GlaxoSmithKline (CAI:BIOC) Net Margin %: 38.75% (As of Sep. 2016)


What is GlaxoSmithKline Net Margin %?

GlaxoSmithKline CAI:BIOC +1.17% Net Margin % is 38.75% as of Sep. 2016.

Net margin is calculated as Net Income divided by its Revenue. GlaxoSmithKline's Net Income for the three months ended in Sep. 2016 was E£104 Mil. GlaxoSmithKline's Revenue for the three months ended in Sep. 2016 was E£268 Mil. Therefore, GlaxoSmithKline's net margin for the quarter that ended in Sep. 2016 was 38.75%.

The historical rank and industry rank for GlaxoSmithKline's Net Margin % or its related term are showing as below:


CAI:BIOC's Net Margin % is not ranked *
in the Drug Manufacturers industry.
Industry Median: 5.69
* Ranked among companies with meaningful Net Margin % only.

GlaxoSmithKline  (CAI:BIOC) Net Margin % Explanation

Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.

But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.

GlaxoSmithKline Net Margin % Related Terms

GlaxoSmithKline Net Margin % Historical Data

* Premium members only.

The historical data trend for GlaxoSmithKline's Net Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

GlaxoSmithKline Net Margin % Chart

GlaxoSmithKline Annual Data
Trend Dec12 Dec13 Dec14 Dec15
Net Margin %
7.86 7.37 6.03 6.77

GlaxoSmithKline Quarterly Data
Dec12 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
Net Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -11.18 69.40 -26.88 12.80 38.75

CAI:BIOC vs PRPH: Net Margin % Comparison

For the Drug Manufacturers - General subindustry, GlaxoSmithKline's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

GlaxoSmithKline Net Margin % vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, GlaxoSmithKline's Net Margin % distribution charts can be found below:

* The bar in red indicates where GlaxoSmithKline's Net Margin % falls into.


GlaxoSmithKline Net Margin % Calculation

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

GlaxoSmithKline's Net Margin for the fiscal year that ended in Dec. 2015 is calculated as

Net Margin=Net Income (A: Dec. 2015 )/Revenue (A: Dec. 2015 )
=69.111/1020.948
=6.77 %

GlaxoSmithKline's Net Margin for the quarter that ended in Sep. 2016 is calculated as

Net Margin=Net Income (Q: Sep. 2016 )/Revenue (Q: Sep. 2016 )
=103.74/267.715
=38.75 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Net Margin % →
What does a Net Margin % of 38.75% mean?
GlaxoSmithKline (CAI:BIOC) has a Net Margin % of 38.75% as of Sep. 2016. Net margin is the ratio of total net income to net sales. View historical data on GlaxoSmithKline and its competitors.
Is GlaxoSmithKline's Net Margin % too high?
GlaxoSmithKline's current Net Margin % is 38.75%. The Drug Manufacturers industry median Net Margin % is 5.69. GlaxoSmithKline's value of 38.75% is 581% above this industry median.
How does GlaxoSmithKline's Net Margin % compare to PRPH?
GlaxoSmithKline's Net Margin % of 38.75% can be compared against companies in the Drug Manufacturers industry. The industry median Net Margin % is 5.69. GlaxoSmithKline's value of 38.75% is 581% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Drug Manufacturers company?
The median Net Margin % among Drug Manufacturers companies is 5.69, based on 953 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. GlaxoSmithKline's current Net Margin % of 38.75% is 581% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on GlaxoSmithKline and its competitors. For the Drug Manufacturers industry, the median Net Margin % is 5.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GlaxoSmithKline's current Net Margin % is 38.75%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GlaxoSmithKline stock overvalued right now?
GlaxoSmithKline (CAI:BIOC) has a current Net Margin % of 38.75%. The current Net Margin % is 38.75% and 581% above the Drug Manufacturers industry median of 5.69. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For GlaxoSmithKline (CAI:BIOC), the current Net Margin % is 38.75% as of Sep. 2016. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

GlaxoSmithKline Business Description

Address Boomerang Building, No 46, Block (J) First Section City Centre, Town Centre, Second floor, Fifth District - New Cairo, Cairo, EGY, 11835
GlaxoSmithKline is a pharmaceutical company. It is focused on developing new medicines in respiratory, HIV, oncology, and immune-inflation. The company is segmented into Commercial Operations and Total Research and development. It generates the majority of its revenue from the Commercial Operations segment.