GSK PLC (GS71.DE) Stock Fundamental Analysis
Europe - FRA:GS71 - GB00BN7SWP63 - Common Stock
17.45 EUR
-0.16 (-0.91%)
Overall GS71 gets a fundamental rating of 4 out of 10. We evaluated GS71 against 50 industry peers in the Pharmaceuticals industry. While GS71 is still in line with the averages on profitability rating, there are concerns on its financial health. GS71 is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
GS71 had positive earnings in the past year.
In the past year GS71 had a positive cash flow from operations.
GS71 had positive earnings in each of the past 5 years.
GS71 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GS71 has a Return On Assets of 5.78%. This is comparable to the rest of the industry: GS71 outperforms 54.00% of its industry peers.
With a decent Return On Equity value of 23.14%, GS71 is doing good in the industry, outperforming 76.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 17.71%, GS71 belongs to the best of the industry, outperforming 84.00% of the companies in the same industry.
GS71 had an Average Return On Invested Capital over the past 3 years of 18.38%. This is above the industry average of 14.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.78% | ||
| ROE | 23.14% | ||
| ROIC | 17.71% |
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
GS71 has a Profit Margin of 10.82%. This is comparable to the rest of the industry: GS71 outperforms 50.00% of its industry peers.
In the last couple of years the Profit Margin of GS71 has declined.
GS71 has a Operating Margin of 25.25%. This is in the better half of the industry: GS71 outperforms 68.00% of its industry peers.
In the last couple of years the Operating Margin of GS71 has remained more or less at the same level.
GS71 has a Gross Margin of 71.77%. This is in the better half of the industry: GS71 outperforms 62.00% of its industry peers.
GS71's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.25% | ||
| PM (TTM) | 10.82% | ||
| GM | 71.77% |
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
GS71 has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, GS71 has more shares outstanding
Compared to 5 years ago, GS71 has more shares outstanding
Compared to 1 year ago, GS71 has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.57, we must say that GS71 is in the distress zone and has some risk of bankruptcy.
GS71 has a Altman-Z score of 1.57. This is in the lower half of the industry: GS71 underperforms 66.00% of its industry peers.
GS71 has a debt to FCF ratio of 3.72. This is a good value and a sign of high solvency as GS71 would need 3.72 years to pay back of all of its debts.
GS71 has a Debt to FCF ratio (3.72) which is comparable to the rest of the industry.
GS71 has a Debt/Equity ratio of 1.03. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.03, GS71 is not doing good in the industry: 64.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 3.72 | ||
| Altman-Z | 1.57 |
ROIC/WACC2.35
WACC7.55%
2.3 Liquidity
A Current Ratio of 0.87 indicates that GS71 may have some problems paying its short term obligations.
GS71 has a worse Current ratio (0.87) than 78.00% of its industry peers.
GS71 has a Quick Ratio of 0.87. This is a bad value and indicates that GS71 is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.57, GS71 is not doing good in the industry: 84.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The earnings per share for GS71 have decreased by -0.90% in the last year.
The Earnings Per Share has been growing slightly by 0.56% on average over the past years.
Looking at the last year, GS71 shows a small growth in Revenue. The Revenue has grown by 0.59% in the last year.
The Revenue has been decreasing by -1.45% on average over the past years.
EPS 1Y (TTM)-0.9%
EPS 3Y4.05%
EPS 5Y0.56%
EPS Q2Q%7.14%
Revenue 1Y (TTM)0.59%
Revenue growth 3Y8.31%
Revenue growth 5Y-1.45%
Sales Q2Q%1.29%
3.2 Future
GS71 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.72% yearly.
The Revenue is expected to grow by 3.79% on average over the next years.
EPS Next Y4.79%
EPS Next 2Y6.3%
EPS Next 3Y7.63%
EPS Next 5Y6.72%
Revenue Next Year3.04%
Revenue Next 2Y4.09%
Revenue Next 3Y4.23%
Revenue Next 5Y3.79%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.18, which indicates a very decent valuation of GS71.
GS71's Price/Earnings ratio is rather cheap when compared to the industry. GS71 is cheaper than 86.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. GS71 is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.38, the valuation of GS71 can be described as very reasonable.
Based on the Price/Forward Earnings ratio, GS71 is valued cheaply inside the industry as 86.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.73. GS71 is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.18 | ||
| Fwd PE | 8.38 |
4.2 Price Multiples
GS71's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GS71 is cheaper than 100.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GS71 indicates a rather cheap valuation: GS71 is cheaper than 96.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.52 | ||
| EV/EBITDA | 3.76 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GS71 does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of GS71 may justify a higher PE ratio.
