ASX:CSL

Stock Analysis Report

Executive Summary

CSL Limited researches, develops, manufactures, markets, and distributes biopharmaceutical and allied products in Australia, the United States, Germany, the United Kingdom, Switzerland, China, and internationally.


Snowflake Analysis

Outstanding track record with reasonable growth potential.


Similar Companies

Share Price & News

How has CSL's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CSL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.5%

CSL

3.5%

AU Biotechs

0.4%

AU Market


1 Year Return

56.0%

CSL

57.9%

AU Biotechs

19.5%

AU Market

Return vs Industry: CSL underperformed the Australian Biotechs industry which returned 58% over the past year.

Return vs Market: CSL exceeded the Australian Market which returned 19.4% over the past year.


Shareholder returns

CSLIndustryMarket
7 Day3.5%3.5%0.4%
30 Day10.8%10.4%4.4%
90 Day21.3%20.4%5.0%
1 Year57.9%56.0%59.8%57.9%24.9%19.5%
3 Year185.9%175.2%181.6%171.5%38.6%19.9%
5 Year280.0%253.3%257.6%234.2%60.0%24.0%

Price Volatility Vs. Market

How volatile is CSL's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CSL undervalued compared to its fair value and its price relative to the market?

50.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CSL (A$297.74) is trading above our estimate of fair value (A$105.9)

Significantly Below Fair Value: CSL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CSL is poor value based on its PE Ratio (48.5x) compared to the Biotechs industry average (32.9x).

PE vs Market: CSL is poor value based on its PE Ratio (48.5x) compared to the Australian market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: CSL is poor value based on its PEG Ratio (4.5x)


Price to Book Ratio

PB vs Industry: CSL is overvalued based on its PB Ratio (17.7x) compared to the AU Biotechs industry average (3x).


Next Steps

Future Growth

How is CSL forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

10.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSL's forecast earnings growth (10.8% per year) is above the savings rate (1.1%).

Earnings vs Market: CSL's earnings (10.8% per year) are forecast to grow faster than the Australian market (9.6% per year).

High Growth Earnings: CSL's earnings are forecast to grow, but not significantly.

Revenue vs Market: CSL's revenue (8.4% per year) is forecast to grow faster than the Australian market (3.8% per year).

High Growth Revenue: CSL's revenue (8.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CSL's Return on Equity is forecast to be high in 3 years time (31.1%)


Next Steps

Past Performance

How has CSL performed over the past 5 years?

7.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CSL has high quality earnings.

Growing Profit Margin: CSL's current net profit margins (22.5%) are higher than last year (21.8%).


Past Earnings Growth Analysis

Earnings Trend: CSL's earnings have grown by 7.8% per year over the past 5 years.

Accelerating Growth: CSL's earnings growth over the past year (11%) exceeds its 5-year average (7.8% per year).

Earnings vs Industry: CSL earnings growth over the past year (11%) exceeded the Biotechs industry 10.4%.


Return on Equity

High ROE: CSL's Return on Equity (36.5%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CSL's financial position?


Financial Position Analysis

Short Term Liabilities: CSL's short term assets ($5.5B) exceed its short term liabilities ($2.2B).

Long Term Liabilities: CSL's short term assets ($5.5B) exceed its long term liabilities ($4.9B).


Debt to Equity History and Analysis

Debt Level: CSL's debt to equity ratio (88.4%) is considered high.

Reducing Debt: CSL's debt to equity ratio has increased from 59% to 88.4% over the past 5 years.

Debt Coverage: CSL's debt is well covered by operating cash flow (35.4%).

Interest Coverage: CSL's interest payments on its debt are well covered by EBIT (22x coverage).


Balance Sheet

Inventory Level: CSL has a high level of physical assets or inventory.

Debt Coverage by Assets: CSL's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

What is CSL's current dividend yield, its reliability and sustainability?

0.87%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%2.3%markettop25%5.5%industryaverage2.1%forecastin3Years1.2%

Current dividend yield vs market & industry

Notable Dividend: CSL's dividend (0.9%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.34%).

High Dividend: CSL's dividend (0.9%) is low compared to the top 25% of dividend payers in the Australian market (5.47%).


Stability and Growth of Payments

Stable Dividend: CSL is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: CSL is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: CSL is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CSL's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

What is the CEO of CSL's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Paul Perreault (62yo)

6.5yrs

Tenure

US$11,718,242

Compensation

Mr. Paul R. Perreault, BA (Psychology) has been the Chief Executive Officer and Managing Director of CSL Limited since July 1, 2013. Mr. Perreault serves as the Chief Executive Officer and Managing Directo ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD11.72M) is above average for companies of similar size in the Australian market ($USD3.87M).

Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.3yrs

Average Tenure

59yo

Average Age

Experienced Management: CSL's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

3.9yrs

Average Tenure

62yo

Average Age

Experienced Board: CSL's board of directors are considered experienced (3.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellAU$1,977,422,05501 Dec 19
BlackRock, Inc.
EntityCompany
Shares7,118,059
Max PriceAU$279.88
BuyAU$2,545,502,20501 Dec 19
BlackRock, Inc.
EntityCompany
Shares9,040,113
Max PriceAU$283.13

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Robert Cuthbertson (64yo)

    Chief Scientific Officer

    • Tenure: 1.3yrs
    • Compensation: US$2.79m
  • David Lamont (53yo)

    Chief Financial Officer

    • Tenure: 4yrs
    • Compensation: US$3.09m
  • Paul Perreault (62yo)

    MD, CEO & Executive Director

    • Tenure: 6.5yrs
    • Compensation: US$11.72m
  • Greg Boss (58yo)

    Executive VP of Legal & Group General Counsel

    • Compensation: US$2.50m
  • Mark Dehring

    Head of Investor Relations

    • Sharon McHale

      Head of Public Affairs

      • Paul McKenzie (53yo)

        Chief Operating Officer

        • Tenure: 0.6yrs
      • Bill Campbell (60yo)

        Executive VP & Chief Commercial Officer

        • Tenure: 2.3yrs
        • Compensation: US$2.55m
      • Elizabeth Walker (49yo)

        Executive VP & Chief Human Resources Officer

        • Tenure: 2.1yrs
        • Compensation: US$1.45m
      • Bill Mezzanotte (60yo)

        Executive VP and Head of Research & Development

        • Tenure: 1.3yrs
        • Compensation: US$2.41m

      Board Members

      • Megan Clark (60yo)

        Non Executive Director

        • Tenure: 3.9yrs
        • Compensation: US$229.71k
      • Carolyn Hewson (64yo)

        Independent Non-Executive Director

        • Tenure: 0.08yrs
      • Brian McNamee (62yo)

        Independent Chairman

        • Tenure: 1.3yrs
        • Compensation: US$444.35k
      • Bruce Brook (64yo)

        Independent Non-Executive Director

        • Tenure: 8.4yrs
        • Compensation: US$215.92k
      • Robert Cuthbertson (64yo)

        Chief Scientific Officer

        • Tenure: 1.3yrs
        • Compensation: US$2.79m
      • Christine O’Reilly (58yo)

        Independent Non-Executive Director

        • Tenure: 8.9yrs
        • Compensation: US$222.52k
      • Shah Hussain (54yo)

        Independent Non-Executive Director

        • Tenure: 1.9yrs
        • Compensation: US$200.99k
      • Paul Perreault (62yo)

        MD, CEO & Executive Director

        • Tenure: 6.5yrs
        • Compensation: US$11.72m
      • Marie McDonald (63yo)

        Independent Non-Executive Director

        • Tenure: 6.4yrs
        • Compensation: US$202.98k

      Company Information

      CSL Limited's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: CSL Limited
      • Ticker: CSL
      • Exchange: ASX
      • Founded: 1916
      • Industry: Biotechnology
      • Sector: Pharmaceuticals & Biotech
      • Market Cap: AU$141.021b
      • Shares outstanding: 453.88m
      • Website: https://www.csl.com

      Number of Employees


      Location

      • CSL Limited
      • 45 Poplar Road
      • Parkville
      • Victoria
      • 3052
      • Australia

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      CSLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 1994
      CSJDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1994
      CMXH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1994
      CSLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 1994
      CSL NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJun 1994
      CSLL.YOTCPK (Pink Sheets LLC)SPON ADR EACH REPR 0.5 ORDUSUSDOct 2008
      CSJADB (Deutsche Boerse AG)SPON ADR EACH REPR 0.5 ORDDEEUROct 2008

      Biography

      CSL Limited researches, develops, manufactures, markets, and distributes biopharmaceutical and allied products in Australia, the United States, Germany, the United Kingdom, Switzerland, China, and internationally. The company operates through two segments, CSL Behring and Seqirus. The CSL Behring segment offers plasma therapies for the treatment of immunodeficiency, bleeding disorders, hereditary angioedema, Alpha-1 antitrypsin deficiency, and neurological disorders. This segment also conducts research on plasma and non-plasma therapies; and receives license and royalty from the commercialization of intellectual property. The Seqirus segment manufactures and distributes non-plasma biotherapeutic products; and develops influenza vaccines. CSL Limited was founded in 1916 and is headquartered in Parkville, Australia. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/26 10:32
      End of Day Share Price2020/01/24 00:00
      Earnings2019/06/30
      Annual Earnings2019/06/30


      Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.