GSK PLC (GS71.DE) Stock Fundamental Analysis
Europe - FRA:GS71 - GB00BN7SWP63 - Common Stock
20.15 EUR
-0.1 (-0.49%)
GS71 gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 53 industry peers in the Pharmaceuticals industry. While GS71 belongs to the best of the industry regarding profitability, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on GS71.
1. Profitability
1.1 Basic Checks
GS71 had positive earnings in the past year.
GS71 had a positive operating cash flow in the past year.
In the past 5 years GS71 has always been profitable.
Each year in the past 5 years GS71 had a positive operating cash flow.
1.2 Ratios
GS71 has a better Return On Assets (8.96%) than 69.81% of its industry peers.
The Return On Equity of GS71 (34.02%) is better than 90.57% of its industry peers.
The Return On Invested Capital of GS71 (18.16%) is better than 84.91% of its industry peers.
GS71 had an Average Return On Invested Capital over the past 3 years of 18.38%. This is above the industry average of 14.46%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.96% | ||
| ROE | 34.02% | ||
| ROIC | 18.16% |
ROA(3y)12.52%
ROA(5y)10.05%
ROE(3y)65.63%
ROE(5y)53.08%
ROIC(3y)18.38%
ROIC(5y)14.53%
1.3 Margins
With a decent Profit Margin value of 17.08%, GS71 is doing good in the industry, outperforming 71.70% of the companies in the same industry.
GS71's Profit Margin has declined in the last couple of years.
GS71's Operating Margin of 26.20% is fine compared to the rest of the industry. GS71 outperforms 67.92% of its industry peers.
In the last couple of years the Operating Margin of GS71 has remained more or less at the same level.
With a decent Gross Margin value of 72.52%, GS71 is doing good in the industry, outperforming 60.38% of the companies in the same industry.
In the last couple of years the Gross Margin of GS71 has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.2% | ||
| PM (TTM) | 17.08% | ||
| GM | 72.52% |
OM growth 3Y3.67%
OM growth 5Y-0.3%
PM growth 3Y-22.68%
PM growth 5Y-9.82%
GM growth 3Y2.09%
GM growth 5Y0.57%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GS71 is creating value.
The number of shares outstanding for GS71 has been increased compared to 1 year ago.
The number of shares outstanding for GS71 has been increased compared to 5 years ago.
GS71 has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.64, we must say that GS71 is in the distress zone and has some risk of bankruptcy.
GS71 has a Altman-Z score of 1.64. This is in the lower half of the industry: GS71 underperforms 67.92% of its industry peers.
GS71 has a debt to FCF ratio of 3.78. This is a good value and a sign of high solvency as GS71 would need 3.78 years to pay back of all of its debts.
GS71 has a Debt to FCF ratio (3.78) which is in line with its industry peers.
GS71 has a Debt/Equity ratio of 0.92. This is a neutral value indicating GS71 is somewhat dependend on debt financing.
The Debt to Equity ratio of GS71 (0.92) is worse than 64.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 3.78 | ||
| Altman-Z | 1.64 |
ROIC/WACC2.32
WACC7.82%
2.3 Liquidity
A Current Ratio of 0.84 indicates that GS71 may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.84, GS71 is doing worse than 83.02% of the companies in the same industry.
GS71 has a Quick Ratio of 0.84. This is a bad value and indicates that GS71 is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of GS71 (0.55) is worse than 86.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
GS71 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.23%, which is quite impressive.
GS71 shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.56% yearly.
The Revenue has been growing slightly by 2.73% in the past year.
GS71 shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.45% yearly.
EPS 1Y (TTM)37.23%
EPS 3Y4.05%
EPS 5Y0.56%
EPS Q2Q%125.28%
Revenue 1Y (TTM)2.73%
Revenue growth 3Y8.31%
Revenue growth 5Y-1.45%
Sales Q2Q%8.82%
3.2 Future
Based on estimates for the next years, GS71 will show a small growth in Earnings Per Share. The EPS will grow by 6.96% on average per year.
The Revenue is expected to grow by 3.82% on average over the next years.
EPS Next Y4.82%
EPS Next 2Y6.14%
EPS Next 3Y7.68%
EPS Next 5Y6.96%
Revenue Next Year3.11%
Revenue Next 2Y4.15%
Revenue Next 3Y4.25%
Revenue Next 5Y3.82%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.84 indicates a rather cheap valuation of GS71.
Compared to the rest of the industry, the Price/Earnings ratio of GS71 indicates a rather cheap valuation: GS71 is cheaper than 88.68% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of GS71 to the average of the S&P500 Index (25.83), we can say GS71 is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.88, the valuation of GS71 can be described as reasonable.
Based on the Price/Forward Earnings ratio, GS71 is valued a bit cheaper than the industry average as 79.25% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 32.68. GS71 is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.84 | ||
| Fwd PE | 9.88 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than GS71, based on the Enterprise Value to EBITDA ratio.
92.45% of the companies in the same industry are more expensive than GS71, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.6 | ||
| EV/EBITDA | 4.2 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GS71 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.63
PEG (5Y)13.97
EPS Next 2Y6.14%
EPS Next 3Y7.68%
5. Dividend
5.1 Amount
GS71 has a Yearly Dividend Yield of 3.60%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.99, GS71 pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, GS71 pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.6% |
5.2 History
The dividend of GS71 decreases each year by -9.84%.
