GSK PLC (GS71.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:GS71 • GB00BN7SWP63
21.62 EUR
+0.24 (+1.12%)
Last: Jan 30, 2026, 07:00 PM
Overall GS71 gets a fundamental rating of 5 out of 10. We evaluated GS71 against 55 industry peers in the Pharmaceuticals industry. GS71 scores excellent on profitability, but there are concerns on its financial health. GS71 is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
- Each year in the past 5 years GS71 has been profitable.
- GS71 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- GS71 has a Return On Assets of 8.96%. This is in the better half of the industry: GS71 outperforms 65.45% of its industry peers.
- GS71 has a better Return On Equity (34.02%) than 85.45% of its industry peers.
- GS71 has a Return On Invested Capital of 18.16%. This is amongst the best in the industry. GS71 outperforms 81.82% 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 14.23%.
| 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
- GS71's Profit Margin of 17.08% is fine compared to the rest of the industry. GS71 outperforms 67.27% of its industry peers.
- In the last couple of years the Profit Margin of GS71 has declined.
- With a decent Operating Margin value of 26.20%, GS71 is doing good in the industry, outperforming 61.82% of the companies in the same industry.
- In the last couple of years the Operating Margin of GS71 has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 72.52%, GS71 is in line with its industry, outperforming 52.73% of the companies in the same industry.
- GS71's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GS71 is creating value.
- Compared to 1 year ago, GS71 has more shares outstanding
- The number of shares outstanding for GS71 has been increased compared to 5 years ago.
- The debt/assets ratio for GS71 has been reduced compared to a year ago.
2.2 Solvency
- GS71 has an Altman-Z score of 1.67. This is a bad value and indicates that GS71 is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.67, GS71 is doing worse than 69.09% of the companies in the same industry.
- The Debt to FCF ratio of GS71 is 3.78, which is a good value as it means it would take GS71, 3.78 years of fcf income to pay off all of its debts.
- GS71 has a Debt to FCF ratio (3.78) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.92 indicates that GS71 is somewhat dependend on debt financing.
- GS71 has a Debt to Equity ratio (0.92) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 3.78 | ||
| Altman-Z | 1.67 |
ROIC/WACC2.15
WACC8.43%
2.3 Liquidity
- GS71 has a Current 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.
- With a Current ratio value of 0.84, GS71 is not doing good in the industry: 85.45% of the companies in the same industry are doing better.
- A Quick Ratio of 0.55 indicates that GS71 may have some problems paying its short term obligations.
- GS71 has a Quick ratio of 0.55. This is amonst the worse of the industry: GS71 underperforms 83.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
- GS71 shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.73%.
- GS71 shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.56% yearly.
- GS71 shows a small growth in Revenue. In the last year, the Revenue has grown by 2.73%.
- GS71 shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.45% yearly.
EPS 1Y (TTM)2.73%
EPS 3Y4.05%
EPS 5Y0.56%
EPS Q2Q%10.66%
Revenue 1Y (TTM)2.73%
Revenue growth 3Y8.31%
Revenue growth 5Y-1.45%
Sales Q2Q%6.68%
3.2 Future
- The Earnings Per Share is expected to grow by 7.25% on average over the next years.
- The Revenue is expected to grow by 3.96% on average over the next years.
EPS Next Y8.35%
EPS Next 2Y8.33%
EPS Next 3Y8.41%
EPS Next 5Y7.25%
Revenue Next Year4.28%
Revenue Next 2Y4.69%
Revenue Next 3Y4.66%
Revenue Next 5Y3.96%
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
- A Price/Earnings ratio of 11.03 indicates a reasonable valuation of GS71.
- 87.27% of the companies in the same industry are more expensive than GS71, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of GS71 to the average of the S&P500 Index (28.32), we can say GS71 is valued rather cheaply.
- With a Price/Forward Earnings ratio of 10.01, the valuation of GS71 can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, GS71 is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, GS71 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.03 | ||
| Fwd PE | 10.01 |
4.2 Price Multiples
- GS71's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GS71 is cheaper than 98.18% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, GS71 is valued cheaper than 94.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.04 | ||
| EV/EBITDA | 4.36 |
4.3 Compensation for Growth
- GS71's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of GS71 may justify a higher PE ratio.
PEG (NY)1.32
PEG (5Y)19.65
EPS Next 2Y8.33%
EPS Next 3Y8.41%
5. Dividend
5.1 Amount
- GS71 has a Yearly Dividend Yield of 3.46%. Purely for dividend investing, there may be better candidates out there.
- GS71's Dividend Yield is a higher than the industry average which is at 1.95.
- GS71's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
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
- 46.05% of the earnings are spent on dividend by GS71. This is a bit on the high side, but may be sustainable.
DP46.05%
EPS Next 2Y8.33%
EPS Next 3Y8.41%
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.
What is the valuation status of GSK PLC (GS71.DE) stock?
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.
Can you provide the PE and PB ratios for GS71 stock?
The Price/Earnings (PE) ratio for GSK PLC (GS71.DE) is 11.03 and the Price/Book (PB) ratio is 2.34.
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%.