The GSK ticker symbol is a crucial piece of information for investors. GSK is listed on the London Stock Exchange under the ticker symbol GSK.L.
Investors can also access GSK's shares on the New York Stock Exchange under the ticker symbol GSK.
GlaxoSmithKline Plc
GlaxoSmithKline Plc is a large global biopharma company that has reported continued success in oncology-based treatments for a blood cancer affecting 180,000 new patients annually.
The company is building cash reserves while retiring debt, and its stock trades at 22x earnings, supporting a 21% return on equity (ROE).
A stop-loss should be set at $27, aiming to achieve $45 for an upside potential of 26%, with a yield of 4.5%.
It's recommended to buy drug stocks when there's no good news about their drug pipelines, rather than paying up when there is good news.
The company has a strong vaccine business but lacks a strong pipeline of drugs, making it necessary to buy other companies to make up for that.
GlaxoSmithKline Plc has a great dividend yield of 6.3% and trades at only 10x earnings, making it a cheap investment opportunity.
The company has recently grown its vaccine business, but its pipeline is a constant worry, and it's a good idea to look at its peers, such as JNJ, which is more diversified.
The company's new CEO shed some divisions, making it a more pure pharma company, which comes with its own set of risks.
Overall, GlaxoSmithKline Plc is a solid investment with a reasonable dividend yield, but it's not the best option, and there are better peers to consider.
Stock Performance
The stock performance of GlaxoSmithKline PLC (GSK-N) is a crucial aspect to consider for investors. On 2025-01-03, the stock closed at a price of $33.47. This indicates a specific closing price for that particular day.
The closing price of $33.47 is a notable figure, providing insight into the stock's performance at a particular point in time.
Financial Analysis
The return on assets (ROA) for GSK is 7.24%, which is a relatively low indicator of the company's ability to generate returns from its assets.
GSK's return on equity (ROE) is 21.85%, which is a strong indicator of the company's efficiency in using shareholder equity to generate returns.
This high ROE suggests that GSK is generating a significant amount of profit from its equity, which is a good sign for investors.
Here's a quick summary of GSK's valuation metrics:
Asset Efficiency
Asset efficiency is a key aspect of financial analysis, and it's essential to understand how a company uses its assets to generate returns. Higher asset efficiency ratios indicate a company's ability to produce more with less.
ROA, or Return on Assets, is a ratio that measures how efficiently a company uses its assets to generate revenue. The average long-term ROA is around 7.24%, which is the case for GSK, as shown in the example.
A higher ROE, or Return on Equity, is generally better, and an average long-term ROE of 14% is considered good. However, anything less than 10% is considered poor. GSK's ROE is 21.85%, which is significantly higher than the average.
Here are some key points to keep in mind when evaluating asset efficiency:
- ROA (Return on Assets) measures how efficiently a company uses its assets to generate revenue.
- ROE (Return on Equity) measures how efficiently a company uses its equity to generate returns.
- A higher ROA is generally better, but anything less than 7.24% is considered poor for GSK.
- A higher ROE is generally better, with an average long-term ROE of 14% being considered good.
- GSK's ROE is 21.85%, which is significantly higher than the average.
Valuation
Valuation is a crucial aspect of financial analysis, as it helps investors understand the company's worth and make informed decisions.
A lower Trailing PE of 22.42 may indicate that the stock is cheaper compared to its peers.
The Forward PE of 7.86 suggests that the market expects the company's earnings to grow significantly in the future, potentially making the stock a good investment opportunity.
A Price/FCF of 53 is relatively high, indicating that the stock price is not cheap compared to the company's free cash flow.
The PEG ratio of 0.77 is low, suggesting that the stock is undervalued.
Here is a summary of the valuation ratios mentioned:
Investor Insights
GSK's recent earnings report was a mixed bag for investors.
Despite beating Q3 expectations, their vaccines division underperformed, leading to investor disappointment.
Emma Walmsley, GSK's CEO, has emphasized the importance of addressing antimicrobial resistance as a public health issue.
Analysts' Recommendations
Analysts' recommendations for GSK plc have been mixed in recent days. Deutsche Bank has maintained a Neutral rating for the company.
Deutsche Bank and Goldman Sachs have both reaffirmed their Neutral ratings for GSK plc. This suggests that these analysts do not see the company's stock as a strong buy or sell opportunity.
On December 17, Deutsche Bank reiterated its Neutral rating for GSK plc. This is consistent with their previous recommendation.
Goldman Sachs has also reaffirmed its Neutral rating for GSK plc. This is the second time they have done so in recent days.
Here is a summary of the analysts' recommendations:
JP Morgan has a different opinion, however, and has a Sell rating for GSK plc.
Analysis / Opinion
GSK PLC's recent performance has left investors disappointed, despite beating Q3 expectations.
Emma Walmsley, the company's CEO, has emphasized the importance of addressing antimicrobial resistance, a pressing public health issue.
GSK plc has managed to get back on track, but it's clear that investors are still waiting for significant progress from the company's vaccine division.
Frequently Asked Questions
Is GSK listed in the USA?
Yes, GSK is listed on the New York stock exchange. This dual listing allows investors in both the UK and the US to buy and sell GSK shares.
Is GSK a good stock to buy now?
GSK has a Hold rating with 22.22% upside potential, but its average share price target is 1,628.00p, suggesting a cautious approach. Consider reading more about GSK's current market status before making a decision.
How do I buy GSK shares?
To buy GSK shares, open an account with a trading platform that we work with and provide required identification and banking information. Choose from our listed trading platforms to start investing in Glaxosmithkline today.
How much is the next GSK dividend?
The next GSK dividend is 15p per share. Shareholders who own GB:GSK stock before the ex-dividend date will receive this payment.
Who is the largest shareholders of GlaxoSmithKline?
The largest shareholders of GlaxoSmithKline include institutional investors such as Dodge & Cox, FMR LLC, and Vanguard PRIMECAP Fund Investor Shares. These shareholders hold significant stakes in the company's stock.
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