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Last Price

UK£17.86

Market Cap

UK£90.4b

7D

1.7%

1Y

24.2%

Updated

03 Jul, 2022

Data

Company Financials +
GSK fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance2/6
Financial Health4/6
Dividends5/6

GSK Stock Overview

GSK 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.

GSK Competitors

Price History & Performance

Summary of all time highs, changes and price drops for GSK
Historical stock prices
Current Share PriceUK£17.86
52 Week HighUK£27.27
52 Week LowUK£13.63
Beta0.29
1 Month Change4.56%
3 Month Change8.04%
1 Year Change24.19%
3 Year Change9.10%
5 Year Change10.60%
Change since IPO-4.87%

Recent News & Updates

Shareholder Returns

GSKGB PharmaceuticalsGB Market
7D1.7%0.4%-1.1%
1Y24.2%18.7%-9.7%

Return vs Industry: GSK exceeded the UK Pharmaceuticals industry which returned 18.7% over the past year.

Return vs Market: GSK exceeded the UK Market which returned -9.7% over the past year.

Price Volatility

Is GSK's price volatile compared to industry and market?
GSK volatility
GSK Average Weekly Movement2.9%
Pharmaceuticals Industry Average Movement5.4%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.6%
10% least volatile stocks in GB Market2.8%

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.

About the Company

FoundedEmployeesCEOWebsite
171590,096Emma Walmsleyhttps://www.gsk.com

GSK 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.

GSK Fundamentals Summary

How do GSK's earnings and revenue compare to its market cap?
GSK fundamental statistics
Market CapUK£90.36b
Earnings (TTM)UK£5.11b
Revenue (TTM)UK£36.48b

17.7x

P/E Ratio

2.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GSK income statement (TTM)
RevenueUK£36.48b
Cost of RevenueUK£12.66b
Gross ProfitUK£23.82b
Other ExpensesUK£18.70b
EarningsUK£5.11b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 27, 2022

Earnings per share (EPS)1.01
Gross Margin65.29%
Net Profit Margin14.02%
Debt/Equity Ratio147.4%

How did GSK perform over the long term?

See historical performance and comparison

Dividends

4.5%

Current Dividend Yield

73%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is GSK undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GSK?

Other financial metrics that can be useful for relative valuation.

GSK key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.2x
Enterprise Value/EBITDA10.7x
PEG Ratio1.7x

Price to Earnings Ratio vs Peers

How does GSK's PE Ratio compare to its peers?

GSK PE Ratio vs Peers
The above table shows the PE ratio for GSK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17x
NOVN Novartis
7.5x2.8%CHF174.5b
MRK Merck
16.8x11.8%US$233.7b
SAN Sanofi
18.3x8.0%€121.9b
BAYN Bayer
25.6x8.7%€56.3b
GSK GSK
17.7x10.4%UK£90.4b

Price-To-Earnings vs Peers: GSK is expensive based on its Price-To-Earnings Ratio (17.7x) compared to the peer average (17x).


Price to Earnings Ratio vs Industry

How does GSK's PE Ratio compare vs other companies in the European Pharmaceuticals Industry?

Price-To-Earnings vs Industry: GSK is expensive based on its Price-To-Earnings Ratio (17.7x) compared to the UK Pharmaceuticals industry average (16.5x)


Price to Earnings Ratio vs Fair Ratio

What is GSK's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GSK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.7x
Fair PE Ratio46.6x

Price-To-Earnings vs Fair Ratio: GSK is good value based on its Price-To-Earnings Ratio (17.7x) compared to the estimated Fair Price-To-Earnings Ratio (46.6x).


Share Price vs Fair Value

What is the Fair Price of GSK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GSK (£17.86) is trading below our estimate of fair value (£47.58)

Significantly Below Fair Value: GSK is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: GSK is poor value based on its PEG Ratio (1.7x)


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Future Growth

How is GSK forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


10.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GSK's forecast earnings growth (10.4% per year) is above the savings rate (0.9%).

Earnings vs Market: GSK's earnings (10.4% per year) are forecast to grow slower than the UK market (11% per year).

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

Revenue vs Market: GSK's revenue (4.6% per year) is forecast to grow faster than the UK market (4.2% per year).

High Growth Revenue: GSK's revenue (4.6% 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 (33%)


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Past Performance

How has GSK performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


22.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GSK has high quality earnings.

Growing Profit Margin: GSK's current net profit margins (14%) are lower than last year (16.2%).


Past Earnings Growth Analysis

Earnings Trend: GSK's earnings have grown significantly by 22.7% 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 (-2.7%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (2.2%).


Return on Equity

High ROE: Whilst GSK's Return on Equity (26.52%) is high, this metric is skewed due to their high level of debt.


Discover strong past performing companies

Financial Health

How is GSK's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: GSK's short term assets (£29.0B) exceed its short term liabilities (£24.3B).

Long Term Liabilities: GSK's short term assets (£29.0B) do not cover its long term liabilities (£42.8B).


Debt to Equity History and Analysis

Debt Level: GSK's net debt to equity ratio (85.6%) is considered high.

Reducing Debt: GSK's debt to equity ratio has reduced from 327.6% to 147.4% over the past 5 years.

Debt Coverage: GSK's debt is well covered by operating cash flow (30.5%).

Interest Coverage: GSK's interest payments on its debt are well covered by EBIT (11.2x coverage).


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


4.48%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: GSK's dividend (4.48%) is higher than the bottom 25% of dividend payers in the UK market (1.89%).

High Dividend: GSK's dividend (4.48%) is low compared to the top 25% of dividend payers in the UK market (5.29%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (73.5%), GSK's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (54.4%), GSK's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

4.3yrs

Average management tenure


CEO

Emma Walmsley (52 yo)

5.25yrs

Tenure

UK£8,203,000

Compensation

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 ($USD9.87M) is above average for companies of similar size in the UK market ($USD5.27M).

Compensation vs Earnings: Emma's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: GSK's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: GSK's board of directors are considered experienced (5.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

GSK plc's employee growth, exchange listings and data sources


Key Information

  • Name: GSK plc
  • Ticker: GSK
  • Exchange: LSE
  • Founded: 1715
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Implied Market Cap: UK£90.358b
  • Shares outstanding: 5.06b
  • Website: https://www.gsk.com

Number of Employees


Location

  • GSK plc
  • 980 Great West Road
  • Brentford
  • Greater London
  • TW8 9GS
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/03 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.