GlaxoSmithKline Stock: A Fifteen Year Review

I like GlaxoSmithKline (GSK) much more than the stock’s fifteen-year track record of earnings and stock price changes would suggest that I should. I scanned a page of my overview notes for GlaxoSmithKline and attached a page to the bottom of this post.

The quick metrics for GlaxoSmithKline aren’t pretty. From 2000 through the first quarter of 2016, the price of the stock has declined from $47 to $43 per share. That negligible change in share price makes sense, because the profits per share generated by a GlaxoSmithKline investment generally remained stagnant. Glaxo earned $2.08 per share in profits back in 2000, and it earns an estimated $2.04 per share now.

The reason why GlaxoSmithKline is because some of its profit generators haven’t held up well in the face of competition. To give an example, look at the asthma medicine Advair. It rose in sales to $9 billion, and earned … Read the rest of this article!