Gilead Sciences (GILD) AI Stock Analysis

• Market Cap: $141.64B
• Dividend Yield: 2.72%
• Average Volume (3M): 6.15M
• Price to Earnings (P/E): 22.8
• Beta (1Y): 0.40
• Revenue Growth: 3.69%
• EPS Growth: 501.26%
• Country: US
• Employees: 17,600
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 2.01
• Shares Outstanding: 1,240,806,900
• 10 Day Avg. Volume: 6,145,528
• 30 Day Avg. Volume: 6,153,566
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 5.46
• Enterprise Value/Gross Profit: 6.95
• Enterprise Value/Ebitda: 14.35
• 1Y Price Target: $125.74
• Price Target Upside: 9.58% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 25

• Rating: 68 Neutral
• Price Target: $131.00 ▲(14.16% Upside)

Gilead Sciences' overall stock score reflects strong financial performance and positive earnings call highlights, particularly in HIV and oncology segments. However, the lack of technical analysis data and moderate valuation metrics slightly temper the score.

Positive Factors

Brand Awareness

Physician unaided brand awareness for Yeztugo is significantly higher than typical launches, at 72%.

Financial Performance

The company raised their full year revenue and EPS guides due to better than expected HIV performance.

Product Launch

Yeztugo is off to a great start with the first prescription within hours of approval and product shipped within 24 hours.

Negative Factors

Growth Challenges

The oncology and liver programs, while contributing to growth, are overshadowed by the dominant HIV portfolio, making diversification challenging.

Market Concentration Risk

There is a concentration risk in HIV and US exposure.

Market Valuation

The growth outlook for Gilead is largely priced in, with limited room for rapid growth needed to support expansion from its $150B market cap.

Gilead Sciences Business Overview & Revenue Model

Company Description

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 company provides Biktarvy, Genvoya, Descovy, Odefsey, Truvada, Complera/ Eviplera, Stribild, and Atripla products for the treatment of HIV/AIDS; Veklury, an injection for intravenous use, for the treatment of coronavirus disease 2019; and Epclusa, Harvoni, Vosevi, Vemlidy, and Viread for the treatment of liver diseases. It also offers Yescarta, Tecartus, Trodelvy, and Zydelig products for the treatment of hematology, oncology, and cell therapy patients. In addition, the company provides Letairis, an oral formulation for the treatment of pulmonary arterial hypertension; Ranexa, an oral formulation for the treatment of chronic angina; and AmBisome, a liposomal formulation for the treatment of serious invasive fungal infections. Gilead Sciences, Inc. has collaboration agreements with Arcus Biosciences, Inc.; Pionyr Immunotherapeutics Inc.; Tizona Therapeutics, Inc.; Tango Therapeutics, Inc.; Jounce Therapeutics, Inc.; Galapagos NV; Janssen Sciences Ireland Unlimited Company; Japan Tobacco, Inc.; Gadeta B.V.; Bristol-Myers Squibb Company; Dragonfly Therapeutics, Inc.; and Merck & Co, Inc. The company was incorporated in 1987 and is headquartered in Foster City, California.

How the Company Makes Money

Gilead Sciences generates revenue primarily through the sales of its pharmaceutical products, particularly in the antiviral segment. The company’s key revenue streams include its well-established HIV and hepatitis C drug portfolios, which have historically provided significant income. Gilead also earns revenue through partnerships and collaborations with other pharmaceutical companies, research institutions, and healthcare providers, which can include licensing agreements and joint ventures. Additionally, Gilead's investments in research and development lead to new product launches that can further enhance its revenue base. The company's ability to maintain a strong market presence and adapt to changing healthcare environments, including the introduction of generics and competition, significantly impacts its earnings.

Gilead Sciences Financial Statement Overview

Summary

Gilead Sciences presents a stable financial profile with strong profitability margins and efficient cash flow management. While revenue growth remains stagnant, the company excels in maintaining profitability and operational efficiency. The balance sheet is well-structured but carries a notable level of debt, which could be a risk factor. Despite these challenges, the company's robust cash flow generation and effective capital management provide a solid foundation for sustained financial health.

