How to buy GlaxoSmithKline shares | 1616.4p

Here's how you can invest in the British pharmaceutical giant.

Fact checked
GlaxoSmithKline logo

The global stock market has taken a big hit recently due to the ongoing coronavirus pandemic. While the GSK share price has also dropped, investors may see it GlaxoSmithKline shares as a safer long-term bet, especially given its history with developing vaccines. GlaxoSmithKline plc (LON:GSK) is a British pharmaceutical company based in Brentford. It is part of the FTSE 100 and helped developed the world’s first malaria vaccine in 2014.

How to buy shares in GlaxoSmithKline

  1. Choose a platform. If you're a beginner, our share-dealing table below can help you choose.
  2. Open your account. You'll need your ID, bank details and national insurance number.
  3. Confirm your payment details. You'll need to fund your account with a bank transfer, debit card or credit card.
  4. Search the platform for stock code: GSK in this case.
  5. Research GlaxoSmithKline shares. The platform should provide the latest information available.
  6. Buy your GlaxoSmithKline shares. It's that simple.

How has Coronavirus impacted GlaxoSmithKline's share price?

Since the stock market crash in March caused by coronavirus, GlaxoSmithKline's share price has had significant negative movement.

Its last market close was 1617p, which is 2.48% down on its pre-crash value of 1658.2p and 21.74% up on the lowest point reached during the March crash when the shares fell as low as 1328.1874p.

If you had bought £1,000 worth of GlaxoSmithKline shares at the start of February 2020, those shares would have been worth £763.32 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth £897.92.

GlaxoSmithKline share price

Use our graph to track the performance of GSK stocks over time.

GlaxoSmithKline shares at a glance

Information last updated 2020-07-08.
Open1609.2p
High1628p
Low1605.8p
Close1616.4p
Previous close1617p
Change -0.6p
Change % -0.037%
Volume 592,383
Information last updated 2020-08-02.
52-week range1328.1874p - 1857p
50-day moving average 1523.7253p
200-day moving average 1608.7522p
Wall St. target price1644.5p
PE ratio 11.5064
Dividend yield 0.76p (4.97%)
Earnings per share (TTM) 132.7p
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Share dealing platform comparison

Table: sorted by promoted deals first
Data indicated here is updated regularly
Name Product Price per trade Frequent trader rate Platform fees Brand description
Fineco
£2.95
£2.95
Zero platform fee
Fineco Bank is good for share traders and investors looking for a complete platform and wide offer. Your first 50 trades are free with Fineco, until 30/09/2020. T&Cs apply. Capital at risk.
IG
0% commission on US shares, and £3 on UK shares
From £5
£0 - £24 per quarter
IG is good for experienced traders, and offers learning resources for beginners, all with wide access to shares, ETFs and funds. Capital at risk.
Hargreaves Lansdown Fund and Share Account
£11.95
£5.95
No fees
Hargreaves Lansdown is the UK's number one platform for private investors, with the depth of features you'd expect from an established platform. Capital at risk.
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0% commission, no markup, no ticket fee, no management fee
N/A
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Interactive Investor
From £7.99 on the Investor Service Plan
From £7.99 on the Investor Service Plan
No transfer fees or exit fees. £9.99 a month on the Investor Service Plan
Capital at risk.
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Data indicated here is updated regularly
Name Product Minimum deposit Maximum annual fee Price per trade Brand description
Hargreaves Lansdown stocks and shares ISA
£100
0.45%
£11.95
Hargreaves Lansdown is the UK's biggest wealth manager. It's got everything you'll need, from beginners to experienced investors. Capital at risk.
Interactive Investor stocks and shares ISA
£100 or £25 a month
£119.88
£7.99
Interactive Investor offers everything most investors need. Its flat fees makes it pricey for small portfolios, but cheap for big ones. Capital at risk.
Saxo Markets stocks and shares ISA
No minimum deposit requirement
0.12%
£8.00
Saxo Markets offers a wide access to a range of stocks, ETFs and funds. Capital at risk.
AJ Bell stocks and shares ISA
£500
0.25%
£9.95
AJ Bell is a good all-rounder for people who to choose between shares, funds, ISAs and pensions. Capital at risk.
Fidelity stocks and shares ISA
£1000 or a regular savings plan from £50
0.35%
£10.00
Fidelity is another good all-rounder, offering a good package at a decent price. Not suited for trading shares. Capital at risk.
Nutmeg stocks and shares ISA
£100
0.75%
£0
Nutmeg offers three types of portfolios. Choose the one that goes with your investment style. Capital at risk.
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Data indicated here is updated regularly
Name Product Minimum investment Choose from Annual fee Brand description
PensionBee Pension
No minimum
7 funds
0.5% - 0.95%
Pension Bee is a newbie in the pension market. It helps consolidate your pension plans into one place. Capital at risk.
Hargreaves Lansdown Pension
£100
2,500 funds
0-0.45%
Hargreaves Lansdown is the UK's biggest wealth manager. It's got three different retirement options. Capital at risk.
Interactive Investor Pension
£25/month
Over 2,500 funds
£10/month
interactive investor is a flat-fee platform, which makes it cost effective for larger portfolios. Capital at risk.
Saxo Markets Pension
Saxo Markets Pension
£10
Over 11,000 funds
No annual fee
Saxo Markets gives flexibility and control over your investment strategy. Capital at risk.
AJ Bell Pension
£1,000
Over 2,000 funds
0.05-0.25%
AJ Bell has two different pension options, a self managed pension and one that is managed for you. Capital at risk.
Moneybox Pension
£1
3 funds
0.15% - 0.45% charged monthly
Manage your money with an easy-to-use Moneybox app. Capital at risk.
Moneyfarm Pension
Moneyfarm Pension
0.35%-0.75%
7 funds
£1,500 (initial investment)
Moneyfarm has pensions that are matched against your risk appetite, goals and planned retirement date. Capital at risk.
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All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Capital is at risk.

