Stock Analyst Choice

Strong Cash Generator

Invest in GSK Consumer when it reaches a comfortable level. The stock is currently trading at a premium…

As part of our Wealth Creator Series , today we look at GSK Consumer's. This is one of the 39 stocks that were short-listed that passed through our stringent stock screen filters.

GSK Consumer's stock is trading at a premium of around 17 per cent to its 5-year median PE of 24.9. Its dividend payout ratio has averaged around 40 per cent over ten years and it is one of the strongest cash generating companies in the FMCG space with 10-year CAGR of 28.3 per cent. The gap between the current and the median PE has reduced since we had recommended but buy only when these valuations reach a comfortable level.




To read about how we arrived at the list click here. To read about stocks from the Wealth Creator List, click here.





This article was originally published on August 22, 2012.

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