GSK PLC-SPON ADR (GSK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GSK - US37733W2044 - ADR
47.86 USD
-0.16 (-0.33%)
47.67 USD
-0.19 (-0.4%)
Overall GSK gets a fundamental rating of 6 out of 10. We evaluated GSK against 192 industry peers in the Pharmaceuticals industry. GSK scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on GSK.
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.
Each year in the past 5 years GSK had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.96%, GSK belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
GSK has a Return On Equity of 34.02%. This is amongst the best in the industry. GSK outperforms 95.83% of its industry peers.
The Return On Invested Capital of GSK (18.16%) is better than 95.31% of its industry peers.
GSK had an Average Return On Invested Capital over the past 3 years of 18.38%. This is significantly above the industry average of 12.71%.
| 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 90.10% 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.
GSK's Gross Margin of 72.52% is fine compared to the rest of the industry. GSK outperforms 79.17% 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.
Compared to 1 year ago, GSK has more shares outstanding
GSK has more shares outstanding than it did 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.
Looking at the Altman-Z score, with a value of 2.14, GSK is in the better half of the industry, outperforming 60.94% 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 Debt to FCF ratio of 3.78. This is amongst the best in the industry. GSK outperforms 86.46% of its industry peers.
A Debt/Equity ratio of 0.92 indicates that 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 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 3.78 | ||
| Altman-Z | 2.14 |
ROIC/WACC2.13
WACC8.51%
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 88.54% of its industry peers.
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: 90.63% 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
GSK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.16%, which is quite impressive.
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.
GSK shows a small growth in Revenue. In the last year, the Revenue has grown by 2.73%.
Measured over the past years, GSK shows a decrease in Revenue. The Revenue has been decreasing by -1.45% on average per year.
EPS 1Y (TTM)37.16%
EPS 3Y4.05%
EPS 5Y0.56%
EPS Q2Q%125.07%
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 7.62% on average per year.
The Revenue is expected to grow by 3.96% on average over the next years.
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
With a Price/Earnings ratio of 7.82, the valuation of GSK can be described as very cheap.
Based on the Price/Earnings ratio, GSK is valued cheaper than 93.23% of the companies in the same industry.
GSK is valuated cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.50, 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 36.59. GSK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.82 | ||
| Fwd PE | 9.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GSK is valued cheaper than 91.67% 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 85.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.47 | ||
| EV/EBITDA | 7.3 |
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)1.34
PEG (5Y)13.93
EPS Next 2Y8.16%
EPS Next 3Y7.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.64%, GSK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 7.92, 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.64% |
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.
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 2Y8.16%
EPS Next 3Y7.96%
47.86
-0.16 (-0.33%)
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 Cap96.17B
Revenue(TTM)32.17B
Net Income(TTM)5.49B
Analysts70.32
Price Target47.6 (-0.54%)
Short Float %0.72%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.64% |
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)68.54%
Min EPS beat(2)7.67%
Max EPS beat(2)129.41%
EPS beat(4)4
Avg EPS beat(4)41.35%
Min EPS beat(4)7.67%
Max EPS beat(4)129.41%
EPS beat(8)7
Avg EPS beat(8)25.04%
EPS beat(12)11
Avg EPS beat(12)19.64%
EPS beat(16)15
Avg EPS beat(16)17.04%
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)7.3%
PT rev (3m)6.39%
EPS NQ rev (1m)-5.93%
EPS NQ rev (3m)-7.46%
EPS NY rev (1m)0.87%
EPS NY rev (3m)1.13%
Revenue NQ rev (1m)1.72%
Revenue NQ rev (3m)2.44%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.82 | ||
| Fwd PE | 9.5 | ||
| P/S | 2.26 | ||
| P/FCF | 15.47 | ||
| P/OCF | 9.33 | ||
| P/B | 4.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.3 |
EPS(TTM)6.12
EY12.79%
EPS(NY)5.04
Fwd EY10.53%
FCF(TTM)3.09
FCFY6.46%
OCF(TTM)5.13
OCFY10.72%
SpS21.19
BVpS10.64
TBVpS-5.16
PEG (NY)1.34
PEG (5Y)13.93
Graham Number38.27
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
WACC8.51%
ROIC/WACC2.13
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)37.16%
EPS 3Y4.05%
EPS 5Y0.56%
EPS Q2Q%125.07%
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 7.82 and the Price/Book (PB) ratio is 4.5.
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%.