Gilead Sciences Stock Analysis, Valuation (NASDAQ:GILD)

Add to My Stocks
$71.07 $0.45 (0.63%) GILD stock closing price Jun 22, 2018 (Closing)

Take a look at waldorf-kras Gilead Sciences stock analysis video. This is our analyst opinion covering the buy and sell arguments for GILD stock.

Note: waldorf-kras stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Gilead Sciences, Inc. Stock Rating 3.9/5

waldorf-kras GILD stock analysis relies on business fundamentals such as Gilead Sciences revenue growth, profits and return on equity measures from the latest quarter 2018 Q1 earnings. We also use relative valuation metrics like PE ratio and price to sales ratio for Gilead Sciences valuation analysis. Gilead Sciences stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy GILD stock?

  • Gilead Sciences had a healthy average operating margin of 50.67 over the last 4 quarters.
  • Net margins came in at average 14% for Gilead Sciences over the last twelve months.
  • GILD stock is trading at an earnings multiple of 9.2 which is better than the sector average of 25.1.
  • GILD stock is trading at a favorable price to sales multiple of 3.8 as against the Medical sector average multiple of 6.5.
  • Gilead Sciences has an attractive ROIC (Return on Invested Capital) of 11.2
  • Gilead Sciences has a good Return On Equity (ROE) of 15.7.
  • Gilead Sciences has a healthy FCF (Free Cash Flow) margin of 40.4.

Should you sell GILD stock?

  • Gilead Sciences revenue saw a decline of -21.8% YoY in 2018-03.
  • Long term revenue growth of 19.9 over the past 5 years has been disappointing.
  • Gilead Sciences is debt laden and has a high debt/equity ratio of 1.44.

Comments on this video and Gilead Sciences stock

waldorf-kras Gilead Sciences stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of GILD stock. Fundamentals of a company give detailed information which helps in making invesment decisions.

While doing a study of the company financials, Gilead Sciences revenue growth and profit or net income are two main metrics which help in identifying whether GILD stock is overvalued or undervalued. Investors could make use of GILD technical analysis to check whether the fundamental story is reflected in the market sentiment.