Is it a good time to buy GlaxoSmithKline stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

GlaxoSmithKline price performance over time

Historical closes compared with the last close of 1616.4p

1 week (2020-08-03) N/A
1 month (2020-07-10) 2.63%
3 months (2020-05-14) -1.55%
6 months (2020-02-10) N/A
1 year (2019-08-10) N/A
2 years (2018-08-10) N/A
3 years (2017-08-10) N/A
5 years (2015-08-10) N/A

Is GlaxoSmithKline under- or over-valued?

Valuing GlaxoSmithKline stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of GlaxoSmithKline's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

GlaxoSmithKline's P/E ratio

GlaxoSmithKline's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 12x. In other words, GlaxoSmithKline shares trade at around 12x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the FTSE 250 at the end of September 2019 (19.71). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

However, GlaxoSmithKline's P/E ratio is best considered in relation to those of others within the drug manufacturers—general industry or those of similar companies.

GlaxoSmithKline's PEG ratio

GlaxoSmithKline's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 6.7688. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into GlaxoSmithKline's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

However, it's sensible to consider GlaxoSmithKline's PEG ratio in relation to those of similar companies.

GlaxoSmithKline's EBITDA

GlaxoSmithKline's EBITDA (earnings before interest, taxes, depreciation and amortisation) is £9.1 billion.

The EBITDA is a measure of a GlaxoSmithKline's overall financial performance and is widely used to measure a its profitability.

To put GlaxoSmithKline's EBITDA into context you can compare it against that of similar companies.

GlaxoSmithKline financials

Revenue TTM £35 billion
Operating margin TTM 25.01%
Gross profit TTM £23 billion
Return on assets TTM 7.38%
Return on equity TTM 63.64%
Profit margin 19.08%
Book value 2.731p
Market capitalisation £76.8 billion

TTM: trailing 12 months

GlaxoSmithKline's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like GlaxoSmithKline.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

GlaxoSmithKline's total ESG risk score

Total ESG risk: 28.93

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and GlaxoSmithKline's overall score of 28.93 (as at 07/01/2020) is nothing to write home about – landing it in it in the 41st percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like GlaxoSmithKline is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

To gain some more context, you can compare GlaxoSmithKline's total ESG risk score against those of similar companies.

