Stock Updates

Is this Large Market Cap Stock target price reasonable for GlaxoSmithKline plc (NYSE:GSK)?

The company in question is, GlaxoSmithKline plc (NYSE:GSK) currently with a stock price of 43.74 (-0.36% today). The market cap for GlaxoSmithKline plc is 106266.33, and is in the sector Healthcare, and Drug Manufacturers – Major industry. The target price for GlaxoSmithKline plc is 48.67. Currently GlaxoSmithKline plc is trading with a P/E of 3124.29, and a forward P/E of 15.77. Average volume for GlaxoSmithKline plc is 3342.45 and so far today it is 2225000.

Performance in the last year for GlaxoSmithKline plc has been 15.89%. For EPS growth, GlaxoSmithKline plc has seen a growth of 204.10%, and is looking to grow in the next year to 6.61%. More long term stats show that EPS growth has been 40.20% over the last five years and could be 10.00% for the next five years. GlaxoSmithKline plc has seen sales growth quarter over quarter at 10.90%, with EPS growth quarter over quarter at -392.80%. The 20-day simple moving average is 1.35%, with the 200-day simple moving average coming to 8.44%.

Since the IPO date for GlaxoSmithKline plc on the 7/9/1986, GlaxoSmithKline plc has seen performance year to date to be 14.61%. With GlaxoSmithKline plc trading at 43.74, the dividend yield is 5.03%, and the EPS is 0.01.

So could GlaxoSmithKline plc, be undervalued? Well as said before P/E is 3124.29. The PEG is 312.43, P/S is 3.21 and the P/B is at 141.1. The P/cash is 17.27, with P/free cash flow at *TBA.

GlaxoSmithKline plc ability to deal with debt shows that the current ratio is 0.9, and the quick ratio is 0.6. This is with long term debt/equity at 26.3, and total debt/equity at 34.12.

In terms of margins, GlaxoSmithKline plc has a gross margin of 66.60%, an operating margin of 5.30% and a profit margin of 0.10%.Payout ratio for GlaxoSmithKline plc is *TBA. Return on assets come to 0.10% with return on investment coming to 41.40%.

Insider ownership for GlaxoSmithKline plc, is at 0.20% and institutional ownership comes to 9.10%. Outstanding shares are at 2429.5. While shares float is 2416.46. The float short is currently 0.26%, and short ratio is 1.9.

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.

About the author

Tony Dabbs

Leave a Comment