GlaxoSmithKline (GSK) AI Stock Analysis

• Market Cap: $93.52B
• Dividend Yield: 3.59%
• Average Volume (3M): 6.51M
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.31
• 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: 2,029,984,900
• 10 Day Avg. Volume: 6,677,623
• 30 Day Avg. Volume: 6,512,139
• 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: 1.15
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 0.96
• Enterprise Value/Ebitda: 5.60
• 1Y Price Target: $43.00
• Price Target Upside: -7.78% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 4.42
• Revenue Forecast (FY): $42.83B

• Rating: 77 Outperform
• Price Target: $52.00 ▲(11.52% Upside)

GlaxoSmithKline's strong financial performance and positive earnings call with upgraded guidance are the most significant factors driving the stock score. The technical analysis supports a bullish outlook, while the valuation suggests the stock is fairly priced. Challenges in the U.S. vaccine market and other highlighted risks are notable but do not overshadow the overall positive trajectory.

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 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

GlaxoSmithKline demonstrates strong financial health with impressive revenue growth and profitability metrics. The balance sheet is stable with manageable leverage, and cash flow generation is robust. While there are some historical fluctuations in net income and leverage, the current financial trajectory is positive, positioning the company well for future growth.

Income Statement

GlaxoSmithKline's income statement shows strong performance with a significant revenue growth rate of 32.4% in the TTM period. The gross profit margin is robust at 71.7%, indicating efficient cost management. The net profit margin improved to 10.8% in the TTM, reflecting enhanced profitability. EBIT and EBITDA margins are healthy, supporting operational efficiency. However, the net income has seen fluctuations, which could pose a risk if not stabilized.

Balance Sheet

The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 1.17 in the TTM, indicating a manageable level of leverage. Return on equity is strong at 24.2%, showcasing effective use of equity capital. The equity ratio is stable, suggesting a balanced asset structure. However, the company has experienced high leverage in previous years, which could be a potential risk if not controlled.

Cash Flow

GlaxoSmithKline's cash flow statement reveals a positive trajectory with a 28.1% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is 0.38, indicating solid cash generation relative to earnings. The free cash flow to net income ratio is 0.67, reflecting good cash conversion. Despite past fluctuations in free cash flow growth, the current trend is favorable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	297.24B	31.38B	30.33B	29.32B	24.70B	24.35B
Gross Profit	112.03B	22.33B	21.76B	19.77B	16.53B	16.43B
EBITDA	19.19B	6.67B	9.08B	8.60B	6.49B	8.07B
Net Income	15.09B	2.58B	4.93B	14.96B	4.38B	5.75B
Balance Sheet
Total Assets	12.88B	59.46B	59.01B	60.15B	79.10B	80.43B
Cash, Cash Equivalents and Short-Term Investments	6.04B	3.71B	4.99B	7.88B	4.33B	6.37B
Total Debt	478.00M	16.99B	18.02B	20.99B	24.17B	27.15B
Total Liabilities	3.00B	46.38B	46.21B	50.05B	57.76B	59.62B
Stockholders Equity	0.00	13.67B	13.35B	10.60B	15.05B	14.59B
Cash Flow
Free Cash Flow	3.35B	3.57B	4.42B	5.14B	5.02B	6.20B
Operating Cash Flow	5.57B	6.55B	6.77B	7.40B	7.95B	8.44B
Investing Cash Flow	-2.89B	-1.23B	-1.59B	-8.77B	-1.78B	2.16B
Financing Cash Flow	-2.36B	-4.73B	-5.64B	823.00M	-7.59B	-10.13B

GlaxoSmithKline Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 46.63
• 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 46.63 is above the 20-day moving average (MA) of 45.06, above the 50-day MA of 42.79, and above the 200-day MA of 38.76, indicating a bullish trend. The MACD of 1.19 indicates Negative momentum. The RSI at 62.84 is Neutral, neither overbought nor oversold. The STOCH value of 91.12 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
GSK	77 Outperform	$93.52B	13.12	35.62%	3.59%	5.97%	128.66%
AMGN	77 Outperform	$172.42B	24.75	81.71%	3.15%	11.03%	65.22%
SNY	76 Outperform	$120.52B	12.35	8.39%	4.45%	-9.32%	120.62%
AZN	75 Outperform	$263.16B	27.87	21.73%	1.85%	12.95%	44.28%
BMY	69 Neutral	$95.05B	15.77	33.84%	5.31%	1.26%	―
PFE	68 Neutral	$138.90B	14.24	10.59%	7.04%	4.44%	128.96%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

GlaxoSmithKline Corporate Events

GSK Executes Share Buyback as Part of Capital Management Strategy

On August 28, 2025, GSK plc announced the purchase of 236,167 of its own ordinary shares at prices ranging from 1,460.50p to 1,479.00p per share, as part of its ongoing buyback program initiated on June 4, 2025. This transaction, executed through Merrill Lynch International, increases the total number of shares held in treasury to 244,155,883, representing 6.00% of the voting rights, and reflects GSK’s strategy to manage its capital structure effectively.