GSK PLC-SPON ADR (GSK) Stock Fundamental Analysis
USA - NYSE:GSK - US37733W2044 - ADR
46.395 USD
-0.97 (-2.06%)
Taking everything into account, GSK scores 6 out of 10 in our fundamental rating. GSK was compared to 192 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, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
GSK had positive earnings in the past year.
GSK had a positive operating cash flow in the past year.
In the past 5 years GSK has always been profitable.
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 8.96%, GSK belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
GSK has a better Return On Equity (34.02%) than 95.83% of its industry peers.
With an excellent Return On Invested Capital value of 18.16%, GSK belongs to the best of the industry, outperforming 95.31% of the companies in the same industry.
GSK had an Average Return On Invested Capital over the past 3 years of 18.38%. This is above the industry average of 13.48%.
| 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
GSK's Profit Margin of 17.08% is amongst the best of the industry. GSK outperforms 90.10% of its industry peers.
In the last couple of years the Profit Margin of GSK has declined.
The Operating Margin of GSK (26.20%) is better than 92.19% of its industry peers.
GSK's Operating Margin has been stable in the last couple of years.
GSK's Gross Margin of 72.52% is fine compared to the rest of the industry. GSK outperforms 79.17% 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 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 GSK is creating value.
Compared to 1 year ago, GSK has more shares outstanding
GSK has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, GSK has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.13 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 2.13. This is in the better half of the industry: GSK outperforms 64.58% of its industry peers.
GSK has a debt to FCF ratio of 3.78. This is a good value and a sign of high solvency as GSK would need 3.78 years to pay back of all of its debts.
GSK has a better Debt to FCF ratio (3.78) than 86.46% of its industry peers.
GSK has a Debt/Equity ratio of 0.92. This is a neutral value indicating GSK is somewhat dependend on debt financing.
GSK has a worse Debt to Equity ratio (0.92) than 71.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 3.78 | ||
| Altman-Z | 2.13 |
ROIC/WACC2.13
WACC8.51%
2.3 Liquidity
GSK has a Current Ratio of 0.84. This is a bad value and indicates that GSK is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.84, GSK is doing worse than 88.02% of the companies in the same industry.
A Quick Ratio of 0.55 indicates that GSK may have some problems paying its short term obligations.
With a Quick ratio value of 0.55, GSK is not doing good in the industry: 90.63% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
GSK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.16%, which is quite impressive.
GSK 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.
The Revenue has been decreasing by -1.45% on average over the past years.
EPS 1Y (TTM)37.16%
EPS 3Y4.05%
EPS 5Y0.56%
EPS Q2Q%125.07%
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 7.62% on average over the next years.
The Revenue is expected to grow by 3.96% on average over the next years.
EPS Next Y5.84%
EPS Next 2Y8.16%
EPS Next 3Y7.96%
EPS Next 5Y7.62%
Revenue Next Year3.68%
Revenue Next 2Y4.45%
Revenue Next 3Y4.41%
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
The Price/Earnings ratio is 7.64, which indicates a rather cheap valuation of GSK.
Compared to the rest of the industry, the Price/Earnings ratio of GSK indicates a rather cheap valuation: GSK is cheaper than 92.71% of the companies listed in the same industry.
GSK is valuated cheaply when we compare the Price/Earnings ratio to 25.46, which is the current average of the S&P500 Index.
GSK is valuated reasonably with a Price/Forward Earnings ratio of 9.28.
Based on the Price/Forward Earnings ratio, GSK is valued cheaper than 88.02% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GSK to the average of the S&P500 Index (35.39), we can say GSK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.64 | ||
| Fwd PE | 9.28 |
4.2 Price Multiples
91.67% of the companies in the same industry are more expensive than GSK, based on the Enterprise Value to EBITDA ratio.
GSK's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GSK is cheaper than 85.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.11 | ||
| EV/EBITDA | 7.26 |
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)1.31
PEG (5Y)13.61
EPS Next 2Y8.16%
EPS Next 3Y7.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.53%, GSK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 7.07, GSK pays a better dividend. On top of this GSK pays more dividend than 95.31% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, GSK pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
5.2 History
The dividend of GSK decreases each year by -9.84%.
GSK has been paying a dividend for at least 10 years, so it has a reliable track record.
GSK has decreased its dividend recently.
