GSK PLC-SPON ADR (GSK) Stock Fundamental Analysis
USA - NYSE:GSK - US37733W2044 - ADR
46.69 USD
-0.13 (-0.28%)
46.69 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to GSK. GSK was compared to 192 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
In the past year GSK was profitable.
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
The Return On Assets of GSK (8.96%) is better than 92.19% of its industry peers.
GSK's Return On Equity of 34.02% is amongst the best of the industry. GSK outperforms 96.35% 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.
The Average Return On Invested Capital over the past 3 years for GSK is above the industry average of 15.46%.
| 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 has a better Profit Margin (17.08%) than 91.67% of its industry peers.
GSK's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 26.20%, GSK belongs to the top of the industry, outperforming 92.19% of the companies in the same industry.
GSK's Operating Margin has been stable in the last couple of years.
The Gross Margin of GSK (72.52%) is better than 80.21% 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
GSK has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
GSK has more shares outstanding than it did 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 64.58% 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.
With an excellent Debt to FCF ratio value of 3.78, GSK belongs to the best of the industry, outperforming 88.02% 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.
GSK has a Debt to Equity ratio of 0.92. This is in the lower half of the industry: GSK underperforms 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 3.78 | ||
| Altman-Z | 2.12 |
ROIC/WACC2.17
WACC8.35%
2.3 Liquidity
A Current Ratio of 0.84 indicates that GSK may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.84, GSK is doing worse than 87.50% of the companies in the same industry.
GSK has a Quick 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 Quick ratio, with a value of 0.55, GSK is doing worse than 90.10% of the companies in the same industry.
| 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 37.23% 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.
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)37.23%
EPS 3Y4.05%
EPS 5Y0.56%
EPS Q2Q%125.28%
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.
GSK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.96% yearly.
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
GSK is valuated cheaply with a Price/Earnings ratio of 7.73.
Based on the Price/Earnings ratio, GSK is valued cheaper than 92.19% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.03, GSK is valued rather cheaply.
A Price/Forward Earnings ratio of 9.40 indicates a reasonable valuation of GSK.
86.46% of the companies in the same industry are more expensive than GSK, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.27. GSK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.73 | ||
| Fwd PE | 9.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GSK is valued cheaper than 92.19% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GSK is valued cheaper than 86.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.3 | ||
| EV/EBITDA | 7.23 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of GSK may justify a higher PE ratio.
PEG (NY)1.32
PEG (5Y)13.77
EPS Next 2Y8.16%
EPS Next 3Y7.96%
5. Dividend
5.1 Amount
GSK has a Yearly Dividend Yield of 3.58%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.54, GSK pays a better dividend. On top of this GSK pays more dividend than 94.79% 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
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 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%
46.69
-0.13 (-0.28%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners43.15%
Inst Owner Change-2.21%
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap93.91B
Revenue(TTM)32.17B
Net Income(TTM)5.49B
Analysts70.32
Price Target44.99 (-3.64%)
Short Float %0.68%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
Yearly Dividend1.59
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)68.65%
Min EPS beat(2)7.67%
Max EPS beat(2)129.62%
EPS beat(4)4
Avg EPS beat(4)41.4%
Min EPS beat(4)7.67%
Max EPS beat(4)129.62%
EPS beat(8)7
Avg EPS beat(8)25.07%
EPS beat(12)11
Avg EPS beat(12)19.65%
EPS beat(16)15
Avg EPS beat(16)17.05%
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)-1.42%
PT rev (3m)0.82%
EPS NQ rev (1m)-5.17%
EPS NQ rev (3m)-10.02%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-3.97%
Revenue NQ rev (1m)1.05%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.73 | ||
| Fwd PE | 9.4 | ||
| P/S | 2.23 | ||
| P/FCF | 15.3 | ||
| P/OCF | 9.22 | ||
| P/B | 4.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.23 |
EPS(TTM)6.04
EY12.94%
EPS(NY)4.97
Fwd EY10.64%
FCF(TTM)3.05
FCFY6.53%
OCF(TTM)5.06
OCFY10.84%
SpS20.9
BVpS10.49
TBVpS-5.09
PEG (NY)1.32
PEG (5Y)13.77
Graham Number37.76
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
WACC8.35%
ROIC/WACC2.17
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)37.23%
EPS 3Y4.05%
EPS 5Y0.56%
EPS Q2Q%125.28%
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 7.73 and the Price/Book (PB) ratio is 4.45.
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%.