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Gilead Sciences (GILD)
:GILD
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Gilead Sciences
(NASDAQ:GILD)
Rating:71Outperform
Price Target:
$119.00
▲(9.15%Upside)
Positive Factors
HIV treatment pipeline
GILD has a broad next-generation HIV treatment pipeline, with up to 7 potential approvals by 2033, enhancing its market position.
Oncology treatment advancements
Trodelvy plus Keytruda demonstrated a remarkable 35% reduction in the risk of disease progression or death versus Keytruda plus chemotherapy in PD-L1-positive metastatic TNBC.
Revenue potential
Trodelvy's potential to add $1.5-2.0 billion in revenue is seen as underestimated by investors, indicating potential upside for Gilead.
Negative Factors
Investor uncertainty
Recent stock pullback was influenced by MFN pricing and Medicaid risk headlines, creating short-term investor uncertainty.
Market competition
There is a risk of in-class TROP2 ADC competition for Gilead, which could influence the market position of Trodelvy.
Regulatory challenges
Gilead faces potential regulatory debate given that FDA granted only accelerated approval for a similar benefit as demonstrated in ASCENT-04.
Gilead Sciences (GILD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$136.00B
Dividend Yield2.83%
Average Volume (3M)8.75M
Price to Earnings (P/E)23.0
Beta (1Y)0.36
Revenue Growth4.63%
EPS Growth1144.01%
CountryUS
Employees17,600
SectorHealthcare
Sector Strength41
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)1.81
Shares Outstanding1,243,929,100
10 Day Avg. Volume7,098,576
30 Day Avg. Volume8,749,352
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)6.33
Price to Sales (P/S)0.00
P/FCF Ratio12.14
Enterprise Value/Market Cap0.83
Enterprise Value/Revenue0.99
Enterprise Value/Gross Profit4.89
Enterprise Value/Ebitda4.80
Forecast
1Y Price Target
$120.47Price Target Upside10.50% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering20
Gilead Sciences Business Overview & Revenue Model
Company DescriptionGilead 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 MoneyGilead 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 Key Performance Indicators (KPIs)
Any
Product Revenue by Segment
Breaks down sales figures by product lines, offering insights into which segments are most profitable and where the company might be expanding or contracting its market presence.
Breaks down sales figures by product lines, offering insights into which segments are most profitable and where the company might be expanding or contracting its market presence.
Data provided by:
Main Street Data
Main Street DataGilead Sciences Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: 2.70%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with strong growth in the HIV and liver disease segments, successful clinical trials, and promising product launches, contrasted by declines in overall product sales, Veclury, and oncology due to COVID-19 dynamics and competitive pressures. The company's strategic focus on pipeline and market expansion is promising but faces market challenges.Q1-2025 Updates
Positive Updates
HIV Business Growth
HIV sales increased by 6% year over year, driven by higher average realized price and demand. Biktarvy sales were up 7% year over year, highlighting strong demand-led volume growth.
Livedelzi Market Entry Success
Livedelzi continues its strong launch momentum, with $40 million in sales in its second full quarter, capturing about a third of the market in its category.
Trodelvy Phase III Success
Trodelvy plus pembrolizumab demonstrated a statistically significant and clinically meaningful progression-free survival benefit in the phase III ASCENT-04 trial for first-line PD-L1 positive metastatic triple-negative breast cancer.
Positive Operating Margins
The company reported strong operating margin and earnings per share, reflecting effective expense management.
Strong Cell Therapy Outlook
Anetocel remains on track to potentially launch in 2026 for relapsed refractory multiple myeloma, with promising clinical profiles and manufacturing capabilities.
Improvements in Liver Disease Sales
Sales increased by 3% year over year, driven by demand across PBC, HBV, and HDV, despite lower average realized prices for HCV products in the US.
Negative Updates
Total Product Sales Decline
Total product sales, including Veclury, were down 1% year over year, attributed to fewer COVID-19 related hospitalizations.
Reduced Oncology Sales
Oncology sales were lower, with Trodelvy sales down 5% year over year due to inventory dynamics and lower average realized price.
Veclury Sales Drop
Veclury sales decreased by 45% year over year, reflecting lower rates of COVID-19 related hospitalizations.
Cell Therapy Competitive Headwinds
Sales of cell therapy products declined, attributed to competitive headwinds, especially outside the US.
Impact of Medicare Part D Redesign
Part D redesign led to flat reported HIV sales for 2025, with expected growth returning in 2026.
