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GSK PLC ADR GSK

Morningstar Rating
$42.22 +0.06 (0.14%)
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Company Report

GSK Earnings: Strong Results and Favorable Outlook Reinforce Our Undervalued Call

GSK reported strong fourth-quarter earnings ahead of our projections, but we are holding firm to our fair value estimate, as we have already incorporated a steady growth outlook into our valuation. We continue to view GSK as significantly undervalued with the market not fully appreciating the firm's growth prospects and margin improvement while likely overly concerned about ongoing Zantac litigation.

Price vs Fair Value

GSK is trading at a 22% discount.
Price
$42.22
Fair Value
$18.00
Uncertainty
Medium
1-Star Price
$12.50
5-Star Price
$47.10
Economic Moat
Nwfp
Capital Allocation
Wksfcvwp

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
$42.16
Day Range
$42.1442.45
52-Week Range
$33.2042.61
Bid/Ask
$42.51 / $42.54
Market Cap
$85.67 Bil
Volume/Avg
585 / 3.4 Mil

Key Statistics

Price/Earnings (Normalized)
9.82
Price/Sales
2.28
Dividend Yield (Trailing)
3.47%
Dividend Yield (Forward)
3.47%
Total Yield
3.47%

Company Profile

In the pharmaceutical industry, GSK ranks as one of the largest companies 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
69,400

Competitors

Valuation

Metric
GSK
MRK
PFE
Price/Earnings (Normalized)
9.8240.729.45
Price/Book Value
4.997.731.58
Price/Sales
2.285.462.65
Price/Cash Flow
9.5516.137.95
Price/Earnings
GSK
MRK
PFE

Financial Strength

Metric
GSK
MRK
PFE
Quick Ratio
0.690.831.90
Current Ratio
0.951.382.38
Interest Coverage
10.207.596.05
Quick Ratio
GSK
MRK
PFE

Profitability

Metric
GSK
MRK
PFE
Return on Assets (Normalized)
10.27%7.38%8.04%
Return on Equity (Normalized)
53.26%18.18%16.96%
Return on Invested Capital (Normalized)
21.07%10.92%11.79%
Return on Assets
GSK
MRK
PFE
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Drug Manufacturers - General Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
LLY
Eli Lilly and CoBdcg$731.2 Bil
JNJ
Johnson & JohnsonDtk$389.8 Bil
MRK
Merck & Co IncPznw$328.0 Bil
ABBV
AbbVie IncZtjx$314.6 Bil
NVS
Novartis AG ADRNmmtj$212.8 Bil
RHHBY
Roche Holding AG ADRQfxny$212.4 Bil
AZN
AstraZeneca PLC ADRZwqx$200.6 Bil
PFE
Pfizer IncHfwry$156.8 Bil
AMGN
Amgen IncJzdt$155.0 Bil
SNY
Sanofi SA ADRTygh$121.2 Bil

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