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Gilead Sciences (GILD)
:GILD
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Gilead Sciences
(NASDAQ:GILD)75Outperform
Positive Factors
Financial Strategy
Gilead Sciences plans to grow the dividend over time, followed by share repurchase to offset dilution, enhancing shareholder value.
Product Launch
The FDA recently accepted the NDAs for Lenacapavir for HIV pre-exposure prophylaxis under Priority Review, with a US launch expected in summer 2025.
Negative Factors
COVID-19 Treatment Sales
Gilead’s COVID-19 treatment Veklury has witnessed a drop in sales following a receding pandemic and lower rates of COVID-19 related hospitalization.
Gilead Sciences (GILD) vs. S&P 500 (SPY)
Market Cap
$142.89B
Dividend Yield2.65%
Average Volume (3M)8.15M
Price to Earnings (P/E)300.0
Beta (1Y)0.50
Revenue Growth6.16%
EPS Growth-91.54%
CountryUS
Employees18,000
SectorHealthcare
Sector Strength74
IndustryPharmaceuticals
Share Statistics
EPS (TTM)0.37
Shares Outstanding1,245,346,100
10 Day Avg. Volume8,918,326
30 Day Avg. Volume8,154,175
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.02
Price to Cash Flow (P/CF)12.10
P/FCF Ratio12.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$112.53Price Target Upside-1.93% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering24
Gilead Sciences Business Overview & Revenue Model
Company DescriptionGilead Sciences, Inc. is a leading biopharmaceutical company that focuses on discovering, developing, and commercializing innovative therapeutics in areas of unmet medical need. The company's primary sectors include antiviral medications, particularly for the treatment of HIV/AIDS, liver diseases such as hepatitis B and C, and emerging viral diseases. Gilead's core products include a range of antiviral drugs, notably Biktarvy, Genvoya, and Truvada, which are widely used in the treatment and prevention of HIV.
How the Company Makes MoneyGilead Sciences generates revenue primarily through the sale of its pharmaceutical products across various therapeutic areas. The company's key revenue streams include antiviral medications for HIV/AIDS, liver diseases, and inflammatory diseases. Significant revenue is derived from its flagship HIV products like Biktarvy and Genvoya. Additionally, Gilead engages in strategic partnerships and collaborations with other pharmaceutical companies to enhance its research and development efforts, which can include co-development and co-commercialization agreements. Licensing agreements and royalties from collaborations also contribute to its earnings. The company's financial performance is influenced by factors such as drug pricing, patent protections, regulatory approvals, and market demand for its products.
Gilead Sciences Financial Statement Overview
Summary
Gilead Sciences demonstrates strong financial health with significant improvements in cash management and debt reduction. While revenue growth and gross margins are positive, the decline in net profitability is a concern. The balance sheet is markedly de-leveraged, and cash flows are strong, providing a solid foundation for future investments and strategic initiatives. Continued focus on profitability will be essential to sustain long-term growth.Income Statement
Gilead Sciences shows a stable revenue base with a moderate growth trajectory, evidenced by a 6% revenue growth in the TTM period. Gross profit margin is healthy at 57.7%, but the net profit margin has decreased significantly to 1.7%, indicating pressure on profitability. EBIT and EBITDA margins stand at 28.9% and 13.1% respectively, showing operational efficiency but a decline in EBITDA suggests rising expenses or other financial pressures.75
Positive
Balance Sheet
The balance sheet shows remarkable improvement, with total debt reduced to zero, enhancing financial stability. The equity ratio cannot be calculated due to zero stockholders' equity, which could indicate restructuring or financial adjustments. The debt-to-equity reduction is a significant strength, enhancing risk resilience.80
Positive
Cash Flow
Cash flow analysis reveals robust free cash flow generation with a 40.8% growth in TTM. The operating cash flow to net income ratio is notably strong, indicating effective cash management. The company's ability to generate free cash flow consistently strengthens its capacity to fund operations and investments without relying on debt.85
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 28.75B | 27.12B | 27.28B | 27.30B | 24.69B | Gross Profit |
| 22.50B | 20.62B | 21.62B | 20.70B | 20.12B | EBIT |
| 1.66B | 7.61B | 7.33B | 7.41B | 7.03B | EBITDA |
| 1.66B | 10.50B | 8.85B | 11.33B | 4.13B | Net Income Common Stockholders |
| 480.00M | 5.67B | 4.59B | 6.22B | 89.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 9.99B | 7.26B | 7.63B | 7.83B | 7.91B | Total Assets |
| 58.99B | 62.13B | 63.17B | 67.95B | 68.41B | Total Debt |
| 3.11B | 24.99B | 25.23B | 26.70B | 31.40B | Net Debt |
| -6.88B | 18.90B | 19.82B | 21.36B | 25.41B | Total Liabilities |
| 39.75B | 39.38B | 41.96B | 46.89B | 50.19B | Stockholders Equity |
| 19.33B | 22.83B | 21.21B | 21.06B | 18.22B |
| Cash Flow | Free Cash Flow | |||
| 10.30B | 7.42B | 8.34B | 10.80B | 7.52B | Operating Cash Flow |
| 10.83B | 8.01B | 9.07B | 11.38B | 8.17B | Investing Cash Flow |
| -3.45B | -2.27B | -2.47B | -3.13B | -14.62B | Financing Cash Flow |
| -3.43B | -5.13B | -6.47B | -8.88B | 770.00M |
Gilead Sciences Technical Analysis
Positive
114.74
Price Trends
98.09
Positive
93.75
Positive
82.99
Positive
Market Momentum
5.07
Negative
75.17
Negative
86.45
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GILD, the sentiment is Positive. The current price of 114.74 is above the 20-day moving average (MA) of 105.98, above the 50-day MA of 98.09, and above the 200-day MA of 82.99, indicating a bullish trend. The MACD of 5.07 indicates Negative momentum. The RSI at 75.17 is Negative, neither overbought nor oversold. The STOCH value of 86.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GILD.
