| Company name | Gilead Sciences, Inc. |
| Stock ticker | GILD |
| Live stock price | [stckqut]GILD[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Good |
| Sales growth | Poor |
| EPS growth | Poor |
| P/E growth | Good |
| EBIT growth | Good |
ANALYSIS
| Confident Investor Rating | Fair |
| Target stock price (TWCA growth scenario) | $92.08 |
| Target stock price (averages with growth) | $75.93 |
| Target stock price (averages with no growth) | $54.69 |
| Target stock price (manual assumptions) | $68. |
The following company description is from Reuters: https://www.reuters.com/finance/stocks/company-profile/gild
Gilead Sciences, Inc., incorporated on June 22, 1987, is a research-based biopharmaceutical company that discovers, develops and commercializes medicines in areas of unmet medical need. The Company’s portfolio of products and pipeline of investigational drugs includes treatments for Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome (HIV/AIDS), liver diseases, cancer, inflammatory and respiratory diseases and cardiovascular conditions. Its products include AmBisome, Atripla, Cayston, Complera/Eviplera, Descovy, Emtriva, Epclusa, Genvoya, Harvoni, Hepsera, Letairis, Odefsey, Ranexa, Sovaldi, Stribild, Truvada, Tybost, Vemlidy, Viread, Vitekta, and Zydelig. The Company’s areas of focus include HIV; liver diseases, such as chronic hepatitis C virus (HCV) infection and chronic hepatitis B virus (HBV) infection; hematology/oncology; cardiovascular, and inflammation/respiratory diseases. The Company had operations in more than 30 countries, as of December 31, 2016. The Company, through its subsidiary Kite Pharma, Inc. (Kite), is engaged in the development of cancer immunotherapies. Kite is focused on chimeric antigen receptor (CAR) and T cell receptor (TCR) engineered cell therapies designed to empower the immune system’s ability to recognize and kill tumors. Kite’s pipeline includes axicabtagene ciloleucel, KTE-C19, Human anti-CD19 (2nd Gen), Humanized anti-CD19 Control CAR (3rd Gen), KITE-585 (anti-BCMA), KITE-796 (anti-CLL-1 Control CAR), MAGE A3/A6, KITE-718 (MAGE A3/A6), MAGE A3, HPV-16 E6 & E7, KITE-439 (HPV-16 E7), KRAS, SSX-2 and Neoantigens.
Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Gilead Sciences, Inc. as long as the price is correct and the indicators that I describe in my book The Confident Investor are favorable. Most of the fundamentals of this company are good but there are some concerns. I am removing Gilead from my Watch List as there are better investments in the market.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Gilead Sciences, Inc. calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $68.02
- Growth: 0.1
- Current EPS (TTM): $6.8
- P/E: 10
- Future EPS Calc: $10.95
- Future Stock Price Calc: $109.51
- Target stock price: $68
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I hope that this makes you a Confident Investor.