GSKGSK
US • —
$51.53
P/E
36.19
PEG
0.42
FCF Yield
—
Rev Growth YoY
+4.0% YoY
Gross Margin
72.9%
Health Score
6/10
D/E Ratio
1.08
Confidence
LOW
Business Snapshot
GSK is a global biopharmaceutical company focused on vaccines, specialty medicines, and general medicines. It operates as a major player in the pharmaceutical industry, competing with other large-cap drug manufacturers. The company has demonstrated consistent earnings growth and a strong track record of beating analyst estimates. GSK’s defining characteristic is its large vaccines portfolio, which provides a competitive moat in that segment.
Financial Health
GSK reports a gross margin of 72.9% and a net margin of 17.8% — the gross margin figure may be distorted due to a one-time item or data anomaly. The debt-to-equity ratio of 1.08x is manageable, but the current ratio of 0.82x indicates the company has less than $1 in current assets for every $1 of current liabilities, a potential liquidity concern...
Risk Assessment
- VALUATION — P/E of 36.19x is 64% above the sector average of 22x, making the stock expensive on an absolute earnings basis.
- LIQUIDITY — Current ratio of 0.82x is below the 1.0x threshold, indicating potential short-term liquidity pressure.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- EARNINGS QUALITY — While GSK beat estimates in 4 of 4 recent quarters, the 86.7% earnings growth appears outsized relative to 4% revenue growth, raising the risk of one-time items....
GSK reports a gross margin of 72.9% and a net margin of 17.8% — the gross margin figure may be distorted due to a one-time item or data anomaly. The debt-to-equity ratio of 1.08x is manageable, but the current ratio of 0.82x indicates the company has less than $1 in current assets for every $1 of current liabilities, a potential liquidity concern. Return on equity is strong at 35.8%, suggesting efficient capital use. Free cash flow data is not available. Overall financial health is solid, with high margins and profitability but offset by stretched near-term liquidity.
- VALUATION — P/E of 36.19x is 64% above the sector average of 22x, making the stock expensive on an absolute earnings basis. - LIQUIDITY — Current ratio of 0.82x is below the 1.0x threshold, indicating potential short-term liquidity pressure. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - EARNINGS QUALITY — While GSK beat estimates in 4 of 4 recent quarters, the 86.7% earnings growth appears outsized relative to 4% revenue growth, raising the risk of one-time items.
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