- CSL is one of the largest stocks on the ASX by market cap.
- The company’s status as a premiere pharmaceutical, biotechnology, and life sciences company gives CSL strong tailwinds.
- The company has not missed a dividend payment in a decade.
Given the ageing populations around the world, CSL’s two operating divisions – CSL Behring providing blood plasma treatments for a variety of medical conditions – and Seqirus – a provider of influenza vaccines, the company and its investors can expect strong tailwinds into the future.
On 14 June the company issued a market update, announcing an expected foreign currency headwind for FY 2023 of between USD$230 and $250 million dollars, up substantially from the company’s earlier forecast of a USD$175 million dollar headwind. CSL also provided NPATA (Net Profit after Tax and Amortisation) guidance for FY 2024 12% below analyst expectations.
The day before the announcement CSL shares closed at $308.52. Within two weeks the stock price had fallen to the current $269.32, a 12.7% decline.
CSL was hard hit by COVID related issues from lockdowns to stimulus payments, steering potential plasma donors away from plasma collection centres. Yet the company maintained solid financial performance throughout.
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With a market cap of 239.2 billion dollars, CSL ranks as the third largest company on the ASX by market cap. CSL began paying dividends in 2013 with payments of $1.06 per share, with the FY 2022 payments reaching $3.38 per share. The five year average dividend payment is $2.84 with a five year average yield of 1.07 percent.
An analyst at Medallion Financia Group has a HOLD recommendation on CSL shares, but does note the “share price retreat presents an opportunity to accumulate a quality business.”
As of 27 July a minimum of twelve brokers maintained or added BUY, OUPERFORM, of ADD ratings on CSL
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