CSL (CSLLY) AI Stock Analysis

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CSL

(OTC:CSLLY)

72Outperform

CSL's robust financial performance and positive earnings call sentiment are key strengths, driven by strong revenue growth and stable profitability. However, technical analysis indicates bearish momentum, signaling caution. Valuation metrics suggest potential overvaluation, which could limit upside potential in the short term. Overall, the stock maintains a positive outlook with some near-term risks.

CSL (CSLLY) vs. S&P 500 (SPY)

Market Cap

$74.82B

Dividend Yield1.65%

Average Volume (3M)15.76K

Price to Earnings (P/E)27.2

Beta (1Y)0.45

Revenue Growth7.60%

EPS Growth9.47%

CountryUS

Employees32,698

SectorHealthcare

Sector Strength66

IndustryBiotechnology

Share Statistics

EPS (TTM)2.84

Shares Outstanding968,424,260

10 Day Avg. Volume21,035

30 Day Avg. Volume15,757

Financial Highlights & Ratios

PEG Ratio2.87

Price to Book (P/B)N/A

Price to Sales (P/S)8.45

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

CSL Business Overview & Revenue Model

Company DescriptionCSL Limited (CSLLY) is a global biotechnology company focused on the development and delivery of innovative medicines that save lives and improve quality of life. The company operates in the biotechnology sector and primarily focuses on developing therapies for people with rare and serious diseases. CSL's core products include plasma-derived therapies and vaccines, with key areas of operation including immunology, hematology, cardiovascular and metabolic, respiratory, and transplant therapeutic areas. With a strong commitment to research and development, CSL has a pipeline of potential new medicines in various stages of clinical trials.

How the Company Makes MoneyCSL Limited generates revenue primarily through the sale of its biopharmaceutical products, which include plasma-derived therapies, vaccines, and specialty pharmaceuticals. The company's key revenue streams include sales from its immunoglobulin and albumin products, as well as its influenza vaccine business. CSL's extensive plasma collection network, the largest in the world, supports the production of these plasma-derived therapies. In addition to product sales, the company may also earn revenue from strategic partnerships and collaborations with other pharmaceutical firms. CSL's strong focus on R&D also aims to sustain future growth by bringing new products to market and expanding the indications for existing therapies.

CSL Financial Statement Overview

Summary

CSL demonstrates strong financial health with impressive revenue growth and stable profitability. The balance sheet is solid, though managing leverage remains crucial. Cash flow generation is robust, supporting future investments. While potential risks exist in the form of increased leverage, CSL's overall financial stability and growth trajectory position it well in the biotechnology industry.

Income Statement

Very Positive

CSL has demonstrated strong revenue growth with a remarkable increase from $5.95B in 2019 to $14.69B in 2024. The gross profit margin has consistently been healthy, maintaining above 50% over the years, while the net profit margin has shown resilience, peaking at 18% in the most recent year. EBIT and EBITDA margins indicate solid operational efficiency. The company's ability to grow revenues and maintain stable margins underscores its competitive positioning in the biotechnology industry.

Balance Sheet

Positive

The balance sheet reflects a robust equity base with stockholders' equity increasing considerably to $17.33B. The debt-to-equity ratio is manageable, though leverage has increased, which may pose some financial risks if earnings do not continue to grow. The equity ratio has shown stability, supporting the company's capacity to leverage its assets effectively. Overall, CSL's balance sheet is strong but could benefit from reduced leverage.

Cash Flow

Very Positive

CSL's cash flow statement reveals a healthy operating cash flow, consistently growing over the years. The free cash flow has also increased, indicating effective capital expenditure management. The operating cash flow to net income ratio suggests that cash generation is well-aligned with reported earnings, improving financial stability. The company is in a solid cash position to support its growth initiatives.

TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Breakdown
Income Statement		Total Revenue
14.98B	14.69B	19.59B	14.47B	10.33B	9.41B
	Gross Profit
7.36B	7.56B	9.47B	7.68B	5.74B	5.28B
	EBIT
1.14B	1.84B	4.36B	3.94B	3.11B	2.76B
	EBITDA
4.98B	4.73B	5.85B	3.46B	2.72B	2.18B
	Net Income Common Stockholders
2.76B	2.64B	3.34B	3.11B	2.39B	2.17B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
730.65M	1.66B	2.33B	15.18B	1.81B	1.19B
	Total Assets
5.60B	38.02B	54.43B	41.22B	18.16B	15.46B
	Total Debt
0.00	12.18B	18.37B	14.04B	5.81B	5.99B
	Net Debt
-728.82M	10.53B	16.04B	-1.13B	4.00B	4.80B
	Total Liabilities
2.22B	18.62B	27.65B	20.02B	9.74B	8.94B
	Stockholders Equity
3.91B	17.33B	23.72B	21.20B	8.38B	6.53B
Cash Flow		Free Cash Flow
1.88B	1.51B	1.35B	1.90B	1.97B	1.16B
	Operating Cash Flow
1.71B	2.76B	3.87B	3.62B	3.65B	2.57B
	Investing Cash Flow
-924.09M	-1.26B	-17.61B	-2.26B	-1.68B	-1.41B
	Financing Cash Flow
-1.43B	-1.28B	677.92M	10.58B	-1.41B	-664.30M

