Check Before You Invest : Glaxosmithkline Pharmaceuticals Ltd

Q: Which industry/sub-sector does Glaxosmithkline Pharmaceuticals Ltd belong to?

Glaxosmithkline Pharmaceuticals Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.

Q: Is Glaxosmithkline Pharmaceuticals Ltd a good quality company?

Glaxosmithkline Pharmaceuticals Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Glaxosmithkline Pharmaceuticals Ltd undervalued or overvalued?

Glaxosmithkline Pharmaceuticals Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 37.95, Historic Median: 50.81. Price to Book, Current: 17.34, Historic Median: 21.35. Price to Sales, Current: 10.29, Historic Median: 10.79. EV to EBITDA, Current: 26.07, Historic Median: 30.33

Q: Is Glaxosmithkline Pharmaceuticals Ltd a good buy now?

Glaxosmithkline Pharmaceuticals Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Glaxosmithkline Pharmaceuticals Ltd?

Glaxosmithkline Pharmaceuticals Ltd revenue growth is 8.6% for FY-2025, which is above its 5-year CAGR of 3.06%, indicating faster growth.

Q: Gross Profit margin of Glaxosmithkline Pharmaceuticals Ltd?

Glaxosmithkline Pharmaceuticals Ltd Gross profit margin which is the profit after deduction of direct costs, is 32.1% for FY-2025, which is above its 5-year median of 25.3%, indicating increasing margins.

Q: Operating Profit Margin of Glaxosmithkline Pharmaceuticals Ltd?

Glaxosmithkline Pharmaceuticals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 31.5% for FY-2025, which is above its 5-year median of 25.04% indicating increasing margins.

Q: Net Profit Margin of Glaxosmithkline Pharmaceuticals Ltd?

Glaxosmithkline Pharmaceuticals Ltd Net Profit Margin is 24.74% for FY-2025, is above its 5-year median of 17.08%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 32.1, Historic Median: 25.3. Operating Profit Margin (%), Current: 31.5, Historic Median: 25.04. Net Profit Margin (%), Current: 24.74, Historic Median: 17.08

Q: Return on Asset of Glaxosmithkline Pharmaceuticals Ltd?

Glaxosmithkline Pharmaceuticals Ltd Return on Asset is 25.15%, which is above its 5-year historical median of 15.76%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Glaxosmithkline Pharmaceuticals Ltd?

Glaxosmithkline Pharmaceuticals Ltd Return on capital employed is 67.64% for FY-2025, which is above its 5-year historical median of 38.06%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Check Before You Invest : Glaxosmithkline Pharmaceuticals Ltd

Snapshot

Q.1 Which industry/sub-sector does Glaxosmithkline Pharmaceuticals Ltd belong to?

Glaxosmithkline Pharmaceuticals Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.

Q.2 Is Glaxosmithkline Pharmaceuticals Ltd a good quality company?

Glaxosmithkline Pharmaceuticals Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Glaxosmithkline Pharmaceuticals Ltd undervalued or overvalued?

Glaxosmithkline Pharmaceuticals Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	37.95	50.81
Price to Book	17.34	21.35
Price to Sales	10.29	10.79
EV to EBITDA	26.07	30.33

Q.4 Is Glaxosmithkline Pharmaceuticals Ltd a good buy now?

Glaxosmithkline Pharmaceuticals Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Glaxosmithkline Pharmaceuticals Ltd?

Glaxosmithkline Pharmaceuticals Ltd revenue growth is 8.6% for FY-2025, which is above its 5-year CAGR of 3.06%, indicating faster growth.

Q.2 Gross Profit margin of Glaxosmithkline Pharmaceuticals Ltd?

Glaxosmithkline Pharmaceuticals Ltd Gross profit margin which is the profit after deduction of direct costs, is 32.1% for FY-2025, which is above its 5-year median of 25.3%, indicating increasing margins.

Q.3 Operating Profit Margin of Glaxosmithkline Pharmaceuticals Ltd?

Glaxosmithkline Pharmaceuticals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 31.5% for FY-2025, which is above its 5-year median of 25.04% indicating increasing margins.

Q.4 Net Profit Margin of Glaxosmithkline Pharmaceuticals Ltd?

Glaxosmithkline Pharmaceuticals Ltd Net Profit Margin is 24.74% for FY-2025, is above its 5-year median of 17.08%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	32.1	25.3
Operating Profit Margin (%)	31.5	25.04
Net Profit Margin (%)	24.74	17.08

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Glaxosmithkline Pharmaceuticals Ltd?

Glaxosmithkline Pharmaceuticals Ltd Return on Asset is 25.15%, which is above its 5-year historical median of 15.76%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Glaxosmithkline Pharmaceuticals Ltd?

Glaxosmithkline Pharmaceuticals Ltd Return on capital employed is 67.64% for FY-2025, which is above its 5-year historical median of 38.06%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of Glaxosmithkline Pharmaceuticals Ltd?

Glaxosmithkline Pharmaceuticals Ltd Return on equity is 49.43% for FY-2025, which is above its 5-year historical median of 27.58%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Glaxosmithkline Pharmaceuticals Ltd?

Glaxosmithkline Pharmaceuticals Ltd Cash conversion cycle is -37 days, below its 5-year historical median of -12 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.12	1.04
ROE (%)	49.43	27.58
ROCE (%)	67.64	38.06
Cash Conversion Cycle	-37 days	-12 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Glaxosmithkline Pharmaceuticals Ltd?

Glaxosmithkline Pharmaceuticals Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.14, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Glaxosmithkline Pharmaceuticals Ltd?

Glaxosmithkline Pharmaceuticals Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Glaxosmithkline Pharmaceuticals Ltd?

Q.1 Promoter shareholding and pledge status of Glaxosmithkline Pharmaceuticals Ltd?

Promoters hold 75.00% of the Glaxosmithkline Pharmaceuticals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Glaxosmithkline Pharmaceuticals Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Glaxosmithkline Pharmaceuticals Ltd vs industry peers?

Glaxosmithkline Pharmaceuticals Ltd revenue CAGR is 3.06%, compared to the industry median CAGR of 9.13%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	8.6	9.1
Gross Profit Growth (%)	28.5	13.2
Operating Profit Growth (%)	29.5	13.2
Net Profit Growth (%)	57.3	14.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.12	0.87
ROE (%)	49.43	18.75
ROCE (%)	67.64	20.47
Cash Conversion Cycle (days)	-36.77	63

Valuation & price assessment

Q.1 Stock return of Glaxosmithkline Pharmaceuticals Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 3.2% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	3.2%	9.7%	21.4%	-23.1%

Q.2 Valuation ratios of Glaxosmithkline Pharmaceuticals Ltd vs historical?

The current P/E ratio of 37.95 is lower than its historical median of 50.81, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	37.95	50.81	31.09
Price to Book	17.34	21.35	2.85
Price to Sales	10.29	10.79	2.82
EV to EBITDA	26.07	30.33	15.99

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Check Before You Invest : Glaxosmithkline Pharmaceuticals Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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