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I've been keeping an eye on GlaxoSmithKline plc (LON:GSK) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe GSK has a lot to offer. Basically, it is a highly-regarded dividend-paying company with a great track record of performance and a excellent future outlook. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on GlaxoSmithKline here.
Proven track record with reasonable growth potential and pays a dividend
Over the past few years, GSK has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. Not only did GSK outperformed its past performance, its growth also surpassed the Pharmaceuticals industry expansion, which generated a 5.1% earnings growth. This is an notable feat for the company.
GSK rewards its shareholders with attractive dividend yield, higher than the low-risk savings rate, which is what investors want in order to compensate them for the risk of holding a stock. That said, please remember that dividend yields are a function of stock prices and corporate profits, both of which can be volatile.
For GlaxoSmithKline, I've compiled three fundamental aspects you should further examine:
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Valuation: What is GSK worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether GSK is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GSK? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.