GILD Summary Points - with my take!

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GILD Fundamental Review via Illustrations:

  • Valuation:

  1. Mkt Cap - $83B, Enterprise Value - $107

  2. P/S ratio under 3

  3. High P/E ratio currently based on accounting loss; Acquired in-process R&D

  • Cash & Debt balances hit recently due to acquisitions of:

  1. Forty Seven - $4.7B

  2. Immunomedics - $20.4B

  3. Such impacts adjusted Mkt Cap and Enterprise Values relative values greatly

  • Dividend:

  1. As with many pharmaceutical with approved drug candidates, solid dividend

  2. Dividend over 4%

  3. Last dividend $0.71/share; growth over time per chart

  • Drugs:

  1. AIDS: Biktarvy, Genvoya, Descovy, Odefsey

  2. Liver: Hep-C – Sofosbuvir/Velpatasvir

  3. COVID-19 – Veklury (remdesivir) – what an addition – GILD stock not getting the love even though this may be temporary revenue stream. That said, I bet the revenues last longer than people expect

  • Options: How to hit on this more via person experience

  • Other Data:

  1. Revenue Growth one of the most important images

  2. Growth increasing recently

  3. HCV declines behind them and AIDS/COVID-19 powering growth

  4. Share Buyer!

  5. As noted before, recent acquisitions have hit the cash pile. This is a risk, I don’t like debt levels at these levels, so will watch with time.

  6. R&D up due to acquired in process R&D

  • Valuation ratios:

  1. Based on GAAP numbers P/E all over the place due to accounting rules

  2. P/S ration consistently under 5

  3. Get not a massive growth stock but relative to some of these companies trading at P/S ratios over 100, seems cheap.

  • Drugs Sale vs Time highlights the massive impact of Remdesivir on financials.

OVERALL: I don’t like the high debt loads, but the valuation and cash flow ability lead me to rate this stock as a BUY.

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