Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin32.5%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin-134.5%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
D
Years to Pay Off Debt-2.5 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$20.9B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$2.9B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
F
Price-to-Book15.78x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
C
Free Cash Flow$3.4B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Owner Earnings-$9.7B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About Gilead Sciences, Inc.
Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines in the areas of unmet medical need in the United States, Europe, and internationally. The company provides Biktarvy, Descovy, Genvoya, Odefsey, Sunlenca, Symtuza, and YeztugoFor the treatment of HIV-1 infection in patients. It also provides Epclusa, Livdelzi, and Vemlidy to treat chronic hepatitis C virus, primary biliary cholangitis, and chronic hepatitis B virus; Tecartus, a T-cell therapy for the treatment of adult patients; Trodelvy, an injection for intravenous use; and Yescarta, a suspension for intravenous infusion, is a CAR T-cell therapy for the treatment of adult patients. Further, it provides AmBisome, for the treatment of serious invasive fungal infections; and Veklury for the treatment of COVID-19. Additionally, the company engages in the development of various immunotherapies for patients with cancer and other incurable diseases. The company has collaboration agreements with Shenzhen Pregene Biopharma Co., Ltd.; Abingworth; Arcus Biosciences, Inc.; Merck Sharp & Dohme Corp.; Janssen Sciences Ireland Unlimited Company; Japan Tobacco, Inc.; Everest Medicines; Merck & Co, Inc.; Tentarix Biotherapeutics Inc.; and Assembly Biosciences, Inc. It also has research collaboration, option, and license agreement with Merus N.V. for the discovery of novel dual tumor-associated antigens (TAA) targeting trispecific antibodies. The company has a collaboration with Terray Therapeutics, Inc. to discover and develop small molecule therapies; and LEO Pharma to develop, manufacture, and commercialize the small molecule oral STAT6 program. The company has a partnership with Pan American Health Organization (PAHO) to accelerate access to lenacapavir for HIV prevention as pre-exposure prophylaxis (PrEP) across all PAHO member states in Latin America and the Caribbean. The company was incorporated in 1987 and is headquartered in Foster City, California.
Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines in the areas of unmet medical need in the United States, Europe, and internationally. The company provides Biktarvy, Descovy, Genvoya, Odefsey, Sunlenca, Symtuza, and YeztugoFor the treatment of HIV-1 infection in patients. It also provides Epclusa, Livdelzi, and Vemlidy to treat chronic hepatitis C virus, primary biliary cholangitis, and chronic hepatitis B virus; Tecartus, a T-cell therapy for the treatment of adult patients; Trodelvy, an injection for intravenous use; and Yescarta, a suspension for intravenous infusion, is a CAR T-cell therapy for the treatment of adult patients. Further, it provides AmBisome, for the treatment of serious invasive fungal infections; and Veklury for the treatment of COVID-19. Additionally, the company engages in the development of various immunotherapies for patients with cancer and other incurable diseases. The company has collaboration agreements with Shenzhen Pregene Biopharma Co., Ltd.; Abingworth; Arcus Biosciences, Inc.; Merck Sharp & Dohme Corp.; Janssen Sciences Ireland Unlimited Company; Japan Tobacco, Inc.; Everest Medicines; Merck & Co, Inc.; Tentarix Biotherapeutics Inc.; and Assembly Biosciences, Inc. It also has research collaboration, option, and license agreement