LSE:GSK

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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. More Details


Snowflake Analysis

6 star dividend payer with solid 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

Stable Share Price: GSK is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: GSK's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0.2%

GSK

1.1%

GB Pharmaceuticals

3.0%

GB Market


1 Year Return

-19.9%

GSK

-2.5%

GB Pharmaceuticals

-6.1%

GB Market

Return vs Industry: GSK underperformed the UK Pharmaceuticals industry which returned -2.5% over the past year.

Return vs Market: GSK underperformed the UK Market which returned -6.1% over the past year.


Shareholder returns

GSKIndustryMarket
7 Day0.2%1.1%3.0%
30 Day-1.3%-4.9%11.1%
90 Day-3.4%-1.5%11.9%
1 Year-15.8%-19.9%1.1%-2.5%-2.4%-6.1%
3 Year25.6%7.7%50.0%33.5%4.5%-8.2%
5 Year40.4%6.8%73.1%39.6%38.9%7.4%

Long-Term 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

Valuation

Is GlaxoSmithKline undervalued compared to its fair value and its price relative to the market?

38.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GSK (£13.86) is trading below our estimate of fair value (£22.48)

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 (10.8x) compared to the GB Pharmaceuticals industry average (17x).

PE vs Market: GSK is good value based on its PE Ratio (10.8x) compared to the UK market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: GSK is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: GSK is overvalued based on its PB Ratio (4.8x) compared to the GB Pharmaceuticals industry average (4.4x).


Next Steps

Future Growth

How is GlaxoSmithKline forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GSK's forecast earnings growth (3.7% per year) is above the savings rate (1.2%).

Earnings vs Market: GSK's earnings (3.7% per year) are forecast to grow slower than the UK market (26.2% per year).

High Growth Earnings: GSK's earnings are forecast to grow, but not significantly.

Revenue vs Market: GSK's revenue (3.8% per year) is forecast to grow slower than the UK market (6.6% per year).

High Growth Revenue: GSK's revenue (3.8% 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 very high in 3 years time (43.3%).


Next Steps

Past Performance

How has GlaxoSmithKline performed over the past 5 years?

11.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GSK has high quality earnings.

Growing Profit Margin: GSK's current net profit margins (18.6%) are higher than last year (13.8%).


Past Earnings Growth Analysis

Earnings Trend: GSK's earnings have grown by 11.7% per year over the past 5 years.

Accelerating Growth: GSK's earnings growth over the past year (39.7%) exceeds its 5-year average (11.7% per year).

Earnings vs Industry: GSK earnings growth over the past year (39.7%) exceeded the Pharmaceuticals industry 21.9%.


Return on Equity

High ROE: Whilst GSK's Return on Equity (34.26%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is GlaxoSmithKline's financial position?


Financial Position Analysis

Short Term Liabilities: GSK's short term assets (£19.9B) do not cover its short term liabilities (£22.2B).

Long Term Liabilities: GSK's short term assets (£19.9B) do not cover its long term liabilities (£38.1B).


Debt to Equity History and Analysis

Debt Level: GSK's debt to equity ratio (130.9%) is considered high.

Reducing Debt: GSK's debt to equity ratio has reduced from 176.5% to 130.9% over the past 5 years.

Debt Coverage: GSK's debt is well covered by operating cash flow (29.8%).

Interest Coverage: GSK's interest payments on its debt are well covered by EBIT (10.9x coverage).


Balance Sheet


Next Steps

Dividend

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

5.77%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GSK's dividend (5.77%) is higher than the bottom 25% of dividend payers in the UK market (1.67%).

High Dividend: GSK's dividend (5.77%) is in the top 25% of dividend payers in the UK market (4.77%)


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 reasonable payout ratio (62.4%), GSK's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GSK's dividends in 3 years are forecast to be covered by earnings (62.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Emma Walmsley (50 yo)

3.67yrs

Tenure

UK£8,369,000

Compensation

Ms. 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 March 31, 2017. Ms. Walmsley served...


CEO Compensation Analysis

Compensation vs Market: Emma's total compensation ($USD11.27M) is above average for companies of similar size in the UK market ($USD4.61M).

Compensation vs Earnings: Emma's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Emma Walmsley
CEO & Director3.67yrsUK£8.37m0.016%
£ 10.9m
Iain Mackay
CFO & Executive Director1.92yrsUK£2.36m0.00074%
£ 510.5k
Hal Barron
Chief Scientific Officer2.92yrsUK£6.34m0.0031%
£ 2.1m
Karenann Terrell
Chief Digital & Technology Officer3.25yrsno datano data
Sarah Elton-Farr
Head of Investor Relationsno datano datano data
Nick Hirons
Senior Vice President of Global Ethics & Compliance6.25yrsno datano data
James Ford
Senior VP & General Counsel2.33yrsno datano data
Sally Jackson
Senior Vice President of Global Communications & CEO Office1.75yrsno datano data
Diana Conrad
Senior Vice President of Human Resources1.67yrsno datano data
David Redfern
Chief Strategy Officer12.58yrsno datano data
Herve Gisserot
Head of Pharmaceuticals for Asia-Pacific3.92yrsno datano data
Philip Thomson
President of Global Affairs3.67yrsno data0.0014%
£ 952.1k

3.3yrs

Average Tenure

57yo

Average Age

Experienced Management: GSK's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Emma Walmsley
CEO & Director3.67yrsUK£8.37m0.016%
£ 10.9m
Iain Mackay
CFO & Executive Director1.92yrsUK£2.36m0.00074%
£ 510.5k
Hal Barron
Chief Scientific Officer2.92yrsUK£6.34m0.0031%
£ 2.1m
Judy Lewent
Independent Non-Executive Director9.67yrsUK£378.00k0.0011%
£ 772.7k
Jonathan Symonds
Non-Executive Chairman1.25yrsUK£234.00k0.00084%
£ 579.5k
Laurie Glimcher
Independent Non-Executive Director and Scientific & Medical Expert3.25yrsUK£296.00k0.00053%
£ 365.7k
Urs Rohner
Independent Non-Executive Director5.92yrsUK£136.00k0.00022%
£ 151.8k
Vivienne Cox
Independent Non-Executive Director & Workforce Engagement Director4.42yrsUK£100.00k0.00011%
£ 75.9k
Manvinder Banga
Senior Independent Non-Executive Director4.58yrsUK£127.00k0.0012%
£ 848.6k
Lynn Elsenhans
Independent Non-Executive Director8.42yrsUK£295.00k0.0016%
£ 1.1m
Charles Bancroft
Independent Non-Executive Director0.58yrno datano data
Jesse Goodman
Independent Non-Executive Director and Scientific & Medical Expert4.92yrsUK£331.00k0.00028%
£ 193.2k

4.2yrs

Average Tenure

61yo

Average Age

Experienced Board: GSK's board of directors are considered experienced (4.2 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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£68.991b
  • Shares outstanding: 4.98b
  • Website: https://www.gsk.com

Number of Employees


Location

  • GlaxoSmithKline plc
  • 980 Great West Road
  • Brentford
  • Greater London
  • 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)SPONSORED ADRUSUSDDec 1993
GSK NBMV (Bolsa Mexicana de Valores)SPONSORED ADRMXMXNDec 1993
GS7ADB (Deutsche Boerse AG)SPONSORED ADRDEEURDec 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 Analysis2020/12/05 19:08
End of Day Share Price2020/12/04 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.