NYSE · Healthcare

GSK plc

GSK · Drug Manufacturers - General

$50.67

▼ -1.48 (-2.84%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

A⤢

Gross Profit Margin 75.4%

Operating Margin 30.1%

Net Income Margin 22.8%

Fin. Health

F⤢

Years to Pay Off Debt 11.0 yrs

Working Capital -$4.7B

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 5.69x

Cash Flow

B⤢

Free Cash Flow $698M

CapEx % of Net Income 25.5%

Owner Earnings $2.6B

Profitability

Gross Profit Margin 75.4%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 30.1%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 22.8%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Cash Flow

Free Cash Flow $698M

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 25.5%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $2.6B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About GSK plc

GSK plc, together with its subsidiaries, engages in the research, development, and manufacture of vaccines, specialty medicines, and general medicines to prevent and treat disease in the United Kingdom, the United States, and internationally. It operates through Commercial Operations and Total R&D segments. The company offers specialty medicines that include oncology, respiratory/immunology, inflammation, and inhaled medicines for HIV, respiratory eosinophildriven diseases, lupus and lupus nephritis, ovarian cancer, and endometrial cancer. It also provides vaccines for Shingles, Meningitis, RSV, Seasonal Influenza, Hepatitis, Diphtheria, Tetanus, Acellular Pertussis, Rotavirus, Pertussis, Polio, Haemophilus, Invasive Diseases, Pneumonia, Acute Otitis Media, Measles, Mumps, Rubella and Chickenpox, and Human Papilloma Virus. Additionally, the company offers general medicines for asthma, COPD, bacterial infection, benign prostatic hyperplasia, allergic rhinitis, and inflammatory skin conditions. It also focuses on the discovery, development, and commercialization of oral small molecule therapies for patients with unmet needs in oncology and inflammatory diseases. It has a collaboration agreement with CureVac to develop mRNA vaccines for infectious diseases. The company has a strategic alliance with AN2 Therapeutics, Inc. for the development of new therapies for TB. GSK plc was formerly known as GlaxoSmithKline plc and changed its name to GSK plc in May 2022. The company was founded in 1715 and is headquartered in London, United Kingdom.

Market Data

Market Cap $101.5B

Enterprise Value $120.2B

P/E (TTM) 13.26

Dividend Yield 1.28%

Exchange NYSE

Key Margins

Gross Profit 75.4%

Operating Margin 30.1%

Net Margin 22.8%

Company Info

Sector Healthcare

Industry Drug Manufacturers - General

Employees 66841

Country United Kingdom

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering GSK plc at $50.67.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

At $50.67, the stock trades at a 288% premium to its Graham Number of $13.07. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: This stock is better suited for Graham's Enterprising investor — one willing to devote time and skill to security selection.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Gross Profit %	75.4%▲	69.2%•	N/A
Operating Margin %	30.1%▲	17.5%•	N/A
Net Income %	22.8%▲	7.4%•	N/A
Diluted EPS	0.85▲	0.31•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$62.9B	$61.1B	N/A
Total Debt	$19.1B▲	$17.7B•	N/A
Working Capital	-$4.7B▼	-$3.9B•	N/A
Years to Pay Debt	10.97	27.86	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$698M▼	$1.3B•	N/A
Owner Earnings	$2.6B	$1.3B	N/A
CapEx % of Net Income	25.5%	161.2%	N/A

Income Statement

	2026	2025	2024
Tax Rate For Calcs	0	0
Normalized EBITDA	2,774,000	1,124,000
Total Unusual Items			-1,459,000
Total Unusual Items Excluding Goodwill			-1,459,000
Net Income From Continuing Operation Net Minority Interest	1,737,000	636,000
Reconciled Depreciation	463,000	-406,000
Reconciled Cost Of Revenue	1,875,000	2,657,000
EBITDA	2,774,000	1,124,000
EBIT	2,311,000	1,124,000
Net Interest Income	-145,000	-250,000
Interest Expense	167,000	174,000
Interest Income	22,000	-74,000
Normalized Income	1,737,000	636,000
Net Income From Continuing And Discontinued Operation	1,737,000	636,000
Total Expenses	5,336,000	7,112,000
Total Operating Income As Reported	2,293,000	1,100,000
Diluted Average Shares	2,037,000	2,043,000
Basic Average Shares	2,011,500	2,009,500
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	1,737,000	636,000
Net Income Common Stockholders	1,737,000	636,000
Net Income	1,737,000	636,000
Minority Interests	-102,000	-91,000
Net Income Including Noncontrolling Interests	1,839,000	727,000
Net Income Continuous Operations	1,839,000	727,000
Tax Provision	305,000	223,000
Pretax Income	2,144,000	950,000
Special Income Charges			-1,233,000
Net Non Operating Interest Income Expense	-145,000	-250,000
Interest Expense Non Operating	167,000	174,000
Interest Income Non Operating	22,000	-74,000
Operating Income	2,293,000	1,506,000
Operating Expense	3,461,000	4,455,000
Other Operating Expenses			-1,177,000
Research And Development	1,692,000	2,350,000
Selling General And Administration	2,119,000	2,639,000
General And Administrative Expense	2,119,000	2,639,000
Gross Profit	5,754,000	5,961,000
Cost Of Revenue	1,875,000	2,657,000
Total Revenue	7,629,000	8,618,000
Operating Revenue	7,629,000	8,618,000

