GSK PLC
| Ticker: GSK | Nature of Business: Pharmaceuticals | Location : UK |
| Recent Price: 1,774.74p | 52-Week High/Low: 2,726.53p/1,362.80p | Estimated Fair Value: --- |
| Expected Return: --- | Consider Buy: --- | Business Risk: Average |
| Financial Risk: Medium | Economic Moat: Weak | Corporate Governance: Strong |
Company Overview
GlaxoSmithKline Plc, now GSK Plc (GSK), is one of the foremost companies in the world. It was formed from the amalgamation of Glaxo Wellcome Plc and SmithKline Beecham in 2000. The company traces back to 1715 when Plough Court Pharmacy (PCP) was opened in London. PCP was later bought by Glaxo Laboratories Limited. GSK distributes vaccines, medicines and healthcare products. The company, however, has spun off its consumer healthcare business in order to focus on the development, production and marketing of biopharmaceutical products. The consumer healthcare business is a Joint Venture between GSK and Pfizer Inc. The new healthcare company, Haleon Plc, was listed on the London Stock Exchange on 18th July 2022.
Sir Jonathan Symonds retains the board chairmanship he got in September 2019. Dame Emma Walmsley was named chief executive officer of GSK in April 2017. Iain Mackay joined the board as chief financial officer while Dr. Hal Barron doubles as an executive director and chief scientific officer of the company. The board has seven independent non-executive directors, namely Charles Bancroft, Dr. Anne Beal, Dr. Harry Dietz, Dr. Laurie Glimcher, Dr. Jesse Goodman, Urs Rohner and Dr. Vishal Sikka.
In £ Millions
| (In £ Millions) | 2021 | 2020 | 2019 |
| Turnover | 34,114 | 34,099 | 33,754 |
| Year-on-Year Change | 0.0% | 1.0% | 9.5% |
| Operating Profit | 6,201 | 7,783 | 6,961 |
| Year-on-Year Change | -20.3% | 11.8% | 27.0% |
| EBITDA | 8,578 | 10,134 | 9,295 |
| Year-on-Year Change | -15.4% | 9.0% | 26.7% |
| PBT | 5,442 | 6,968 | 6,221 |
| Year-on-Year Change | -21.9% | 12.0% | 29.6% |
| PAT | 5,096 | 6,388 | 5,268 |
| Year-on-Year Change | -20.2% | 21.3% | 30.2% |
| Total Assets | 79,103 | 80,431 | 79,692 |
| Year-on-Year Change | -1.7% | 0.9% | 37.2% |
| Total Equity | 21,342 | 20,808 | 18,357 |
| Year-on-Year Change | 2.6% | 13.4% | 399.9% |
| Capital Expenditure | 2,931 | 2,224 | 5,734 |
| Year-on-Year Change | 31.8% | -61.2% | 219.3% |
| Funds from Operations | 7,952 | 8,441 | 8,020 |
| Year-on-Year Change | -5.8% | 5.3% | -4.8% |
| Free Operating Cashflow | 5,021 | 6,217 | 2,286 |
| Year-on-Year Change | -19.2% | 172.0% | -65.5% |
| Total Debt | 24,173 | 27,150 | 30,508 |
| Year-on-Year Change | -11.0% | -11.0% | 17.1% |
| Net Debt | 19,899 | 20,858 | 25,801 |
| Year-on-Year Change | -4.6% | -19.2% | 16.3% |
| Shares Outstanding | 5,003 | 4,976 | 4,947 |
| Year-on-Year Change | 0.5% | 0.6% | 0.7% |
| Payout Ratio | 91.3% | 69.3% | 85.2% |
| Year-on-Year Change | 22.0% | -15.9% | -23.4% |
Arrow Colour Key
| ⇑⇓: "Improved" | ⇑⇓: "Deteriorated" | ⇔: "Unchanged" |
| 2021 | 2020 | 2019 | |
| CAPITAL STRUCTURE | |||
| Total Debt/(Total Debt + Equity) | 53.1%⇓ | 56.6%⇓ | 62.4%⇓ |
| Net Debt/Equity | 93.2%⇓ | 100.2%⇓ | 140.6%⇓ |
| Total Debt/Total Assets | 30.6%⇓ | 33.8%⇓ | 38.3%⇓ |
| Total Debt/Net Earnings | 5.1x⇑ | 3.7x⇓ | 8.2x⇑ |
| Current Ratio | 0.8x⇓ | 0.9x⇑ | 0.8x⇔ |
| Acid Test Ratio | 0.5x⇓ | 0.6x⇔ | 0.6x⇑ |
| CASHFLOW RATIOS | |||
| Funds from Operations/Total Debt | 0.3x⇔ | 0.3x⇔ | 0.3x⇔ |
| Funds from Operations/Net Debt | 0.4x⇔ | 0.4x⇑ | 0.3x⇓ |
| EBITDA/Interest | 10.9x⇓ | 11.4x⇑ | 10.2x⇑ |
| EBIT/Interest | 7.9x⇓ | 8.7x⇑ | 7.6x⇑ |
| Net Debt/EBITDA | 2.3x⇑ | 2.1x⇓ | 2.8x⇓ |
| Free Operating Cashflow/Interest | 6.4x⇓ | 7.0x⇑ | 2.5x⇓ |
| Free Operating Cashflow/Net Debt | 0.3x⇔ | 0.3x⇑ | 0.1x⇓ |
| Free Operating Cashflow/Sales | 0.2x⇔ | 0.2x⇑ | 0.1x⇓ |
| PROFITABILITY RATIOS | |||
| Gross Profit Margin | 66.0%⇑ | 65.7%⇑ | 64.9%⇓ |
| EBITDA Margin | 25.2%⇓ | 29.7%⇑ | 27.5%⇑ |
| EBIT Margin | 18.2%⇓ | 22.8%⇑ | 20.6%⇑ |
| PBT Margin | 16.0%⇓ | 20.4%⇑ | 18.4%⇑ |
| PAT Margin | 14.9%⇓ | 18.7%⇑ | 15.6%⇑ |
| ROAE | 22.6%⇓ | 37.6%⇑ | 33.6%⇓ |
| ROAA | 6.0%⇓ | 9.2%⇑ | 5.4%⇓ |