Dividend Growth(5Y)-9.84%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
GS71 pays out 46.05% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP46.05%
EPS Next 2Y6.14%
EPS Next 3Y7.68%
FRA:GS71 (11/7/2025, 7:00:00 PM)
20.15
-0.1 (-0.49%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners43.15%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap40.49B
Revenue(TTM)32.17B
Net Income(TTM)5.49B
Analysts70.32
Price Target19.33 (-4.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.6% |
Yearly Dividend0.68
Dividend Growth(5Y)-9.84%
DP46.05%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)71.38%
Min EPS beat(2)7.67%
Max EPS beat(2)135.09%
EPS beat(4)4
Avg EPS beat(4)42.77%
Min EPS beat(4)7.67%
Max EPS beat(4)135.09%
EPS beat(8)7
Avg EPS beat(8)25.75%
EPS beat(12)11
Avg EPS beat(12)20.11%
EPS beat(16)15
Avg EPS beat(16)17.39%
Revenue beat(2)1
Avg Revenue beat(2)1.3%
Min Revenue beat(2)-0.04%
Max Revenue beat(2)2.64%
Revenue beat(4)2
Avg Revenue beat(4)0.67%
Min Revenue beat(4)-1.6%
Max Revenue beat(4)2.64%
Revenue beat(8)5
Avg Revenue beat(8)1.25%
Revenue beat(12)8
Avg Revenue beat(12)1.39%
Revenue beat(16)10
Avg Revenue beat(16)-1.65%
PT rev (1m)0.68%
PT rev (3m)0.87%
EPS NQ rev (1m)-5.05%
EPS NQ rev (3m)-9.55%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.46%
Revenue NQ rev (1m)1.05%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.84 | ||
| Fwd PE | 9.88 | ||
| P/S | 1.11 | ||
| P/FCF | 7.6 | ||
| P/OCF | 4.58 | ||
| P/B | 2.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.2 |
EPS(TTM)2.57
EY12.75%
EPS(NY)2.04
Fwd EY10.12%
FCF(TTM)2.65
FCFY13.16%
OCF(TTM)4.4
OCFY21.83%
SpS18.16
BVpS9.12
TBVpS-4.42
PEG (NY)1.63
PEG (5Y)13.97
Graham Number22.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.96% | ||
| ROE | 34.02% | ||
| ROCE | 21.06% | ||
| ROIC | 18.16% | ||
| ROICexc | 19.79% | ||
| ROICexgc | 57.12% | ||
| OM | 26.2% | ||
| PM (TTM) | 17.08% | ||
| GM | 72.52% | ||
| FCFM | 14.6% |
ROA(3y)12.52%
ROA(5y)10.05%
ROE(3y)65.63%
ROE(5y)53.08%
ROIC(3y)18.38%
ROIC(5y)14.53%
ROICexc(3y)22.56%
ROICexc(5y)17.39%
ROICexgc(3y)78.4%
ROICexgc(5y)64.01%
ROCE(3y)21.97%
ROCE(5y)17.32%
ROICexgc growth 3Y9%
ROICexgc growth 5Y1.32%
ROICexc growth 3Y28.26%
ROICexc growth 5Y8.01%
OM growth 3Y3.67%
OM growth 5Y-0.3%
PM growth 3Y-22.68%
PM growth 5Y-9.82%
GM growth 3Y2.09%
GM growth 5Y0.57%
F-Score7
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 3.78 | ||
| Debt/EBITDA | 1.24 | ||
| Cap/Depr | 87.43% | ||
| Cap/Sales | 9.62% | ||
| Interest Coverage | 13.36 | ||
| Cash Conversion | 65.11% | ||
| Profit Quality | 85.49% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 1.64 |
F-Score7
WACC7.82%
ROIC/WACC2.32
Cap/Depr(3y)108.08%
Cap/Depr(5y)108.56%
Cap/Sales(3y)8.31%
Cap/Sales(5y)9.2%
Profit Quality(3y)87.63%
Profit Quality(5y)97.06%
High Growth Momentum
Growth
EPS 1Y (TTM)37.23%
EPS 3Y4.05%
EPS 5Y0.56%
EPS Q2Q%125.28%
EPS Next Y4.82%
EPS Next 2Y6.14%
EPS Next 3Y7.68%
EPS Next 5Y6.96%
Revenue 1Y (TTM)2.73%
Revenue growth 3Y8.31%
Revenue growth 5Y-1.45%
Sales Q2Q%8.82%
Revenue Next Year3.11%
Revenue Next 2Y4.15%
Revenue Next 3Y4.25%
Revenue Next 5Y3.82%
EBIT growth 1Y6.52%
EBIT growth 3Y12.28%
EBIT growth 5Y-1.74%
EBIT Next Year28.11%
EBIT Next 3Y13.02%
EBIT Next 5Y9.91%
FCF growth 1Y48.4%
FCF growth 3Y-10.73%
FCF growth 5Y-9.42%
OCF growth 1Y42.27%
OCF growth 3Y-6.24%
OCF growth 5Y-3.96%
GSK PLC / GS71.DE FAQ
Can you provide the ChartMill fundamental rating for GSK PLC?
ChartMill assigns a fundamental rating of 5 / 10 to GS71.DE.
Can you provide the valuation status for GSK PLC?
ChartMill assigns a valuation rating of 8 / 10 to GSK PLC (GS71.DE). This can be considered as Undervalued.
Can you provide the profitability details for GSK PLC?
GSK PLC (GS71.DE) has a profitability rating of 7 / 10.
What is the valuation of GSK PLC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for GSK PLC (GS71.DE) is 7.84 and the Price/Book (PB) ratio is 2.21.
Can you provide the dividend sustainability for GS71 stock?
The dividend rating of GSK PLC (GS71.DE) is 4 / 10 and the dividend payout ratio is 46.05%.