GlaxoSmithKline's environmental score

Environmental score: 3.49/100

GlaxoSmithKline's environmental score of 3.49 puts it squarely in the 6th percentile of companies rated in the same sector. This could suggest that GlaxoSmithKline is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

GlaxoSmithKline's social score

Social score: 15.58/100

GlaxoSmithKline's social score of 15.58 puts it squarely in the 6th percentile of companies rated in the same sector. This could suggest that GlaxoSmithKline is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

GlaxoSmithKline's governance score

Governance score: 11.37/100

GlaxoSmithKline's governance score puts it squarely in the 6th percentile of companies rated in the same sector. That could suggest that GlaxoSmithKline is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

GlaxoSmithKline's controversy score

Controversy score: 3/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. GlaxoSmithKline scored a 3 out of 5 for controversy – a middle-of-the-table result reflecting that GlaxoSmithKline hasn't always managed to keep its nose clean.

Wondering how that compares? Below are the controversy scores of similar companies.

Environmental, social, and governance (ESG) summary

GlaxoSmithKline plc was last rated for ESG on: 2020-07-01.

Total ESG score 28.93
Total ESG percentile 40.84
Environmental score 3.49
Environmental score percentile 6
Social score 15.58
Social score percentile 6
Governance score 11.37
Governance score percentile 6
Level of controversy 3

GlaxoSmithKline share dividends

60%

Dividend payout ratio: 60.2% of net profits

Recently GlaxoSmithKline has paid out, on average, around 60.2% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 4.97% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), GlaxoSmithKline shareholders could enjoy a 4.97% return on their shares, in the form of dividend payments. In GlaxoSmithKline's case, that would currently equate to about 0.76p per share.

GlaxoSmithKline's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

The latest dividend was paid out to all shareholders who bought their shares by 13 August 2020 (the "ex-dividend date").

GlaxoSmithKline's dividend payout ratio is perhaps best considered in relation to those of similar companies.

Have GlaxoSmithKline's shares ever split?

GlaxoSmithKline's shares were split on a 2:1 basis on 28 October 1991. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your GlaxoSmithKline shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for GlaxoSmithKline shares which in turn could have impacted GlaxoSmithKline's share price.

GlaxoSmithKline share price volatility

Over the last 12 months, GlaxoSmithKline's shares have ranged in value from as little as 1328.1874p up to 1857p. A popular way to gauge a stock's volatility is its "beta".

Beta is a measure of a share's volatility in relation to the market. The market (LSE average) beta is 1, while GlaxoSmithKline's is 0.4238. This would suggest that GlaxoSmithKline's shares are less volatile than average (for this exchange).

To put GlaxoSmithKline's beta into context you can compare it against those of similar companies.

GlaxoSmithKline overview

GlaxoSmithKline plc engages in the creation, discovery, development, manufacture, and marketing of pharmaceutical products, vaccines, over-the-counter medicines, and health-related consumer products in the United Kingdom, the United States, and internationally. It operates through four segments: Pharmaceuticals, Pharmaceuticals R&D, Vaccines, and Consumer Healthcare. The company offers pharmaceutical products comprising medicines in the therapeutic areas, such as respiratory, HIV, immuno-inflammation, oncology, anti-viral, central nervous system, cardiovascular and urogenital, metabolic, anti-bacterial, and dermatology. It also provides consumer healthcare products in wellness, oral health, nutrition, and skin health categories. The company offers its consumer healthcare products in the form of nasal sprays, tablets, syrups, lozenges, gum and trans-dermal patches, caplets, infant syrup drops, liquid filled suspension, wipes, gels, effervescents, toothpastes, toothbrushes, mouthwashes, denture adhesives and cleansers, topical creams and non-medicated patches, lip balm, gummies, and soft chews. It has collaboration agreements with 23andMe; Merck KGaA; Lyell Immunopharma; CEPI; Innovax and Xiamen University; VBI; Viome; Sanofi SA; CureVac; and research collaboration with Sengenics focusing on immunology. GlaxoSmithKline plc was founded in 1715 and is headquartered in Brentford, the United Kingdom.

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