GILD Gilead Sciences Inc

Gilead Sciences is a biopharmaceutical company focused on antiviral therapies for HIV, hepatitis, and respiratory diseases, with a growing oncology portfolio. Sector: Healthcare.

Gilead Sciences Inc (GILD) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

From a capital efficiency perspective, ROIC is 30.39%, WACC is 6.21%, and the economic spread is 24.18%. On balance, the company generate meaningful returns above their cost of capital, a hallmark of competitively advantaged businesses. Supporting metrics show ROE at -2.18% and ROA at 9.95%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company with credible compounding capacity if current operating execution persists.

Valuation currently screens at trailing P/E of 15.28, forward P/E of 15.68, PEG of 2.82. Trailing and forward P/E are close together, implying the market does not expect a significant change in the earnings trajectory over the near term. At this PEG level, the company is priced generously relative to its expected earnings trajectory — execution risk is meaningfully priced in. At 1.27, the aggregate current ratio reflects the company with limited near-term liquidity buffer. The valuation profile here is neither obviously cheap nor dramatically expensive — a setup where the return case is built more on earnings delivery than on re-rating potential.

On the margin front: gross margin sits at 79.63%, operating margin at 38.96%, and free cash flow margin at 42.43%. At this gross margin level, the company demonstrates significant pricing power and production efficiency. The operating margin here is a standout — reflecting businesses that convert a large share of gross profit into operating earnings. At this FCF margin level, the company have considerable financial flexibility without reliance on external financing. This margin set supports the view that earnings quality is high and cash generation is not merely accounting-driven.

On the forward picture: TTM revenue growth of 10.18% reflecting consistent if unspectacular revenue expansion. Consensus EPS estimates point to a decline of -2.5% over the next 12 months, adding a layer of risk to the forward case and warranting caution on the earnings trajectory. Analyst price targets suggest street expectations imply a constructive but measured return profile on a 12-month view. Revenue growth is grounded in reported results; price targets are forward projections that embed assumptions about multiple expansion, earnings delivery, and macro conditions. The key risk in both directions is whether the company can maintain their operating trajectory as macro and sector conditions evolve. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

The composite picture leans positive, with capital efficiency and growth momentum providing the core of the investment thesis.

This summary is based on publicly available quantitative data and is not intended as investment advice. Carefully consider your personal financial circumstances before making any decisions.