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

1.6%

NasdaqGS:GILD

3.3%

US Biotechs

2.9%

US Market


1 Year Return

-13.1%

NasdaqGS:GILD

-8.8%

US Biotechs

0.2%

US Market

GILD underperformed the Biotechs industry which returned -9.1% over the past year.

GILD underperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

GILDIndustryMarket
7 Day1.6%3.3%2.9%
30 Day-1.2%2.4%-2.3%
90 Day-4.5%3.4%3.1%
1 Year-10.0%-13.1%-8.1%-8.8%2.4%0.2%
3 Year-12.7%-20.3%12.0%8.2%41.7%32.4%
5 Year-33.1%-40.3%5.8%0.9%55.1%37.9%

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

26%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Gilead Sciences's share price is below the future cash flow value, and 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 Based on Earnings

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

Gilead Sciences is good value based on expected growth next year.


Price Based on Value of Assets

Gilead Sciences is overvalued based on assets compared to the US Biotechs industry average.


Next Steps

Future Growth

How is Gilead Sciences expected to perform in the next 1 to 3 years based on estimates from 23 analysts?

14.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Gilead Sciences's revenue is expected to grow by 1.8% yearly, however this is not considered high growth (20% yearly).

Gilead Sciences's earnings are expected to grow by 14.1% yearly, however this is not considered high growth (20% yearly).

Gilead Sciences's revenue growth is positive but not above the United States of America market average.

Gilead Sciences's earnings growth is expected to exceed the United States of America market average.

Gilead Sciences's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Gilead Sciences is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


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

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 (169.7% vs -20.4%)

Gilead Sciences's earnings growth has exceeded the US Biotechs industry average in the past year (169.7% vs 78.4%).


Return on Equity

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.


Return on Assets

Gilead Sciences used its assets less efficiently than the US Biotechs industry average last year based on Return on Assets.


Return on Capital Employed

Gilead Sciences's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Gilead Sciences's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Gilead Sciences's level of debt (114.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (57.8% vs 114.6% today).

Debt is well covered by operating cash flow (31.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 9x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.3x debt.


Next Steps

Dividend

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

4.34%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Gilead Sciences before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Gilead Sciences's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Gilead Sciences's dividend is above the markets top 25% of dividend payers in United States of America (3.85%).

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

Dividends paid are covered by earnings (1.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Dan O'Day (55yo)

0.4yrs

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

3.6yrs

Average Tenure

55.5yo

Average Age

The tenure for the Gilead Sciences management team is about average.


Board Age and Tenure

6.3yrs

Average Tenure

72.5yo

Average Age

The tenure for the Gilead Sciences board of directors is about average.


Insider Trading

Gilead Sciences individual insiders have only sold shares in the past 3 months, but not in substantial volumes.


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: 18.8yrs
    • Compensation: US$569.78k
  • Andrew Dickinson (49yo)

    Executive Vice President of Corporate Development & Strategy

    • Tenure: 1.2yrs
  • Robin Washington (56yo)

    CFO & Executive VP

    • Tenure: 11.3yrs
    • Compensation: US$6.34m
  • Taiyin Yang (65yo)

    Executive Vice President of Pharmaceutical Development & Manufacturing

    • Tenure: 14.1yrs
  • Dan O'Day (55yo)

    Chairman & CEO

    • Tenure: 0.4yrs
  • Brett Pletcher (51yo)

    Executive VP

    • Tenure: 4.1yrs
  • Katie Watson

    Executive Officer

    • Tenure: 0.0yrs
  • Sung Lee

    VP of Investor Relations

    • Tenure: 3.2yrs
  • Diana Brainard

    Senior Vice President of HIV & Emerging Viral Infections

    • Tenure: 1.0yrs
  • Jyoti Mehra

    Executive Vice President of Human Resources

    • Tenure: 0.0yrs

Board Members

  • Per Wold-Olsen (72yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: US$449.96k
  • George Shultz (98yo)

    Board Advisor & Director Emeritus

    • Tenure: 0.0yrs
  • Paul Berg (92yo)

    Member of Scientific Advisory Board

    • Tenure: 0.0yrs
    • Compensation: US$16.00k
  • Gayle Wilson (76yo)

    Independent Director

    • Tenure: 17.8yrs
    • Compensation: US$429.96k
  • Eugene Schiff

    Member of the Scientific Advisory Board

    • Tenure: 0.0yrs
  • Rich Whitley (73yo)

    Independent Director & Member of Independent Health Policy Advisory Board

    • Tenure: 0.0yrs
    • Compensation: US$429.96k
  • John Cogan (72yo)

    Lead Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$454.96k
  • Kelly Kramer (51yo)

    Director

    • Tenure: 3.0yrs
    • Compensation: US$417.87k
  • Dan O'Day (55yo)

    Chairman & CEO

    • Tenure: 0.4yrs
  • Joel Huff

    Chairperson of Scientific Advisory Board

    • Tenure: 0.0yrs

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$81.218b
  • 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 Analysis2019/08/21 23:37
End of Day Share Price2019/08/21 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.