GlaxoSmithKline Buy Hold or Sell Recommendation

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GSK -- USA Stock  

Report: 22nd of July 2020  

Considering the 30-days investment horizon, and your above average risk tolerance our recommendation regarding GlaxoSmithKline PLC is 'Cautious Hold'. Macroaxis provides GlaxoSmithKline PLC buy hold or sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding GSK positions. The advice algorithm takes into account all of GlaxoSmithKline PLC available fundamental, technical, and predictive indicators you will find on this site. The advice is provided from GSK buy-and-hold perspective. Please check GlaxoSmithKline PLC Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments please use Instant Ratings tool.

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Sell GlaxoSmithKline PLCBuy GlaxoSmithKline PLC
Cautious Hold

Volatility

Hype Condition

Current Valuation

Odds of Distress

Analyst Consensus

Piotroski F Score

Financial Leverage

For the selected time horizon GlaxoSmithKline PLC has a mean deviation of 1.16, semi deviation of 1.68, standard deviation of 1.62, variance of 2.61, downside variance of 3.68 and semi variance of 2.81
GlaxoSmithKline PLC buy, hold, or sell recommendation module can be used to check and cross-verify current buy or sell recommendations provided by analysts evaluating the entity's potential to grow using all of fundamental, technical, data market data available at the time. To make sure GlaxoSmithKline PLC is not overpriced, please check out all GlaxoSmithKline PLC fundamentals, including its shares outstanding, net income, price to earnings to growth, as well as the relationship between the price to book and current ratio . Given that GlaxoSmithKline PLC has a price to earning of 47.28 X, we strongly advise you to confirm GlaxoSmithKline PLC market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your regular risk tolerance and investing horizon.

GlaxoSmithKline PLC Trading Alerts and Improvement Suggestions

GlaxoSmithKline PLC has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial commitments
The company has 36.63 B in debt with debt to equity (D/E) ratio of 182.9, demonstrating that the company may be unable to create cash to meet all of its financial commitments. GlaxoSmithKline PLC has a current ratio of 0.8, suggesting that it has not enough short term capital to pay financial commitments when the payables are due.
GLAXOSMITHKLINE P has about 5.12 B in cash with (5.78 B) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.08.
On 14th of May 2020 GlaxoSmithKline PLC paid $ 0.472 per share dividend to its current shareholders
Latest headline from www.nasdaq.com: Mercks Pneumococcal Vaccine Meets Goal in Two Adult Studies - Nasdaq

GlaxoSmithKline PLC current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. GlaxoSmithKline analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. GlaxoSmithKline analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Median Price50.00
Target Mean Price47.70
Recommendation Mean2.00
Target High Price51.00
Number Of Analyst Opinions3
Target Low Price42.10
Average Consensus Hold
The consensus estimates and target price estimation is comprised of individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

GlaxoSmithKline PLC Returns Distribution Density

The chart of the probability distribution of GlaxoSmithKline PLC stock daily returns describes the distribution of returns around its average expected value. We use GlaxoSmithKline PLC' stock's Value At Risk and its Upside Potential as a relative measure of the distribution. The distribution of GlaxoSmithKline PLC returns is essential to provide solid investment advice for GlaxoSmithKline PLC stock.
Mean Return0.18Value At Risk-2.1
Potential Upside2.28Standard Deviation1.62
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of GlaxoSmithKline PLC historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Institutional Investors

Security TypeSharesValue
Dodge CoxCommon Shares44 M1.7 B
Renaissance Technologies LlcCommon Shares23.1 M874.4 M
Fmr LlcCommon Shares19.5 M737.2 M
Royal Bank Of CanadaCommon Shares17.2 M652.3 M
Price T Rowe Associates IncCommon Shares17.2 M650.4 M
Fisher Asset Management LlcCommon Shares15.5 M588.8 M
Capital International InvestorsCommon Shares14.8 M559.4 M

GlaxoSmithKline PLC Cash Flow Accounts

2014201520162017201820192020 (projected)
Capital Expenditure(1.15 B)(1.31 B)(1.45 B)(1.26 B)(1.18 B)(1.17 B)(1.26 B)
Net Cash Flow or Change in Cash and Cash Equivalents(1.29 B)1.5 B(1.16 B)(905 M)479 M826 M891.21 M
Net Cash Flow Business Acquisitions and Disposals118 M7.26 B47 M378 M(95 M)(3.58 B)(3.68 B)
Issuance Purchase of Equity Shares(71 M)73 M89 M56 M74 M51 M55.03 M
Issuance Repayment of Debt Securities228 M(2.44 B)130 M(990 M)8.12 B3.52 B3.79 B
Payment of Dividends and Other Cash Distributions(3.84 B)(3.87 B)(4.85 B)(3.91 B)(3.93 B)(3.95 B)(4.27 B)
Net Cash Flow from Financing(5.38 B)(7.1 B)(6.39 B)(6.38 B)(6.39 B)(1.84 B)(1.99 B)
Net Cash Flow from Investing(1.08 B)6.04 B(1.27 B)(1.44 B)(1.55 B)(5.35 B)(5.49 B)
Net Cash Flow Investment Acquisitions and Disposals123 M273 M587 M(12 M)(158 M)(188 M)(192.95 M)
Net Cash Flow from Operations6.28 B4.63 B8.11 B8.26 B9.75 B9.53 B9.6 B
Effect of Exchange Rate Changes on Cash84 M(45 M)283 M(100 M)8 M(82 M)(84.16 M)

