GSK PLC-SPON ADR (GSK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GSK - US37733W2044 - ADR
48.22 USD
-0.9 (-1.83%)
48.38 USD
+0.16 (+0.33%)
We assign a fundamental rating of 6 out of 10 to GSK. GSK was compared to 191 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
- In the past year GSK was profitable.
- In the past year GSK had a positive cash flow from operations.
- GSK had positive earnings in each of the past 5 years.
- In the past 5 years GSK always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of GSK (8.96%) is better than 91.10% of its industry peers.
- GSK has a better Return On Equity (34.02%) than 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.
- 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
- GSK's Profit Margin of 17.08% is amongst the best of the industry. GSK outperforms 89.53% of its industry peers.
- In the last couple of years the Profit Margin of GSK has declined.
- GSK's Operating Margin of 26.20% is amongst the best of the industry. GSK outperforms 92.15% 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 Gross Margin of 72.52%. This is amongst the best in the industry. GSK outperforms 80.10% 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GSK is creating value.
- Compared to 1 year ago, GSK has more shares outstanding
- The number of shares outstanding for GSK has been increased compared to 5 years ago.
- Compared to 1 year ago, GSK has an improved debt to assets ratio.
2.2 Solvency
- GSK has an Altman-Z score of 2.13. 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.
- GSK has a Altman-Z score of 2.13. This is comparable to the rest of the industry: GSK outperforms 58.12% of 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.
- The Debt to FCF ratio of GSK (3.78) is better than 86.91% 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 72.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 3.78 | ||
| Altman-Z | 2.13 |
ROIC/WACC2.14
WACC8.49%
2.3 Liquidity
- A Current Ratio of 0.84 indicates that GSK may have some problems paying its short term obligations.
- GSK's Current ratio of 0.84 is on the low side compared to the rest of the industry. GSK is outperformed by 87.96% of its industry peers.
- 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 88.48% 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 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
- The Earnings Per Share is expected to grow by 7.25% 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 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
- Based on the Price/Earnings ratio of 10.44, 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.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, GSK is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 9.46, the valuation of GSK can be described as reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of GSK indicates a rather cheap valuation: GSK is cheaper than 87.96% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, GSK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.44 | ||
| Fwd PE | 9.46 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GSK is valued cheaply inside the industry as 91.10% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, GSK is valued cheaply inside the industry as 87.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.47 | ||
| EV/EBITDA | 7.28 |
4.3 Compensation for Growth
- GSK's 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)1.37
PEG (5Y)18.59
EPS Next 2Y8.43%
EPS Next 3Y8.23%
5. Dividend
5.1 Amount
- GSK has a Yearly Dividend Yield of 3.46%.
- Compared to an average industry Dividend Yield of 0.40, 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 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
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.
- 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 2Y8.43%
EPS Next 3Y8.23%
48.22
-0.9 (-1.83%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)10-29 2025-10-29/bmo
Earnings (Next)02-04 2026-02-04/amc
Inst Owners43.55%
Inst Owner Change0%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap97.39B
Revenue(TTM)32.17B
Net Income(TTM)5.49B
Analysts70.97
Price Target50.54 (4.81%)
Short Float %0.57%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
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)4.16%
PT rev (3m)13.92%
EPS NQ rev (1m)-0.36%
EPS NQ rev (3m)-6.62%
EPS NY rev (1m)0.36%
EPS NY rev (3m)2.04%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)1.99%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.44 | ||
| Fwd PE | 9.46 | ||
| P/S | 2.26 | ||
| P/FCF | 15.47 | ||
| P/OCF | 9.33 | ||
| P/B | 4.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.28 |
EPS(TTM)4.62
EY9.58%
EPS(NY)5.1
Fwd EY10.58%
FCF(TTM)3.12
FCFY6.46%
OCF(TTM)5.17
OCFY10.72%
SpS21.34
BVpS10.71
TBVpS-5.2
PEG (NY)1.37
PEG (5Y)18.59
Graham Number33.37
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
WACC8.49%
ROIC/WACC2.14
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.