GSK PLC-SPON ADR (GSK) Stock Fundamental Analysis
USA - NYSE:GSK - US37733W2044 - ADR
47.18 USD
-0.96 (-1.99%)
47.22 USD
+0.04 (+0.08%)
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 has a great profitability rating, 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.
In the past year GSK had a positive cash flow from operations.
In the past 5 years GSK has always been profitable.
Each year in the past 5 years GSK had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 8.96%, GSK belongs to the best of the industry, outperforming 91.62% of the companies in the same industry.
GSK's Return On Equity of 34.02% is amongst the best of the industry. GSK outperforms 96.34% of its industry peers.
GSK's Return On Invested Capital of 18.16% is amongst the best of the industry. GSK outperforms 95.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GSK is above the industry average of 15.35%.
| 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
With an excellent Profit Margin value of 17.08%, GSK belongs to the best of the industry, outperforming 90.58% 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 26.20%. This is amongst the best in the industry. GSK outperforms 92.15% 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 79.58% of its industry peers.
GSK'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), 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 2.12 indicates that GSK is not a great score, but indicates only limited risk for bankruptcy at the moment.
GSK has a better Altman-Z score (2.12) than 64.92% 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 Debt to FCF ratio of 3.78. This is amongst the best in the industry. GSK outperforms 86.91% of its industry peers.
A Debt/Equity ratio of 0.92 indicates that GSK is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.92, GSK is doing worse than 72.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 3.78 | ||
| Altman-Z | 2.12 |
ROIC/WACC2.13
WACC8.54%
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.
With a Current ratio value of 0.84, GSK is not doing good in the industry: 87.43% of the companies in the same industry are doing better.
A Quick Ratio of 0.55 indicates that GSK may have some problems paying its short term obligations.
GSK has a Quick ratio of 0.55. This is amonst the worse of the industry: GSK underperforms 90.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 37.16% over the past year.
GSK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.56% yearly.
GSK shows a small growth in Revenue. In the last year, the Revenue has grown by 2.73%.
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.
Based on estimates for the next years, GSK will show a small growth in Revenue. The Revenue will grow by 3.96% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 7.75, the valuation of GSK can be described as very cheap.
93.19% of the companies in the same industry are more expensive than GSK, based on the Price/Earnings ratio.
GSK is valuated cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
GSK is valuated reasonably with a Price/Forward Earnings ratio of 9.41.
Based on the Price/Forward Earnings ratio, GSK is valued cheaply inside the industry as 87.96% of the companies are valued more expensively.
GSK is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.75 | ||
| Fwd PE | 9.41 |
4.2 Price Multiples
91.10% of the companies in the same industry are more expensive than GSK, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GSK is valued cheaply inside the industry as 85.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.33 | ||
| EV/EBITDA | 7.22 |
4.3 Compensation for Growth
The 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)1.33
PEG (5Y)13.8
EPS Next 2Y8.16%
EPS Next 3Y7.96%
5. Dividend
5.1 Amount
GSK has a Yearly Dividend Yield of 3.53%.
Compared to an average industry Dividend Yield of 7.07, GSK pays a better dividend. On top of this GSK pays more dividend than 94.76% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, 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%
47.18
-0.96 (-1.99%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners43.15%
Inst Owner Change-2.24%
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap94.80B
Revenue(TTM)32.17B
Net Income(TTM)5.49B
Analysts70.32
Price Target44.63 (-5.4%)
Short Float %0.68%
Short Ratio2.79
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 | 7.75 | ||
| Fwd PE | 9.41 | ||
| P/S | 2.24 | ||
| P/FCF | 15.33 | ||
| P/OCF | 9.24 | ||
| P/B | 4.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.22 |
EPS(TTM)6.09
EY12.91%
EPS(NY)5.01
Fwd EY10.62%
FCF(TTM)3.08
FCFY6.52%
OCF(TTM)5.11
OCFY10.82%
SpS21.08
BVpS10.58
TBVpS-5.13
PEG (NY)1.33
PEG (5Y)13.8
Graham Number38.08
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 | 2.12 |
F-Score7
WACC8.54%
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 7.75 and the Price/Book (PB) ratio is 4.46.
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%.