Quick Assessment
I was evaluating Eli Lilly & Co (LLY) when I came across (GSK). I quickly determined that was too rich for my blood and started looking at the numbers of some of their competitors. Of course, there were the usual; (JNJ), (PFE), and (MRK) which are all included in our "Divi-X" Index, but the thing that immediately leapt out at me was 's incredibly low P/E of just around eight when all of it's peers where hovering somewhere around the mid-twenties. I don't know about you, but when I see something like that, my first reaction is a bit of excitement immediately followed by "Ok, what's wrong?"
Delving just a little bit deeper, I notice it's astronomical Debt to Equity ratio of over 300+ when its competitors are trading anywhere in the range of 28 to 80. On the flip side, also has a return on equity of about 180, while its competitors are in the range of 8 to 16. Honestly, these numbers give me great pause but hey, it's Glaxo Smith Klein. Everyone uses products from , so how concerning can the numbers really be?