GlaxoSmithKline PLC Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to GlaxoSmithKline PLC or Drugs sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that GlaxoSmithKline PLC stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a GlaxoSmithKline stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
=0.23
β
Beta against DOW=-0.18
σ
Overall volatility
=1.57
Ir
Information ratio =-0.08

GlaxoSmithKline PLC Volatility Alert

GlaxoSmithKline PLC has relatively low volatility with skewness of -0.39 and kurtosis of 2.44. However, we advise all investors to independently investigate GlaxoSmithKline PLC to ensure market all accessible information is consistent with the expectations about its upside potential and future risk-adjusted return.
    
 Better Than Average     
    
 Worse Than Average Compare GlaxoSmithKline PLC to competition

GlaxoSmithKline PLC Fundamental Vs Peers

FundamentalsGlaxoSmithKline PLCPeer Average
Return On Equity0.0001 %(0.31) %
Return On Asset0.0007 %(0.14) %
Profit Margin0.0014 %(1.27) %
Operating Margin40.86 %(5.51) %
Current Valuation116 B16.62 B
Shares Outstanding2.49 B571.82 M
Shares Owned by Insiders0.01 %10.09 %
Shares Owned by Institutions12.17 %39.21 %
Number of Shares Shorted8.01 M4.71 M
Price to Earning47.28 X28.72 X
Price to Book19.49 X9.51 X
Price to Sales2.35 X11.42 X
Revenue40.01 B9.43 B
Gross Profit21.11 B27.38 B
EBITDA10.2 B3.9 B
Net Income2.46 B570.98 M
Cash and Equivalents5.12 B2.7 B
Cash per Share2.08 X5.01 X
Total Debt36.63 B5.32 B
Debt to Equity182.90 %48.70 %
Current Ratio0.82 X2.16 X
Book Value Per Share4.57 X1.93 K
Cash Flow from Operations(5.78 B)971.22 M
Short Ratio2.57 X4.00 X
Earnings Per Share0.99 X3.12 X
Price to Earnings To Growth4.24 X4.89 X
Number of Employees99.44 K18.84 K
Beta0.44-0.15
Market Capitalization117.89 B19.03 B
Total Asset53.45 B29.47 B
Retained Earnings4.89 B9.33 B
Working Capital3.17 B1.48 B
Current Asset16.59 B9.34 B

GlaxoSmithKline PLC Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as GlaxoSmithKline . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
Accumulation Distribution8415.83939
Daily Balance Of Power0.5758
Rate Of Daily Change1.00465
Day Median Price41.115
Day Typical Price41.093333
Market Facilitation Index0.0
Price Action Indicator0.03

About GlaxoSmithKline PLC Buy or Sell Advice

When is the right time to buy or sell GlaxoSmithKline PLC? Buying stocks such as GlaxoSmithKline PLC isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily bases. Although GlaxoSmithKline PLC investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply. Please read more on our stock advisor page.
 2017 2018 2019 2020 (projected)
Receivables5.67 B6.08 B6.87 B5.97 B
Inventories5.56 B5.48 B5.95 B5.09 B

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Please check GlaxoSmithKline PLC Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments please use Instant Ratings tool. Please also try Financial Widgets module to easily integrated macroaxis content with over 30 different plug-and-play financial widgets.
Macroaxis is not a registered investment advisor or broker/dealer. All investments, including stocks, funds, ETFs, or cryptocurrencies, are speculative and involve substantial risk of loss. We encourage our investors to invest carefully. Much of our information is derived directly from data published by companies or submitted to governmental agencies which we believe are reliable, but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way warrant or guarantee the success of any action you take in reliance on our statements or recommendations. Also, note that past performance is not necessarily indicative of future results. All investments carry risk, and all investment decisions of an individual remain the responsibility of that individual. There is no guarantee that systems, indicators, or signals will result in profits or that they will not result in losses. All investors are advised to fully understand all risks associated with any investing they choose to do. Hypothetical or simulated performance is not indicative of future results. We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown because hypothetical or simulated performance is not necessarily indicative of future results. For more information please visit our terms and condition page