GlaxoSmithKline
Market Cap
UK£68.9b
Last Updated
2021/01/21 19:49 UTC
Data Sources
Company Financials +
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
Rewards
Risk Analysis
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
-2.1%
GSK
0.2%
GB Pharmaceuticals
-0.6%
GB Market
1 Year Return
-25.1%
GSK
-9.0%
GB Pharmaceuticals
-6.5%
GB Market
Return vs Industry: GSK underperformed the UK Pharmaceuticals industry which returned -9% over the past year.
Return vs Market: GSK underperformed the UK Market which returned -6.5% over the past year.
Shareholder returns
| GSK | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.1% | 0.2% | -0.6% |
| 30 Day | 1.1% | 3.8% | 5.2% |
| 90 Day | 1.6% | -0.8% | 15.1% |
| 1 Year | -21.3%-25.1% | -5.7%-9.0% | -2.7%-6.5% |
| 3 Year | 19.3%2.2% | 41.7%26.1% | 5.1%-7.7% |
| 5 Year | 26.8%-3.5% | 65.6%32.9% | 46.8%18.2% |
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
5 days ago | Simply Wall St
Is GlaxoSmithKline plc's (LON:GSK) 34% ROE Better Than Average?3 weeks ago | Simply Wall St
Insider Buying: The GlaxoSmithKline plc (LON:GSK) Senior Independent Non-Executive Director Just Bought 60% More Shares4 weeks ago | Simply Wall St
A Look At GlaxoSmithKline's (LON:GSK) Share Price ReturnsValuation
Is GlaxoSmithKline undervalued compared to its fair value and its price relative to the market?
49.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GSK (£13.65) is trading below our estimate of fair value (£27.06)
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 (10.6x) compared to the GB Pharmaceuticals industry average (18.2x).
PE vs Market: GSK is good value based on its PE Ratio (10.6x) compared to the UK market (23.1x).
Price to Earnings Growth Ratio
PEG Ratio: GSK is poor value based on its PEG Ratio (3.1x)
Price to Book Ratio
PB vs Industry: GSK's PB Ratio (4.8x) is in line with the GB Pharmaceuticals industry average.
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Future Growth
How is GlaxoSmithKline forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?
3.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GSK's forecast earnings growth (3.4% per year) is above the savings rate (1%).
Earnings vs Market: GSK's earnings (3.4% per year) are forecast to grow slower than the UK market (25.6% per year).
High Growth Earnings: GSK's earnings are forecast to grow, but not significantly.
Revenue vs Market: GSK's revenue (3.7% per year) is forecast to grow slower than the UK market (6.5% per year).
High Growth Revenue: GSK's revenue (3.7% 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 (31.7%)
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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.
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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
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Dividend
What is GlaxoSmithKline current dividend yield, its reliability and sustainability?
5.86%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: GSK's dividend (5.86%) is higher than the bottom 25% of dividend payers in the UK market (1.5%).
High Dividend: GSK's dividend (5.86%) is in the top 25% of dividend payers in the UK market (4.55%)
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 (59.6% payout ratio).
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Management
How experienced are the management team and are they aligned to shareholders interests?
3.3yrs
Average management tenure
CEO
Emma Walmsley (50 yo)
3.75yrs
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 ($USD11.49M) is above average for companies of similar size in the UK market ($USD3.80M).
Compensation vs Earnings: Emma's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 3.75yrs | UK£8.37m | 0.016% £ 10.8m | |
| CFO & Executive Director | 2yrs | UK£2.36m | 0.00073% £ 502.6k | |
| Chief Scientific Officer | 3yrs | UK£6.34m | 0.0031% £ 2.1m | |
| Chief Digital & Technology Officer | 3.33yrs | no data | no data | |
| Head of Investor Relations | no data | no data | no data | |
| Senior Vice President of Global Ethics & Compliance | 6.33yrs | no data | no data | |
| Senior VP & General Counsel | 2.42yrs | no data | no data | |
| Senior Vice President of Global Communications & CEO Office | 1.83yrs | no data | no data | |
| Senior Vice President of Human Resources | 1.75yrs | no data | no data | |
| Chief Strategy Officer | 12.67yrs | no data | no data | |
| Head of Pharmaceuticals for Asia-Pacific | 4yrs | no data | no data | |
| President of Global Affairs | 3.75yrs | no data | 0.0014% £ 950.2k |
3.3yrs
Average Tenure
57yo
Average Age
Experienced Management: GSK's management team is considered experienced (3.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 3.75yrs | UK£8.37m | 0.016% £ 10.8m | |
| CFO & Executive Director | 2yrs | UK£2.36m | 0.00073% £ 502.6k | |
| Chief Scientific Officer | 3yrs | UK£6.34m | 0.0031% £ 2.1m | |
| Independent Non-Executive Director | 9.75yrs | UK£285.41k | 0.0011% £ 771.2k | |
| Non-Executive Chairman | 1.33yrs | UK£234.00k | 0.00084% £ 578.4k | |
| Independent Non-Executive Director and Scientific & Medical Expert | 3.33yrs | UK£223.49k | 0.00052% £ 358.1k | |
| Independent Non-Executive Director | 6yrs | UK£136.00k | 0.00022% £ 151.5k | |
| Independent Non-Executive Director & Workforce Engagement Director | 4.5yrs | UK£100.00k | 0.00011% £ 75.7k | |
| Senior Independent Non-Executive Director | 4.67yrs | UK£127.00k | 0.0020% £ 1.3m | |
| Independent Non-Executive Director | 8.5yrs | UK£222.74k | 0.0016% £ 1.1m | |
| Independent Non-Executive Director | 0.67yr | no data | no data | |
| Independent Non-Executive Director and Scientific & Medical Expert | 5yrs | UK£249.92k | 0.00028% £ 192.8k |
4.3yrs
Average Tenure
61yo
Average Age
Experienced Board: GSK's board of directors are considered experienced (4.3 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£68.856b
- Shares outstanding: 4.99b
- Website: https://www.gsk.com
Number of Employees
Location
- GlaxoSmithKline plc
- 980 Great West Road
- Brentford
- Greater London
- TW8 9GS
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| GLAX.F | OTCPK (Pink Sheets LLC) | Yes | Common Stock | US | USD | Jan 1975 |
| GS7 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1975 |
| GSK | LSE (London Stock Exchange) | Yes | Common Stock | GB | GBP | Jan 1975 |
| GS7 | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Jan 1975 |
| GSKL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Common Stock | GB | GBP | Jan 1975 |
| GSK | SWX (SIX Swiss Exchange) | Yes | Common Stock | CH | CHF | Jan 1975 |
| GSK | NYSE (New York Stock Exchange) | SPONSORED ADR | US | USD | Dec 1993 | |
| GSK N | BMV (Bolsa Mexicana de Valores) | SPONSORED ADR | MX | MXN | Dec 1993 | |
| GS7A | DB (Deutsche Boerse AG) | SPONSORED ADR | DE | EUR | Dec 1993 | |
| GSK | BASE (Buenos Aires Stock Exchange) | CEDEAR EACH REPR 1/4 ADR | AR | ARS | Sep 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/21 19:49 |
| End of Day Share Price | 2021/01/21 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.