Initial Buy Recommendation: 11 July 2022

Current Status: Buy

Notes:

  • 11 July 2022

    • Initial BUY Recommendation made.

  • 18 August 2022

    • Full-year 2022 results:

      • EPS: US$4.81 (down from US$5.22 in FY 2021).

      • Revenue: US$10.6b (up 2.4% from FY 2021).

      • Net income: US$2.25b (down 5.1% from FY 2021).

      • Profit margin: 21% (down from 23% in FY 2021). The decrease in margin was driven by higher expenses.

      • Revenue missed analyst estimates by 1.5%. Earnings per share (EPS) were mostly in line with analyst estimates.

      • Over the next year, revenue is forecast to grow 25%, compared to a 34% growth forecast for the Biotechs industry in Australia.

      • Declared a final dividend of US$1.18 per share. Payment date: 05 October 2022.

OVERVIEW:

  • Exchange: ASX

  • Ticker: CSL

  • Sector: Biotechnology

COMPANY DESCRIPTION:

CSL Limited is an Australian multinational specialty biotechnology company that researches, develops, manufactures, and markets products to treat and prevent serious human medical conditions.

FINANCIAL OVERVIEW:

  • Market Cap - A$138.418 Billion

  • P/E Ratio - 42

  • Dividend Yield - 1.07%

  • Return-On-Equity (5 year avg %) - 10.84

  • Interest Coverage - 20.1

  • Net Income Growth Rate (5 year avg %) - 13.62%

  • Earnings Per Share (5 year avg %) - 13.98%

  • Current Ratio - 2.38

  • Revenue Growth Rate (5 year avg %) - 11.26%

RECOMMENDATION:

  • Buy Range - A$280.99 - A$315.00

  • Profit Target - A$416.53 (approx 42.60% ROI)

  • Stop Loss - A$241.24

  • Risk:Reward - 1:3.5

CHART: