Why Gilead Sciences Inc Stock Is A Buy? Acquirer’s Multiple Stock Screener Analysis

As part of our ongoing series here at The Acquirer’s Multiple, each week we focus on one of the stocks from our Stock Screeners, and why it’s a ‘buy’ based on key fundamentals.

One of the cheapest stocks in our Stock Screeners is:

Gilead Sciences Inc (GILD)

Gilead Sciences develops and markets therapies to treat life-threatening infectious diseases, with the core of its portfolio focused on HIV and hepatitis B and C. The acquisitions of Corus Pharma, Myogen, CV Therapeutics, Arresto Biosciences, and Calistoga have broadened this focus to include pulmonary and cardiovascular diseases and cancer. Gilead’s acquisition of Pharmasset brought rights to hepatitis C drug Sovaldi, which is also part of combination drug Harvoni, and the Kite, Forty Seven, and Immunomedics acquisitions boost Gilead’s exposure to cell therapy and noncell therapy in oncology.

Overall, the company has seen significant growth in revenue, gross profit, operating income, and net income from continuing operation net minority interest from 2021 to 2023. This growth is likely due to a number of factors, including the company’s expansion into new markets, the launch of new products, and the improvement of its operational efficiency.

A quick look at the share price history (below) over the past twelve months shows that the price is up 15.18%. Here’s why the company is undervalued.

GILD data by YCharts

Key Stats

Market Cap: $94.55 Billion

Enterprise Value: $112.63 Billion

Operating Earnings

Operating Earnings: $10.04 Billion

Acquirer’s Multiple

Acquirer’s Multiple: 11.20

Free Cash Flow (TTM)

Free Cash Flow: $8.93 Billion

FCF/EV Yield %:

FCF/EV Yield: 9.44

Shareholder Yield %:

Shareholder Yield: 5.20

Other Indicators

Piotroski F Score (TTM): 7.00

Altman Z-Score (TTM): 2.621

ROA (5 Year Avge%): 16