# Gilead Sciences Inc (GILD) — Stock CV

Gilead Sciences Inc is a $187B healthcare company. Revenue grew 5.5% over the last year, it currently loses money, and its net debt equals ~1.9 years of free cash flow.

> Gilead Sciences develops and markets therapies to treat and prevent life-threatening infectious diseases, with the core of its portfolio focused on HIV and hepatitis B and C.

## Identity

- **Ticker**: GILD
- **Sector**: Healthcare
- **Industry**: Biotechnology
- **Headquarters**: FOSTER CITY, CA
- **Employees**: 17 000
- **Website**: https://www.gilead.com
- **Market cap**: $187B
- **Last price**: $151.20
- **Financial profile**: Mixed

## Vitals (TTM)

- **Revenue**: $30.5B
- **Net income**: -$3.24B
- **Free cash flow**: $12.9B
- **Net debt**: $24.9B
- **P/E**: 22.0
- **Revenue growth (YoY)**: 5.5%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 64 |
| Growth | 48 |
| Profitability | 20 |
| Health | 42 |
| Quality | 50 |
| Moat | 82 |

## Qualifications (beginner checklist) — 9 of 11 passed

- [x] Revenue growing — +5.5% YoY
- [ ] Profitable — -$3.24B TTM
- [x] Profit growing — +23.1% YoY
- [x] Generates cash — $12.9B TTM
- [x] Debt under control — ~1.9y of cash flow to repay
- [x] Established company — $187B market cap
- [x] Not printing shares — -0.6% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [ ] Financially stable — health score 37/100
- [x] Pays a dividend — yield 3.24%
- [x] Valuation not extreme — P/E 22.0

## Experience (career milestones)

- **2020** — Gilead announced it had reached a deal to acquire Immunomedics for $21 billion ($88 per share),…
- **FY2018** — Became debt-free: cash now exceeds total debt
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Revenue already above $10B: $30.4B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **FY2016** — Best year on record: $13.5B net income
- **2011** — The company acquired Calistoga Pharmaceuticals for ($225 million plus milestone payments)
- **2009** — The company acquired CV Therapeutics, Inc. for $1.4 billion, bringing Ranexa and Lexiscan into Gilead
- **2009** — Riordan also recruited scientific advisers, including Harold Varmus, a Nobel laureate who later became Director of…
- **2006** — Gilead purchased Raylo Chemicals, Inc. in November 2006, for a price of 
- **2002** — Gilead and Triangle Pharmaceuticals announced that Gilead would acquire Triangle for around $464…
- **1999** — Gilead acquired NeXstar Pharmaceuticals of Boulder, Colorado
- **1996** — Gilead launched Vistide (cidofovir injection) for the treatment of cytomegalovirus (CMV) retinitis in…
- **1992** — Gilead held its initial public offering in 1992, and successfully developed drugs including Tamiflu and Vistide that…
- **1992** — Gilead debuted on the NASDAQ in January 1992

## Strengths

- High gross margin (79.6%)
- Strong cash conversion — FCF is 42.5% of revenue
- Interest covered 44.7× by operating earnings
- High returns on invested capital (ROIC 17.9%)
- Piotroski F-Score 8/9 — fundamentally strong checklist

## Watch-outs

- Not profitable — 10.6% net margin

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $27.3B | $6.22B | $10.8B |
| FY2022 | $27.3B | $4.59B | $8.34B |
| FY2023 | $27.1B | $5.67B | $7.42B |
| FY2024 | $28.8B | $480M | $10.3B |
| FY2025 | $29.4B | $8.51B | $9.46B |

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Source: https://stockcv.com/GILD — derived from company filings; may be delayed or incomplete. Information, not investment advice.