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Is GlaxoSmithKline plc(NYSE: GSK), a large market cap stock a smart buy?

With a market cap of has a large market cap size. GlaxoSmithKline plc (NYSE: GSK) has been on the stock market since its IPO date on the 07/09/1986. GlaxoSmithKline plc is in the Drug Manufacturers – Major industry and Healthcare sector. Average volume for GlaxoSmithKline plc, is 3495.04, and so far today it has a volume of 2962800. Performance year to date since the 07/09/1986 is 12.75%.

To help you determine whether GlaxoSmithKline plc is undervalued the following values will help you decide. P/E is 134.32 and forward P/E is 16.65. PEG perhaps more useful shows that GlaxoSmithKline plc has a value for PEG of 223.87. P/S ratio is 3.31 and the P/B ratio is 29.01. The P/Cash and P/Free cash flow is 18.09 and *TBA respectively.

At the current price GlaxoSmithKline plc is trading at, 43.52 (0.32% today), GlaxoSmithKline plc has a dividend yield of 5.10%, and this is covered by a payout ratio of 629.40%. Earnings per share (EPS) is 0.32, and this is looking to grow in the next year to 14.05% after growing 204.10% this past year. EPS growth quarter over quarter is -96.60%, and 10.80% for sales growth quarter over quarter.

The number of shares outstanding is 2407.66, and the number of shares float is 2407.66. The senior management bring insider ownership to 0.20%, and institutional ownership is at 8.60%. The float short is 0.23%, with the short ratio at a value of 1.59. Management has seen a return on assets of 1.10%, and also a return on investment of 41.40%.

The ability for GlaxoSmithKline plc, to deal with debt, means it current ratio is 1.1, and quick ratio is 0.8. Long term debt/equity is 5.61 and total debt/equity is 6.05. In terms of margins, GlaxoSmithKline plc has a gross margin of 66.40%, with its operating margin at 7.50%, and GlaxoSmithKline plc has a profit margin of 2.50%.

The 52 week high is -0.64%, with 23.90% being its 52 week low. The 20 day simple moving average is 3.32% and the 200 day simple moving average is 9.36%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.


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Peter Clarke

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