GlaxoSmithKline Pharmaceuticals Limited
GlaxoSmithKline Pharmaceuticals Limited Fundamental Analysis
GlaxoSmithKline Pharmaceuticals Limited (GLAXO.NS) shows moderate financial fundamentals with a PE ratio of 39.15, profit margin of 27.03%, and ROE of 56.08%. The company generates $37.8B in annual revenue with moderate year-over-year growth of 8.56%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 87.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze GLAXO.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentGLAXO.NS demonstrates superior asset utilization.
Valuation Score
WeakGLAXO.NS trades at a premium to fair value.
Growth Score
ExcellentGLAXO.NS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentGLAXO.NS maintains a strong and stable balance sheet.
Profitability Score
ExcellentGLAXO.NS achieves industry-leading margins.
Key Financial Metrics
Is GLAXO.NS Expensive or Cheap?
P/E Ratio
GLAXO.NS trades at 39.15 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GLAXO.NS's PEG of 5.69 indicates potential overvaluation.
Price to Book
The market values GlaxoSmithKline Pharmaceuticals Limited at 23.41 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 27.83 times EBITDA. This signals the market has high growth expectations.
How Well Does GLAXO.NS Make Money?
Net Profit Margin
For every $100 in sales, GlaxoSmithKline Pharmaceuticals Limited keeps $27.03 as profit after all expenses.
Operating Margin
Core operations generate 32.49 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $56.08 in profit for every $100 of shareholder equity.
ROA
GlaxoSmithKline Pharmaceuticals Limited generates $27.86 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
GlaxoSmithKline Pharmaceuticals Limited generates limited operating cash flow of $1.84B, signaling weaker underlying cash strength.
Free Cash Flow
GlaxoSmithKline Pharmaceuticals Limited produces free cash flow of $1.67B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $9.84 in free cash annually.
FCF Yield
GLAXO.NS converts 0.42% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
39.15
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.69
vs 25 benchmark
P/B Ratio
Price to book value ratio
23.41
vs 25 benchmark
P/S Ratio
Price to sales ratio
10.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.78
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.56
vs 25 benchmark
ROA
Return on assets percentage
0.28
vs 25 benchmark
ROCE
Return on capital employed
0.62
vs 25 benchmark
How GLAXO.NS Stacks Against Its Sector Peers
| Metric | GLAXO.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 39.15 | 28.23 | Worse (Expensive) |
| ROE | 56.08% | 737.00% | Weak |
| Net Margin | 27.03% | -46175.00% (disorted) | Strong |
| Debt/Equity | 0.02 | 0.35 | Strong (Low Leverage) |
| Current Ratio | 1.78 | 4.10 | Neutral |
| ROA | 27.86% | -17785.00% (disorted) | Strong |
GLAXO.NS outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews GlaxoSmithKline Pharmaceuticals Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
16.28%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
895.21%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
162.98%
Industry Style: Defensive, Growth, Innovation
High Growth