Income Statement

Gilead Sciences shows a steady performance with a gross profit margin of around 78.3% for TTM, indicating strong profitability. Net profit margin improved to 20.8% TTM, reflecting enhanced cost management compared to previous periods. Revenue growth is relatively flat, presenting a slight decline of 0.1% from the previous year, signaling stability in sales. EBIT margin is robust at 28.6% TTM, while EBITDA margin is healthy at 36.8% TTM, showcasing efficient operations. However, the lack of significant revenue growth could be a concern for future expansion.

Balance Sheet

The balance sheet exhibits solid equity with a debt-to-equity ratio of 1.3 TTM, suggesting moderate leverage. Return on equity stands at 31.1% TTM, highlighting effective use of equity to generate profits. The equity ratio is 34.0% TTM, indicating a balanced capital structure. However, the level of total debt remains substantial, which may pose risks during economic downturns. Overall, the company maintains a stable financial position with some leverage-related concerns.

Cash Flow

Gilead Sciences demonstrates strong cash flow generation with a free cash flow to net income ratio of 1.65 TTM, indicating efficient conversion of profits into cash. The operating cash flow to net income ratio is 1.74 TTM, reflecting strong cash earnings. Free cash flow growth has been steady, albeit with a slight decline year-over-year. Nonetheless, the company effectively manages its capital expenditures and sustains healthy cash reserves, contributing to a positive cash flow outlook.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.86B	28.75B	27.12B	27.28B	27.30B	24.69B
Gross Profit	22.67B	22.50B	20.62B	21.62B	20.70B	20.12B
EBITDA	10.97B	4.43B	10.50B	8.85B	11.33B	4.13B
Net Income	6.31B	480.00M	5.67B	4.59B	6.22B	123.00M
Balance Sheet
Total Assets	55.72B	58.99B	62.13B	63.17B	67.95B	68.41B
Cash, Cash Equivalents and Short-Term Investments	5.21B	11.57B	7.26B	6.38B	6.52B	7.41B
Total Debt	24.95B	26.71B	24.99B	25.23B	26.70B	31.40B
Total Liabilities	36.13B	39.75B	39.38B	41.96B	46.89B	50.19B
Stockholders Equity	19.68B	19.33B	22.83B	21.24B	21.07B	18.20B
Cash Flow
Free Cash Flow	9.37B	10.30B	7.42B	8.34B	10.80B	7.52B
Operating Cash Flow	9.87B	10.83B	8.01B	9.07B	11.38B	8.17B
Investing Cash Flow	-3.47B	-3.45B	-2.27B	-2.47B	-3.13B	-14.62B
Financing Cash Flow	-4.11B	-3.43B	-5.13B	-6.47B	-8.88B	770.00M

Gilead Sciences Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 114.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 114.75 is below the 20-day moving average (MA) of 115.98, above the 50-day MA of 112.71, and above the 200-day MA of 103.31, indicating a neutral trend. The MACD of 0.95 indicates Positive momentum. The RSI at 49.00 is Neutral, neither overbought nor oversold. The STOCH value of 7.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GILD.

Gilead Sciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PFE	82 Outperform	$142.93B	13.76	12.16%	6.86%	14.72%	―
MRK	81 Outperform	$212.29B	13.15	35.44%	3.77%	2.00%	20.01%
SNY	76 Outperform	$122.44B	12.77	8.39%	4.40%	-9.32%	120.62%
GILD	68 Neutral	$141.64B	22.83	33.26%	2.72%	3.69%	501.26%
BMY	68 Neutral	$95.95B	19.34	29.31%	5.21%	2.57%	―
AMGN	67 Neutral	$155.30B	24.03	99.14%	3.24%	13.10%	110.67%
Sector *	51 Neutral	$7.83B	-0.15	-40.10%	2.29%	21.46%	-2.01%

Gilead Sciences Corporate Events

Gilead Sciences Holds Annual Stockholders Meeting

On May 7, 2025, Gilead Sciences held its annual meeting of stockholders, where nine directors were elected to serve for the next year. The stockholders ratified the selection of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, and approved the compensation of the company’s Named Executive Officers. However, several stockholder proposals, including those requesting a CEO pay ratio factor, an independent Board Chair policy, a comprehensive human rights policy, and a report on DEI practices, were not approved.