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GlaxoSmithKline
(NYSE:GSK)
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Rating:72Outperform
Price Target:
$59.00
▲(14.90% Upside)
Action:Reiterated
Date:07/30/26
The score is driven primarily by solid financial performance (strong current margins and improving free cash flow, but with leverage and historical volatility). Valuation is supportive (mid-teens P/E with a ~3.37% dividend yield). Technicals are modestly positive based on moving averages, while earnings-call takeaways are constructive but tempered by above-target leverage and market/contracting volatility.
Positive Factors
High margins & improving cash generation
GSK’s current margin profile and improving free cash flow (~$7.0B TTM) provide durable internal funding for R&D, dividend support and strategic actions. Sustained cash generation underpins capacity to invest in late‑stage assets and manage returns even amid industry headwinds over the next several quarters.
Negative Factors
Elevated leverage
GSK’s balance sheet shows meaningful leverage that constrains flexibility: higher interest costs and a net‑debt/EBITDA ratio above management targets limit headroom for large M&A or aggressive buybacks. Deleveraging plans reduce near‑term optionality and remain a focus for the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins & improving cash generation
GSK’s current margin profile and improving free cash flow (~$7.0B TTM) provide durable internal funding for R&D, dividend support and strategic actions. Sustained cash generation underpins capacity to invest in late‑stage assets and manage returns even amid industry headwinds over the next several quarters.
Read all positive factors
GlaxoSmithKline Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue by different business segments, highlighting which areas drive the most sales and profitability, and indicating where the company might focus its strategic efforts.
Breaks down revenue by different business segments, highlighting which areas drive the most sales and profitability, and indicating where the company might focus its strategic efforts.
Data provided by:
The Fly
The FlyGlaxoSmithKline (GSK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$98.65B
Dividend Yield3.61%
Average Volume (3M)3.82M
Price to Earnings (P/E)15.4
Beta (1Y)0.31
Revenue Growth8.82%
EPS Growth48.32%
CountryUS
Employees66,841
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)2.40
Shares Outstanding2,022,705,600
10 Day Avg. Volume4,611,242
30 Day Avg. Volume3,819,816
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)4.51
Price to Sales (P/S)2.26
P/FCF Ratio12.66
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$68.55Price Target Upside33.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)4.77
Revenue Forecast (FY)$45.39B
GlaxoSmithKline Business Overview & Revenue Model
Company Description
GlaxoSmithKline plc (GSK) is a global biopharmaceutical company focused on researching, developing, manufacturing, and commercializing prescription medicines and vaccines. The company’s core business spans specialty and primary-care medicines acro...
How the Company Makes Money
GSK primarily makes money by selling prescription medicines and vaccines. Revenue is generated when GSK supplies branded pharmaceuticals and vaccines to wholesalers/distributors, pharmacies, hospitals, clinics, government immunization programs, an...
GlaxoSmithKline Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive tone: strong operational execution produced record infrastructure results, marked improvements in marketing, accretive M&A (Chauvin), improved throughput and cash flow, and concrete balance sheet and cost-savings actions. Challenges were primarily industry-wide and temporary — export volatility, vessel/freight constraints, short-term storage market dynamics, and leverage that management expects to normalize in early 2027. Management expressed confidence in organic growth opportunities and reiterated targets for deleveraging and sustainable cost savings.Positive Updates
Record Infrastructure Adjusted EBITDA
Infrastructure adjusted EBITDA reached a record CAD 169 million in Q2 2026, up CAD 17 million (≈11.2%) versus Q2 2025 and CAD 9 million higher than the prior record set in Q4 2025.
Negative Updates
Volatile Export and Freight Environment
Crude export markets remain highly volatile with elevated freight rates, constrained vessel availability and commodity volatility; these factors have caused temporary impacts on Gateway volumes and made long-term contracting more difficult.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Infrastructure Adjusted EBITDA
Infrastructure adjusted EBITDA reached a record CAD 169 million in Q2 2026, up CAD 17 million (≈11.2%) versus Q2 2025 and CAD 9 million higher than the prior record set in Q4 2025.
