Gilead Sciences (GILD) AI Stock Analysis

• Market Cap: $131.77B
• Dividend Yield: 2.95%
• Average Volume (3M): 8.32M
• Price to Earnings (P/E): 22.5
• Beta (1Y): 0.37
• Revenue Growth: 4.63%
• EPS Growth: 1144.01%
• Country: US
• Employees: 17,600
• Sector: Healthcare
• Sector Strength: 49
• Industry: Drug Manufacturers - General
• EPS (TTM): 1.81
• Shares Outstanding: 1,243,929,100
• 10 Day Avg. Volume: 9,443,370
• 30 Day Avg. Volume: 8,315,392
• PEG Ratio: 0.02
• Price to Book (P/B): 7.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.71
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 1.34
• Enterprise Value/Gross Profit: 6.76
• Enterprise Value/Ebitda: 6.28
• 1Y Price Target: $119.33
• Price Target Upside: 12.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 21

• Rating: 71 Outperform
• Price Target: $119.00 ▲(12.34%Upside)

Gilead Sciences scores well due to its strong financial performance and strategic focus on expanding its product pipeline. The company's efficient cash flow management and profitability provide a solid foundation, despite challenges like stagnant revenue growth and declining sales in certain segments. Technical indicators and valuation metrics further support its stability and fair market valuation, while the recent earnings call underscores promising growth in key areas.

Positive Factors

Clinical Efficacy

Yeztugo has shown a 100% reduction in the risk of incident HIV-1 infection over TRUVADA in cisgender women and an 89% reduction in other groups.

Market Expansion

There is an opportunity for market expansion as GILD executes on its long-term strategy targeting additional market segments and geographies.

Product Approval

Gilead's approval of Yeztugo (lenacapavir) for pre-exposure prophylaxis marks a significant event for the PrEP market and is a key growth driver for Gilead’s HIV franchise.

Negative Factors

Investor Expectations

Yeztugo's approval for HIV prevention represents a positive for GILD shares, although the decision comes largely as expected by investors.

Market Launch Timing

FDA approval for PrEP will set the stage for commercial launch in summer 2025.

Pricing Competitiveness

Yeztugo is priced at a slight premium to approved HIV PrEP drugs Descovy and Apretude, which could impact its competitiveness.

Gilead Sciences Business Overview & Revenue Model

Company Description

Gilead Sciences, Inc. is a biopharmaceutical company that discovers, develops, and commercializes innovative medicines in areas of unmet medical need. Primarily focused on antiviral drugs used in the treatment of HIV/AIDS, liver diseases, and cancer, Gilead's portfolio includes products such as Biktarvy, Descovy, and Truvada. The company operates globally, extending its reach across numerous markets with a commitment to advancing therapeutics that improve the lives of patients worldwide.

How the Company Makes Money

Gilead Sciences generates revenue through the sale of its pharmaceutical products, which are primarily focused on antiviral therapies, including treatments for HIV, hepatitis B, hepatitis C, and COVID-19. Key revenue streams include flagship products like Biktarvy, which is a leading HIV treatment, and Veklury (remdesivir), used for COVID-19 treatment. The company also earns income from licensing agreements and collaborations with other pharmaceutical and biotechnology companies, further enhancing its research and development capabilities. Strategic acquisitions, such as the purchase of Kite Pharma, have expanded Gilead's presence in the oncology sector, contributing to its revenue through innovative cancer therapies. Gilead's earnings are significantly influenced by its pricing strategies, patent protections, and regulatory approvals within various international markets.

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	28.73B	28.75B	27.12B	27.28B	27.30B	24.69B
Gross Profit	22.50B	22.50B	20.62B	21.62B	20.70B	20.12B
EBITDA	10.58B	4.43B	10.50B	8.85B	11.33B	4.13B
Net Income	5.96B	480.00M	5.67B	4.59B	6.22B	123.00M
Balance Sheet
Total Assets	56.43B	58.99B	62.13B	63.17B	67.95B	68.41B
Cash, Cash Equivalents and Short-Term Investments	7.93B	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	37.36B	39.75B	39.38B	41.96B	46.89B	50.19B
Stockholders Equity	19.16B	19.33B	22.83B	21.24B	21.07B	18.20B
Cash Flow
Free Cash Flow	9.84B	10.30B	7.42B	8.34B	10.80B	7.52B
Operating Cash Flow	10.37B	10.83B	8.01B	9.07B	11.38B	8.17B
Investing Cash Flow	-1.66B	-3.45B	-2.27B	-2.47B	-3.13B	-14.62B
Financing Cash Flow	-5.50B	-3.43B	-5.13B	-6.47B	-8.88B	770.00M

Gilead Sciences Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 105.93
• 50DMA: Positive
• 100DMA: Negative
• 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 Neutral. The current price of 105.93 is below the 20-day moving average (MA) of 108.98, above the 50-day MA of 105.52, and above the 200-day MA of 96.79, indicating a neutral trend. The MACD of 0.38 indicates Positive momentum. The RSI at 45.76 is Neutral, neither overbought nor oversold. The STOCH value of 19.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GILD.

Gilead Sciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PFE	72 Outperform	$137.93B	17.62	8.62%	7.08%	13.38%	―
GILD	71 Outperform	$131.77B	22.54	32.51%	2.95%	4.63%	1144.01%
AMGN	71 Outperform	$150.75B	25.33	105.67%	3.43%	15.59%	56.99%
SNY	67 Neutral	$117.80B	20.05	7.34%	4.57%	-4.57%	2.96%
BMY	63 Neutral	$95.49B	17.62	31.99%	6.25%	4.62%	―
GSK	63 Neutral	$77.29B	19.84	22.26%	4.44%	4.17%	-29.96%
Sector *	46 Neutral	C$189.51M	-4.27	-8.56%	3.09%	13.68%	-1.94%

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.