PEG (NY)1.92
PEG (5Y)16.36
EPS Next 2Y6.3%
EPS Next 3Y7.63%
5. Dividend
5.1 Amount
GS71 has a Yearly Dividend Yield of 4.22%, which is a nice return.
Compared to an average industry Dividend Yield of 3.04, GS71 pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, GS71 pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
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
72.80% of the earnings are spent on dividend by GS71. This is not a sustainable payout ratio.
DP72.8%
EPS Next 2Y6.3%
EPS Next 3Y7.63%
FRA:GS71 (9/12/2025, 7:00:00 PM)
17.45
-0.16 (-0.91%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners39.99%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap35.15B
Analysts68.39
Price Target19.2 (10.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
Yearly Dividend0.69
Dividend Growth(5Y)-9.84%
DP72.8%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.76%
Min EPS beat(2)7.67%
Max EPS beat(2)9.85%
EPS beat(4)4
Avg EPS beat(4)11.72%
Min EPS beat(4)7.67%
Max EPS beat(4)18.46%
EPS beat(8)7
Avg EPS beat(8)9.56%
EPS beat(12)11
Avg EPS beat(12)10.06%
EPS beat(16)15
Avg EPS beat(16)10.35%
Revenue beat(2)0
Avg Revenue beat(2)-0.82%
Min Revenue beat(2)-1.6%
Max Revenue beat(2)-0.04%
Revenue beat(4)1
Avg Revenue beat(4)-0.85%
Min Revenue beat(4)-3.45%
Max Revenue beat(4)1.68%
Revenue beat(8)5
Avg Revenue beat(8)1.21%
Revenue beat(12)8
Avg Revenue beat(12)1.47%
Revenue beat(16)9
Avg Revenue beat(16)-3.45%
PT rev (1m)0.65%
PT rev (3m)-2.7%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)-5.29%
EPS NY rev (1m)-3.49%
EPS NY rev (3m)-3.49%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-1.73%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-1.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.18 | ||
| Fwd PE | 8.38 | ||
| P/S | 0.96 | ||
| P/FCF | 6.52 | ||
| P/OCF | 3.94 | ||
| P/B | 2.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.76 |
EPS(TTM)1.9
EY10.89%
EPS(NY)2.08
Fwd EY11.93%
FCF(TTM)2.68
FCFY15.34%
OCF(TTM)4.43
OCFY25.39%
SpS18.15
BVpS8.48
TBVpS-4.2
PEG (NY)1.92
PEG (5Y)16.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.78% | ||
| ROE | 23.14% | ||
| ROCE | 20.54% | ||
| ROIC | 17.71% | ||
| ROICexc | 19.52% | ||
| ROICexgc | 52.35% | ||
| OM | 25.25% | ||
| PM (TTM) | 10.82% | ||
| GM | 71.77% | ||
| FCFM | 14.75% |
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%
ROICexcg growth 3Y9%
ROICexcg 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-Score5
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 3.72 | ||
| Debt/EBITDA | 1.3 | ||
| Cap/Depr | 81.48% | ||
| Cap/Sales | 9.67% | ||
| Interest Coverage | 12.99 | ||
| Cash Conversion | 65.8% | ||
| Profit Quality | 136.31% | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 1.57 |
F-Score5
WACC7.55%
ROIC/WACC2.35
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)-0.9%
EPS 3Y4.05%
EPS 5Y0.56%
EPS Q2Q%7.14%
EPS Next Y4.79%
EPS Next 2Y6.3%
EPS Next 3Y7.63%
EPS Next 5Y6.72%
Revenue 1Y (TTM)0.59%
Revenue growth 3Y8.31%
Revenue growth 5Y-1.45%
Sales Q2Q%1.29%
Revenue Next Year3.04%
Revenue Next 2Y4.09%
Revenue Next 3Y4.23%
Revenue Next 5Y3.79%
EBIT growth 1Y-2.07%
EBIT growth 3Y12.28%
EBIT growth 5Y-1.74%
EBIT Next Year31.7%
EBIT Next 3Y14.31%
EBIT Next 5Y9.85%
FCF growth 1Y103.67%
FCF growth 3Y-10.73%
FCF growth 5Y-9.42%
OCF growth 1Y68.43%
OCF growth 3Y-6.24%
OCF growth 5Y-3.96%