Dividend Growth(5Y)-9.84%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
GSK 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 2Y8.16%
EPS Next 3Y7.96%
NYSE:GSK (11/19/2025, 2:58:24 PM)
46.395
-0.97 (-2.06%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners43.15%
Inst Owner Change-99.75%
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap93.23B
Revenue(TTM)32.17B
Net Income(TTM)5.49B
Analysts70.32
Price Target44.63 (-3.8%)
Short Float %0.72%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
Yearly Dividend1.6
Dividend Growth(5Y)-9.84%
DP46.05%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)68.54%
Min EPS beat(2)7.67%
Max EPS beat(2)129.41%
EPS beat(4)4
Avg EPS beat(4)41.35%
Min EPS beat(4)7.67%
Max EPS beat(4)129.41%
EPS beat(8)7
Avg EPS beat(8)25.04%
EPS beat(12)11
Avg EPS beat(12)19.64%
EPS beat(16)15
Avg EPS beat(16)17.04%
Revenue beat(2)0
Avg Revenue beat(2)-0.16%
Min Revenue beat(2)-0.28%
Max Revenue beat(2)-0.04%
Revenue beat(4)1
Avg Revenue beat(4)-0.06%
Min Revenue beat(4)-1.6%
Max Revenue beat(4)1.68%
Revenue beat(8)4
Avg Revenue beat(8)0.89%
Revenue beat(12)7
Avg Revenue beat(12)1.15%
Revenue beat(16)9
Avg Revenue beat(16)-1.83%
PT rev (1m)0.6%
PT rev (3m)0.28%
EPS NQ rev (1m)-5.93%
EPS NQ rev (3m)-7.36%
EPS NY rev (1m)0.87%
EPS NY rev (3m)-2.31%
Revenue NQ rev (1m)1.72%
Revenue NQ rev (3m)2.44%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.64 | ||
| Fwd PE | 9.28 | ||
| P/S | 2.21 | ||
| P/FCF | 15.11 | ||
| P/OCF | 9.11 | ||
| P/B | 4.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.26 |
EPS(TTM)6.07
EY13.08%
EPS(NY)5
Fwd EY10.78%
FCF(TTM)3.07
FCFY6.62%
OCF(TTM)5.1
OCFY10.98%
SpS21.03
BVpS10.56
TBVpS-5.12
PEG (NY)1.31
PEG (5Y)13.61
Graham Number37.97
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)17.82%
ROICexgc(3y)78.4%
ROICexgc(5y)77.5%
ROCE(3y)21.97%
ROCE(5y)17.32%
ROICexgc growth 3Y-7.02%
ROICexgc 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-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 | 2.13 |
F-Score7
WACC8.51%
ROIC/WACC2.13
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)37.16%
EPS 3Y4.05%
EPS 5Y0.56%
EPS Q2Q%125.07%
EPS Next Y5.84%
EPS Next 2Y8.16%
EPS Next 3Y7.96%
EPS Next 5Y7.62%
Revenue 1Y (TTM)2.73%
Revenue growth 3Y8.31%
Revenue growth 5Y-1.45%
Sales Q2Q%6.68%
Revenue Next Year3.68%
Revenue Next 2Y4.45%
Revenue Next 3Y4.41%
Revenue Next 5Y3.96%
EBIT growth 1Y6.52%
EBIT growth 3Y12.28%
EBIT growth 5Y-1.74%
EBIT Next Year28.11%
EBIT Next 3Y13.02%
EBIT Next 5Y10.2%
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-SPON ADR / GSK FAQ
Can you provide the ChartMill fundamental rating for GSK PLC-SPON ADR?
ChartMill assigns a fundamental rating of 6 / 10 to GSK.
What is the valuation status for GSK stock?
ChartMill assigns a valuation rating of 8 / 10 to GSK PLC-SPON ADR (GSK). This can be considered as Undervalued.
How profitable is GSK PLC-SPON ADR (GSK) stock?
GSK PLC-SPON ADR (GSK) has a profitability rating of 8 / 10.
What is the valuation of GSK PLC-SPON ADR based on its PE and PB ratios?
The Price/Earnings (PE) ratio for GSK PLC-SPON ADR (GSK) is 7.64 and the Price/Book (PB) ratio is 4.39.
How sustainable is the dividend of GSK PLC-SPON ADR (GSK) stock?
The dividend rating of GSK PLC-SPON ADR (GSK) is 5 / 10 and the dividend payout ratio is 46.05%.