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GlaxoSmithKline (GSK)
:GSK
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GlaxoSmithKline
(NYSE:GSK)69Neutral
GlaxoSmithKline (GSK) vs. S&P 500 (SPY)
Market Cap
$78.61B
Dividend Yield4.02%
Average Volume (3M)5.40M
Price to Earnings (P/E)23.8
Beta (1Y)0.32
Revenue Growth6.28%
EPS Growth-47.11%
CountryUS
Employees70,212
SectorHealthcare
Sector Strength74
IndustryPharmaceuticals
Share Statistics
EPS (TTM)1.60
Shares Outstanding2,070,808,000
10 Day Avg. Volume6,063,739
30 Day Avg. Volume5,399,756
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.95
Price to Cash Flow (P/CF)14.80
P/FCF Ratio23.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$34.36Price Target Upside-10.59% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering3
GlaxoSmithKline Business Overview & Revenue Model
Company DescriptionGlaxoSmithKline (GSK) is a leading global healthcare company that researches, develops, and manufactures innovative pharmaceutical medicines, vaccines, and consumer healthcare products. The company operates in three main segments: Pharmaceuticals, Vaccines, and Consumer Healthcare. GSK's core products include treatments for respiratory diseases, HIV, immuno-inflammation, and oncology, as well as a broad range of vaccines and over-the-counter consumer health products.
How the Company Makes MoneyGlaxoSmithKline 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.65
Positive
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.60
Neutral
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.58
Neutral
| 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 | 4.36B | 5.98B | EBITDA |
| 6.67B | 9.14B | 8.60B | 7.76B | 8.10B | Net Income Common Stockholders |
| 2.58B | 4.93B | 14.96B | 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
Positive
38.43
Price Trends
34.79
Positive
35.13
Positive
37.63
Positive
Market Momentum
0.91
Negative
67.49
Neutral
74.04
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 38.43 is above the 20-day moving average (MA) of 36.63, above the 50-day MA of 34.79, and above the 200-day MA of 37.63, indicating a bullish trend. The MACD of 0.91 indicates Negative momentum. The RSI at 67.49 is Neutral, neither overbought nor oversold. The STOCH value of 74.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GSK.
GlaxoSmithKline Risk Analysis
GlaxoSmithKline disclosed 14 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
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $398.27B | 28.57 | 19.68% | 2.96% | -4.51% | 3.69% | |
71 Outperform | $235.30B | 13.83 | 36.96% | 3.35% | 6.85% | 4577.79% | |
71 Outperform | $366.77B | 86.92 | 128.66% | 2.97% | 3.71% | -12.14% | |
69 Neutral | $78.61B | 23.81 | 18.84% | 4.02% | 6.28% | -47.11% | |
69 Neutral | $145.93B | 18.28 | 8.68% | 6.44% | 8.77% | 272.80% | |
60 Neutral | $120.62B | ― | -54.78% | 4.04% | 7.32% | -214.24% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% |
* Healthcare Sector Average
Performance Comparison
GSK
GlaxoSmithKline
38.43
-2.57
-6.27%
BMY
Bristol-Myers Squibb
59.44
8.60
16.92%
JNJ
Johnson & Johnson
165.42
11.03
7.14%
MRK
Merck & Company
92.56
-27.90
-23.16%
PFE
Pfizer
25.75
0.16
0.63%
ABBV
AbbVie
207.76
33.06
18.92%
GlaxoSmithKline Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: 11.49% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call reflects strong financial performance and growth in specialty medicines, particularly in oncology and HIV. However, there are notable challenges in the vaccines segment and financial impacts from litigation and regulatory changes. Overall, the positive aspects and future growth prospects outweigh the current challenges.Highlights
Strong Financial Performance
Sales grew 8% to over £31 billion, core operating profit increased by 13%, and core EPS rose by 12% for 2024. This performance led to two upgrades in guidance and an increased dividend of 61p per share.
Specialty Medicines and Oncology Growth
Specialty medicines saw a 19% growth with oncology sales nearly doubling to over £1.4 billion. Blenrep is expected to launch with a significant potential impact on future sales.
HIV Segment Success
HIV sales increased by 13% in 2024, driven by strong demand for Cabenuva and Apretude, with a 47% growth for Cabenuva reaching over £1 billion.
Strong Balance Sheet and Shareholder Returns
Net debt reduced to £13 billion, and a £2 billion share buyback program was announced, alongside a 5% increase in the dividend.
R&D Achievements and Pipeline Progress
13 positive Phase 3 readouts were achieved in 2024, with new product approvals expected in 2025 for Blenrep, depemokimab, and others.
Lowlights
Vaccines Segment Challenges
Vaccine sales decreased by 3% due to lower sales of Arexvy in the U.S. and challenges in China. Short-term pressures in the U.S. vaccine market are anticipated to continue into 2025.
Impact of U.S. Inflation Reduction Act
The Inflation Reduction Act is expected to have a £150 million to £200 million impact on revenues in 2025.
Zantac Litigation Settlement
A £1.8 billion charge was recorded due to the resolution of the Zantac litigation, affecting the total operating profit for 2024.
Company Guidance
During the call, GSK outlined its strong performance for 2024, highlighting an 8% increase in sales to over £31 billion and a 13% rise in core operating profit, which contributed to a 12% growth in core EPS. The company upgraded its guidance twice in 2024 and announced a dividend increase to 61p per share. Specialty medicines showed robust momentum with double-digit growth across all therapy areas, notably doubling oncology sales to over £1.4 billion. GSK anticipates further growth in 2025, expecting sales to increase by 3% to 5% and core operating profit by 6% to 8%, supported by promising pipeline developments, including five new product approvals. The company's long-term outlook was revised upward, projecting risk-adjusted sales exceeding £40 billion by 2031, with more than 50% of sales driven by Specialty Medicines. Additionally, GSK announced plans for a £2 billion share buyback over 18 months, reflecting confidence in its strategic trajectory and balance sheet strength.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.