Price to Operating Profit (P/OP)
since 2005
Calculation
Gilead Sciences Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income (loss)1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 28, 2025 | 85.65 | = | 114.31 | ÷ | 1.33 | 1.33 | = | 1,662 | ÷ | 1,245,346,062 | |
| Feb 23, 2024 | 12.05 | = | 73.55 | ÷ | 6.10 | 6.10 | = | 7,605 | ÷ | 1,245,774,616 | |
| Feb 22, 2023 | 14.21 | = | 83.50 | ÷ | 5.88 | 5.88 | = | 7,330 | ÷ | 1,247,105,154 | |
| Feb 23, 2022 | 7.76 | = | 61.35 | ÷ | 7.91 | 7.91 | = | 9,918 | ÷ | 1,253,886,724 | |
| Feb 25, 2021 | 19.38 | = | 62.79 | ÷ | 3.24 | 3.24 | = | 4,071 | ÷ | 1,256,593,156 | |
| Feb 25, 2020 | 20.66 | = | 70.10 | ÷ | 3.39 | 3.39 | = | 4,287 | ÷ | 1,263,636,656 | |
| Feb 26, 2019 | 10.15 | = | 65.28 | ÷ | 6.43 | 6.43 | = | 8,200 | ÷ | 1,275,510,558 | |
| Feb 27, 2018 | 7.45 | = | 80.36 | ÷ | 10.78 | 10.78 | = | 14,124 | ÷ | 1,309,967,781 | |
| Feb 27, 2017 | 5.23 | = | 70.50 | ÷ | 13.49 | 13.49 | = | 17,633 | ÷ | 1,307,066,900 | |
| Feb 24, 2016 | 5.50 | = | 89.36 | ÷ | 16.24 | 16.24 | = | 22,193 | ÷ | 1,366,845,691 | |
| Feb 25, 2015 | 10.19 | = | 104.43 | ÷ | 10.25 | 10.25 | = | 15,265 | ÷ | 1,489,401,683 | |
| Feb 25, 2014 | 28.54 | = | 83.95 | ÷ | 2.94 | 2.94 | = | 4,524 | ÷ | 1,538,252,914 | |
| Feb 27, 2013 | 16.28 | = | 42.89 | ÷ | 2.63 | 2.63 | = | 4,010 | ÷ | 1,522,392,518 | |
| Feb 23, 2012 | 9.02 | = | 22.58 | ÷ | 2.50 | 2.50 | = | 3,790 | ÷ | 1,514,630,722 | |
| Feb 28, 2011 | 7.82 | = | 19.49 | ÷ | 2.49 | 2.49 | = | 3,962 | ÷ | 1,590,529,288 | |
| Mar 1, 2010 | 12.16 | = | 23.76 | ÷ | 1.95 | 1.95 | = | 3,529 | ÷ | 1,806,757,972 | |
| Feb 27, 2009 | 15.24 | = | 22.40 | ÷ | 1.47 | 1.47 | = | 2,679 | ÷ | 1,821,909,204 | |
| Feb 27, 2008 | 18.80 | = | 21.90 | ÷ | 1.17 | 1.17 | = | 2,165 | ÷ | 1,857,740,064 | |
| Feb 27, 2007 | — | = | 17.65 | ÷ | -0.41 | -0.41 | = | -759 | ÷ | 1,858,655,664 | |
| Mar 3, 2006 | 25.01 | = | 15.03 | ÷ | 0.60 | 0.60 | = | 1,111 | ÷ | 1,849,138,544 |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Gilead Sciences Inc. Annual Report.
- Share Price Trends
- The share price showed a general upward trend from 2006 to 2015, rising from $15.03 to a peak of $104.43 in 2015. This period was characterized by significant growth, especially noticeable between 2012 and 2015. However, following this peak, the share price declined, reaching a low of $61.35 by 2022. Starting in 2023, the share price experienced a strong rebound, increasing to $114.31 by 2025, surpassing previous highs.
