GSK PLC-SPON ADR (GSK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GSK - US37733W2044 - ADR
50.39 USD
+0.17 (+0.34%)
50.0537 USD
-0.34 (-0.67%)
Overall GSK gets a fundamental rating of 6 out of 10. We evaluated GSK against 190 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 may be a bit undervalued, certainly considering the very reasonable score on growth
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.
GSK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 8.96%, GSK belongs to the best of the industry, outperforming 91.15% of the companies in the same industry.
The Return On Equity of GSK (34.02%) is better than 95.31% of its industry peers.
GSK has a Return On Invested Capital of 18.16%. This is amongst the best in the industry. GSK outperforms 95.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GSK is significantly above the industry average of 12.84%.
| 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
The Profit Margin of GSK (17.08%) is better than 89.58% of its industry peers.
GSK's Profit Margin has declined in the last couple of years.
GSK has a better Operating Margin (26.20%) than 92.19% of its industry peers.
In the last couple of years the Operating Margin of GSK has remained more or less at the same level.
GSK has a better Gross Margin (72.52%) than 80.21% 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
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
Compared to 5 years ago, GSK has more shares outstanding
Compared to 1 year ago, GSK has an improved debt to assets ratio.
2.2 Solvency
GSK has an Altman-Z score of 2.17. This is not the best score and indicates that GSK is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.17, GSK is in line with its industry, outperforming 59.38% of the companies in the same industry.
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 86.98% 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.
Looking at the Debt to Equity ratio, with a value of 0.92, GSK is doing worse than 72.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 3.78 | ||
| Altman-Z | 2.17 |
ROIC/WACC2.16
WACC8.42%
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.
GSK has a worse Current ratio (0.84) than 87.50% of its industry peers.
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 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
GSK shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.73%.
GSK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.56% yearly.
Looking at the last year, GSK shows a small growth in Revenue. The Revenue has grown by 2.73% in the last year.
GSK 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
GSK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.25% yearly.
GSK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.96% yearly.
EPS Next Y7.61%
EPS Next 2Y8.43%
EPS Next 3Y8.23%
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
With a Price/Earnings ratio of 10.91, the valuation of GSK can be described as very reasonable.
GSK's Price/Earnings ratio is rather cheap when compared to the industry. GSK is cheaper than 90.10% of the companies in the same industry.
GSK is valuated cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.87, the valuation of GSK can be described as reasonable.
GSK's Price/Forward Earnings ratio is rather cheap when compared to the industry. GSK is cheaper than 88.02% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.92. GSK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.91 | ||
| Fwd PE | 9.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GSK is valued cheaply inside the industry as 91.15% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GSK indicates a rather cheap valuation: GSK is cheaper than 86.98% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.15 | ||
| EV/EBITDA | 7.54 |
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)1.43
PEG (5Y)19.43
EPS Next 2Y8.43%
EPS Next 3Y8.23%
5. Dividend
5.1 Amount
GSK has a Yearly Dividend Yield of 3.38%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.35, GSK pays a better dividend. On top of this GSK pays more dividend than 95.83% 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 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
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.
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 2Y8.43%
EPS Next 3Y8.23%
50.39
+0.17 (+0.34%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners43.55%
Inst Owner Change0%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap101.77B
Revenue(TTM)32.17B
Net Income(TTM)5.49B
Analysts70.97
Price Target49.58 (-1.61%)
Short Float %0.57%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
Yearly Dividend1.62
Dividend Growth(5Y)-9.84%
DP46.05%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.24%
Min EPS beat(2)7.67%
Max EPS beat(2)12.8%
EPS beat(4)4
Avg EPS beat(4)12.2%
Min EPS beat(4)7.67%
Max EPS beat(4)18.46%
EPS beat(8)7
Avg EPS beat(8)10.47%
EPS beat(12)11
Avg EPS beat(12)9.92%
EPS beat(16)15
Avg EPS beat(16)9.75%
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)2.19%
PT rev (3m)11.76%
EPS NQ rev (1m)-0.36%
EPS NQ rev (3m)-8.4%
EPS NY rev (1m)0.36%
EPS NY rev (3m)2.1%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)2.81%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.91 | ||
| Fwd PE | 9.87 | ||
| P/S | 2.36 | ||
| P/FCF | 16.15 | ||
| P/OCF | 9.73 | ||
| P/B | 4.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.54 |
EPS(TTM)4.62
EY9.17%
EPS(NY)5.11
Fwd EY10.13%
FCF(TTM)3.12
FCFY6.19%
OCF(TTM)5.18
OCFY10.27%
SpS21.37
BVpS10.73
TBVpS-5.2
PEG (NY)1.43
PEG (5Y)19.43
Graham Number33.39
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 | 2.17 |
F-Score7
WACC8.42%
ROIC/WACC2.16
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)2.73%
EPS 3Y4.05%
EPS 5Y0.56%
EPS Q2Q%10.66%
EPS Next Y7.61%
EPS Next 2Y8.43%
EPS Next 3Y8.23%
EPS Next 5Y7.25%
Revenue 1Y (TTM)2.73%
Revenue growth 3Y8.31%
Revenue growth 5Y-1.45%
Sales Q2Q%6.68%
Revenue Next Year4.28%
Revenue Next 2Y4.69%
Revenue Next 3Y4.66%
Revenue Next 5Y3.96%
EBIT growth 1Y6.52%
EBIT growth 3Y12.28%
EBIT growth 5Y-1.74%
EBIT Next Year30.51%
EBIT Next 3Y13.68%
EBIT Next 5Y9.82%
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 of GSK PLC-SPON ADR (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 financial health of GSK PLC-SPON ADR (GSK) stock?
The financial health rating of GSK PLC-SPON ADR (GSK) is 4 / 10.
What is the earnings growth outlook for GSK PLC-SPON ADR?
The Earnings per Share (EPS) of GSK PLC-SPON ADR (GSK) is expected to grow by 7.61% in the next year.