Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of A- . The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, attractive valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
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Highlights from the ratings report include:
- GILD's revenue growth has slightly outpaced the industry average of 6.9%. Since the same quarter one year prior, revenues rose by 12.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, GILD's share price has jumped by 67.54%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, GILD should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- GILEAD SCIENCES INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GILEAD SCIENCES INC increased its bottom line by earning $3.55 versus $3.30 in the prior year. This year, the market expects an improvement in earnings ($3.78 versus $3.55).
- Net operating cash flow has increased to $1,290.65 million or 36.82% when compared to the same quarter last year. Despite an increase in cash flow, GILEAD SCIENCES INC's average is still marginally south of the industry average growth rate of 38.46%.
Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes human therapeutics for the treatment of life threatening diseases worldwide. Gilead has a market cap of $50.22 billion and is part of the health care sector and drugs industry. The company has a P/E ratio of 20.1, above the S&P 500 P/E ratio of 17.7. Shares are up 62.2% year to date as of the close of trading on Tuesday.
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--Written by a member of TheStreet Ratings Staff.
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