GSK PLC-SPON ADR (GSK)

US37733W2044 - ADR

42.99  +0.2 (+0.47%)

Premarket: 43.03 +0.04 (+0.09%)

Fundamental Rating

6

Overall GSK gets a fundamental rating of 6 out of 10. We evaluated GSK against 203 industry peers in the Pharmaceuticals industry. GSK scores excellent on profitability, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on GSK.



8

1. Profitability

1.1 Basic Checks

In the past year GSK was profitable.
In the past year GSK had a positive cash flow from operations.
GSK had positive earnings in each of the past 5 years.
GSK had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 8.35%, GSK belongs to the top of the industry, outperforming 91.04% of the companies in the same industry.
GSK's Return On Equity of 36.92% is amongst the best of the industry. GSK outperforms 96.02% of its industry peers.
The Return On Invested Capital of GSK (17.29%) is better than 94.53% of its industry peers.
GSK had an Average Return On Invested Capital over the past 3 years of 15.48%. This is in line with the industry average of 16.07%.
The 3 year average ROIC (15.48%) for GSK is below the current ROIC(17.29%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 8.35%
ROE 36.92%
ROIC 17.29%
ROA(3y)12.92%
ROA(5y)10.35%
ROE(3y)69.06%
ROE(5y)57.46%
ROIC(3y)15.48%
ROIC(5y)13.62%

1.3 Margins

With an excellent Profit Margin value of 16.25%, GSK belongs to the best of the industry, outperforming 90.55% of the companies in the same industry.
GSK's Profit Margin has improved in the last couple of years.
GSK has a Operating Margin of 24.72%. This is amongst the best in the industry. GSK outperforms 93.03% of its industry peers.
GSK's Operating Margin has been stable in the last couple of years.
GSK's Gross Margin of 72.42% is fine compared to the rest of the industry. GSK outperforms 79.10% of its industry peers.
In the last couple of years the Gross Margin of GSK has remained more or less at the same level.
Industry RankSector Rank
OM 24.72%
PM (TTM) 16.25%
GM 72.42%
OM growth 3Y3.62%
OM growth 5Y0.18%
PM growth 3Y-11.71%
PM growth 5Y6.69%
GM growth 3Y1.17%
GM growth 5Y0.99%

3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GSK is creating value.
The number of shares outstanding for GSK has been increased compared to 1 year ago.
GSK has more shares outstanding than it did 5 years ago.
The debt/assets ratio for GSK has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 2.00 indicates that GSK is not a great score, but indicates only limited risk for bankruptcy at the moment.
GSK has a Altman-Z score of 2.00. This is in the better half of the industry: GSK outperforms 68.66% of its industry peers.
GSK has a debt to FCF ratio of 4.07. This is a neutral value as GSK would need 4.07 years to pay back of all of its debts.
The Debt to FCF ratio of GSK (4.07) is better than 87.06% of its industry peers.
A Debt/Equity ratio of 1.14 is on the high side and indicates that GSK has dependencies on debt financing.
GSK's Debt to Equity ratio of 1.14 is on the low side compared to the rest of the industry. GSK is outperformed by 76.12% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.14
Debt/FCF 4.07
Altman-Z 2
ROIC/WACC2.34
WACC7.39%

2.3 Liquidity

A Current Ratio of 0.88 indicates that GSK may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.88, GSK is doing worse than 89.55% of the companies in the same industry.
A Quick Ratio of 0.62 indicates that GSK may have some problems paying its short term obligations.
The Quick ratio of GSK (0.62) is worse than 90.05% of its industry peers.
Industry RankSector Rank
Current Ratio 0.88
Quick Ratio 0.62

4

3. Growth

3.1 Past

GSK shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.85%.
The Earnings Per Share has been growing slightly by 0.77% on average over the past years.
The Revenue has been growing slightly by 3.42% in the past year.
The Revenue has been decreasing by -0.32% on average over the past years.
EPS 1Y (TTM)4.85%
EPS 3Y2.42%
EPS 5Y0.77%
EPS growth Q2Q12.02%
Revenue 1Y (TTM)3.42%
Revenue growth 3Y7.59%
Revenue growth 5Y-0.32%
Revenue growth Q2Q9.16%

3.2 Future

GSK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.92% yearly.
GSK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.19% yearly.
EPS Next Y3.48%
EPS Next 2Y8.17%
EPS Next 3Y8.56%
EPS Next 5Y3.92%
Revenue Next Year5.72%
Revenue Next 2Y5.99%
Revenue Next 3Y5.6%
Revenue Next 5Y4.19%

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.
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.

8

4. Valuation

4.1 Price/Earnings Ratio

GSK is valuated reasonably with a Price/Earnings ratio of 10.83.
Compared to the rest of the industry, the Price/Earnings ratio of GSK indicates a rather cheap valuation: GSK is cheaper than 90.55% of the companies listed in the same industry.
GSK's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.42.
GSK is valuated reasonably with a Price/Forward Earnings ratio of 10.46.
90.55% of the companies in the same industry are more expensive than GSK, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.74, GSK is valued rather cheaply.
Industry RankSector Rank
PE 10.83
Fwd PE 10.46

4.2 Price Multiples

GSK's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GSK is cheaper than 92.04% of the companies in the same industry.
87.06% of the companies in the same industry are more expensive than GSK, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 15.64
EV/EBITDA 8.15

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GSK does not grow enough to justify the current Price/Earnings ratio.
GSK has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.11
PEG (5Y)14.03
EPS Next 2Y8.17%
EPS Next 3Y8.56%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.47%, GSK has a reasonable but not impressive dividend return.
GSK's Dividend Yield is rather good when compared to the industry average which is at 4.28. GSK pays more dividend than 94.03% of the companies in the same industry.
GSK's Dividend Yield is a higher than the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 3.47%

5.2 History

The dividend of GSK decreases each year by -10.98%.
GSK has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-10.98%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

GSK pays out 45.60% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP45.6%
EPS Next 2Y8.17%
EPS Next 3Y8.56%

GSK PLC-SPON ADR

NYSE:GSK (3/27/2024, 8:17:48 PM)

Premarket: 43.03 +0.04 (+0.09%)

42.99

+0.2 (+0.47%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap87.23B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.47%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 10.83
Fwd PE 10.46
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.11
PEG (5Y)14.03
Profitability
Industry RankSector Rank
ROA 8.35%
ROE 36.92%
ROCE
ROIC
ROICexc
ROICexgc
OM 24.72%
PM (TTM) 16.25%
GM 72.42%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.51
Health
Industry RankSector Rank
Debt/Equity 1.14
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.88
Quick Ratio 0.62
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)4.85%
EPS 3Y2.42%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.48%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.42%
Revenue growth 3Y7.59%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y