with Merus N.V. for the discovery of novel dual tumor-associated antigens (TAA) targeting trispecific antibodies. The company has a collaboration with Terray Therapeutics, Inc. to discover and develop small molecule therapies; and LEO Pharma to develop, manufacture, and commercialize the small molecule oral STAT6 program. The company has a partnership with Pan American Health Organization (PAHO) to accelerate access to lenacapavir for HIV prevention as pre-exposure prophylaxis (PrEP) across all PAHO member states in Latin America and the Caribbean. The company was incorporated in 1987 and is headquartered in Foster City, California.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Net Income From Continuing Operation Net Minority Interest
-10,496,000
2,183,000
Reconciled Depreciation
698,000
687,000
Reconciled Cost Of Revenue
1,579,000
EBITDA
-9,309,000
3,020,000
EBIT
-10,007,000
2,333,000
Net Interest Income
-202,000
-160,000
Interest Expense
247,000
255,000
Interest Income
45,000
95,000
Normalized Income
-2,942,000
2,777,080
Net Income From Continuing And Discontinued Operation
-10,496,000
2,183,000
Total Expenses
5,264,000
4,936,000
Total Operating Income As Reported
-10,394,000
1,984,000
Diluted Average Shares
1,243,000
1,253,000
Basic Average Shares
1,243,000
1,242,000
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
-10,496,000
2,183,000
Net Income Common Stockholders
-10,496,000
2,183,000
Net Income
-10,496,000
2,183,000
Net Income Including Noncontrolling Interests
-10,496,000
2,183,000
Net Income Continuous Operations
-10,496,000
2,183,000
Tax Provision
242,000
-105,000
Pretax Income
-10,254,000
2,078,000
Other Income Expense
-12,591,000
-750,000
Other Non Operating Income Expenses
-1,000
2,000
Special Income Charges
-12,933,000
-1,005,000
Other Special Charges
11,183,000
539,000
Write Off
1,750,000
400,000
Impairment Of Capital Assets
1,750,000
Gain On Sale Of Security
343,000
253,000
Net Non Operating Interest Income Expense
-202,000
-160,000
Interest Expense Non Operating
247,000
255,000
Interest Income Non Operating
45,000
95,000
Operating Income
2,539,000
2,988,000
Operating Expense
3,685,000
3,312,000
Research And Development
1,764,000
1,584,000
Selling General And Administration
1,921,000
1,728,000
Selling And Marketing Expense
1,011,000
1,076,000
General And Administrative Expense
910,000
652,000
Other Gand A
910,000
652,000
Gross Profit
6,224,000
6,300,000
Cost Of Revenue
1,579,000
1,624,000
Total Revenue
7,803,000
7,924,000
Operating Revenue
7,803,000
7,924,000
Balance Sheet
2026
2025
2024
Ordinary Shares Number
1,241,000
1,240,680
Share Issued
1,241,000
1,240,680
Net Debt
23,067,000
17,372,000
Total Debt
26,246,000
24,936,000
Tangible Book Value
-10,519,000
-2,590,000
Invested Capital
38,074,000
47,638,000
Working Capital
2,925,000
6,529,000
Net Tangible Assets
-10,519,000
-2,590,000
Common Stock Equity
11,828,000
22,702,000
Total Capitalization
35,660,000
44,831,000
Total Equity Gross Minority Interest
11,744,000
22,618,000
Minority Interest
-84,000
-84,000
Stockholders Equity
11,828,000
22,702,000
Gains Losses Not Affecting Retained Earnings
95,000
39,000
Other Equity Adjustments
95,000
39,000
Retained Earnings
2,200,000
13,730,000
Additional Paid In Capital
9,532,000
8,932,000
Capital Stock
1,000
1,000
Common Stock
1,000
1,000
Total Liabilities Net Minority Interest
37,618,000
36,405,000
Total Non Current Liabilities Net Minority Interest
26,598,000
24,592,000
Other Non Current Liabilities
1,490,000
1,165,000
Tradeand Other Payables Non Current
943,000
896,000
Non Current Deferred Liabilities
333,000
402,000
Non Current Deferred Taxes Liabilities
333,000
402,000
Long Term Debt And Capital Lease Obligation
23,832,000
22,129,000
Long Term Debt
23,832,000
22,129,000
Current Liabilities
11,020,000
11,813,000
Other Current Liabilities
3,699,000
