GlaxoSmithKline plc
LSE:
GSK
-
GBX
DRUG MANUFACTURERS-GENERAL
p1,418.00
+p11.60
(+0.82%)
How to buy GlaxoSmithKline (GSK) shares
Here's how you can invest in the British pharmaceutical giant.
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
- Choose a platform. If you're a beginner, our share-dealing table below can help you choose.
- Open your account. You'll need your ID, bank details and national insurance number.
- Confirm your payment details. You'll need to fund your account with a bank transfer, debit card or credit card.
- Search the platform for stock code: GSK in this case.
- Research GlaxoSmithKline shares. The platform should provide the latest information available.
- Buy your GlaxoSmithKline shares. It's that simple.
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What's in this guide?
- Can I buy shares in GlaxoSmithKline?
- Has coronavirus impacted GlaxoSmithKline shares?
- GlaxoSmithKline shares summary
- Compare share dealing platforms
- Is GlaxoSmithKline stock a buy or sell?
- Performance over time
- Is GlaxoSmithKline suitable for ethical investing?
- Are GlaxoSmithKline shares over-valued?
- Financials
- How volatile are GlaxoSmithKline shares?
- Does GlaxoSmithKline pay a dividend?
- Have GlaxoSmithKline shares ever split?
- Other common questions
How has coronavirus impacted GlaxoSmithKline's share price?
Since the stock market crash that started in February 2020, GlaxoSmithKline's share price has had significant negative movement.
Its last market close was 1337.8p, which is 19.32% down on its pre-crash value of 1658.2p and 0.72% up on the lowest point reached during the March 2020 crash when the shares fell as low as 1328.187p.
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 £742.88.
GlaxoSmithKline share price (LSE:GSK)
Use our graph to track the performance of GSK stocks over time.GlaxoSmithKline shares at a glance
Information last updated 2021-07-09.
| Open | 1431.8p |
|---|---|
| High | 1440.4p |
| Low | 1425p |
| Close | 1435.2p |
| Previous close | 1426p |
| Change | 9.2p |
| Change % | 0.6452% |
| Volume | 6,339,425 |
Information last updated 2021-07-30.
| 52-week range | 1190.6345p - 1618.2828p |
|---|---|
| 50-day moving average | 1419.6458p |
| 200-day moving average | 1341.4167p |
| Wall St. target price | 1644.5p |
| PE ratio | 16.2488 |
| Dividend yield | 80p (5.69%) |
| Earnings per share (TTM) | 86.8p |
Invest in GlaxoSmithKline shares with 0% commission
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Capital at risk
Fees for buying 20x GlaxoSmithKline shares with popular platforms
Share prices fluctuate in real time, so the costs presented here should be considered as a guide only. They do not incorporate stamp duty. Always refer to the platform itself for availability and pricing – which may differ from our information.
| Platform | Platform fee | Min. initial deposit | Trading fee estimate | |
|---|---|---|---|---|
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£0 | $200 | £0.00 £287.04 total |
Capital at risk |
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£0 | No minimum | £0.00 £287.04 total |
Capital at risk |
 |
£0 | £0.01 | £1.79 £288.83 total |
Capital at risk |
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£0 | £1 | £11.95 £298.99 total |
Capital at risk |
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£9.99 per month | No minimum | £7.99 £295.03 total |
Capital at risk |
 |
£0 | No minimum | £0.00 £287.04 total |
Capital at risk |
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£36 per year | £20 | £9.50 £296.54 total |
Capital at risk |
Full comparison of share dealing platforms
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. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital 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 1435.2p
| 1 month (2021-06-30) | 1.11% |
|---|---|
| 3 months (2021-04-30) | 7.14% |
Is GlaxoSmithKline under- or over-valued?
Valuing a stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of overall performance. However, analysts commonly use some key metrics to help gauge value.
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 16x. In other words, GlaxoSmithKline shares trade at around 16x 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.
- Pfizer (PFE.US): 21.68
- Gilead Sciences (GILD.US): 290.96
- Johnson-and-Johnson (JNJ.US): 25.88
- Abbott Laboratories (ABT.US): 34.11
- IDEXX Laboratories (IDXX.US): 90.61
- AstraZeneca (AZN.LSE): 37.76
PEG ratio
GlaxoSmithKline's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 4.2464. Higher PEG ratios such as this can be interpreted as meaning the shares offer worse value given the current rate of growth.
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.
- Pfizer (PFE.US): 1.97
- Gilead Sciences (GILD.US): 0.49
- Johnson-and-Johnson (JNJ.US): 1.90
- Abbott Laboratories (ABT.US): 2.99
- IDEXX Laboratories (IDXX.US): 7.10
- AstraZeneca (AZN.LSE): 1.45
EBITDA
GlaxoSmithKline's EBITDA (earnings before interest, taxes, depreciation and amortisation) is a whopping £10.7 billion.
