What Are the Fundamentals Of GILD?

Gilead Sciences logged a -1.7% change during today's morning session, and is now trading at a price of $82.13 per share.

Gilead Sciences shares moved 40.8% over the last 52 weeks, with a high of $89.74 and a low of $57.17. During this time, the stock outperformed the S&P 500 index by 41.0%. As of January 2022, the company's 50-day average price is $82.0. Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines in the areas of unmet medical need in the United States, Europe, and internationally. The large-cap Health Care company has 17,000 full time employees and is based in Foster City, CA. Gilead Sciences has not offered any dividends in the last year.

a Declining EPS Growth Trend with Reasonable Leverage Levels:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $22,449 $24,689 $27,305 $27,281
Revenue Growth n/a 9.98% 10.6% -0.09%
Gross Margins 79.2% 81.5% 75.8% 79.3%
Gross Margins Growth n/a 2.9% -6.99% 4.62%
Operating Margins 19.1% 40.2% 37.0% 40.2%
Operating Margins Growth n/a 110.47% -7.96% 8.65%
Net Margins 23.99% 0.5% 22.8% 16.83%
Net Margins Growth n/a -97.92% 4460.0% -26.18%
Earnings Per Share $4.22 $0.1 $4.93 $3.64
EPS Growth n/a -97.63% 4830.0% -26.17%
Diluted Shares (MM) 1,277 1,263 1,262 1,249
Free Cash Flow (MM) $8,319 $7,518 $11,384 $9,072
FCF Growth n/a -9.63% 51.42% -20.31%
Capital Expenditures (MM) -$825 -$650 -$579 -$728
Net Debt / EBITDA 1.71 6.1 1.88 2.23

Gilead Sciences Is Fairly Valued:

Compared to the Health Care sector's average of 24.45, Gilead Sciences has a trailing twelve month P/E ratio of 22.6 and, according to its EPS guidance of 7.25, an expected P/E ratio of 11.3. Gilead Sciences's PEG ratio is 1.97 based on its 11.4% compound average growth rate of historical and projected earnings per share. This suggests that the company's shares are overvalued.

Gilead Sciences's P/B ratio is 4.8 compared to its sector average of 4.16. The company is likely overvalued in terms of its net asset value. The company's shares are currently trading 133.8% above their fair value as expressed by Benjamin Graham's formula:

√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 3.22 * 17.033) = $35.13

Gilead Sciences's strong cash flow trend and reasonable levels of debt attenuate the company's lofty valuation in terms of earnings and assets.

Gilead Sciences Is the Subject of Mixed Market Indicators:

23 analysts are following Gilead Sciences and have set target prices ranging from $78.0 to $115.0 per share. On average, they have given the company a rating of buy. At the current price of $82.13, GILD is trading -9.49% away from its average analyst target price of $90.74 per share, implying an analyst consensus of some upside potential for the stock.

The company has a very low short interest since 1.4% of the company's shares are tied to short positions. Institutions own 86.0% of Gilead Sciences's shares, while the insider ownership rate stands at 0.1%. The biggest shareholder is Blackrock Inc. with a 11% stake in the company worth approximately $10,807,674,738.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.