LSE:GSK

Stock Analysis Report

Executive Summary

GlaxoSmithKline plc 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.

Snowflake

Fundamentals

Established dividend payer with acceptable track record.


Similar Companies

Share Price & News

How has GlaxoSmithKline's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.9%

GSK

3.9%

GB Pharmaceuticals

-0.2%

GB Market


1 Year Return

9.2%

GSK

21.5%

GB Pharmaceuticals

-1.9%

GB Market

GSK underperformed the Pharmaceuticals industry which returned 21.5% over the past year.

GSK outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -1.8% over the past year.


Share holder returns

GSKIndustryMarket
7 Day1.9%3.9%-0.2%
30 Day-1.2%-1.8%4.4%
90 Day4.9%9.9%0.5%
1 Year14.9%9.2%25.1%21.5%2.9%-1.9%
3 Year18.4%1.1%45.5%31.5%20.7%6.3%
5 Year54.6%16.7%91.2%59.9%33.2%5.1%

Price Volatility Vs. Market

How volatile is GlaxoSmithKline's share price compared to the market and industry in the last 5 years?


Simply Wall St News

3 weeks ago | Simply Wall St

Read This Before You Buy GlaxoSmithKline plc (LON:GSK) Because Of Its P/E Ratio

Valuation

Is GlaxoSmithKline undervalued based on future cash flows and its price relative to the stock market?

28%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

GlaxoSmithKline's share price is below the future cash flow value, and at a moderate discount (> 20%).

GlaxoSmithKline's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

GlaxoSmithKline is good value based on earnings compared to the GB Pharmaceuticals industry average.

GlaxoSmithKline is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

GlaxoSmithKline is poor value based on expected growth next year.


Price Based on Value of Assets

GlaxoSmithKline is overvalued based on assets compared to the GB Pharmaceuticals industry average.


Next Steps

Future Growth

How is GlaxoSmithKline expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

8.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

GlaxoSmithKline's revenue is expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).

GlaxoSmithKline's earnings are expected to grow by 8.3% yearly, however this is not considered high growth (20% yearly).

GlaxoSmithKline's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

GlaxoSmithKline's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

GlaxoSmithKline's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

GlaxoSmithKline is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has GlaxoSmithKline performed over the past 5 years?

-24.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

GlaxoSmithKline's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

GlaxoSmithKline's 1-year earnings growth exceeds its 5-year average (167.3% vs -24%)

GlaxoSmithKline's earnings growth has exceeded the GB Pharmaceuticals industry average in the past year (167.3% vs 24.2%).


Return on Equity

Whilst GlaxoSmithKline made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.


Return on Assets

GlaxoSmithKline used its assets less efficiently than the GB Pharmaceuticals industry average last year based on Return on Assets.


Return on Capital Employed

GlaxoSmithKline has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is GlaxoSmithKline's financial position?


Financial Position Analysis

GlaxoSmithKline's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

GlaxoSmithKline's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

GlaxoSmithKline's level of debt (1125.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (257.7% vs 1125.4% today).

Debt is well covered by operating cash flow (24.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 10.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.5x debt.


Next Steps

Dividend

What is GlaxoSmithKline's current dividend yield, its reliability and sustainability?

4.82%

Expected Dividend Yield


Dividend Yield and Payments Analysis

GlaxoSmithKline's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.01%).

GlaxoSmithKline's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.41%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.6x coverage).


Next Steps

Management

What is the CEO of GlaxoSmithKline's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Emma Walmsley (49yo)

2.4yrs

Tenure

UK£5,887,000

Compensation

Ms. Emma N. Walmsley serves as Chief Executive Officer of GlaxoSmithKline Plc since March 31, 2017. Ms. Walmsley served as the Chief Executive Officer of Consumer Healthcare at GlaxoSmithKline Plc since Ma ...


CEO Compensation Analysis

Emma's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Emma's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.7yrs

Average Tenure

56yo

Average Age

The average tenure for the GlaxoSmithKline management team is less than 2 years, this suggests a new team.


Board Age and Tenure

3.3yrs

Average Tenure

60yo

Average Age

The tenure for the GlaxoSmithKline board of directors is about average.


Insider Trading

More shares have been bought than sold by GlaxoSmithKline individual insiders in the past 3 months.


