Gilead Sciences Inc GILD

Morningstar Rating
$151.17 +4.07 (2.77%)
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Company Report

Gilead's Steady Long-Term Growth Prospects in HIV and Expansion in Oncology Support a Wide Moat

Gilead Sciences generates stellar profit margins with its HIV and hepatitis C virus, or HCV, portfolio, which requires only a small salesforce and inexpensive manufacturing. We think its portfolio and pipeline support a wide moat, but Gilead needs strong continued innovation in HIV, solid oncology launches, and smart future acquisitions to guarantee mid-single-digit growth over our 10-year forecast.

Price vs Fair Value

GILD is trading at a LOCK|$njfS$ premium.
Price
$151.17
Fair Value
LOCK|Z$
Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Gilead markets several single-tablet regimens for HIV, and its next-generation products with better long-term safety profiles, led by Biktarvy, are boosting the company's market share.

Bears

Gilead's Yeztugo is a promising new HIV prevention drug, but it is unclear if markets outside the US will embrace this form of therapy.

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Trading Information

Previous Close Price
$147.10
Day Range
$146.10–151.44
52-Week Range
$114.02–157.29
Bid/Ask
$151.00 / $152.00
Shares Outstanding
1.24B
Market Cap
$187.44B
Volume/Avg
6M / 6M

Key Statistics

Price/Earnings (Normalized)
18.06
Price/Sales
6.19
Dividend Yield (Trailing)
2.15%
Dividend Yield (Forward)
2.17%
Dividend Payment Schedule
Mar, Jun, Sep, Dec
Total Yield
2.76%

Company Profile

Gilead Sciences develops and markets therapies to treat and prevent life-threatening infectious diseases, with the core of its portfolio focused on HIV and hepatitis B and C. Gilead's acquisition of Pharmasset brought rights to hepatitis C drug Sovaldi, which is also part of newer combination regimens that remain standards of care. Gilead is also growing its presence in the oncology market via acquisitions, led by CAR-T cell therapy Yescarta/Tecartus (from Kite) and breast and bladder cancer therapy Trodelvy (from Immunomedics).
Sector
Healthcare
Industry
Drug Manufacturers - General
Stock Style Box
Large Value
Total Number of Employees
17,000

Competitors

Valuation

Metric
GILD
MRK
GSK
Price/Earnings (Normalized)
18.0645.3611.46
Price/Book Value
15.868.573.98
Price/Sales
6.195.432.13
Price/Cash Flow
12.4716.309.11
Price/Earnings
GILD
MRK
GSK

Financial Strength

Metric
GILD
MRK
GSK
Quick Ratio
0.750.710.52
Current Ratio
1.271.320.82
Interest Coverage
−1.284.289.51
Quick Ratio
GILD
MRK
GSK

Profitability

Metric
GILD
MRK
GSK
Return on Assets (Normalized)
−0.75%6.27%11.66%
Return on Equity (Normalized)
−2.11%16.68%42.98%
Return on Invested Capital (Normalized)
0.26%9.82%22.63%
Return on Assets
GILD
MRK
GSK

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