Inc. Fundamental Analysis
Gilead Sciences, Inc. (GIS.DE) shows strong financial fundamentals with a PE ratio of 20.25, profit margin of 28.90%, and ROE of 41.01%. The company generates $29.4B in annual revenue with moderate year-over-year growth of 6.04%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 69.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze GIS.DE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentGIS.DE demonstrates superior asset utilization.
Valuation Score
ModerateGIS.DE shows balanced valuation metrics.
Growth Score
ModerateGIS.DE shows steady but slowing expansion.
Financial Health Score
ModerateGIS.DE shows balanced financial health with some risks.
Profitability Score
ExcellentGIS.DE achieves industry-leading margins.
Key Financial Metrics
Is GIS.DE Expensive or Cheap?
P/E Ratio
GIS.DE trades at 20.25 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, GIS.DE's PEG of 3.39 indicates potential overvaluation.
Price to Book
The market values Gilead Sciences, Inc. at 7.62 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.37 times EBITDA. This signals the market has high growth expectations.
How Well Does GIS.DE Make Money?
Net Profit Margin
For every $100 in sales, Gilead Sciences, Inc. keeps $28.90 as profit after all expenses.
Operating Margin
Core operations generate 37.37 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $41.01 in profit for every $100 of shareholder equity.
ROA
Gilead Sciences, Inc. generates $14.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Gilead Sciences, Inc. generates strong operating cash flow of $10.01B, reflecting robust business health.
Free Cash Flow
Gilead Sciences, Inc. generates strong free cash flow of $9.45B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.61 in free cash annually.
FCF Yield
GIS.DE converts 5.49% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.25
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.39
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.62
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.85
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.15
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.68
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.41
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.23
vs 25 benchmark
How GIS.DE Stacks Against Its Sector Peers
| Metric | GIS.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.25 | 29.02 | Better (Cheaper) |
| ROE | 41.01% | 745.00% | Weak |
| Net Margin | 28.90% | -46183.00% (disorted) | Strong |
| Debt/Equity | 1.15 | 0.35 | Weak (High Leverage) |
| Current Ratio | 1.68 | 4.52 | Neutral |
| ROA | 14.42% | -17797.00% (disorted) | Strong |
GIS.DE outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Gilead Sciences, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
30.45%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-90.92%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
20.60%
Industry Style: Defensive, Growth, Innovation
High Growth