Balance Sheet

	2026	2025	2024
Treasury Shares Number	295,913	302,895
Ordinary Shares Number	4,020,267	4,012,550
Share Issued	4,316,180	4,315,445
Net Debt		13,740,000	12,191,000
Total Debt	19,056,000	17,720,000
Tangible Book Value	-7,573,000	-7,389,000
Invested Capital	17,852,000	33,267,000
Working Capital	-4,668,000	-3,881,000
Net Tangible Assets	-7,573,000	-7,389,000
Capital Lease Obligations		830,000	1,102,000
Common Stock Equity	17,852,000	16,377,000
Total Capitalization	17,852,000	30,392,000
Total Equity Gross Minority Interest	17,422,000	15,956,000
Minority Interest	-430,000	-421,000
Stockholders Equity	17,852,000	16,377,000
Other Equity Interest		-282,000	-397,000
Retained Earnings	11,590,000	10,209,000
Additional Paid In Capital	3,506,000	3,498,000
Capital Stock	1,349,000	1,349,000
Common Stock	1,349,000	1,349,000
Total Liabilities Net Minority Interest	45,447,000	45,162,000
Total Non Current Liabilities Net Minority Interest	23,018,000	23,771,000
Other Non Current Liabilities	6,318,000	5,385,000
Derivative Product Liabilities	56,000	67,000
Non Current Pension And Other Postretirement Benefit Plans	1,695,000	1,687,000
Non Current Accrued Expenses		6,000	6,000
Tradeand Other Payables Non Current	66,000	896,000	929,000
Non Current Deferred Revenue		121,000	165,000
Non Current Deferred Taxes Liabilities	292,000	291,000
Long Term Debt And Capital Lease Obligation	14,012,000	14,708,000
Long Term Capital Lease Obligation		693,000	934,000
Long Term Debt		14,015,000	13,703,000
Long Term Provisions	579,000	610,000
Current Liabilities	22,429,000	21,391,000
Other Current Liabilities	1,395,000	1,348,000
Current Debt And Capital Lease Obligation	5,044,000	3,012,000
Current Capital Lease Obligation		137,000	168,000
Current Debt		2,875,000	2,181,000
Pensionand Other Post Retirement Benefit Plans Current		138,000	125,000
Current Provisions	908,000	938,000
Payables	14,890,000	4,471,000
Other Payable		438,000	420,000
Total Tax Payable	555,000	498,000
Accounts Payable	14,335,000	3,535,000
Total Assets	62,869,000	61,118,000
Total Non Current Assets	45,108,000	43,608,000
Other Non Current Assets	2,361,000
Defined Pension Benefit		1,115,000	898,000
Non Current Deferred Taxes Assets	6,307,000	6,520,000
Financial Assets	19,000	0
Other Investments	859,000
Investmentin Financial Assets		1,053,000	1,136,000
Available For Sale Securities		790,000	848,000
Financial Assets Designatedas Fair Value Through Profitor Loss Total		263,000	288,000
Long Term Equity Investment	99,000	89,000
Investmentsin Associatesat Cost		89,000	96,000
Goodwill And Other Intangible Assets	25,425,000	23,766,000
Other Intangible Assets	18,138,000	16,748,000
Goodwill	7,287,000	7,018,000
Net PPE	10,038,000	10,048,000
Accumulated Depreciation		-10,892,000	-10,483,000
Gross PPE	10,038,000	20,940,000
Construction In Progress		2,511,000	2,320,000
Other Properties	10,038,000	6,000
Machinery Furniture Equipment		11,735,000	11,217,000
Buildings And Improvements		531,000	636,000
Land And Improvements		6,157,000	6,375,000
Current Assets	17,761,000	17,510,000
Hedging Assets Current	86,000	121,000
Assets Held For Sale Current	138,000	300,000
Restricted Cash		247,000	177,000
Prepaid Assets		385,000	390,000
Inventory	6,157,000	5,924,000
Finished Goods		1,617,000	1,625,000
Work In Process		3,699,000	2,683,000
Raw Materials		608,000	1,361,000
Other Receivables		662,000	436,000
Taxes Receivable	181,000	799,000
Accounts Receivable	7,756,000	5,913,000
Allowance For Doubtful Accounts Receivable			-99,000
Gross Accounts Receivable		5,913,000	5,563,000
Cash Cash Equivalents And Short Term Investments	3,443,000	3,159,000
Other Short Term Investments	1,000	9,000
Cash And Cash Equivalents	3,442,000	3,150,000

