GSK PLC-SPON ADR (GSK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GSK - US37733W2044 - ADR
48.225 USD
-0.24 (-0.51%)
Taking everything into account, GSK scores 6 out of 10 in our fundamental rating. GSK was compared to 191 industry peers in the Pharmaceuticals industry. GSK has an excellent profitability rating, but 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.
Each year in the past 5 years GSK has been profitable.
GSK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GSK has a better Return On Assets (8.96%) than 91.10% of its industry peers.
GSK has a Return On Equity of 34.02%. This is amongst the best in the industry. GSK outperforms 95.29% 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.
Measured over the past 3 years, the Average Return On Invested Capital for GSK is significantly above the industry average of 12.85%.
| 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 89.53% of the companies in the same industry.
GSK's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 26.20%, GSK belongs to the best of the industry, outperforming 92.15% of the companies in the same industry.
GSK's Operating Margin has been stable in the last couple of years.
GSK's Gross Margin of 72.52% is amongst the best of the industry. GSK outperforms 80.10% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GSK is creating value.
GSK has more shares outstanding than it did 1 year ago.
The number of shares outstanding for GSK has been increased compared to 5 years ago.
GSK has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.14 indicates that GSK is not a great score, but indicates only limited risk for bankruptcy at the moment.
GSK has a Altman-Z score (2.14) which is in line with its industry peers.
The Debt to FCF ratio of GSK is 3.78, which is a good value as it means it would take GSK, 3.78 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.78, GSK belongs to the top of the industry, outperforming 86.39% of the companies in the same industry.
GSK has a Debt/Equity ratio of 0.92. This is a neutral value indicating GSK is somewhat dependend on debt financing.
The Debt to Equity ratio of GSK (0.92) is worse than 72.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 3.78 | ||
| Altman-Z | 2.14 |
ROIC/WACC2.16
WACC8.4%
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 88.48% 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: 89.53% 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
The Earnings Per Share has been growing slightly by 2.73% over the past year.
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.
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
Based on estimates for the next years, GSK will show a small growth in Earnings Per Share. The EPS will grow by 7.58% on average per year.
Based on estimates for the next years, GSK will show a small growth in Revenue. The Revenue will grow by 3.90% on average per year.
EPS Next Y7.23%
EPS Next 2Y8.39%
EPS Next 3Y8.15%
EPS Next 5Y7.58%
Revenue Next Year4.14%
Revenue Next 2Y4.63%
Revenue Next 3Y4.59%
Revenue Next 5Y3.9%
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
Based on the Price/Earnings ratio of 10.51, the valuation of GSK can be described as reasonable.
90.58% 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 26.34, which is the current average of the S&P500 Index.
GSK is valuated reasonably with a Price/Forward Earnings ratio of 9.51.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GSK indicates a rather cheap valuation: GSK is cheaper than 89.01% of the companies listed in the same industry.
GSK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.51 | ||
| Fwd PE | 9.51 |
4.2 Price Multiples
GSK's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GSK is cheaper than 91.10% of the companies in the same industry.
GSK's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GSK is cheaper than 85.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.56 | ||
| EV/EBITDA | 7.34 |
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)1.45
PEG (5Y)18.71
EPS Next 2Y8.39%
EPS Next 3Y8.15%
5. Dividend
5.1 Amount
GSK has a Yearly Dividend Yield of 3.50%.
Compared to an average industry Dividend Yield of 6.46, GSK pays a better dividend. On top of this GSK pays more dividend than 95.81% 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 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
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
46.05% of the earnings are spent on dividend by GSK. This is a bit on the high side, but may be sustainable.
DP46.05%
EPS Next 2Y8.39%
EPS Next 3Y8.15%
NYSE:GSK (12/9/2025, 9:48:08 AM)
48.225
-0.24 (-0.51%)
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 Cap97.40B
Revenue(TTM)32.17B
Net Income(TTM)5.49B
Analysts70.97
Price Target48.52 (0.61%)
Short Float %0.64%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
Yearly Dividend1.62
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)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)7.83%
PT rev (3m)8.44%
EPS NQ rev (1m)-0.38%
EPS NQ rev (3m)-7.86%
EPS NY rev (1m)0.8%
EPS NY rev (3m)1.87%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)2.4%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.51 | ||
| Fwd PE | 9.51 | ||
| P/S | 2.27 | ||
| P/FCF | 15.56 | ||
| P/OCF | 9.38 | ||
| P/B | 4.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.34 |
EPS(TTM)4.59
EY9.52%
EPS(NY)5.07
Fwd EY10.51%
FCF(TTM)3.1
FCFY6.43%
OCF(TTM)5.14
OCFY10.66%
SpS21.22
BVpS10.65
TBVpS-5.17
PEG (NY)1.45
PEG (5Y)18.71
Graham Number33.17
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 | 2.14 |
F-Score7
WACC8.4%
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 Y7.23%
EPS Next 2Y8.39%
EPS Next 3Y8.15%
EPS Next 5Y7.58%
Revenue 1Y (TTM)2.73%
Revenue growth 3Y8.31%
Revenue growth 5Y-1.45%
Sales Q2Q%6.68%
Revenue Next Year4.14%
Revenue Next 2Y4.63%
Revenue Next 3Y4.59%
Revenue Next 5Y3.9%
EBIT growth 1Y6.52%
EBIT growth 3Y12.28%
EBIT growth 5Y-1.74%
EBIT Next Year30.24%
EBIT Next 3Y13.64%
EBIT Next 5Y10.08%
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 10.51 and the Price/Book (PB) ratio is 4.53.
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%.