Company Guidance
During the Gilead Sciences, Inc. First Quarter 2025 Earnings Conference Call, the company provided comprehensive guidance, highlighting key metrics and strategic initiatives. Total product sales, excluding Veclury, reached $6.3 billion, marking a 4% year-over-year increase, primarily driven by strong performance in the HIV segment, which grew by 6%. Sales of Biktarvy, a leading HIV treatment, rose by 7%, while Descovy sales surged 38% year over year. The company reported a decline in total product sales to $6.6 billion, down 1% year-over-year, due to a decrease in Veclury sales as COVID-19 hospitalizations fell. Despite this, Gilead maintained a robust 85% product gross margin and a strong operating margin of 43%. Looking ahead, Gilead anticipates continued growth with the potential launch of lenacapavir for PrEP, anetocel for multiple myeloma, and Trodelvy for breast cancer, while maintaining a focus on disciplined expense management and strategic investments in its pipeline. The company reaffirmed its full-year guidance, projecting total product sales between $28.2 to $28.6 billion and non-GAAP diluted EPS of $7.70 to $8.10.Gilead Sciences Financial Statement Overview
Summary
Gilead Sciences demonstrates strong financial health with significant improvements in cash management and debt reduction. Revenue growth and gross margins are positive, though the decline in net profitability is a concern. The balance sheet is markedly de-leveraged, and cash flows are robust, providing a solid foundation for future investments. Continued focus on profitability is essential.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 | |||||
| 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 |
| 23.07B | 22.50B | 20.62B | 21.62B | 20.70B | 20.12B | EBIT |
| 9.17B | 1.66B | 7.61B | 7.33B | 7.41B | 7.03B | EBITDA |
| 9.89B | 4.43B | 10.50B | 8.85B | 11.33B | 4.13B | Net Income Common Stockholders |
| 5.96B | 480.00M | 5.67B | 4.59B | 6.22B | 89.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 7.93B | 11.57B | 7.26B | 7.63B | 7.83B | 7.91B | Total Assets |
| 56.43B | 58.99B | 62.13B | 63.17B | 67.95B | 68.41B | Total Debt |
| 0.00 | 26.71B | 24.99B | 25.23B | 26.70B | 31.40B | Net Debt |
| -7.93B | 16.72B | 18.90B | 19.82B | 21.36B | 25.41B | Total Liabilities |
| 37.36B | 39.75B | 39.38B | 41.96B | 46.89B | 50.19B | Stockholders Equity |
| 19.08B | 19.33B | 22.83B | 21.21B | 21.06B | 18.22B |
| Cash Flow | Free Cash Flow | ||||
| 9.95B | 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
Positive
109.02
Price Trends
105.79
Positive
104.43
Positive
95.05
Positive
Market Momentum
1.51
Negative
56.15
Neutral
58.06
Neutral
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 109.02 is above the 20-day moving average (MA) of 105.18, above the 50-day MA of 105.79, and above the 200-day MA of 95.05, indicating a bullish trend. The MACD of 1.51 indicates Negative momentum. The RSI at 56.15 is Neutral, neither overbought nor oversold. The STOCH value of 58.06 is Neutral, 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 22 risk factors in its most recent earnings report. Gilead Sciences reported the most risks in the “Tech & Innovation” 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 (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $155.11B | 26.33 | 105.67% | 3.20% | 15.59% | 56.99% | |
71 Outperform | $136.00B | 22.99 | 32.51% | 2.83% | 4.63% | 1144.01% | |
68 Neutral | $119.29B | 20.47 | 7.34% | 3.27% | -4.57% | 2.96% | |
66 Neutral | $133.38B | 17.00 | 8.62% | 7.28% | 13.38% | ― | |
63 Neutral | $99.29B | 18.32 | 31.99% | 5.07% | 4.62% | ― | |
63 Neutral | $83.25B | 21.37 | 22.26% | 3.90% | 4.17% | -29.96% | |
53 Neutral | $5.23B | 3.23 | -44.27% | 2.82% | 16.82% | 0.11% |
* Healthcare Sector Average
Performance Comparison
GILD
Gilead Sciences
109.02
47.45
77.07%
AMGN
Amgen
287.01
-10.76
-3.61%
BMY
Bristol Myers
47.95
8.64
21.98%
GSK
GlaxoSmithKline
40.80
0.56
1.39%
PFE
Pfizer
23.39
-4.31
-15.56%
SNY
Sanofi
49.50
1.89
3.97%
Gilead Sciences Corporate Events
Executive/Board ChangesShareholder Meetings
Gilead Sciences Holds Annual Stockholders Meeting
Neutral
May 8, 2025
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.
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.