Skip to Content

GlaxoSmithKline PLC GSK

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Glaxo Provides Consumer Divestment Details and Solid Long-Term Guidance

Damien Conover, CFA Sector Director

Analyst Note

| Damien Conover, CFA |

In tandem with consumer health divestment details, Glaxo laid out solid long-term guidance for the remaining drug and vaccine business that looks attainable and should help reassure investors of the firm’s steady growth potential. We are not making any major changes to our fair value estimate, as the guidance is similar to our projections over the next five years. However, Glaxo also provided 2031 sales guidance (past the major patent loss of Tivicay in 2028-29) of over GBP 33 billion that is almost 10% higher than our expectations. If Glaxo can reach this estimate, we believe there is upside to our valuation. Nevertheless, we already view the stock as undervalued, with the market not fully appreciating the firm’s entrenched vaccine platform and emerging pipeline that also support a wide moat.  

Read Full Analysis

Company Profile

Business Description

In the pharmaceutical industry, GlaxoSmithKline ranks as one of the largest firms by total sales. The company wields its might across several therapeutic classes, including respiratory, oncology, and antiviral, as well as vaccines and consumer healthcare products. Glaxo uses joint ventures to gain additional scale in certain markets like HIV and consumer products.

Contact
980 Great West Road
Brentford, Middlesex, TW8 9GS, United Kingdom
T +44 2080475000
Sector Healthcare
Industry Drug Manufacturers - General
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type
Employees 94,066

Related

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.