Series shares fell by -1.1% during the day's afternoon session, and are now trading at a price of $47.18. Is it time to buy the dip? To better answer that question, it's essential to check if the market is valuing the company's shares fairly in terms of its earnings and equity levels.
a Very Low P/E Ratio but Trades Above Its Graham Number:
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. The company belongs to the Health Care sector, which has an average price to earnings (P/E) ratio of 22.94 and an average price to book (P/B) ratio of 3.19. In contrast, Series has a trailing 12 month P/E ratio of 13.5 and a P/B ratio of 11.76.
Series has moved 40.0% over the last year compared to 14.3% for the S&P 500 — a difference of 25.8%. Series has a 52 week high of $48.69 and a 52 week low of $31.72.
Wider Gross Margins Than the Industry Average of 57.85%:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $33,754 | $24,354 | $24,696 | $29,324 | $30,328 | $31,376 |
| Gross Margins | 65% | 67% | 67% | 67% | 72% | 71% |
| Net Margins | 16% | 26% | 21% | 53% | 18% | 9% |
| Net Income (M) | $5,268 | $6,388 | $5,096 | $15,621 | $5,308 | $2,951 |
| Diluted Shares (M) | 5,383 | 5,385 | 5,387 | 4,311 | 4,312 | 4,314 |
| Earnings Per Share | $0.93 | $1.43 | $1.08 | $3.66 | $1.2 | $0.62 |
| EPS Growth | n/a | 53.76% | -24.48% | 238.89% | -67.21% | -48.33% |
| Free Cash Flow (M) | $8,020 | $8,441 | $7,952 | $7,403 | $6,768 | $6,554 |
| Total Debt (M) | $23,590 | $23,425 | $20,572 | $17,035 | $15,205 | $14,637 |
| Net Debt / EBITDA | 2.03 | 2.13 | 2.52 | 1.55 | 1.36 | 1.64 |
| Current Ratio | 0.81 | 0.91 | 0.79 | 0.91 | 0.88 | 0.78 |
