GlaxoSmithKline plc, together with its subsidiaries, engages in the creation, discovery, development, manufacture, and marketing of pharmaceutical products, vaccines, over-the-counter medicines, and health-related consumer products in the United Kingdom, the United States, and internationally.
Price History & Performance
|Historical stock prices|
|Current Share Price||UK£14.04|
|52 Week High||UK£11.91|
|52 Week Low||UK£15.29|
|1 Month Change||-7.35%|
|3 Month Change||0.66%|
|1 Year Change||-5.62%|
|3 Year Change||-7.80%|
|5 Year Change||-14.05%|
|Change since IPO||-25.20%|
Recent News & Updates
GlaxoSmithKline (LSE:GSK) Insiders Show Interest, and the Company has Hopeful Vaccine Candidates
GlaxoSmithKline (LSE:GSK), is undergoing a transformation and the company is expected to split into 2 entities mid 2022. Shareholders had an underwhelming performance in the last 3 years, and the uncertainty of the outcome of the spinoff may be keeping the stock down. We will overview the current and future financial performance of the company and use a proxy to determine the disposition for the future of the company.
|GSK||GB Pharmaceuticals||GB Market|
Return vs Industry: GSK matched the UK Pharmaceuticals industry which returned -6.3% over the past year.
Return vs Market: GSK underperformed the UK Market which returned 19.9% over the past year.
Stable Share Price: GSK is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: GSK's weekly volatility (2%) has been stable over the past year.
About the Company
GlaxoSmithKline plc, together with its subsidiaries, engages in the creation, discovery, development, manufacture, and marketing of pharmaceutical products, vaccines, over-the-counter medicines, and health-related consumer products in the United Kingdom, the United States, and internationally. It operates through four segments: Pharmaceuticals, Pharmaceuticals R&D, Vaccines, and Consumer Healthcare. The company offers pharmaceutical products comprising medicines in the therapeutic areas, such as respiratory, HIV, immuno-inflammation, oncology, anti-viral, central nervous system, cardiovascular and urogenital, metabolic, anti-bacterial, and dermatology.
Is GlaxoSmithKline undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GSK (£14.04) is trading below our estimate of fair value (£35.96)
Significantly Below Fair Value: GSK is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: GSK is good value based on its PE Ratio (16x) compared to the UK Pharmaceuticals industry average (29.4x).
PE vs Market: GSK is good value based on its PE Ratio (16x) compared to the UK market (23.5x).
Price to Earnings Growth Ratio
PEG Ratio: GSK is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: GSK's PB Ratio (4.6x) is in line with the GB Pharmaceuticals industry average.
How is GlaxoSmithKline forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GSK's forecast earnings growth (13.6% per year) is above the savings rate (0.9%).
Earnings vs Market: GSK's earnings (13.6% per year) are forecast to grow slower than the UK market (14.4% per year).
High Growth Earnings: GSK's earnings are forecast to grow, but not significantly.
Revenue vs Market: GSK's revenue (5.2% per year) is forecast to grow slower than the UK market (5.5% per year).
High Growth Revenue: GSK's revenue (5.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: GSK's Return on Equity is forecast to be high in 3 years time (35.9%)
How has GlaxoSmithKline performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GSK has a large one-off loss of £1.9B impacting its June 30 2021 financial results.
Growing Profit Margin: GSK's current net profit margins (13.3%) are lower than last year (19.1%).
Past Earnings Growth Analysis
Earnings Trend: GSK's earnings have grown significantly by 37.4% per year over the past 5 years.
Accelerating Growth: GSK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: GSK had negative earnings growth (-34.3%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (-9%).
Return on Equity
High ROE: Whilst GSK's Return on Equity (23.48%) is high, this metric is skewed due to their high level of debt.
How is GlaxoSmithKline's financial position?
Financial Position Analysis
Short Term Liabilities: GSK's short term assets (£17.6B) do not cover its short term liabilities (£21.4B).
Long Term Liabilities: GSK's short term assets (£17.6B) do not cover its long term liabilities (£34.0B).
Debt to Equity History and Analysis
Debt Level: GSK's debt to equity ratio (118.1%) is considered high.
Reducing Debt: GSK's debt to equity ratio has reduced from 462% to 118.1% over the past 5 years.
Debt Coverage: GSK's debt is well covered by operating cash flow (24.9%).
Interest Coverage: GSK's interest payments on its debt are well covered by EBIT (10.5x coverage).
What is GlaxoSmithKline current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: GSK's dividend (5.7%) is higher than the bottom 25% of dividend payers in the UK market (1.34%).
High Dividend: GSK's dividend (5.7%) is in the top 25% of dividend payers in the UK market (3.92%)
Stability and Growth of Payments
Stable Dividend: GSK's dividends per share have been stable in the past 10 years.
Growing Dividend: GSK's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (91%), GSK's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: GSK's dividends in 3 years are forecast to be well covered by earnings (43.5% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Emma Walmsley (51 yo)
Dame Emma N. Walmsley serves as an Independent Director of Microsoft Corp. since December 4, 2019. She serves as Chief Executive Officer of GlaxoSmithKline Plc since April 1, 2017. Dame Walmsley served as...
CEO Compensation Analysis
Compensation vs Market: Emma's total compensation ($USD9.61M) is above average for companies of similar size in the UK market ($USD3.69M).
Compensation vs Earnings: Emma's compensation has been consistent with company performance over the past year.
Experienced Management: GSK's management team is considered experienced (4 years average tenure).
Experienced Board: GSK's board of directors are considered experienced (4.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: GSK insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
GlaxoSmithKline plc's employee growth, exchange listings and data sources
- Name: GlaxoSmithKline plc
- Ticker: GSK
- Exchange: LSE
- Founded: 1715
- Industry: Pharmaceuticals
- Sector: Pharmaceuticals & Biotech
- Market Cap: UK£70.269b
- Shares outstanding: 5.00b
- Website: https://www.gsk.com
Number of Employees
- GlaxoSmithKline plc
- 980 Great West Road
- Greater London
- TW8 9GS
- United Kingdom
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/20 21:08|
|End of Day Share Price||2021/09/20 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.