Guru Jerome Dodson (Trades, Portfolio) added 140,000 shares of Gilead Sciences (GILD, Financial) during the fourth quarter.
The trade had a 1.24% impact on Dodson’s portfolio. He now owns 490,000 shares of the company.
Gilead Sciences has a market cap of $93.2 billion, a price-earnings (P/E) ratio of 6.50, an enterprise value of $107.38 billion, a price-book (P/B) ratio of 5.47 and a forward rate of return of 68.71%
Gilead Sciences is a research-based biopharmaceutical company that discovers, develops and markets innovative medicines. The company’s mission is to care for people with life-threatening illnesses around the world.
Gilead Sciences primarily focuses on drugs that include treatments for HIV/AIDS, liver diseases, cancer, inflammatory and respiratory diseases and cardiovascular conditions.
According to GuruFocus Gilead Sciences has a 6/10 financial strength rating with a cash-debt ratio of 0.55, an equity-asset ratio of 0.30 and a Piotroski F-Score of 5 indicating the company’s financial situation is typical for a stable company.
Gilead Sciences also has an 8 of 10 profitability and growth rating with an operating margin of 60.83%, a net margin of 47.75%, a return on equity (ROE) of 92.21%, revenue growth (three years) of 51.80% and a return on capital (ROC Joel Greenblatt (Trades, Portfolio)) of 597.28%.
Gilead Sciences has six good signs according to GuruFocus, which likely had an impact on Dodson’s decision to add to his holding in Gilead Sciences during the fourth quarter.
- The company’s price is close to its three-year low of $68.56.
- The company’s operating margin is in expansion which is usually a good sign.
- The company’s dividend yield is 2.61% which is close to its two-year high.
- The company’s P/E ratio is close to its 10-year low of 6.64.
- The company’s P/B ratio is close to a three-year low of 5.61.
- The company’s price-sales (P/S) ratio is close to its 10-year low of 3.19.
The company is also trading well below its intrinsic value according to the Peter Lynch chart below.
Disclosure: The author does not own any shares of this company.
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