GlaxoSmithKline (GSK) AI Stock Analysis

• Market Cap: $102.49B
• Dividend Yield: 3.41%
• Average Volume (3M): 3.20M
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.32
• Revenue Growth: 5.97%
• EPS Growth: 128.66%
• Country: US
• Employees: 68,629
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 1.46
• Shares Outstanding: 2,037,712,800
• 10 Day Avg. Volume: 3,074,729
• 30 Day Avg. Volume: 3,195,819
• PEG Ratio: -0.44
• Price to Book (P/B): 4.03
• Price to Sales (P/S): 1.76
• P/FCF Ratio: 15.42
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 3.34
• Enterprise Value/Gross Profit: 4.62
• Enterprise Value/Ebitda: 9.94
• 1Y Price Target: $38.74
• Price Target Upside: -23.12% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $52.00 ▲(3.20% Upside)

GSK's overall stock score of 77 reflects its strong financial performance and positive earnings call, which highlight robust growth in specialty medicines and upgraded guidance. The technical analysis supports a positive momentum, although nearing overbought levels. Valuation is reasonable, with a solid dividend yield adding to the stock's attractiveness. Despite some challenges, GSK's strategic focus on R&D and specialty medicines positions it well for future growth.

Positive Factors

Revenue Growth

GSK's consistent revenue growth, driven by strong sales in specialty medicines and vaccines, indicates robust market demand and effective product strategies.

R&D Investment

Significant investment in R&D underscores GSK's commitment to innovation, potentially leading to new product developments and long-term competitive advantages.

Cash Flow Generation

Strong cash flow generation supports GSK's ability to invest in growth initiatives, manage debt, and provide shareholder returns, enhancing financial stability.

Negative Factors

Challenges in U.S. Vaccine Market

Slowing vaccine penetration and competitive pressures in the U.S. could limit growth in this key market, affecting GSK's revenue from vaccines.

Delay in HIV Treatment Study

Delays in clinical trials can postpone product launches, impacting GSK's ability to capitalize on new treatments and affecting future revenue streams.

Zantac Settlement Payments

Significant settlement payments can strain financial resources, potentially limiting GSK's ability to invest in growth opportunities and impacting profitability.

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 prescription medicines, vaccines, and consumer healthcare products. Its key revenue streams include sales from its pharmaceutical division, which focuses on innovative medicines and specialty pharmaceuticals, and its vaccines division, which provides immunizations against various diseases. The consumer healthcare segment contributes additional revenue through over-the-counter products, including oral health, pain relief, and wellness items. GSK also engages in collaborations and partnerships with other pharmaceutical and biotechnology companies, allowing for shared development costs and enhanced market access. Significant partnerships with organizations for vaccine distribution, especially during global health crises, further bolster its earnings.

GlaxoSmithKline Financial Statement Overview

Summary

GlaxoSmithKline demonstrates a strong financial position with consistent revenue and profit growth, effective cost management, and solid cash generation. The income statement shows robust profitability, while the balance sheet indicates a balanced leverage approach. The cash flow metrics reflect effective cash management, supporting strategic initiatives.

Income Statement

GlaxoSmithKline's income statement shows strong profitability with a TTM gross profit margin of 72.37% and a net profit margin of 17.08%. The company has demonstrated consistent revenue growth, with a TTM revenue growth rate of 1.69%. The EBIT and EBITDA margins are also robust at 23.94% and 35.03%, respectively, indicating efficient operations and cost management. Overall, the income statement reflects a healthy financial performance with solid growth and profitability metrics.

Balance Sheet

The balance sheet of GlaxoSmithKline reveals a moderate debt-to-equity ratio of 1.10 in the TTM period, indicating a balanced approach to leveraging. The return on equity is strong at 37.40%, showcasing effective utilization of shareholder funds. The equity ratio stands at 26.33%, suggesting a stable capital structure. While the company maintains a healthy balance between debt and equity, there is room for improvement in reducing leverage to enhance financial stability further.

Cash Flow

GlaxoSmithKline's cash flow statement highlights a positive trajectory with a TTM free cash flow growth rate of 27.59%. The operating cash flow to net income ratio is 0.37, and the free cash flow to net income ratio is 0.60, indicating strong cash generation relative to earnings. The company has shown resilience in improving its cash flow position, which supports its operational and strategic initiatives. Overall, the cash flow metrics reflect a solid financial footing with effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.17B	31.38B	30.33B	29.32B	24.70B	24.35B
Gross Profit	23.25B	22.33B	21.76B	19.77B	16.53B	16.43B
EBITDA	10.80B	6.67B	9.08B	8.60B	6.49B	8.07B
Net Income	5.49B	2.58B	4.93B	14.96B	4.38B	5.75B
Balance Sheet
Total Assets	82.58B	59.46B	75.22B	60.15B	107.14B	109.95B
Cash, Cash Equivalents and Short-Term Investments	4.45B	3.71B	6.61B	7.88B	5.87B	8.71B
Total Debt	23.90B	16.99B	22.97B	20.99B	32.74B	37.11B
Total Liabilities	61.37B	46.38B	58.91B	50.05B	78.23B	81.50B
Stockholders Equity	21.74B	13.67B	17.01B	10.60B	20.39B	19.94B
Cash Flow
Free Cash Flow	5.95B	3.57B	6.26B	6.75B	5.30B	6.50B
Operating Cash Flow	8.60B	6.55B	7.89B	8.16B	7.95B	8.44B
Investing Cash Flow	-5.04B	-1.23B	-2.40B	-10.88B	-1.78B	2.16B
Financing Cash Flow	-4.06B	-4.73B	-6.07B	2.05B	-7.59B	-10.13B

GlaxoSmithKline Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 50.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 50.39 is above the 20-day moving average (MA) of 49.31, above the 50-day MA of 48.15, and above the 200-day MA of 41.06, indicating a bullish trend. The MACD of 0.70 indicates Negative momentum. The RSI at 63.50 is Neutral, neither overbought nor oversold. The STOCH value of 60.81 is Neutral, 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
AZN	79 Outperform	$296.92B	31.19	21.73%	1.70%	12.95%	44.28%
GSK	77 Outperform	$102.49B	14.17	35.62%	3.41%	5.97%	128.66%
AMGN	77 Outperform	$175.60B	25.21	81.71%	3.00%	11.03%	65.22%
SNY	75 Outperform	$119.24B	12.19	8.39%	4.58%	-9.32%	120.62%
PFE	74 Outperform	$144.87B	14.85	10.59%	6.65%	4.44%	128.96%
BMY	73 Outperform	$113.72B	18.86	33.84%	4.84%	1.26%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%