GSK PLC-SPON ADR (GSK) Stock Fundamental Analysis
NYSE:GSK - US37733W2044 - ADR
40.115 USD
+0.04 (+0.09%)
Taking everything into account, GSK scores 6 out of 10 in our fundamental rating. GSK was compared to 193 industry peers in the Pharmaceuticals industry. While GSK belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. GSK is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year GSK was profitable.
GSK had a positive operating cash flow in the past year.
GSK had positive earnings in each of the past 5 years.
Each year in the past 5 years GSK had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.78%, GSK belongs to the top of the industry, outperforming 90.16% of the companies in the same industry.
With an excellent Return On Equity value of 23.14%, GSK belongs to the best of the industry, outperforming 93.26% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 17.71%, GSK belongs to the top of the industry, outperforming 94.30% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GSK is above the industry average of 15.57%.
| 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
Looking at the Profit Margin, with a value of 10.82%, GSK belongs to the top of the industry, outperforming 87.56% of the companies in the same industry.
In the last couple of years the Profit Margin of GSK has declined.
GSK has a Operating Margin of 25.25%. This is amongst the best in the industry. GSK outperforms 90.67% of its industry peers.
GSK's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 71.77%, GSK belongs to the top of the industry, outperforming 80.83% of the companies in the same industry.
GSK'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
GSK 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, GSK has more shares outstanding
The number of shares outstanding for GSK has been increased compared to 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 1.97 indicates that GSK is not a great score, but indicates only limited risk for bankruptcy at the moment.
GSK's Altman-Z score of 1.97 is fine compared to the rest of the industry. GSK outperforms 65.28% of its industry peers.
The Debt to FCF ratio of GSK is 3.72, which is a good value as it means it would take GSK, 3.72 years of fcf income to pay off all of its debts.
GSK has a Debt to FCF ratio of 3.72. This is amongst the best in the industry. GSK outperforms 88.08% of its industry peers.
A Debt/Equity ratio of 1.03 is on the high side and indicates that GSK has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.03, GSK is doing worse than 72.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 3.72 | ||
| Altman-Z | 1.97 |
ROIC/WACC2.18
WACC8.14%
2.3 Liquidity
A Current Ratio of 0.87 indicates that GSK may have some problems paying its short term obligations.
The Current ratio of GSK (0.87) is worse than 84.46% of its industry peers.
GSK has a Quick Ratio of 0.87. This is a bad value and indicates that GSK is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of GSK (0.57) is worse than 89.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
GSK shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.90%.
Measured over the past 5 years, GSK shows a small growth in Earnings Per Share. The EPS has been growing by 0.56% on average per year.
The Revenue has been growing slightly by 0.59% in the past year.
GSK shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.45% yearly.
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
Based on estimates for the next years, GSK will show a small growth in Earnings Per Share. The EPS will grow by 6.00% on average per year.
Based on estimates for the next years, GSK will show a small growth in Revenue. The Revenue will grow by 3.50% on average per year.
EPS Next Y8.58%
EPS Next 2Y9.75%
EPS Next 3Y8.7%
EPS Next 5Y6%
Revenue Next Year3.17%
Revenue Next 2Y4.12%
Revenue Next 3Y4.21%
Revenue Next 5Y3.5%
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
The Price/Earnings ratio is 8.91, which indicates a very decent valuation of GSK.
Based on the Price/Earnings ratio, GSK is valued cheaper than 91.71% of the companies in the same industry.
GSK is valuated cheaply when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.63 indicates a rather cheap valuation of GSK.
Based on the Price/Forward Earnings ratio, GSK is valued cheaply inside the industry as 89.64% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.91, GSK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.91 | ||
| Fwd PE | 7.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GSK is valued cheaply inside the industry as 95.85% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GSK is valued cheaply inside the industry as 87.56% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.9 | ||
| EV/EBITDA | 6.29 |
4.3 Compensation for Growth
GSK's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GSK has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.04
PEG (5Y)15.88
EPS Next 2Y9.75%
EPS Next 3Y8.7%
5. Dividend
5.1 Amount
GSK has a Yearly Dividend Yield of 4.52%, which is a nice return.
Compared to an average industry Dividend Yield of 4.04, GSK pays a better dividend. On top of this GSK pays more dividend than 95.34% of the companies listed in the same industry.
GSK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
5.2 History
The dividend of GSK decreases each year by -9.84%.
GSK has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of GSK decreased recently.
Dividend Growth(5Y)-9.84%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
GSK pays out 72.80% of its income as dividend. This is not a sustainable payout ratio.
DP72.8%
EPS Next 2Y9.75%
EPS Next 3Y8.7%
NYSE:GSK (8/22/2025, 2:50:06 PM)
40.115
+0.04 (+0.09%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners39.99%
Inst Owner Change0%
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap80.94B
Analysts55.33
Price Target44.5 (10.93%)
Short Float %0.63%
Short Ratio2.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
Yearly Dividend1.65
Dividend Growth(5Y)-9.84%
DP72.8%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)-0.01%
PT rev (3m)-1.06%
EPS NQ rev (1m)-4.23%
EPS NQ rev (3m)-5.43%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)-0.37%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)-1.68%
Revenue NY rev (1m)-1.07%
Revenue NY rev (3m)-1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.91 | ||
| Fwd PE | 7.63 | ||
| P/S | 1.9 | ||
| P/FCF | 12.9 | ||
| P/OCF | 7.79 | ||
| P/B | 4.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.29 |
EPS(TTM)4.5
EY11.22%
EPS(NY)5.26
Fwd EY13.11%
FCF(TTM)3.11
FCFY7.75%
OCF(TTM)5.15
OCFY12.83%
SpS21.08
BVpS9.86
TBVpS-4.88
PEG (NY)1.04
PEG (5Y)15.88
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)17.82%
ROICexgc(3y)78.4%
ROICexgc(5y)77.5%
ROCE(3y)21.97%
ROCE(5y)17.32%
ROICexcg growth 3Y-7.02%
ROICexcg growth 5Y-6.42%
ROICexc growth 3Y24.64%
ROICexc growth 5Y6.13%
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 | 1.97 |
F-Score5
WACC8.14%
ROIC/WACC2.18
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 Y8.58%
EPS Next 2Y9.75%
EPS Next 3Y8.7%
EPS Next 5Y6%
Revenue 1Y (TTM)0.59%
Revenue growth 3Y8.31%
Revenue growth 5Y-1.45%
Sales Q2Q%1.29%
Revenue Next Year3.17%
Revenue Next 2Y4.12%
Revenue Next 3Y4.21%
Revenue Next 5Y3.5%
EBIT growth 1Y-2.07%
EBIT growth 3Y12.28%
EBIT growth 5Y-1.74%
EBIT Next Year31.7%
EBIT Next 3Y14.31%
EBIT Next 5Y9.75%
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%