DB:CSJ

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 excellent balance sheet and pays a dividend.


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: CSJ has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.3%

CSJ

0.4%

DE Biotechs

-0.9%

DE Market


1 Year Return

75.3%

CSJ

10.0%

DE Biotechs

12.8%

DE Market

Return vs Industry: CSJ exceeded the German Biotechs industry which returned 10% over the past year.

Return vs Market: CSJ exceeded the German Market which returned 12.8% over the past year.


Shareholder returns

CSJIndustryMarket
7 Day-1.3%0.4%-0.9%
30 Day5.9%-3.2%-0.4%
90 Day20.2%4.6%2.3%
1 Year77.5%75.3%10.3%10.0%16.3%12.8%
3 Year148.0%138.7%49.4%47.8%15.8%5.7%
5 Year247.0%221.4%13.9%11.5%19.7%3.3%

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

No news available

Valuation

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

50.45x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CSJ (€204.05) is trading above our estimate of fair value (€172.81)

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


Price To Earnings Ratio

PE vs Industry: CSJ is poor value based on its PE Ratio (50.4x) compared to the Biotechs industry average (39.8x).

PE vs Market: CSJ is poor value based on its PE Ratio (50.4x) compared to the German market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: CSJ is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: CSJ is overvalued based on its PB Ratio (16.7x) compared to the DE Biotechs industry average (3.5x).


Next Steps

Future Growth

How is CSL forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

15.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSJ's forecast earnings growth (15.1% per year) is above the savings rate (-0.4%).

Earnings vs Market: CSJ's earnings (15.1% per year) are forecast to grow faster than the German market (13% per year).

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

Revenue vs Market: CSJ's revenue (10.5% per year) is forecast to grow faster than the German market (5.2% per year).

High Growth Revenue: CSJ's revenue (10.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CSJ's Return on Equity is forecast to be high in 3 years time (32.4%)


Next Steps

Past Performance

How has CSL performed over the past 5 years?

9.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CSJ has high quality earnings.

Growing Profit Margin: CSJ's current net profit margins (22.4%) are higher than last year (21.8%).


Past Earnings Growth Analysis

Earnings Trend: CSJ's earnings have grown by 9.4% per year over the past 5 years.

Accelerating Growth: CSJ's earnings growth over the past year (11.2%) exceeds its 5-year average (9.4% per year).

Earnings vs Industry: CSJ earnings growth over the past year (11.2%) exceeded the Biotechs industry -4.7%.


Return on Equity

High ROE: CSJ's Return on Equity (33%) 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: CSJ's short term assets ($5.9B) exceed its short term liabilities ($2.7B).

Long Term Liabilities: CSJ's short term assets ($5.9B) exceed its long term liabilities ($5.3B).


Debt to Equity History and Analysis

Debt Level: CSJ's debt to equity ratio (75.4%) is considered high.

Reducing Debt: CSJ's debt to equity ratio has reduced from 76.9% to 75.4% over the past 5 years.

Debt Coverage: CSJ's debt is well covered by operating cash flow (51.4%).

Interest Coverage: CSJ's interest payments on its debt are well covered by EBIT (20x coverage).


Balance Sheet

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

Debt Coverage by Assets: CSJ's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

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

0.83%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 24 2020Ex Dividend DateMar 11 2020Dividend Pay DateApr 09 202029 days from Ex DividendBuy in the next 15 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: CSJ's dividend (0.83%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: CSJ's dividend (0.83%) is low compared to the top 25% of dividend payers in the German market (3.63%).


Stability and Growth of Payments

Stable Dividend: CSJ's dividends per share have been stable in the past 10 years.

Growing Dividend: CSJ's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.1%), CSJ's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CSJ's dividends in 3 years are forecast to be well covered by earnings (47.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Paul Perreault (62yo)

6.6yrs

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 ($USD11.72M) is above average for companies of similar size in the German market ($USD4.38M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Paul Perreault
MD, CEO & Executive Director6.6yrsUS$11.72m0.028% $26.2m
David Lamont
Chief Financial Officer4.1yrsUS$3.09m0.0032% $3.0m
Robert Cuthbertson
Chief Scientific Officer1.3yrsUS$2.79m0.020% $18.3m
Gregory Boss
Executive VP of Legal & Group General Counsel0yrsUS$2.50m0.0016% $1.5m
Elizabeth Walker
Executive VP & Chief Human Resources Officer2.2yrsUS$1.45m0.00013% $121.2k
William Campbell
Executive VP & Chief Commercial Officer2.4yrsUS$2.55m0.00017% $158.6k
William Mezzanotte
Executive VP and Head of Research & Development1.3yrsUS$2.41m0.00012% $111.9k
Paul McKenzie
Chief Operating Officer0.7yrsno datano data
Mark Dehring
Head of Investor Relations0yrsno datano data
Sharon McHale
Head of Public Affairs0yrsno datano data

2.4yrs

Average Tenure

59yo

Average Age

Experienced Management: CSJ's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Perreault
MD, CEO & Executive Director6.6yrsUS$11.72m0.028% $26.2m
Robert Cuthbertson
Chief Scientific Officer1.3yrsUS$2.79m0.020% $18.3m
Megan Clark
Non Executive Director4yrsUS$229.71k0.00067% $624.9k
Carolyn Hewson
Independent Non-Executive Director0.2yrsno datano data
Brian McNamee
Independent Chairman1.3yrsUS$444.35k0.039% $36.7m
Bruce Brook
Independent Non-Executive Director8.5yrsUS$215.92k0.0012% $1.1m
Christine O'Reilly
Independent Non-Executive Director9yrsUS$222.52k0.00081% $755.5k
Shah Hussain
Independent Non-Executive Director2yrsUS$200.99k0.000010% $9.3k
Marie McDonald
Independent Non-Executive Director6.5yrsUS$202.98k0.00031% $289.1k

4.0yrs

Average Tenure

62yo

Average Age

Experienced Board: CSJ's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: CSL Limited
  • Ticker: CSJ
  • Exchange: DB
  • Founded: 1916
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: AU$152.686b
  • Listing Market Cap: AU$93.267b
  • 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 Analysis2020/02/23 20:51
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
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.