GlaxoSmithKline PLCFind Ratings Reports
GLAXOSMITHKLINE PLC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. GLAXOSMITHKLINE PLC has weak liquidity. Currently, the Quick Ratio is 0.59 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has significantly decreased by 92.91% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q2 FY16||Q2 FY15|
|Net Sales ($mil)||8039.74||9857.37|
|Net Income ($mil)||-608.15||943.74|
|Balance Sheet||Q2 FY16||Q2 FY15|
|Cash & Equiv. ($mil)||6187.99||11976.11|
|Total Assets ($mil)||76309.67||85111.38|
|Total Debt ($mil)||25931.81||27000.11|
|Profitability||Q2 FY16||Q2 FY15|
|Gross Profit Margin||68.76||67.17|
|Return on Assets||-0.96||17.6|
|Return on Equity||-97.28||139.73|
|Debt||Q2 FY16||Q2 FY15|
|Share Data||Q2 FY16||Q2 FY15|
|Shares outstanding (mil)||2430.5||2417.0|
|Div / share||0.5||0.59|
|Book value / share||0.31||4.44|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||3358157.0||3300449.0|
HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 142.28 indicates a significant premium versus the S&P 500 average of 2.83 and a significant premium versus the industry average of 20.24. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, GLAXOSMITHKLINE PLC proves to trade at a premium to investment alternatives within the industry.
|GSK NM||Peers 29.72||GSK 20.88||Peers 21.39|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
GSK's P/E is negative making this valuation measure meaningless.
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
GSK is trading at a valuation on par to its peers.
|GSK 0.42||Peers 15.44||GSK NA||Peers 0.57|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
GSK is trading at a significant discount to its peers.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
Ratio not available.
|GSK 142.28||Peers 20.24||GSK -104.87||Peers -21.30|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
GSK is trading at a significant premium to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, GSK is expected to significantly trail its peers on the basis of its earnings growth rate.
|GSK 3.13||Peers 12.00||GSK -2.03||Peers 5.66|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
GSK is trading at a significant discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
GSK significantly trails its peers on the basis of sales growth