Gilead Sciences (GILD) Dividend Stock Analysis

Gilead Sciences Dividend

Gilead Sciences (GILD) has paid a dividend every year since 2015 and increased it for 10 consecutive years; qualifying the company for the Dividend Contenders list.

GILD has an exceptional ability to make acquisitions of key treatments and turn them into sustainable long term profit centers that meet critical needs of patients.  This ability, together with their own R&D, has created a portfolio of assets that provide a strong moat for the company.

Current Dividend Annualized: $3.08

Gilead Sciences (GILD) Intrinsic Value – Margin of Safety Analysis            

(updated December 2024)

Normalized Diluted Earnings Per Share (TTM): $0.09
Free Cash Flow Per Share (TTM): $7.55
Cash Flow From Operations Per Share (TTM): $8.02

Estimated Intrinsic Value: $87

Target Buy Price Based on Required Margin of Safety =  $62
(Required Margin of Safety Based On Risk Stability Grade:

A = 0%, B = 20%, C = 40%, D = 60%, F = 80%)

Target SELL Price Based on Estimated Intrinsic Value = $100
(Allow Overvaluation Adjusted by Risk Stability Grade:

A = 40%, B = 25%, C = 15%, D = 5%, F = 0%)

Risk / Stability Grade:  C 

A grade indicates a quality company with a strong balance sheet, high earnings quality, and a positive business environment. These stocks require the slimmest margin of safety within the stock universe.

B grade indicates a company with a good balance sheet, good earning quality, and a stable business environment. The margin of safety required should be greater than stocks with an A grade but less than the average stock.

C grade indicates a company with a sufficient balance sheet, at least average earnings quality, and a reasonably stable business environment. The margin of safety required is greater than A & B stocks, but less than D & F stocks.

D grade indicates a company in good standing but has issues that could affect its stability and long term risks. D rated stocks should require a large margin of safety when purchased.

F grade indicates a company with significant issues that are currently affecting its stability and long term risks. Require an extremely large margin of safety for F rated stocks when purchased.

Financial Risk Grade:  C

A grade indicates an extremely low probability of a dividend cut. This rating is reserved for companies with strong balance sheets and/or excellent dividend histories.

B grade indicates a very low probability for a dividend cut.

C grade indicates a low probability for a dividend cut and/or average safety risk.

D grade indicates there are issues that should be considered concerning future dividend payments.

F grade indicates serious dividend safety risks. Investors should complete comprehensive due diligence before investing.

Business Quality Grade:  C

A grade indicates earnings quality is high or far above average.

B grade indicates earnings quality is good and/or above average.

C grade indicates earnings quality is acceptable or average.

D grade indicates earnings quality is poor and requires thoughtful due diligence.

F grade indicates the quality of the earnings is poor or far below average requiring serious due diligence.

Earnings Report:  9/30/24

AAAMP Portfolios Position Disclosures:
Treasure Trove Dividend (TTD) – None
Global Dividend Value (GDV) – None
Dividend Growth & Income (DGI) – None
Global Value (GV) – None
Global Value Aggressive (GVA) – None
Global Conservative Income (GCI) – None 
Global High Income (GHI) – None

Company Description

Sector: Healthcare
Industry: Biotechnology

Company Overview:
Gilead Sciences (GILD) is a biopharmaceutical company focused on developing and commercializing antiviral drugs used to treat HIV, hepatitis B and C, and other serious diseases. It has a strong presence in oncology and immunology, with a growing pipeline of innovative therapies. The company is known for its leadership in antiviral treatments, including groundbreaking HIV and hepatitis C medications.

Company Strengths:
Gilead benefits from a strong portfolio of life-saving treatments, particularly in HIV, where it holds a dominant market position with products like Biktarvy. The company generates consistent revenue from its antiviral franchise and has been expanding into oncology with promising acquisitions, such as Kite Pharma, which strengthened its position in cell therapy. Its robust cash flow and shareholder returns through dividends and buybacks also provide financial stability.

Company Challenges:
Gilead faces challenges from increasing competition, particularly in the HIV and hepatitis C markets, where pricing pressures and generic competition are growing. The company’s oncology expansion is still in early stages and faces significant competition from established players. Additionally, the company relies heavily on a few key drugs for revenue, making it vulnerable to patent expirations and regulatory hurdles.

Disclaimer:
While Arbor Investment Planner has used reasonable efforts to obtain information from reliable sources, we make no representations or warranties as to the accuracy, reliability, or completeness of third-party information presented herein. The sole purpose of this analysis is information. Nothing presented herein is, or is intended to constitute investment advice. Consult your financial advisor before making investment decisions.