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CSL Limited (CSLLY)
OTHER OTC:CSLLY
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CSL
(OTC:CSLLY)
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Rating:76Outperform
Price Target:
$28.00
▼(-52.08% Downside)
Action:ReiteratedDate:02/11/26
The score is driven primarily by strong financial performance (profitability and cash flow) and supportive technical momentum. This is tempered by a mixed earnings call with meaningful near-term headwinds and only moderate valuation support.
Positive Factors
Strong cash generation
CSL's recent free cash flow surge and solid cash‑to‑earnings conversion provide durable funding for R&D, capacity expansion, and shareholder returns. Strong cash conversion reduces refinancing risk and supports continued investment in plasma collection and manufacturing over the next several quarters.
High and resilient margins
Healthy gross and operating margins reflect structural pricing power and manufacturing scale in plasma‑derived therapies and vaccines. These margins underpin durable profitability, enabling reinvestment and buffering near‑term revenue swings from seasonality or product cycles.
Diversified specialty portfolio and successful launches
CSL's mix of established plasma franchises, vaccine differentiation (cell‑based/adjuvanted), and growing specialty products provides multiple, partially uncorrelated growth engines. Successful launches and Vifor outperformance support revenue resilience even as some legacy products face pressure.
Negative Factors
Large noncash impairments
Significant impairment charges indicate asset write‑downs and signal lower recoverable values for some programs or products. These reduce reported earnings, can constrain regulatory or financing flexibility, and create earnings volatility that may persist while remediation and portfolio reprioritization proceed.
Ig franchise & Medicare Part D headwinds
Adverse reimbursement and tender dynamics in immunoglobulin weaken a core recurring revenue stream. Durable policy shifts and lost contracts can depress volumes and mix for multiple quarters, making recovery dependent on contract wins, pricing flexibility, and sustained demand growth.
Generics, policy and LOE risks in key franchises
Competitive entry and reimbursement expiries create structural revenue downside for iron and nephrology products. Expected generic pressure and program expirations (TDAPA/LOE) will compress growth and margins in affected franchises, requiring new product uptake to offset losses.
CSL (CSLLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$48.33B
Dividend Yield2.33%
Average Volume (3M)1.91K
Price to Earnings (P/E)69.3
Beta (1Y)0.44
Revenue Growth5.08%
EPS Growth13.41%
CountryUS
Employees32,698
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)0.21
Shares Outstanding1,941,275,900
10 Day Avg. Volume0
30 Day Avg. Volume1,912
Financial Highlights & Ratios
PEG Ratio3.83
Price to Book (P/B)7.93
Price to Sales (P/S)9.94
P/FCF Ratio60.28
Enterprise Value/Market Cap1.23
Enterprise Value/Revenue3.82
Enterprise Value/Gross Profit7.86
Enterprise Value/Ebitda11.67
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
CSL Business Overview & Revenue Model
Company DescriptionCSL 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, such as plasma products and recombinants 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 related products. CSL Limited was founded in 1916 and is headquartered in Parkville, Australia.
How the Company Makes MoneyCSL makes money primarily by selling biopharmaceutical products and related services through its operating businesses. A major revenue stream is plasma-derived therapies: via its plasma collection network, the company collects human plasma, fractionates it into plasma proteins, and manufactures finished medicines (such as immunoglobulins and albumin) that are sold to healthcare systems and providers. Another key stream is vaccines, where CSL supplies influenza vaccines to public-sector and private customers; revenue in this area is driven by seasonal vaccine demand and procurement programs. CSL also earns revenue from other specialized products in its broader portfolio (including therapeutics in areas such as hematology and cardiovascular/renal care) sold through standard pharmaceutical commercialization channels. Across these businesses, earnings are influenced by factors such as plasma collection volumes, manufacturing yields and capacity, product pricing and reimbursement dynamics, and the mix of sales across geographies and customer types (e.g., government tenders vs. private markets). Specific partnership terms or customer contract details: null.
CSL Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 18, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: solid cash generation, strong specialty product launches (HEMGENIX, ANDEMBRY), Seqirus market-share gains and meaningful progress on a large transformation program were balanced against meaningful near-term headwinds — including revenue declines, large noncash impairments (~$1.1bn), product and market-specific pressures (Ig Medicare Part D impact, albumin policy impact in China, iron generics, and impending reimbursement changes for Velphoro). Management maintained guidance, expanded capital returns, and outlined concrete remediation actions, but several challenges will weigh on reported earnings in the near term.Q2-2026 Updates
Positive Updates
Strong cash generation and capital returns
Operating cash flow of $1.3 billion in H1; leverage reduced to ~2x; expanded share buyback program from $500 million to $750 million after repurchasing ~USD 400 million in the half; interim dividend maintained at USD 1.30.
