GILEAD SCIENCES, INC. (GILD) Stock Analysis
GILEAD SCIENCES, INC. (GILD) Stock Analysis
Analysis from 10-Q filed 2025-11-07. Data as of Q4 2025.
Overall Grade: F (Concerning)
GILEAD SCIENCES, INC. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 19.1% | Solid returns |
| FCF Margin | 32.1% | Strong cash generation |
| Debt/Equity | 1.1x | Moderate leverage |
Investment Thesis: Strong return on invested capital of 19.1% suggests durable competitive advantages and efficient capital allocation.
Explore GILEAD SCIENCES, INC.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: GILEAD SCIENCES, INC. earns 19.1% ROIC, Top 25% in Healthcare
GILEAD SCIENCES, INC.'s trailing-twelve-month ROIC of 19.1% ranks Top 25% in Healthcare companies (sector median: -4.1%), driven by NOPAT margin of 29.6% combined with asset turnover of 0.5x. Source: 10-Q filed 2025-11-07. Gross margin of 78.8% with operating margin at 34.0% reflects strong pricing power.
| Metric | GILD | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 19.1% | Good | Above sector median of -4.1% |
| Return on Equity (ROE) | 41.8% | Excellent | Efficient use of shareholder equity |
| Gross Margin | 78.8% | Excellent | Strong pricing power |
| Operating Margin | 34.0% | Excellent | Efficient operations |
Cash Flow: GILEAD SCIENCES, INC. generates $9.5B FCF at 32.1% margin, positive NaN/8 quarters
GILEAD SCIENCES, INC. generated $9.5B in free cash flow (TTM), a 32.1% FCF margin, a margin that ranks Top 5% in Healthcare. Operating cash flow exceeds net income by 1.2x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-07.
| Metric | GILD | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 32.1% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $9.5B | Good | Positive cash generation |
| OCF/Net Income | 1.2x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: GILEAD SCIENCES, INC. at 1.1x leverage
GILEAD SCIENCES, INC.'s debt-to-equity ratio of 1.1x reflects elevated leverage. Total debt of $24.9B offset by $7.6B in cash. Source: 10-Q filed 2025-11-07.
| Metric | GILD | Rating | Context |
|---|---|---|---|
| Debt to Equity | 1.1x | Adequate | Moderate leverage |
| Net Cash Position | $-17.3B | Warning | Net debt position |
Valuation: GILEAD SCIENCES, INC. trades at 17.9x earnings
GILEAD SCIENCES, INC. trades at a P/E of 17.9x. Free cash flow yield of 6.2% offers attractive cash returns relative to price.
| Metric | GILD | Rating | Context |
|---|---|---|---|
| P/E Ratio | 17.9x | Adequate | Reasonable valuation |
| EV/Sales | 5.8x | Adequate | Growth premium priced in |
| FCF Yield | 6.2% | Good | Attractive cash return |
| Dividend Yield | 2.6% | Adequate | Growth focus over income |
Capital Allocation: GILEAD SCIENCES, INC. returns 3.8% shareholder yield
GILEAD SCIENCES, INC.'s total shareholder yield is 3.8% (dividends 2.6% + buybacks 1.3%). Source: 10-Q filed 2025-11-07.
| Metric | GILD | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 3.8% | Good | Dividend + buyback yield combined |
| Buyback Yield | 1.3% | Adequate | Minimal buyback activity |
| Total Capital Returned (TTM) | $5.9B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 19.1% | Top 25% | - |
| Free Cash Flow Margin | 32.1% | Top 5% | - |
| Gross Margin | 78.8% | Top 50% | 1.2x above |
| Operating Margin | 34.0% | Top 25% | 17.7x above |
| Return on Equity (ROE) | 41.8% | Top 25% | - |
| P/E Ratio | 17.9x | N/A | - |
Financial Scorecard
| Metric | GILD | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 19.1% | Good | Top 25% of sector (median: -4.1%) |
| Free Cash Flow Margin | 32.1% | Excellent | Top 5% of sector (median: 0.0%) |
| Gross Margin | 78.8% | Excellent | Top 50% of sector (median: 63.7%) |
| Debt to Equity Ratio | 109.8% | Adequate | Elevated but manageable |
| P/E Ratio (Price-to-Earnings) | 17.9x | Adequate | Fair value |
| Free Cash Flow Yield | 6.2% | Good | Solid cash yield |
Frequently Asked Questions
Q: What is GILEAD SCIENCES, INC.'s Return on Invested Capital (ROIC)?
GILEAD SCIENCES, INC. (GILD) has a trailing twelve-month Return on Invested Capital (ROIC) of 19.1%. This compares above the sector median of -4.1%. An ROIC between 12-20% indicates solid capital allocation and sustainable competitive position.
Q: What is GILEAD SCIENCES, INC.'s Free Cash Flow Margin?
GILEAD SCIENCES, INC. (GILD) has a free cash flow margin of 32.1%, generating $9.5 billion in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.
Q: Is GILEAD SCIENCES, INC. stock overvalued or undervalued?
GILEAD SCIENCES, INC. (GILD) trades at a P/E ratio of 17.9x, which is above the sector median of N/A. The EV/Sales multiple is 5.8x. Free cash flow yield is 6.2%, which represents an attractive cash return to investors.
Q: Does GILEAD SCIENCES, INC. pay a dividend?
GILEAD SCIENCES, INC. (GILD) currently pays a dividend yield of 2.6%. Including share buybacks, the total shareholder yield is 3.8%. This yield is moderate, suggesting a balance between income and growth reinvestment.
Q: How much debt does GILEAD SCIENCES, INC. have?
GILEAD SCIENCES, INC. (GILD) has a debt-to-equity ratio of 1.1x with total debt of $24.9 billion. Net debt position is $17.3 billion.
Q: What is GILEAD SCIENCES, INC.'s revenue and earnings growth?
GILEAD SCIENCES, INC. (GILD) grew revenue by 2.4% year-over-year. Earnings per share increased by 1729.7% compared to the prior year. Modest growth indicates a mature business with stable demand.
Q: Is GILEAD SCIENCES, INC. buying back stock?
GILEAD SCIENCES, INC. (GILD) repurchased $1.9 billion of stock over the trailing twelve months. This represents a buyback yield of 1.3%.
Q: How does GILEAD SCIENCES, INC. compare to competitors in Healthcare?
Compared to other companies in Healthcare, GILEAD SCIENCES, INC. (GILD) shows: ROIC of 19.1% is above the sector median of -4.1% (Top 20%). FCF margin of 32.1% exceeds the sector median of 0.0% (Top 0% of sector). Gross margin at 78.8% is 15.1 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Healthcare companies with available SEC filings.
Q: What warning signs should I watch for with GILEAD SCIENCES, INC.?
GILEAD SCIENCES, INC. (GILD) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-11-07. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.