The EBITDA is a measure of a GlaxoSmithKline's overall financial performance and is widely used to measure a its profitability.
To put that into context you can compare it against similar companies.
- Pfizer (PFE.US): USD$16.8 billion
- Gilead Sciences (GILD.US): USD$13.3 billion
- Johnson-and-Johnson (JNJ.US): USD$30.6 billion
- Abbott Laboratories (ABT.US): USD$11.6 billion
- IDEXX Laboratories (IDXX.US): USD$895.7 million
- AstraZeneca (AZN.LSE): £6.7 billion
Financials
| Revenue TTM | £32.9 billion |
|---|---|
| Operating margin TTM | 24.85% |
| Gross profit TTM | £23.2 billion |
| Return on assets TTM | 6.32% |
| Return on equity TTM | 24.29% |
| Profit margin | 13.34% |
| Book value | 3.072p |
| Market capitalisation | £71 billion |
TTM: trailing 12 months
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.
Total ESG risk score
GlaxoSmithKline's total ESG risk: 28.51
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and GlaxoSmithKline's overall score of 28.51 (as at 12/31/2018) is pretty good – landing it in it in the 35th 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.
- Pfizer (PFE.US): 33.15
- Gilead Sciences (GILD.US): 22.15
- Johnson-and-Johnson (JNJ.US): 35.80
- Abbott Laboratories (ABT.US): 32.35
- IDEXX Laboratories (IDXX.US): 29.79
- AstraZeneca (AZN.LSE): 28.52
Environmental score
GlaxoSmithKline's environmental score: 3.88/100
GlaxoSmithKline's environmental score of 3.88 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.
Social score
GlaxoSmithKline's social score: 16.94/100
GlaxoSmithKline's social score of 16.94 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.
Governance score
GlaxoSmithKline's governance score: 9.69/100
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.
Controversy score
GlaxoSmithKline's controversy score: 3/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. A high-profile company, 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.
- Pfizer (PFE.US): 3
- Gilead Sciences (GILD.US): 2
- Johnson-and-Johnson (JNJ.US): 4
- Abbott Laboratories (ABT.US): 3
- AstraZeneca (AZN.LSE): 3
Environmental, social, and governance (ESG) summary
GlaxoSmithKline plc was last rated for ESG on: 2019-01-01.
| Total ESG score | 28.51 |
|---|---|
| Total ESG percentile | 34.54 |
| Environmental score | 3.88 |
| Environmental score percentile | 6 |
| Social score | 16.94 |
| Social score percentile | 6 |
| Governance score | 9.69 |
| Governance score percentile | 6 |
| Level of controversy | 3 |
GlaxoSmithKline share dividends
Dividend yield: 5.69% of stock value
Forward annual dividend yield: 5.69% of stock value
Dividend payout ratio: 97.8% of net profits
GlaxoSmithKline has recently paid out dividends equivalent to 5.69% of its share value annually.
GlaxoSmithKline has paid out, on average, around 97.8% of recent net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 5.69% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), shareholders could enjoy a 5.69% return on their shares, in the form of dividend payments. In GlaxoSmithKline's case, that would currently equate to about 80p 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 18 August 2021 (the "ex-dividend date").
GlaxoSmithKline's dividend yield is perhaps best considered in relation to those of similar companies.
- Pfizer (PFE.US): 3.55% (3.59% forward annual dividend yield)
- Gilead Sciences (GILD.US): 3.93% (4.05% forward annual dividend yield)
- Johnson-and-Johnson (JNJ.US): 2.38% (2.46% forward annual dividend yield)
- Abbott Laboratories (ABT.US): 1.42% (1.5% forward annual dividend yield)
- IDEXX Laboratories (IDXX.US): 0.00% (does not pay dividend)
- AstraZeneca (AZN.LSE): 3.39% (2.5% forward annual dividend yield)
Have GlaxoSmithKline's shares ever split?
GlaxoSmithKline's shares were split on a 2:1 basis on 27 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.
Share price volatility
Over the last 12 months, GlaxoSmithKline's shares have ranged in value from as little as 1190.6345p up to 1618.2828p. 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 0.3983. 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.
- Pfizer (PFE.US): 0.6763
- Gilead Sciences (GILD.US): 0.3955
- Johnson-and-Johnson (JNJ.US): 0.7111
- Abbott Laboratories (ABT.US): 0.6752
- IDEXX Laboratories (IDXX.US): 0.8983
- AstraZeneca (AZN.LSE): 0.242
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