- Operating Profit Per Share (OPPS) Trends
- Operating profit per share fluctuated over the years, starting at $0.60 in 2006, turning negative in 2007 at -$0.41, before recovering and increasing steadily to $16.24 by 2011. After this peak, OPPS trended downward, declining to a low of $1.33 in 2025. Notably, there were significant declines after 2011, with intermittent modest recoveries around 2017 and 2022. Overall, the trend from 2011 onwards suggests decreased operational profitability per share.
- Price to Operating Profit Ratio (P/OP) Analysis
- The P/OP ratio displayed high volatility over the period. Data for 2007 is missing, but other years show a declining trend from 25.01 in 2006 to a low of 5.23 in 2017, indicating periods when the share price was relatively low compared to operating profits. Following 2017, the ratio increased sharply, peaking at 85.65 in 2025. This large increase reflects the combination of a recovering share price and a significant decline in OPPS, suggesting potential overvaluation in relation to operating profitability during this recent period.
- Overall Insights
- The financial data reveals a cyclical pattern in share price and operating profits. Initial strong growth in both share price and operating profits culminated around 2011-2015, followed by a period of declining profitability and share price. Recent years have seen a divergent pattern, with share prices recovering sharply while operating profits per share continue to decline, resulting in increased valuation multiples. This divergence might indicate heightened market expectations or other external factors influencing share prices independently of operating profit trends.
Comparison to Competitors
Gilead Sciences Inc., P/OP, long-term trends, comparison to competitors
| Gilead Sciences Inc. | AbbVie Inc. | Amgen Inc. | Danaher Corp. | Regeneron Pharmaceuticals Inc. | Thermo Fisher Scientific Inc. | Vertex Pharmaceuticals Inc. | |
|---|---|---|---|---|---|---|---|
| Feb 28, 2025 | 85.65 | 37.26 | 21.55 | 30.56 | 19.63 | 27.65 | — |
| Feb 23, 2024 | 12.05 | 24.34 | 19.69 | 35.64 | 25.39 | 31.16 | 28.74 |
| Feb 22, 2023 | 14.21 | 14.78 | 13.40 | 20.97 | 18.01 | 25.30 | 17.75 |
| Feb 23, 2022 | 7.76 | 14.21 | 16.24 | 25.14 | 7.55 | 21.07 | 22.35 |
| Feb 25, 2021 | 19.38 | 16.32 | 14.96 | 36.91 | 14.82 | 22.81 | 19.16 |
| Feb 25, 2020 | 20.66 | 10.82 | 13.84 | 34.47 | 19.01 | 26.84 | 51.98 |
| Feb 26, 2019 | 10.15 | 18.35 | 11.46 | 23.18 | 17.53 | 27.33 | 74.57 |
| Feb 27, 2018 | 7.45 | 19.63 | 12.71 | 22.48 | 16.71 | 28.24 | 331.55 |
| Feb 27, 2017 | 5.23 | 10.49 | 12.64 | 21.37 | 28.70 | 25.13 | 2,143.58 |
| Feb 24, 2016 | 5.50 | 11.61 | 13.07 | 17.27 | 30.74 | 22.15 | — |
| Feb 25, 2015 | 10.19 | 28.64 | 19.13 | 17.94 | 49.17 | 20.63 | — |
| Feb 25, 2014 | 28.54 | 14.31 | 16.19 | 16.24 | 42.99 | 30.40 | — |
| Feb 27, 2013 | 16.28 | 10.44 | 12.22 | 13.40 | 35.11 | 17.92 | 4,319.80 |
| Feb 23, 2012 | 9.02 | — | 12.48 | 14.04 | — | 16.64 | 69.48 |
| Feb 28, 2011 | 7.82 | — | 8.79 | 15.14 | — | 17.09 | — |
| Mar 1, 2010 | 12.16 | — | 10.12 | 15.63 | — | 19.04 | — |
| Feb 27, 2009 | 15.24 | — | 9.70 | 8.85 | — | 12.33 | — |
| Feb 27, 2008 | 18.80 | — | 12.44 | 13.65 | — | 24.03 | — |
| Feb 27, 2007 | — | — | 19.54 | 14.52 | — | 79.09 | — |
| Mar 3, 2006 | 25.01 | — | 17.96 | 15.18 | — | 21.48 | — |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).