Underlying profitability (before one-offs)
NPATA before restructuring and impairments was $1.9 billion, down 7% on a constant currency basis, showing resilient underlying earnings excluding significant noncash items.
Seqirus: market share growth and differentiation
Seqirus revenue down only 2% despite a tough seasonal market; continued year-on-year revenue growth in differentiated cell-based (FLUCELVAX) and adjuvanted (FLUAD) vaccines and opening of the Tullamarine cell-based facility to expand differentiated vaccine and pandemic capabilities.
Vifor / Nephrology outperformance
CSL Vifor revenue up 12% (constant currency) and operating result up 22%, driven by strong nephrology demand (Velphoro, Mircera, Tavneos, FILSPARI) and inclusion of Velphoro in the U.S. TDAPA scheme.
Successful launches & specialty product growth
HEMGENIX sales grew 16% backed by positive 5-year NEJM data; ANDEMBRY launch strong with >1,000 hereditary angioedema (HAE) patients on therapy within a year, positioning it to become a leading HAE prophylaxis medicine.
Progress on transformation and cost reduction
Transformation program progressing: targeted FY'26 cost savings $100 million with 60% achieved by H1; R&D expense down 8% to $600 million; G&A down 2%; targeting up to $550 million annual savings by FY'28 and simplifying organization to drive P&L leverage.
Operational efficiencies and margin discipline
Group gross profit $4.6 billion (down 3%) and group operating result $3.8 billion (down 4%); Behring gross margin improved ~10 basis points reflecting collection/manufacturing efficiencies and product mix benefits.
Maintained full-year guidance
Management maintained FY'26 guidance and articulated a clear second-half plan (double-digit second-half Ig growth anticipated, albumin stabilization in China, continued momentum from HEMGENIX/ANDEMBRY).
Negative Updates
Group revenue and reported earnings decline
Group revenue of $8.3 billion was down 4% (constant currency) and NPATA fell 7%; reported net profit after tax declined 81% after one-off restructuring and impairment charges.
Large noncash impairments and one-off costs
Total after-tax impairments of ~ $1.1 billion in FY'26 (approximately $1.05 billion in H1) including write-downs on self-amplifying mRNA licence, Venofer (iron sucrose) impairment following U.S. generics, and plant/asset redundancies; additional ~ $70 million post-tax Velphoro impairment expected in H2.
Ig franchise faced headwinds in H1
PRIVIGEN and HIZENTRA sales declined versus a strong prior comparable period, with adverse impacts from U.S. Medicare Part D reforms and lost international contracts; group Ig revenue only +3% versus trailing 6 months and management calls for a 'show-me' recovery despite investments.
Albumin weakness in China due to policy
Albumin sales in China materially disrupted by government policy enforcement and cost controls; management expects a modest FY'26 decline with a recovery into FY'27 after commercial mitigations (expanded hospital footprint and Baheal retail partnership).
Iron franchise and Venofer deterioration
Iron business declined due to generic competition; Venofer impairment follows three U.S. generic entrants; management expects continuing iron declines and notes Injectafer loss of exclusivity impacting FY'27.
Velphoro reimbursement tailwind is temporary
Velphoro growth benefited from TDAPA inclusion in the U.S., but TDAPA designation rolls off December 2026, creating an anticipated significant drop in Velphoro revenues thereafter and pressure on nephrology growth in FY'27.
KCENTRA and perioperative bleeding pressures
KCENTRA facing price competition from a lower-priced entrant leading to revenue decline and price pressure; recovery expected to take several years and to depend on label expansions (DOAC reversal, cardiac surgery) in coming years.
Reported earnings volatility from restructuring
One-off restructuring costs ($700–$770 million guidance) and transition to NPAT as core metric from FY'27 create near-term earnings volatility and lower reported NPAT in FY'26.
