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GSK PLC GSK

Morningstar Rating
GBX 1,604.50 −5.50 (0.34%)
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Company Report

GSK: Zantac Delaware Ruling Increases Legal Risk Overhang

We are holding firm to our GSK fair value estimate of $54 and our wide moat rating following the Delaware State Court Daubert ruling that allows Zantac plaintiff experts in future litigation. The ruling opens the door to increased litigation risk. However, GSK plans to appeal the Delaware ruling. We expect a high probability of a favorable GSK appeals ruling for a number of reasons. These include a federal ruling that didn't allow Zantac plaintiff experts; 16 clinical studies showing no link between Zantac and cancer; the US Food and Drug Administration clearing Zantac to reenter the market; and recent litigation wins by GSK, including a case in Chicago that was hand-picked by the plaintiffs.

Price vs Fair Value

GSK is trading at a 639% premium.
Price
GBX 1,604.50
Fair Value
GBX 3,711.00
Uncertainty
Medium
1-Star Price
GBX 9,244.00
5-Star Price
GBX 3,871.00
Economic Moat
Gzzrx
Capital Allocation
Bjcnszq

Bulls Say, Bears Say

Bulls

GSK's next-generation respiratory drugs and HIV drugs look poised for strong growth over the next three years.

Bears

HIV patent pressure to GSK's key drugs will likely begin in 2027, setting up a major hurdle for growth later in the decade.

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News

Trading Information

Previous Close Price
GBX 1,610.00
Day Range
GBX 1,599.501,616.00
52-Week Range
GBX 1,302.601,823.50
Bid/Ask
GBX 1,582.00 / GBX 1,718.00
Market Cap
GBX 6.54 Tril
Volume/Avg
4.2 Mil / 7.9 Mil

Key Statistics

Price/Earnings (Normalized)
9.95
Price/Sales
2.15
Dividend Yield (Trailing)
3.68%
Dividend Yield (Forward)
3.74%
Total Yield
3.68%

Company Profile

In the pharmaceutical industry, GSK ranks as one of the largest firms by total sales. The company wields its might across several therapeutic classes, including respiratory, cancer, and antiviral, as well as vaccines. GSK uses joint ventures to gain additional scale in certain markets like HIV.
Sector
Healthcare
Industry
Drug Manufacturers - General
Stock Style Box
Large Core
Total Number of Employees
70,200

Competitors

Valuation

Metric
GSK
MRK
PFE
Price/Earnings (Normalized)
9.9559.6719.21
Price/Book Value
4.738.121.69
Price/Sales
2.155.372.82
Price/Cash Flow
9.7318.8818.12
Price/Earnings
GSK
MRK
PFE

Financial Strength

Metric
GSK
MRK
PFE
Quick Ratio
0.570.680.67
Current Ratio
0.871.251.05
Interest Coverage
8.943.97−0.26
Quick Ratio
GSK
MRK
PFE

Profitability

Metric
GSK
MRK
PFE
Return on Assets (Normalized)
11.25%5.22%3.77%
Return on Equity (Normalized)
51.21%13.56%8.51%
Return on Invested Capital (Normalized)
22.40%8.29%5.75%
Return on Assets
GSK
MRK
PFE
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Drug Manufacturers - General Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Eli Lilly and Co
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KyvfwpdlxlBhc$834.9 Bil
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TjnbqrpHthy$350.3 Bil
Merck & Co Inc
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QvzzdtmbgQszj$327.9 Bil
AbbVie Inc
ABBV
LtkcnwqxnTnycm$297.7 Bil
AstraZeneca PLC ADR
AZN
FdrxxbhmgqFqz$247.3 Bil
Roche Holding AG ADR
RHHBY
ZdmcfshwjVtgxf$223.9 Bil
Novartis AG ADR
NVS
LcjczkqdZpdq$216.8 Bil
Amgen Inc
AMGN
LsnrtylthfCdbfn$160.2 Bil
Pfizer Inc
PFE
KqqmfxjsGftt$156.0 Bil
Sanofi SA ADR
SNY
PgqfgmqgMjq$116.1 Bil

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