CSL Technical Analysis

Technical Analysis Sentiment

Negative

Last Price76.20

Price Trends

50DMA

79.63

Negative

100DMA

83.46

Negative

200DMA

90.90

Negative

Market Momentum

MACD

-1.29

Negative

RSI

47.09

Neutral

STOCH

78.62

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSLLY, the sentiment is Negative. The current price of 76.2 is below the 20-day moving average (MA) of 77.31, below the 50-day MA of 79.63, and below the 200-day MA of 90.90, indicating a bearish trend. The MACD of -1.29 indicates Negative momentum. The RSI at 47.09 is Neutral, neither overbought nor oversold. The STOCH value of 78.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CSLLY.

CSL Peers Comparison

Overall Rating

UnderperformOutperform

Sector (50)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REGN	78 Outperform	$59.74B	14.33	15.95%	0.16%	8.27%	10.35%
CSLLY	72 Outperform	$74.82B	27.20	15.36%	1.65%	7.60%	9.47%
ARGX	68 Neutral	$35.31B	41.82	17.33%	―	78.01%	―
VRTX	64 Neutral	$124.91B	―	-3.15%	―	11.64%	-114.72%
BNTX	54 Neutral	$23.58B	―	-3.38%	―	-27.64%	-172.62%
ALNY	50 Neutral	$30.51B	―	-414.62%	―	22.97%	38.54%
Sector *	50 Neutral	$5.51B	2.95	-43.70%	2.78%	16.94%	3.59%

* Healthcare Sector Average

Performance Comparison

CSLLY

CSL

76.20

-9.11

-10.68%

ALNY

Alnylam Pharma

234.56

90.15

62.43%

REGN

Regeneron

563.16

-332.51

-37.12%

VRTX

Vertex Pharmaceuticals

489.10

94.82

24.05%

ARGX

Argenx Se

596.20

235.97

65.51%

BNTX

BioNTech SE

98.76

11.95

13.77%

CSL Earnings Call Summary

Earnings Call Date: Feb 11, 2025 | % Change Since: -4.98% | Next Earnings Date: Aug 19, 2025

Earnings Call Sentiment Neutral

The earnings call presented a balanced view of CSL's financial performance. Strong growth in CSL Behring and CSL Vifor, along with successful regulatory milestones, were offset by challenges in CSL Seqirus due to declining vaccination rates and increased competition in Europe. Overall, the call reflects a stable performance with a positive outlook for revenue growth.

Highlights

Strong Revenue Growth

CSL reported revenue of AUD 8.5 billion, up 5% at constant currency with NPATA expected to grow by 10% to 13% for fiscal year 2025.

CSL Behring Performance

The CSL Behring business achieved a strong growth of 10%, driven by a 15% increase in the Ig franchise and a 9% increase in the albumin portfolio, with gross margin up 170 basis points.

CSL Vifor Growth

CSL Vifor's revenue increased by 6%, with FERINJECT showing volume growth of 6% in Europe and solid performance in nephrology segment.

Rika Platform Rollout

The rollout of Rika plasmapheresis machines is well advanced with 220 centers operating and iNomi technology implemented, increasing donor yields by around 10%.

Positive Regulatory Milestones

Garadacimab branded as ANDEMBRY received regulatory approvals in Australia and the UK, with a positive CHMP recommendation in Europe and US FDA acceptance.

Lowlights

CSL Seqirus Revenue Decline

CSL Seqirus experienced a 9% decline in revenue due to a significant drop in influenza immunization rates in the US, particularly in the 18 to 64 age cohort.

KCENTRA Sales Decline

Specialty products saw a decline of 5%, with KCENTRA sales down 20% due to the loss of a substantial contract.

Competitive Pressures in Europe

The presence of generic competition in Europe led to pricing pressures in the iron portfolio, affecting margins despite volume growth.

Increased General and Admin Costs

General and admin costs increased by 27% compared to the prior period, largely due to one-off project costs.

Company Guidance

In the first half of fiscal year 2025, CSL Limited reported solid financial results, reaffirming their guidance for NPATA growth of 10% to 13% for the fiscal year. Revenue increased by 5% at constant currency to AUD 8.5 billion, with NPATA reaching AUD 2.1 billion, up 5%. The net profit after tax was AUD 2 billion, reflecting a 7% increase. The CSL Behring business grew by 10%, driven primarily by a 15% increase in their Ig franchise and a 9% growth in their albumin portfolio, particularly in China. Despite challenges in the U.S. market affecting CSL Seqirus, the company secured several pandemic tenders for avian flu, with most revenue expected in the second half. CSL Vifor also showed a 6% revenue increase, supported by strong performances in iron and nephrology. CSL Behring's gross margin improved by 170 basis points, attributed to efficiency enhancements and the rollout of Rika plasmapheresis machines. The company's annual guidance includes expected revenue growth of 5% to 7% and NPATA between AUD 3.2 billion to AUD 3.3 billion at constant currency, marking a 10% to 13% growth.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.