Read all positive updates
Company Guidance
Management reiterated a constructive outlook and specific targets: marketing is trending toward the upper end of the CAD 40 million full‑year adjusted EBITDA range (YTD marketing CAD 18M; Q2 marketing CAD 15M vs CAD 8M in Q2‑2025), while infrastructure delivered a Q2 record CAD 169M of adjusted EBITDA (up CAD 17M YoY); Chauvin closed May 1 with an expansion engineering plan to raise capacity 50% from 30,000 bpd to 45,000 bpd (FID expected by year‑end) and the Hardisty connection is expected H1‑2027, with the Wink‑to‑Gateway integration on track for in‑service by end‑Q3; corporate G&A was CAD 16M in Q2 (below prior CAD 17–18M guidance) and management expects ~CAD 10M of sustainable annualized savings in 2027; Q2 distributable cash flow was CAD 96M (up CAD 15M YoY); reported net debt/adjusted EBITDA was 4.2x (infrastructure leverage 4.4x; pro forma with 12 months of Chauvin overall 3.9x and infrastructure 4.1x) with a goal to return to 3.0–3.5x in early‑2027; dividend payout exited the quarter at 88% (infrastructure‑only 83%, target <100%); and liquidity was bolstered by extending a CAD 1.0 billion revolver to June‑2031 and issuing CAD 400M of senior unsecured notes.GlaxoSmithKline Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 33.20B | 32.67B | 31.38B | 30.33B | 29.32B | 24.70B |
| Gross Profit | 24.15B | 23.65B | 22.33B | 21.76B | 19.77B | 16.53B |
| EBITDA | 10.87B | 10.40B | 6.67B | 9.08B | 8.60B | 6.49B |
| Net Income | 4.82B | 5.72B | 2.58B | 4.93B | 14.96B | 4.38B |
Balance Sheet | ||||||
| Total Assets | 61.37B | 61.01B | 59.46B | 75.22B | 60.15B | 107.14B |
| Cash, Cash Equivalents and Short-Term Investments | 3.09B | 3.40B | 3.71B | 6.61B | 7.88B | 5.87B |
| Total Debt | 18.13B | 17.69B | 16.99B | 22.97B | 20.99B | 32.74B |
| Total Liabilities | 44.29B | 45.02B | 46.38B | 58.91B | 50.05B | 78.23B |
| Stockholders Equity | 17.54B | 16.35B | 13.67B | 17.01B | 10.60B | 20.39B |
Cash Flow | ||||||
| Free Cash Flow | 6.98B | 5.82B | 3.57B | 6.26B | 6.75B | 5.30B |
| Operating Cash Flow | 8.74B | 7.14B | 6.55B | 7.89B | 8.16B | 7.95B |
| Investing Cash Flow | -6.86B | -5.72B | -1.23B | -2.40B | -10.88B | -1.78B |
| Financing Cash Flow | -2.53B | -1.59B | -4.73B | -6.07B | 2.05B | -7.59B |
GlaxoSmithKline Technical Analysis
Negative
51.35
Price Trends
51.36
Negative
51.98
Negative
51.03
Negative
Market Momentum
-0.32
Positive
40.19
Neutral
6.65
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GSK, the sentiment is Negative. The current price of 51.35 is above the 20-day moving average (MA) of 51.03, below the 50-day MA of 51.36, and above the 200-day MA of 51.03, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 40.19 is Neutral, neither overbought nor oversold. The STOCH value of 6.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GSK.
GlaxoSmithKline Risk Analysis
GlaxoSmithKline disclosed 1 risk factors in its most recent earnings report. GlaxoSmithKline reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
GlaxoSmithKline Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $224.48B | 25.86 | 89.32% | 2.61% | 9.89% | 31.69% | |
74 Outperform | $130.39B | 14.24 | 46.75% | 3.84% | 3.13% | 83.17% | |
72 Outperform | $98.65B | 15.43 | 28.35% | 3.50% | 8.82% | 48.32% | |
69 Neutral | $104.89B | 23.44 | 5.52% | 5.58% | 23.68% | -30.90% | |
66 Neutral | $152.69B | 35.50 | 4.89% | 7.01% | -0.21% | -59.71% | |
66 Neutral | £177.73B | 23.31 | 21.68% | 1.86% | 4.71% | 21.16% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
GSK
GlaxoSmithKline
50.28
12.53
33.18%
AMGN
Amgen
419.38
135.30
47.63%
BMY
Bristol-Myers Squibb
64.63
18.65
40.55%
PFE
Pfizer
26.87
3.44
14.70%
SNY
Sanofi
44.41
-3.52
-7.34%
GB:AZN
AstraZeneca
11,560.00
19.20
0.17%
GlaxoSmithKline Corporate Events
GSK Discloses July 22 Executive ADS Acquisition by U.S. President
Jul 24, 2026
On July 22, 2026, GSK notified the market of a personal dealing transaction by Maya Martinez-Davis, its President, US, involving the acquisition of notional American Depositary Shares through her Executive Supplemental Savings Plan account. The tr...
GSK Adds 70,759 Shares to LSE Listing Under 2022 Share Save Plan
Jul 24, 2026
On 24 July 2026, GSK plc reported that 70,759 additional ordinary shares of 31¼ pence each were admitted to trading on the London Stock Exchange’s Main Market under its existing block listing. The new shares, issued in connection with t...
Dodge & Cox lifts GSK stake above 5% as institutional backing grows
Jun 26, 2026
On 23 June 2026, U.S. investment manager Dodge Cox increased its stake in GSK plc, crossing the 5% threshold of voting rights in the London-listed drugmaker. The position, disclosed in a UK TR-1 major holdings notification and filed to the SEC on...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.