GlaxoSmithKline (GSK) AI Stock Analysis

• Market Cap: $65.80B
• Dividend Yield: 4.47%
• Average Volume (3M): 5.56M
• Price to Earnings (P/E): 21.4
• Beta (1Y): 0.29
• Revenue Growth: 6.28%
• EPS Growth: -47.11%
• Country: US
• Employees: 68,629
• Sector: Healthcare
• Sector Strength: 74
• Industry: Drug Manufacturers - General
• EPS (TTM): 1.60
• Shares Outstanding: 2,061,217,000
• 10 Day Avg. Volume: 6,102,209
• 30 Day Avg. Volume: 5,562,806
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.99
• Price to Cash Flow (P/CF): 15.10
• P/FCF Ratio: 23.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $42.50
• Price Target Upside: 23.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

GSK demonstrates strong earnings growth and positive market momentum, particularly in specialty medicines and oncology. However, concerns about declining free cash flow and moderate valuation metrics slightly offset these strengths. The strategic outlook is positive, with significant growth prospects and shareholder returns anticipated.

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

GlaxoSmithKline makes money primarily through the sale of its pharmaceutical products, vaccines, and consumer healthcare goods. The Pharmaceuticals segment generates revenue by developing and selling prescription medications targeting various therapeutic areas, including respiratory, HIV, oncology, and immuno-inflammation. The Vaccines division earns income by producing and distributing vaccines for diseases such as influenza, hepatitis, and HPV. The Consumer Healthcare segment contributes to revenue by offering a wide range of over-the-counter products, including pain relief, oral health, and nutritional supplements. GSK also engages in partnerships and collaborations with other pharmaceutical companies and institutions, which can provide additional income through licensing agreements and shared research initiatives. Key factors contributing to GSK's earnings include its strong research and development capabilities, a broad product portfolio, and a global distribution network.

GlaxoSmithKline Financial Statement Overview

Summary

GSK's financial performance is stable with moderate revenue growth and profitability. Despite a decline in margins, the company maintains strong cash generation. However, the balance sheet shows moderate leverage, and declining free cash flow indicates potential cash retention challenges.

Income Statement

GSK's income statement reflects moderate profitability with a Gross Profit Margin of 71.2% and a Net Profit Margin of 8.2% for 2024. Despite a decline in EBIT Margin from 17.2% in 2023 to 12.8% in 2024, the company maintains a strong EBITDA Margin of 21.3%. Revenue growth rate shows a 3.5% increase from 2023 to 2024, indicating stable revenue expansion, although profitability has been somewhat pressured.

Balance Sheet

The balance sheet shows a Debt-to-Equity Ratio of 1.24, indicating moderate leverage compared to industry standards. Return on Equity is healthy at 18.8% for 2024, showing effective use of equity. However, the Equity Ratio stands at 23.0%, suggesting a relatively low equity buffer against total assets, which could pose risks during financial downturns.

Cash Flow

GSK's cash flow statement reveals a decrease in Free Cash Flow from 4.42 billion in 2023 to 3.57 billion in 2024, reflecting a negative growth rate of 19.2%. The Operating Cash Flow to Net Income Ratio is strong at 2.54, indicating robust cash generation relative to net income. However, the Free Cash Flow to Net Income Ratio has decreased to 1.39, suggesting less cash retained per profit unit.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
31.38B	30.33B	29.32B	34.11B	34.10B
	Gross Profit
22.33B	21.76B	19.77B	22.51B	22.39B
	EBIT
4.02B	6.75B	6.43B	6.20B	7.78B
	EBITDA
6.67B	9.14B	8.63B	7.76B	10.16B
	Net Income Common Stockholders
2.58B	4.93B	4.92B	4.38B	5.75B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.71B	4.99B	7.88B	4.33B	6.37B
	Total Assets
59.46B	59.01B	60.15B	79.10B	80.43B
	Total Debt
16.99B	18.02B	20.99B	24.17B	27.15B
	Net Debt
13.29B	15.27B	17.26B	19.90B	20.86B
	Total Liabilities
46.38B	46.21B	50.05B	57.76B	59.62B
	Stockholders Equity
13.67B	13.35B	10.60B	15.05B	14.59B
Cash Flow		Free Cash Flow
3.57B	4.42B	5.14B	5.02B	6.20B
	Operating Cash Flow
6.55B	6.77B	7.40B	7.95B	8.44B
	Investing Cash Flow
-1.23B	-1.59B	-8.77B	-1.78B	2.16B
	Financing Cash Flow
-4.73B	-5.64B	823.00M	-7.59B	-10.13B

GlaxoSmithKline Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 34.48 is below the 20-day moving average (MA) of 37.89, below the 50-day MA of 37.42, and below the 200-day MA of 37.20, indicating a bearish trend. The MACD of 0.29 indicates Positive momentum. The RSI at 45.13 is Neutral, neither overbought nor oversold. The STOCH value of 31.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GSK.

GlaxoSmithKline Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNY	79 Outperform	$123.43B	21.12	7.34%	2.96%	-4.57%	2.96%
GILD	75 Outperform	$131.21B	275.16	2.28%	3.00%	6.16%	-91.54%
AZN	73 Outperform	$192.30B	29.42	17.60%	2.34%	18.03%	18.11%
MRK	71 Outperform	$206.91B	12.16	40.81%	4.00%	6.85%	4577.79%
GSK	69 Neutral	$65.80B	21.36	19.11%	4.47%	6.28%	-47.11%
PFE	68 Neutral	$127.55B	15.96	9.05%	7.74%	8.77%	272.80%
Sector *	48 Neutral	$6.36B	1.24	-44.94%	2.70%	18.33%	1.47%