Recent Insider Transactions

BuyUK£43,75024 Jul 19
Philip Hampton
EntityIndividual
Shares2,645.1
Max PriceUK£16.54
BuyUK£7,18824 Jul 19
Vivienne Cox
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares434.55
Max PriceUK£16.54
BuyUK£9,06224 Jul 19
Manvinder Banga
EntityIndividual
Role
Lead Director
Senior Independent Non-Executive Director
Shares547.91
Max PriceUK£16.54
BuyUK£9,06224 Jul 19
Urs Rohner
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares547.91
Max PriceUK£16.54
SellUK£558,62618 Feb 19
Claire Thomas
EntityIndividual
Shares35,253
Max PriceUK£15.85
SellUK£321,40818 Feb 19
Philip Thomson
EntityIndividual
Shares20,283
Max PriceUK£15.85
SellUK£1,048,36918 Feb 19
Emma Walmsley
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares66,159
Max PriceUK£15.85
BuyUK£7,18802 Nov 18
Urs Rohner
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares471
Max PriceUK£15.26
BuyUK£5,31202 Nov 18
Vivienne Cox
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares348.13
Max PriceUK£15.26
BuyUK£7,18802 Nov 18
Manvinder Banga
EntityIndividual
Role
Lead Director
Senior Independent Non-Executive Director
Shares471
Max PriceUK£15.26
BuyUK£43,75002 Nov 18
Philip Hampton
EntityIndividual
Shares2,866.97
Max PriceUK£15.26

Ownership Breakdown


Management Team

  • Hal Barron (56yo)

    Chief Scientific Officer

    • Tenure: 1.7yrs
    • Compensation: UK£6.56m
  • Karenann Terrell (57yo)

    Chief Digital & Technology Officer

    • Tenure: 2yrs
  • Diana Conrad

    Senior Vice President of Human Resources

    • Tenure: 0.4yrs
  • Iain Mackay (57yo)

    CFO & Executive Director

    • Tenure: 0.7yrs
  • David Redfern (53yo)

    Chief Strategy Officer

    • Tenure: 11.3yrs
  • Sarah Elton-Farr

    Head of Investor Relations

    • Tenure: 0yrs
  • Emma Walmsley (49yo)

    CEO & Director

    • Tenure: 2.4yrs
    • Compensation: UK£5.89m
  • Nick Hirons

    Senior Vice President of Global Ethics & Compliance

    • Tenure: 5yrs
  • James Ford

    Senior VP & General Counsel

    • Tenure: 1.1yrs
  • Sally Jackson

    Senior Vice President of Global Communications & CEO Office

    • Tenure: 0.5yrs

Board Members

  • Judy Lewent (70yo)

    Independent Non-Executive Director

    • Tenure: 8.4yrs
    • Compensation: UK£437.00k
  • Jon Symonds (60yo)

    Non-Executive Chairman

    • Tenure: 0yrs
  • Urs Rohner (60yo)

    Independent Non-Executive Director

    • Tenure: 4.7yrs
    • Compensation: UK£138.00k
  • Hal Barron (56yo)

    Chief Scientific Officer

    • Tenure: 1.7yrs
    • Compensation: UK£6.56m
  • Vivienne Cox (60yo)

    Independent Non-Executive Director

    • Tenure: 3.2yrs
    • Compensation: UK£96.00k
  • Vindi Banga (65yo)

    Senior Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£118.00k
  • Lynn Elsenhans (62yo)

    Independent Non-Executive Director

    • Tenure: 7.2yrs
    • Compensation: UK£321.00k
  • Iain Mackay (57yo)

    CFO & Executive Director

    • Tenure: 0.7yrs
  • Emma Walmsley (49yo)

    CEO & Director

    • Tenure: 2.4yrs
    • Compensation: UK£5.89m
  • Jesse Goodman (67yo)

    Independent Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: UK£392.00k

Company Information

GlaxoSmithKline plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GlaxoSmithKline plc
  • Ticker: GSK
  • Exchange: LSE
  • Founded: 1715
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: UK£82.720b
  • Shares outstanding: 4.95b
  • Website: https://www.gsk.com

Number of Employees


Location

  • GlaxoSmithKline plc
  • 980 Great West Road
  • Brentford
  • Middlesex
  • TW8 9GS
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GLAX.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1975
GS7DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1975
GSKLSE (London Stock Exchange)YesCommon StockGBGBPJan 1975
GS7XTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1975
GSKLBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBGBPJan 1975
GSKSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1975
GSKNYSE (New York Stock Exchange)ADR EACH CNV INTO 2 ORD GBP0.25USUSDDec 1993
GSK NBMV (Bolsa Mexicana de Valores)ADR EACH CNV INTO 2 ORD GBP0.25MXMXNDec 1993
GS7ADB (Deutsche Boerse AG)ADR EACH CNV INTO 2 ORD GBP0.25DEEURDec 1993
GSKBASE (Buenos Aires Stock Exchange)CEDEAR EACH REPR 1/4 ADRARARSSep 2000

Biography

GlaxoSmithKline plc engages in the creation, discovery, development, manufacture, and marketing of pharmaceutical products, vaccines, over-the-counter medicines, and health-related consumer products in the ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/22 20:41
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.