GlaxoSmithKline (GSK) AI Stock Analysis

• Market Cap: $76.45B
• Dividend Yield: 4.18%
• Average Volume (3M): 5.20M
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.28
• Revenue Growth: 3.46%
• EPS Growth: -13.29%
• Country: US
• Employees: 68,629
• Sector: Healthcare
• Sector Strength: 43
• Industry: Drug Manufacturers - General
• EPS (TTM): 1.24
• Shares Outstanding: 2,037,426,900
• 10 Day Avg. Volume: 4,172,732
• 30 Day Avg. Volume: 5,196,925
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 3.07
• Enterprise Value/Gross Profit: 4.30
• Enterprise Value/Ebitda: 11.28
• 1Y Price Target: $41.00
• Price Target Upside: 4.51% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 68 Neutral
• Price Target: $41.00 ▲(4.51% Upside)

GSK's overall stock score is driven by strong financial performance and positive earnings call insights, highlighting growth in Specialty Medicines and vaccines. The valuation is fair, with an attractive dividend yield. However, technical analysis indicates potential bearish momentum, and challenges in supply chain costs and the Chinese market pose risks.

Positive Factors

Acquisition Strategy

The acquisition of efimosfermin expands GSK's hepatology portfolio and aligns with their business development strategy.

Product Development

GSK's ongoing development of GSK4532990 in MASH and the potential commercial synergies with their emerging liver portfolio could enhance their R&D capabilities.

Negative Factors

Manufacturing Complexity

The complicated manufacturing process for Trelegy could pose challenges despite suggesting a potential competitive advantage.

GlaxoSmithKline Business Overview & Revenue Model

Company Description

GSK plc, together with its subsidiaries, engages in the research, development, and manufacture of vaccines, and specialty and general medicines to prevent and treat disease in the United Kingdom, the United States, and internationally. It operates through two segments, Commercial Operations and Total R&D. The company offers shingles, meningitis, respiratory syncytial virus, flu, polio, influenza, and pandemic vaccines. It also provides medicines for HIV, oncology, respiratory/immunology, and other specialty medicine products, as well as inhaled medicines for asthma and chronic obstructive pulmonary disease, and antibiotics for infections. It has a collaboration agreement with CureVac to develop mRNA-based influenza vaccines, and with Wave Life Sciences and Elsie Biotechnologies, Inc for oligonucleotide platform development; two strategic collaborations with Relation to advance therapeutics for fibrotic diseases and osteoarthritis; and multi-target strategic alliance with GSK to develop breakthrough treatments for people afflicted with Parkinson's disease; as well as collaboration with Flagship Pioneering to discover novel medicines and vaccines. The company was formerly known as GlaxoSmithKline plc and changed its name to GSK plc in May 2022. GSK plc was founded in 1715 and is headquartered in Brentford, the United Kingdom.dom.

How the Company Makes Money

GSK generates revenue primarily through the sale of its pharmaceutical products, vaccines, and consumer healthcare items. The pharmaceuticals segment is the largest revenue contributor, driven by sales of key drugs and ongoing investments in research and development to introduce new therapies. The vaccines division also plays a crucial role, with revenue stemming from both established vaccines and new product launches targeting global health needs. The consumer healthcare segment provides steady income through a portfolio of well-known brands. Additionally, GSK engages in strategic partnerships and collaborations with other companies and research institutions, which can lead to shared development costs and expanded market reach. The company also benefits from licensing agreements and royalty income, further diversifying its revenue streams.

GlaxoSmithKline Financial Statement Overview

Summary

GSK demonstrates strong financial health with robust profitability and efficient asset utilization. The income statement reflects healthy profitability with a gross profit margin above 70% and improvements in EBIT and EBITDA margins. The balance sheet shows moderate leverage, which poses some risk, but equity returns and cash generation are favorable. Cash flow efficiency shows potential for further improvement.

Income Statement

The income statement reflects healthy profitability and growth signs. The gross profit margin is robust, consistently above 70%, indicating strong pricing power and cost control. The TTM net profit margin is 10.0%, showing an improvement from the previous year. Revenue growth is modest at 0.49% from the prior year, suggesting stability. EBIT and EBITDA margins improved to 16.1% and 26.1% respectively, highlighting better operational efficiency.

Balance Sheet

The balance sheet shows moderate leverage with a debt-to-equity ratio of 1.30, indicating a significant reliance on debt, though not excessively high for the industry. Return on equity stands at 22.3% TTM, reflecting efficient use of equity to generate profits. The equity ratio is 23.3%, suggesting a balanced asset structure, though there is room for strengthening the equity position.

Cash Flow

The cash flow statement reveals a positive trajectory in cash generation. Free cash flow increased by 1.99% year-over-year, supporting future investments or debt reduction. The operating cash flow to net income ratio is a healthy 2.07 TTM, indicating solid cash conversion. However, the free cash flow to net income ratio is 1.16, reflecting potential for further improvement in cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.63B	31.38B	30.33B	29.32B	34.11B	34.10B
Gross Profit	22.57B	22.33B	21.76B	19.77B	22.51B	22.39B
EBITDA	8.61B	6.67B	9.14B	8.63B	7.76B	10.16B
Net Income	3.42B	2.58B	4.93B	4.92B	4.38B	5.75B
Balance Sheet
Total Assets	59.26B	59.46B	59.01B	60.15B	79.10B	80.43B
Cash, Cash Equivalents and Short-Term Investments	3.62B	3.71B	4.99B	7.88B	4.33B	6.37B
Total Debt	0.00	16.99B	18.02B	20.99B	24.17B	27.15B
Total Liabilities	44.90B	46.38B	46.21B	50.05B	57.76B	59.62B
Stockholders Equity	14.79B	13.67B	13.35B	10.60B	15.05B	14.59B
Cash Flow
Free Cash Flow	4.67B	3.57B	4.42B	5.14B	5.02B	6.20B
Operating Cash Flow	7.72B	6.55B	6.77B	7.40B	7.95B	8.44B
Investing Cash Flow	-3.62B	-1.23B	-1.59B	-8.77B	-1.78B	2.16B
Financing Cash Flow	-3.60B	-4.73B	-5.64B	823.00M	-7.59B	-10.13B

GlaxoSmithKline Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GSK, the sentiment is Positive. The current price of 39.23 is above the 20-day moving average (MA) of 37.70, above the 50-day MA of 38.64, and above the 200-day MA of 36.47, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 58.59 is Neutral, neither overbought nor oversold. The STOCH value of 95.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GSK.

GlaxoSmithKline Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRK	81 Outperform	$200.57B	12.38	35.44%	3.87%	2.00%	20.01%
PFE	81 Outperform	$140.15B	13.10	12.16%	6.81%	14.72%	―
AZN	79 Outperform	$233.42B	28.07	19.76%	1.99%	15.08%	29.15%
SNY	73 Outperform	$116.60B	11.95	8.39%	4.51%	-9.32%	120.62%
GSK	68 Neutral	$76.45B	17.59	23.04%	4.18%	3.46%	-13.29%
GILD	68 Neutral	$148.92B	23.87	33.26%	2.62%	3.69%	501.26%
Sector *	47 Neutral	C$212.79M	-2.12	-24.82%	3.10%	19.48%	-0.09%