Fact based stock research
Gilead (NasdaqGS:GILD)
US3755581036
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
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Gilead stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 22 (worse than 78% compared with investment alternatives), Gilead (Biotechnology, USA) shares have lower financial characteristics compared with similar stocks. Shares of Gilead are a good value (attractively priced) with a consolidated Value Rank of 62 (better than 62% of alternatives) but show below-average growth (Growth Rank of 13), and are riskily financed (Safety Rank of 43), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 22, is a sell recommendation based on Gilead's financial characteristics. As the company Gilead's key financial metrics exhibit good value (Obermatt Value Rank of 62) but low growth (Obermatt Growth Rank of 13) and risky financing practices (Obermatt Safety Rank of 43), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 62% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | USA |
| Industry | Biotechnology |
| Index | |
| Size class | XX-Large |
19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Gilead
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | n/a |
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n/a |
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n/a |
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62 |
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| GROWTH | ||||||||
| GROWTH | n/a |
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n/a |
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n/a |
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13 |
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| SAFETY | ||||||||
| SAFETY | n/a |
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n/a |
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n/a |
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43 |
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| SENTIMENT | ||||||||
| SENTIMENT | n/a |
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n/a |
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n/a |
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new |
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| 360° VIEW | ||||||||
| 360° VIEW | n/a |
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n/a |
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n/a |
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Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 22 (worse than 78% compared with investment alternatives), Gilead (Biotechnology, USA) shares have lower financial characteristics compared with similar stocks. Shares of Gilead are a good value (attractively priced) with a consolidated Value Rank of 62 (better than 62% of alternatives) but show below-average growth (Growth Rank of 13), and are riskily financed (Safety Rank of 43), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 22, is a sell recommendation based on Gilead's financial characteristics. As the company Gilead's key financial metrics exhibit good value (Obermatt Value Rank of 62) but low growth (Obermatt Growth Rank of 13) and risky financing practices (Obermatt Safety Rank of 43), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 62% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | n/a |
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n/a |
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n/a |
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62 |
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| GROWTH | ||||||||
| GROWTH | n/a |
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n/a |
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n/a |
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13 |
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| SAFETY | ||||||||
| SAFETY | n/a |
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n/a |
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n/a |
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43 |
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| COMBINED | ||||||||
| COMBINED | n/a |
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n/a |
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n/a |
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22 |
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Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 62 (better than 62% compared with alternatives), Gilead shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Gilead. Price-to-Profit (also referred to as price-earnings, P/E) is 57 which means that the stock price compared with what market professionals expect for future profits is lower than for 57% of comparable companies, indicating a good value concerning Gilead's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 12, which means that the stock price is lower as regards to invested capital than for 12% of comparable investments. On the other hand, Price-to-Sales is less favorable than 74% of alternatives (only 26% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than 4% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 62, is a buy recommendation based on Gilead's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high in respect to expected revenues, it means that the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than pay it out to shareholders, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | n/a |
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n/a |
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n/a |
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26 |
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| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | n/a |
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n/a |
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n/a |
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57 |
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| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | n/a |
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n/a |
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n/a |
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12 |
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| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | n/a |
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n/a |
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n/a |
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96 |
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| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | n/a |
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n/a |
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n/a |
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62 |
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Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 13 (better than 13% compared with alternatives), Gilead shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Gilead. Sales Growth has a below market rank of 26, which means that, currently, professionals expect the company to grow less than 74% of its competitors. The same is valid for Capital Growth, with a rank of 17, and Profit Growth, with a rank of 12. Currently, professionals expect the company to grow its profits less than 88% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 73, which means that the stock returns have recently been above 73% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 13, is a sell recommendation for growth and momentum investors. That picture may be the result for a company that has reached the bottom. All went south for Gilead, and it still looks bad, but some investors already see light at the end of the tunnel, rewarding the stock with recent above-market stock returns. It could also mean that investors are correcting an overreaction to negative news. If that were the case, the positive stock returns are not yet a sign of recovery. Investors should look closely at the Value and Sentiment indicators before they make a stock purchasing decision, because growth is unlikely to be the driving argument behind this investment. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is low here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | n/a |
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n/a |
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n/a |
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26 |
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| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | n/a |
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n/a |
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n/a |
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12 |
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| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
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n/a |
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n/a |
|
17 |
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| STOCK RETURNS | ||||||||
| STOCK RETURNS | n/a |
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n/a |
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n/a |
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73 |
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| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | n/a |
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n/a |
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n/a |
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13 |
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Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 43 (better than 43% compared with alternatives), the company Gilead has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Gilead is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Gilead. Liquidity is at 87, meaning the company generates more profit to service its debt than 87% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 17, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 83% of its competitors. Leverage is also high at a rank of 29, which means that the company has an above-average debt-to-equity ratio. It has more debt than 71% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 43 (worse than 57% compared with alternatives), Gilead has a financing structure that is riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | n/a |
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n/a |
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n/a |
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29 |
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| REFINANCING | ||||||||
| REFINANCING | n/a |
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n/a |
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n/a |
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17 |
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| LIQUIDITY | ||||||||
| LIQUIDITY | n/a |
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n/a |
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n/a |
|
87 |
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| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | n/a |
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n/a |
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n/a |
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43 |
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Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
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| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
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| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
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| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
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| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
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| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
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Free stock analysis by the purely fact based Obermatt Method for Gilead from December 19, 2024.
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