Cash Flow

	2026	2025	2024
Free Cash Flow	698,000	1,253,000
Repurchase Of Capital Stock	-326,000	-252,000
Repayment Of Debt	-20,000	-4,000
Issuance Of Debt	1,202,000	552,000
Issuance Of Capital Stock	8,000	1,000
Capital Expenditure	-443,000	-1,025,000
End Cash Position	3,199,000	3,207,000
Beginning Cash Position	3,250,000	2,759,000
Effect Of Exchange Rate Changes	2,000	-41,000
Changes In Cash	-53,000	489,000
Financing Cash Flow	272,000	-856,000
Net Other Financing Charges	1,703,000	-25,000
Interest Paid Cff	-85,000	-295,000
Cash Dividends Paid	-643,000	-646,000
Common Stock Dividend Paid	-643,000	-646,000
Net Common Stock Issuance	-318,000	-251,000
Common Stock Payments	-326,000	-252,000
Common Stock Issuance	8,000	1,000
Net Issuance Payments Of Debt	1,182,000	548,000
Net Short Term Debt Issuance	1,182,000	546,000
Short Term Debt Payments	-20,000	-6,000
Short Term Debt Issuance	1,202,000	552,000
Net Long Term Debt Issuance	0	2,000
Long Term Debt Payments		2,000	-1,615,000
Long Term Debt Issuance	0	0
Investing Cash Flow	-1,466,000	-933,000
Interest Received Cfi	45,000	37,000
Dividends Received Cfi		70,000	0
Net Investment Purchase And Sale	9,000	0
Net Business Purchase And Sale	-1,166,000	-31,000
Sale Of Business	248,000	51,000
Purchase Of Business	-1,414,000	-82,000
Net Intangibles Purchase And Sale	-160,000	-449,000
Sale Of Intangibles	62,000	3,000
Purchase Of Intangibles	-222,000	-452,000
Net PPE Purchase And Sale	-194,000	-560,000
Sale Of PPE	27,000	13,000
Purchase Of PPE	-221,000	-573,000
Operating Cash Flow	1,141,000	2,278,000
Taxes Refund Paid	-209,000	-411,000
Change In Working Capital	-1,082,000	588,000
Other Non Cash Items	145,000	185,000
Deferred Tax	305,000	223,000
Depreciation And Amortization	463,000	-406,000
Depreciation	463,000	-1,664,000
Gain Loss On Sale Of Business			5,000
Net Income From Continuing Operations	1,839,000	727,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $7.5B ▲ $7.6B +1.5%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 74.2% ▲ 75.4% +1.2pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 30.5% ▲ 30.1% -0.5pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 21.6% ▲ 22.8% +1.2pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$7.6B/qtr (≈$30.5B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

0.79x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$698M

vs Positive

Operating Cash Flow

$1.1B

Latest quarter · Buffett's cash reality check

ROIC

4.5%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

5.8x

Net Assets: $17.4B

Peers & Industry

No auto-detected peers for Drug Manufacturers - General. You can manually compare GSK against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.06%

Low — management has little skin in the game

Return on Equity (ROE)

9.7%

Adequate — returns are moderate

Return on Assets (ROA)

2.8%

Fair — average asset utilization

Share Buybacks (Latest Year)

$1.4B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+7.5% YoY

Debt is roughly stable

Leadership Team

Julie Belita Brown

CFO & Executive Director

Age 63

Pay: $6,027,404

0.347% of net income

Luke Victor Miels

CEO & Director

Age 51

David Simon Redfern BSc (Hons), CA

President of Corporate Development

Age 59

Top Institutional Holders

Institution	% Owned	Shares
FMR, LLC	3.34%	67,661,646
Dodge & Cox Inc.	2.90%	58,662,974
Fisher Asset Management, LLC	1.70%	34,522,363
Primecap Management Company	1.24%	25,204,538
Acadian Asset Management. LLC	0.58%	11,797,085
Wellington Management Group, LLP	0.58%	11,717,613
Morgan Stanley	0.54%	11,030,651
Goldman Sachs Group Inc	0.47%	9,589,114

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

0.29

Low volatility — more stable than the market

Short Interest

0.5% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

1.10x

Moderate leverage

Current Ratio

0.79x

Weak liquidity — current liabilities exceed current assets

52-Week Price Range

Low: $35.45 Current: $50.67 High: $61.70

Currently at 58% of 52-week range

GSK plc

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis