Glaxosmithkline Pharmaceuticals Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends after 3 years are expected to be covered by earnings (1.5x coverage).
• GlaxoSmithKline Pharmaceuticals's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• Dividends paid are not well covered by earnings (0.3x coverage).
• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
• GlaxoSmithKline Pharmaceuticals's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

Pros

• GlaxoSmithKline Pharmaceuticals's earnings are expected to grow significantly at over 20% yearly.
• GlaxoSmithKline Pharmaceuticals's earnings growth is expected to exceed the India market average.
• GlaxoSmithKline Pharmaceuticals's earnings growth is expected to exceed the low risk savings rate of 7.2%.
• GlaxoSmithKline Pharmaceuticals's earnings are expected to exceed the low risk growth rate next year.
• GlaxoSmithKline Pharmaceuticals's net income is expected to increase by more than 50% in 2 years time.
• GlaxoSmithKline Pharmaceuticals is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
• Performance (ROE) is expected to be above the current IN Pharmaceuticals industry average.
• An improvement in GlaxoSmithKline Pharmaceuticals's performance (ROE) is expected over the next 3 years.
• GlaxoSmithKline Pharmaceuticals's revenue growth is expected to exceed the India market average.

Cons

• Cash flow for GlaxoSmithKline Pharmaceuticals is expected to increase but not above the 50% threshold in 2 years time.
• GlaxoSmithKline Pharmaceuticals's revenue is expected to increase but not above the 50% threshold in 2 years time.
• GlaxoSmithKline Pharmaceuticals's revenue is expected to grow by 9% yearly, however this is not considered high growth (20% yearly).

health

Pros

• GlaxoSmithKline Pharmaceuticals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• GlaxoSmithKline Pharmaceuticals is profitable, therefore cash runway is not a concern.
• GlaxoSmithKline Pharmaceuticals is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (2452500%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 88744x debt.
• GlaxoSmithKline Pharmaceuticals's cash and other short term assets cover its long term commitments.
• The level of debt compared to net worth has been reduced over the past 5 years (0.1% vs 0% today).
• Interest payments on debt are well covered by earnings (EBIT is 90.6x coverage).
• GlaxoSmithKline Pharmaceuticals's level of debt (0%) compared to net worth is satisfactory (less than 40%).

Cons

• High level of physical assets or inventory.

management

Pros

• The tenure for the GlaxoSmithKline Pharmaceuticals board of directors is about average.
• The tenure for the GlaxoSmithKline Pharmaceuticals management team is about average.

Cons

past

Pros

• GlaxoSmithKline Pharmaceuticals has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).

Cons

• GlaxoSmithKline Pharmaceuticals's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• GlaxoSmithKline Pharmaceuticals's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
• GlaxoSmithKline Pharmaceuticals used its assets less efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.
• GlaxoSmithKline Pharmaceuticals has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• GlaxoSmithKline Pharmaceuticals's 1-year earnings growth is negative, it can't be compared to the IN Pharmaceuticals industry average.

value

Pros

• 500660 outperformed the Market in India which returned -14.5% over the past year.

Cons

• GlaxoSmithKline Pharmaceuticals's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• GlaxoSmithKline Pharmaceuticals's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• GlaxoSmithKline Pharmaceuticals is overvalued based on assets compared to the IN Pharmaceuticals industry average.
• GlaxoSmithKline Pharmaceuticals is poor value based on expected growth next year.
• GlaxoSmithKline Pharmaceuticals is overvalued based on earnings compared to the IN Pharmaceuticals industry average.
• GlaxoSmithKline Pharmaceuticals is overvalued based on earnings compared to the India market.
• 500660 underperformed the Pharmaceuticals industry which returned 26.7% over the past year.
• BSE:500660 is down -1.3% underperforming the Pharmaceuticals industry which returned 6.8% over the past month.
• BSE:500660 is down -1.3% underperforming the market in India which returned 8% over the past month.