Gilead Sciences, Inc. (GILD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Gilead Sciences, Inc.

Biogen, Inc.

Halozyme Therapeutics, Inc.

Amgen, Inc.

Bio-Techne Corp.

Elanco Animal Health, Inc.

Illumina, Inc.

BioMarin Pharmaceutical, Inc.

Moderna, Inc.

Vaxcyte, Inc.

Immunovant, Inc.

Why is Gilead Sciences, Inc. ?

High Management Efficiency with a high ROCE of 26.79%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.72 times

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 26.79%

The company has declared positive results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 10,806 MM
ROCE(HY) Highest at 43.19%
DEBT-EQUITY RATIO (HY) Lowest at 52.55 %

With ROCE of 31.01%, it has a very expensive valuation with a 4.78 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 17.76%, its profits have fallen by -1.4%

High Institutional Holdings at 89.9%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Gilead Sciences, Inc. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Gilead Sciences, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Gilead Sciences, Inc.

17.76%

3.38

27.12%

S&P 500

22.24%

1.67

13.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.63%

EBIT Growth (5y)

3.11%

EBIT to Interest (avg)

10.71

Debt to EBITDA (avg)

1.56

Net Debt to Equity (avg)

0.83

Sales to Capital Employed (avg)

0.63

Tax Ratio

12.60%

Dividend Payout Ratio

46.60%

Pledged Shares

Institutional Holding

89.90%

ROCE (avg)

26.79%

ROE (avg)

36.13%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

7.34

EV to EBIT

15.40

EV to EBITDA

12.51

EV to Capital Employed

4.78

EV to Sales

6.18

PEG Ratio

Dividend Yield

2.38%

ROCE (Latest)

31.01%

ROE (Latest)

43.09%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 10,806 MM

ROCE(HY)

Highest at 43.19%

DEBT-EQUITY RATIO (HY)

Lowest at 52.55 %

DIVIDEND PER SHARE(HY)

Highest at USD 6.53

RAW MATERIAL COST(Y)

Fallen by -3.27% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 6.53 times

-2What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.34 times

Here's what is working for Gilead Sciences, Inc.

Operating Cash Flow

Highest at USD 10,806 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Lowest at 52.55 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at USD 6.53 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Debtors Turnover Ratio

Highest at 6.53 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -3.27% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Gilead Sciences, Inc.

Inventory Turnover Ratio

Lowest at 3.34 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio