Is Glaxosmithkline a high quality investment?

Is Glaxosmithkline a high quality investment?

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A company with a high Quality Rank has strong cash-generation, consistent profits, high rates of return on investment, high margins and robust financial health. Quality companies are good at reinvesting at high returns, which allows earnings (and share prices) to compound over time. You can tell them apart by their high returns on capital.

Stockopedia has built its Quality Rank to quickly show investors how well every stock in the market stacks up according to these criteria. Let’s take a look at Glaxosmithkline (LON:GSK)’s Quality Rank.

What Stockopedia’s Quality Rank says about GSK

Glaxosmithkline has a Quality Rank of 61. This means it has above average quality characteristics but is not in the top bucket.

Judging a stock based on quality attributes is a solid way to think about potential investments - but it is not the whole story. Evidence suggests combining factors can lead to more robust returns, so screening for high Quality Rank stocks in conjunction with either the Value Rank or Momentum Rank is a good idea.


What does this mean for potential investors?

Some of the best quality stocks in the market have defensible models that can deliver high levels of shareholder returns over the long term. But there are no guarantees and it's important to do your own research. Indeed, we've identified some areas of concern with GSK that you can find out about here.


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Stockopedia helps individual investors make confident, profitable choices in the stock market. Our StockRank and factor investing toolbox unlocks institutional-quality insights into thousands of global stocks. Voted “Best Investment Research Tools” and “Best Research Service” at the 2021 UK Investor Magazine awards.

GSK's StockRank™

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GSK's StockRank™

With a StockRank of 92, GSK is more attractive than 92% of the 7,586 stocks we cover in Europe, according to our proprietary ranking system.

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