GlaxoSmithKline PLC Fundamental Trends Analysis

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GSK -- USA Stock  

Report: 22nd of July 2020  

The Drivers Module shows relationships between GlaxoSmithKline PLC's most relevant fundamental drivers and provides multiple suggestions of what could possibly affect the performance of GlaxoSmithKline PLC over time as well as its relative position and ranking within its peers. Please check Risk vs Return Analysis

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GlaxoSmithKline PLC Price to Sales Ratio is increasing as compared to previous years. The last year's value of Price to Sales Ratio was reported at 2.85. The current Return on Sales is estimated to increase to 0.20, while Sales per Share is estimated to decrease to 15.20. GlaxoSmithKline PLC Net Income to Non Controlling Interests is increasing as compared to previous years. The last year's value of Net Income to Non Controlling Interests was reported at 623 Million. The current Income Tax Expense is estimated to increase to about 1.1 B, while Net Income Common Stock is estimated to decrease to under 4.1 B.

GlaxoSmithKline PLC Retained Earnings vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining GlaxoSmithKline PLC's current stock value. Our valuation model uses many indicators to compare GlaxoSmithKline PLC value to that of its competitors to determine the firm's financial worth.
GlaxoSmithKline PLC is rated below average in current valuation category among related companies. It is rated below average in retained earnings category among related companies reporting about  0.05  of Retained Earnings per Current Valuation. The ratio of Current Valuation to Retained Earnings for GlaxoSmithKline PLC is roughly  20.98 . GlaxoSmithKline PLC Accumulated Retained Earnings Deficit are decreasing as compared to previous years. The last year's value of Accumulated Retained Earnings Deficit was reported at 4.53 Billion. The current Price to Earnings Ratio is estimated to increase to 25.29, while Earnings Before Interest Taxes and Depreciation Amortization EBITDA are estimated to decrease to under 6 B.
GlaxoSmithKline PLC is rated below average in current valuation category among related companies. After adjusting for long-term liabilities, total market size of Drug Manufacturers?General industry is currently estimated at about 1.65 Trillion. GlaxoSmithKline PLC holds roughly 102.56 Billion in current valuation claiming about 6% of equities under Drug Manufacturers?General industry.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
GlaxoSmithKline PLC 
Enterprise Value 
 = 
Market Cap + Debt 
-  
Cash 
=
102.56 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Retained Earnings is a balance sheet account that refers to the portion of company income that is retained by the firm. In other words, it is a part of earnings that is not paid out as dividends or otherwise distributed to owners. Retained Earnings are calculated by adding net income to last period retained earnings and subtracting any dividends paid to owners.
GlaxoSmithKline PLC 
Retained Earnings 
 = 
Beginning RE + Income 
Dividends 
=
4.89 B
Retained Earnings shows how the firm utilizes its profits over time. In simple terms, investors can think of retained earnings as the amount of profit the company has reinvested in the business since its inceptions. However the methodology to make a decision over how much profit to retain is different between companies in different industries. For example, growing industries tend to retain more of their earnings than more matured industries as they need more assets investment to sustain their growth.

GlaxoSmithKline Retained Earnings Comparison

  Retained Earnings 
      GlaxoSmithKline PLC Comparables 
GlaxoSmithKline PLC is rated below average in retained earnings category among related companies.

GlaxoSmithKline Fundamental Comparison

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