GSK PLC-SPON ADR (GSK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GSK - US37733W2044 - ADR
49.15 USD
+0.56 (+1.15%)
Overall GSK gets a fundamental rating of 6 out of 10. We evaluated GSK against 192 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year GSK was profitable.
GSK had a positive operating cash flow in the past year.
Each year in the past 5 years GSK has been profitable.
Each year in the past 5 years GSK had a positive operating cash flow.
1.2 Ratios
GSK's Return On Assets of 8.96% is amongst the best of the industry. GSK outperforms 91.15% of its industry peers.
GSK has a better Return On Equity (34.02%) than 95.31% of its industry peers.
GSK has a better Return On Invested Capital (18.16%) than 95.31% 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 89.58% of the companies in the same industry.
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.
GSK's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 72.52%, GSK is doing good in the industry, outperforming 79.69% of the companies in the same industry.
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.
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 2.14 indicates that GSK is not a great score, but indicates only limited risk for bankruptcy at the moment.
GSK's Altman-Z score of 2.14 is in line compared to the rest of the industry. GSK outperforms 57.29% 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 86.46% 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.
GSK has a Debt to Equity ratio of 0.92. This is in the lower half of the industry: GSK underperforms 72.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 3.78 | ||
| Altman-Z | 2.14 |
ROIC/WACC2.04
WACC8.88%
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 Current ratio of 0.84. This is amonst the worse of the industry: GSK underperforms 88.54% of its industry peers.
A Quick Ratio of 0.55 indicates that GSK may have some problems paying its short term obligations.
The Quick ratio of GSK (0.55) is worse than 89.06% 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 been growing slightly by 2.73% 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.
The Revenue has been growing slightly by 2.73% in the past 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 7.58% 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 3.90% 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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.62 indicates a reasonable valuation of GSK.
GSK's Price/Earnings ratio is rather cheap when compared to the industry. GSK is cheaper than 91.15% of the companies in the same industry.
GSK is valuated cheaply when we compare the Price/Earnings ratio to 26.61, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.62, the valuation of GSK can be described as reasonable.
Based on the Price/Forward Earnings ratio, GSK is valued cheaply inside the industry as 88.54% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.01, GSK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.62 | ||
| Fwd PE | 9.62 |
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 85.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.73 | ||
| EV/EBITDA | 7.31 |
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)1.47
PEG (5Y)18.91
EPS Next 2Y8.39%
EPS Next 3Y8.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.53%, GSK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.45, GSK pays a better dividend. On top of this GSK pays more dividend than 95.31% 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 1.87.
| 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.
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 2Y8.39%
EPS Next 3Y8.15%
NYSE:GSK (12/23/2025, 9:46:03 AM)
49.15
+0.56 (+1.15%)
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 Cap99.27B
Revenue(TTM)32.17B
Net Income(TTM)5.49B
Analysts70.97
Price Target48.52 (-1.28%)
Short Float %0.55%
Short Ratio2.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
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)8.71%
PT rev (3m)6.31%
EPS NQ rev (1m)-0.38%
EPS NQ rev (3m)-7.98%
EPS NY rev (1m)0.8%
EPS NY rev (3m)1.87%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)2.69%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.62 | ||
| Fwd PE | 9.62 | ||
| P/S | 2.3 | ||
| P/FCF | 15.73 | ||
| P/OCF | 9.48 | ||
| P/B | 4.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.31 |
EPS(TTM)4.63
EY9.42%
EPS(NY)5.11
Fwd EY10.4%
FCF(TTM)3.12
FCFY6.36%
OCF(TTM)5.18
OCFY10.55%
SpS21.4
BVpS10.74
TBVpS-5.21
PEG (NY)1.47
PEG (5Y)18.91
Graham Number33.45
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
WACC8.88%
ROIC/WACC2.04
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 10.62 and the Price/Book (PB) ratio is 4.58.
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%.