Gilead Sciences Risk Analysis
Gilead Sciences disclosed 24 risk factors in its most recent earnings report. Gilead Sciences reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Gilead Sciences Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $73.85B | 17.62 | 15.03% | 0.13% | 8.27% | 10.35% | |
75 Outperform | $142.89B | 299.97 | 2.48% | 2.65% | 6.16% | -91.54% | |
75 Outperform | $167.71B | 41.29 | 69.59% | 2.94% | 18.64% | -39.39% | |
71 Outperform | $235.30B | 13.83 | 36.96% | 3.35% | 6.85% | 4577.79% | |
69 Neutral | $20.57B | 12.67 | 9.76% | ― | -1.60% | 39.71% | |
64 Neutral | $123.21B | ― | -3.26% | ― | 11.64% | -114.72% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% |
* Healthcare Sector Average
Performance Comparison
GILD
Gilead Sciences
114.74
44.62
63.63%
AMGN
Amgen
312.19
43.72
16.28%
BIIB
Biogen
142.65
-74.58
-34.33%
MRK
Merck & Company
92.56
-27.01
-22.59%
REGN
Regeneron
675.49
-288.48
-29.93%
VRTX
Vertex Pharmaceuticals
486.22
70.78
17.04%
Gilead Sciences Earnings Call Summary
Earnings Call Date: Feb 11, 2025 | % Change Since: 19.35% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in key therapeutic areas, particularly in HIV and oncology, with successful product launches and promising pipeline developments. However, the company faces challenges from Medicare Part D reform, declining Veklury sales, and competitive pressures in cell therapies.Highlights
Strong Revenue Growth
Total product sales, excluding Veklury, increased 8% year-over-year to $26.8 billion, with fourth quarter sales up 13% year-over-year to $7.2 billion. HIV sales grew 8% in 2024 to $19.6 billion, surpassing expectations.
HIV Market Leadership
Full year sales for Biktarvy grew 13%, capturing over 50% of the U.S. market. Descovy maintained over 40% U.S. market share in PrEP, showing strong growth despite competition.
Successful Launch of Livdelzi
Livdelzi, launched in the United States for primary biliary cholangitis, achieved strong sales of approximately $30 million in the fourth quarter, exceeding expectations.
Oncology Growth
Trodelvy sales increased 19% year-over-year in the fourth quarter, with a full year increase of 24% to $1.3 billion. Cell therapy sales for Kite reached $2 billion, treating over 7,000 patients in 2024.
Pipeline Advancements
Gilead filed for lenacapavir approval for HIV prevention and achieved a breakthrough therapy designation. The company also highlighted progress in oncology trials and new cell therapy initiatives.
Lowlights
Challenges with Medicare Part D Reform
The Medicare Part D reform is expected to impact 2025 revenue by approximately $1.1 billion, with $900 million affecting HIV revenue.
Veklury Sales Decline
Fourth quarter Veklury sales declined 53% year-over-year due to lower rates of COVID-19 hospitalizations. Full year sales decreased 18% to $1.8 billion.
Competitive Pressures in Cell Therapies
Cell therapy sales faced challenges due to new competitive launches and slower uptake in the U.S. and Europe, impacting growth prospects.
Litigation Accrual Impacting SG&A
SG&A expenses in the fourth quarter were driven up by a litigation accrual for a potential settlement with the U.S. Attorney's Office.
Company Guidance
During Gilead's fourth quarter and full year 2024 earnings call, the company provided detailed guidance for 2025, emphasizing continued revenue growth despite several anticipated headwinds. Total product sales for 2025 are projected to range from $28.2 billion to $28.6 billion, with sales excluding Veklury expected to be between $26.8 billion and $27.2 billion. Gilead's HIV sales showed significant growth in 2024, with an 8% increase to $19.6 billion, surpassing expectations. However, in 2025, HIV revenues are expected to remain flat due to the $900 million impact from Medicare Part D reform. The company anticipates strong demand-led volume growth will continue, with lenacapavir poised for a potential U.S. launch in mid-2025, and advancing its regulatory filings globally. Gilead's oncology segment, highlighted by Trodelvy's growth, and its liver disease portfolio, bolstered by Livdelzi's strong launch, are also expected to contribute to the company's growth trajectory. Despite challenges, Gilead maintains a stable expense outlook, with plans to hold R&D steady and reduce SG&A expenses, aiming for a non-GAAP diluted EPS between $7.70 and $8.10.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.