CSL share price: fundamentals revisited before first-half results

We unpack some of CSL’s key fundamentals before the biotech giant reports its first-half results to the market this week.

CSL share price: a bullish year

As CSL's first-half profit results loom – set to be released on 12 February – we take a look at some of the biotech giant’s key fundamentals.

Centrally, when CSL reported their full-year FY19 results last August, the company revealed a strong set of figures and suggested there was more growth still to come.

Maybe it is unsurprising then that since those results were released, the CSL share price has risen around 37%.

Specifically, as part of that release, CSL reported that revenues had risen 11% and that earnings (NPAT) had grown an impressive 17%, to $1,919 million in the 2019 fiscal year.

Earnings per share (EPS) rose in step, climbing 15% – to $4.236 per share.

The company also reported a Final Dividend of US$1.00 per share – taking CSL’s full FY19 payout to US$1.85 per share. When converted to AUD, this represents an 18% increase on a year-over-year basis.

Before noon, the CSL share price traded ~$318 per share.

Do you own CSL shares? You can hedge your downside risk by trading CFDs now.

Will CSL meet, beat or miss its FY20 guidance?

Maybe most importantly, CSL’s earnings release this week will give investors, analysts and market commentators a chance to see how the company is tracking against its previously stated full-year guidance.

Expectations around the company are indeed high, with CSL currently trading at ~52x FY19 earnings – well ahead of the market average.

Elevated valuations aside, Credit Suisse today argued that they believe a guidance upgrade was 'likely'. Here, the investment bank said that 'CSL is the most likely stock in our sector to upgrade guidance,' due to 'its market leading position within the tight IG market where it is able to meet demand and achieve positive mix & pricing growth supports 11% earnings growth in FY20.'

For reference, the company had previously guided for bottom-line growth in the 7-10% range, or earnings (NPAT) of US$2,050 million and US$2,110 million.

Overall, CSL continues to be liked by analysts heading into its half-year results, with eight analysts rating the stock a buy, five a hold and one a sell.

Commenting on the company’s outlook back in August, Paul Perreault, CSL's Managing Director and CEO said:

'Demand for CSL's plasma and recombinant products continues to be strong. We expect to again outpace the market in growing plasma collections and plan to open around 40 new collection centres in FY20.'

Mr Perreault further noted that their Seqirus product, which recorded strong sales in FY19, 'is expected to continue to perform well and deliver in line with prior guidance, benefiting from product differentiation and process improvement.'

CSL currently has a market capitalisation of ~$145 billion.

Practise trading Australian stocks with an IG demo account now.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.