2,243,000
Current Debt And Capital Lease Obligation
2,414,000
2,807,000
Current Debt
2,414,000
2,807,000
Pensionand Other Post Retirement Benefit Plans Current
1,298,000
1,228,000
Current Provisions
321,000
321,000
Payables And Accrued Expenses
4,907,000
5,144,000
Current Accrued Expenses
4,233,000
4,337,000
Payables
674,000
807,000
Total Tax Payable
92,000
1,646,000
Income Tax Payable
92,000
1,646,000
Accounts Payable
674,000
715,000
Total Assets
49,362,000
59,023,000
Total Non Current Assets
35,418,000
40,681,000
Other Non Current Assets
4,751,000
4,845,000
Non Current Deferred Assets
2,487,000
1,964,000
Non Current Deferred Taxes Assets
2,487,000
1,964,000
Investments And Advances
0
2,974,000
Investmentin Financial Assets
0
2,974,000
Available For Sale Securities
2,974,000
Goodwill And Other Intangible Assets
22,347,000
25,292,000
Other Intangible Assets
14,033,000
16,978,000
Goodwill
8,314,000
8,314,000
Net PPE
5,833,000
5,606,000
Accumulated Depreciation
-2,874,000
-2,696,000
Gross PPE
8,707,000
8,302,000
Construction In Progress
745,000
501,000
Other Properties
1,707,000
1,589,000
Machinery Furniture Equipment
666,000
692,000
Buildings And Improvements
4,622,000
4,539,000
Land And Improvements
561,000
561,000
Current Assets
13,945,000
18,342,000
Other Current Assets
3,758,000
1,143,000
Prepaid Assets
899,000
480,000
Inventory
1,953,000
1,774,000
Receivables
5,055,000
4,913,000
Accounts Receivable
5,055,000
4,913,000
Allowance For Doubtful Accounts Receivable
-847,000
-981,000
Gross Accounts Receivable
5,902,000
5,895,000
Cash Cash Equivalents And Short Term Investments
3,179,000
9,613,000
Other Short Term Investments
0
2,049,000
Cash And Cash Equivalents
3,179,000
7,564,000
Cash Flow
2026
2025
2024
Free Cash Flow
3,433,000
3,122,000
Repurchase Of Capital Stock
-355,000
-230,000
Repayment Of Debt
-17,000
-8,000
Issuance Of Debt
3,464,000
Issuance Of Capital Stock
9,000
32,000
Capital Expenditure
-140,000
-205,000
End Cash Position
3,179,000
7,564,000
Beginning Cash Position
7,628,000
7,330,000
Effect Of Exchange Rate Changes
-19,000
5,000
Changes In Cash
-4,430,000
229,000
Financing Cash Flow
2,344,000
-1,263,000
Cash Flow From Continuing Financing Activities
2,343,000
-1,263,000
Net Other Financing Charges
-349,000
-63,000
Cash Dividends Paid
-1,029,000
-994,000
Common Stock Dividend Paid
-1,029,000
-994,000
Net Common Stock Issuance
-346,000
-198,000
Common Stock Payments
-355,000
-230,000
Common Stock Issuance
9,000
32,000
Net Issuance Payments Of Debt
4,068,000
-8,000
Net Long Term Debt Issuance
4,068,000
-8,000
Long Term Debt Payments
-17,000
-8,000
Long Term Debt Issuance
3,464,000
Investing Cash Flow
-10,347,000
-1,835,000
Cash Flow From Continuing Investing Activities
-10,346,000
-1,836,000
Net Other Investing Changes
19,000
12,000
Net Investment Purchase And Sale
983,000
-1,033,000
Sale Of Investment
1,025,000
363,000
Purchase Of Investment
-42,000
-1,396,000
Net Business Purchase And Sale
-11,209,000
-609,000
Purchase Of Business
-11,209,000
-609,000
Net PPE Purchase And Sale
-140,000
-205,000
Purchase Of PPE
-140,000
-205,000
Capital Expenditure Reported
-147,000
Operating Cash Flow
3,573,000
3,327,000
Cash Flow From Continuing Operating Activities
3,572,000
3,327,000
Change In Working Capital
36,000
-604,000
Change In Other Working Capital
171,000
-134,000
Change In Payables And Accrued Expense
356,000
-490,000
Change In Accrued Expense
338,000
-395,000
Change In Payable
18,000
-95,000
Change In Account Payable
18,000
-95,000
Change In Prepaid Assets
-13,000
-36,000
Change In Inventory
-145,000
-123,000
Change In Receivables
-333,000
179,000
Changes In Account Receivables
-333,000
179,000
Other Non Cash Items
12,284,000
806,000
Stock Based Compensation
231,000
230,000
Asset Impairment Charge
400,000
0
Deferred Tax
-587,000
-122,000
Deferred Income Tax
-587,000
-122,000
Depreciation Amortization Depletion
698,000
687,000
Depreciation And Amortization
698,000
687,000
Amortization Cash Flow
600,000
597,000
Amortization Of Intangibles
600,000
597,000
Depreciation
98,000
90,000
Operating Gains Losses
-343,000
-253,000
Gain Loss On Investment Securities
-343,000
-253,000
Net Income From Continuing Operations
-10,496,000
2,183,000
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $7.1B▲ $7.8B+10.2%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 78.8%▲ 79.8%+1.0pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 35.9%▼ 32.5%-3.3pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 27.7%▼ -134.5%-162.2pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$7.8B/qtr (≈$31.2B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
1.27x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$3.4B
vs Positive
Operating Cash Flow
$3.6B
Latest quarter · Buffett's cash reality check
ROIC
5.2%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
15.9x
Net Assets: $11.7B
⚠️Net margin compressed 162.2pp vs same quarter last year. Common causes: one-time charges (restructuring, write-downs, legal settlements), tax rate changes, or rising interest expense. Check the income statement notes before drawing conclusions about operating health.
⚠️Operating income is positive but net income is negative. This typically reflects below-the-line items: interest expense, impairment charges, tax adjustments, or one-time write-offs. The core business may be healthy — operating margin is a better signal of ongoing profitability here.
⚠️Revenue grew vs prior year but operating margin contracted. Possible explanations: deliberate investment in growth (hiring, marketing, R&D), input cost inflation, or pricing pressure from competition. Buffett distinguishes between spending that builds moat vs. spending that doesn't.
Peers & Industry
No auto-detected peers for Drug Manufacturers - General. You can manually compare GILD against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
0.11%
Low — management has little skin in the game
Return on Equity (ROE)
-88.7%
Weak — poor returns on equity
Return on Assets (ROA)
-21.3%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$1.9B
Management is returning capital to shareholders via buybacks
Debt Trend YoY
+18.4% YoY
Debt is growing — management is leveraging up
Leadership Team
Daniel Patrick O'Day
Chairman & CEO
Age 60
Pay: $8,698,736
Andrew Dickinson
Executive VP & CFO
Age 55
Pay: $3,143,899
Jacquie Ross
Senior Vice President of Treasury & Investor Relations
Jyoti Mehra
Executive Vice President of Human Resources
Age 48
Linda Slanec Higgins Ph.
Senior Vice President of Research, Innovation & Portfolio
Age 63
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
9.83%
121,844,108
Vanguard Capital Management LLC
6.54%
81,091,734
FMR, LLC
5.39%
66,870,816
State Street Corporation
4.94%
61,216,552
Capital World Investors
3.31%
40,988,975
Invesco Ltd.
3.21%
39,819,151
Vanguard Portfolio Management LLC
2.85%
35,316,168
Geode Capital Management, LLC
2.42%
30,065,642
Risk Analysis
Beta (Market Risk)
0.35
Low volatility — more stable than the market
Short Interest
1.9% of float
Low short interest — market is not heavily bearish
Debt-to-Equity
2.23x
High leverage — significant financial risk
Current Ratio
1.26x
Adequate liquidity
52-Week Price Range
Low: $108.46Current: $150.56High: $157.29
Currently at 86% of 52-week range
Gilead Sciences, Inc. (GILD) fundamental analysis — Overall grade F based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A (negative EPS). Gross profit margin: 79.8%. Operating margin: 32.5%. Net margin: -134.5%. Market cap: $186.7B. Sector: Healthcare. Industry: Drug Manufacturers - General. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers
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