Gilead Sciences, Inc. (GILD) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B above the industry

Gilead Sciences's price-to-book of 16.14 is above the Drugs median of 2.29.

Trading above fair value

The share price of $169.73 is above our fair value estimate of $84.13.

Margin of safety under 20%

The price is 102% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 2.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 23.0% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -148% over the last twelve months, against a 5-year average of 133% a year.

Growing slower than the industry

Revenue grew 6.5% over the last twelve months; the Drugs median is 8.0%.

Guidance lowered

Gilead Sciences lowered its full year 2026 Veklury outlook on Oct 29, 2026.

Gross margin improving

Gross margin was 79.9% over the last twelve months, against 78.7% a year earlier.

Return on equity under 15%

Return on equity was -22.3% over the last twelve months and averaged 24.4% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was -5.2%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Gilead Sciences's return on equity of -22.3% is above the Drugs median of -58.9%.

Earnings grew over 5 years

Net income grew 133% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was -12.5% over the last twelve months, against a 5-year average of 18.2%.

Net margin above the industry

Gilead Sciences's net margin of -12.5% is above the Drugs median of -53.0%.

High debt

Debt is 201% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 173% five years ago to 201%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 55.2% of total debt.

Interest not well covered

Operating income covers interest expense -2.3 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.38 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.93; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Gilead Sciences paid dividends worth 1.9% of the share price over the last twelve months.

Yield below Treasuries

The 1.9% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Gilead Sciences yields 1.9%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Covered by free cash flow

Dividends take 29.8% of free cash flow.