Company Guidance
CSL confirmed it is maintaining full‑year guidance while outlining the key drivers and metrics: H1 group revenue US$8.3bn (‑4% cc), gross profit US$4.6bn (‑3%), group operating result US$3.8bn (‑4%), NPATA before restructuring and impairments US$1.9bn (‑7%) and reported NPAT down 81% after ~US$1.05bn of H1 impairments (total FY26 after‑tax impairments ~US$1.1bn with ~US$70m H2 expected); operating cash flow was US$1.3bn and an interim dividend of US$1.30 was declared; balance sheet leverage ~2x at Dec‑2025 after ~US$400m of buybacks and the buyback program expanded from US$500m to US$750m. Management expects double‑digit H2 growth in Ig (PRIVIGEN/HIZENTRA), albumin in China to stabilise (modest FY26 decline with a return to growth in FY27), Seqirus to lap seasonality in a global market down mid‑ to high‑single digits, and Vifor to see strong nephrology growth (+12% H1) but continued iron pressure and Injectafer LOE in FY27. Cost and margin actions include H1 R&D US$600m (‑8%) with similar spend forecast in H2 and a VarmX candidate entering Phase III in H2, G&A down 2% and expected flat in H2, a FY26 cost‑save target of US$100m (60% achieved at H1) on the way to up to US$550m p.a. by FY28 against one‑off restructuring costs of US$700–770m, an underlying H1 tax rate ~21% with FY26 expected 18–20%, and continued focus on driving profit and cash conversion to support reinvestment and returns.CSL Financial Statement Overview
Summary
Strong overall fundamentals supported by solid income statement performance (revenue growth, healthy net margin), good cash generation with strong recent free cash flow growth, and a stable balance sheet with moderate leverage. Key watchouts are rising debt and some margin/cost pressure.Income Statement
CSL has demonstrated consistent revenue growth, with a notable increase of 5.0% in the latest year. The company maintains strong profitability, evidenced by a gross profit margin of 51.5% and a net profit margin of 19.5%. EBIT and EBITDA margins are robust at 26.7% and 33.3%, respectively, indicating efficient operations. However, the slight decline in gross profit margin over the years suggests potential cost pressures.85
Very Positive
Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.59, indicating moderate leverage. Return on equity is healthy at 15.5%, showcasing effective use of equity capital. The equity ratio stands at 49.0%, suggesting a solid equity base. However, the gradual increase in total debt over the years warrants monitoring.78
Positive
Cash Flow
CSL's cash flow performance is strong, with a free cash flow growth rate of 35.6% in the latest year, highlighting improved cash generation. The operating cash flow to net income ratio of 0.74 and free cash flow to net income ratio of 0.71 indicate efficient cash conversion. Despite fluctuations in free cash flow growth in previous years, the recent trend is positive.82
Very Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.56B | 15.43B | 14.80B | 13.17B | 10.49B | 10.27B |
| Gross Profit | 7.56B | 7.95B | 7.56B | 6.71B | 5.66B | 5.74B |
| EBITDA | 5.09B | 5.13B | 4.73B | 3.90B | 3.46B | 3.63B |
| Net Income | 1.43B | 3.00B | 2.64B | 2.19B | 2.25B | 1.78B |
Balance Sheet | ||||||
| Total Assets | 37.90B | 39.40B | 38.02B | 36.23B | 28.35B | 13.63B |
| Cash, Cash Equivalents and Short-Term Investments | 1.15B | 2.16B | 1.66B | 1.55B | 10.44B | 1.36B |
| Total Debt | 12.57B | 11.50B | 12.18B | 12.23B | 9.66B | 4.36B |
| Total Liabilities | 17.44B | 18.00B | 18.62B | 18.41B | 13.77B | 7.34B |
| Stockholders Equity | 18.66B | 19.34B | 17.36B | 15.79B | 14.58B | 6.29B |
Cash Flow | ||||||
| Free Cash Flow | 3.16B | 2.54B | 1.51B | 909.00M | 1.38B | 2.43B |
| Operating Cash Flow | 3.74B | 3.56B | 2.76B | 2.60B | 2.63B | 3.62B |
| Investing Cash Flow | -1.17B | -850.00M | -1.26B | -11.84B | -1.64B | -1.67B |
| Financing Cash Flow | -3.01B | -2.24B | -1.28B | 456.00M | 7.68B | -1.40B |
CSL Technical Analysis
Negative
58.43
Price Trends
28.00
Negative
28.82
Negative
33.05
Negative
Market Momentum
-0.95
Negative
35.01
Neutral
3.29
Positive
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 58.43 is above the 20-day moving average (MA) of 25.57, above the 50-day MA of 28.00, and above the 200-day MA of 33.05, indicating a bearish trend. The MACD of -0.95 indicates Negative momentum. The RSI at 35.01 is Neutral, neither overbought nor oversold. The STOCH value of 3.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CSLLY.
CSL Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $80.01B | 17.92 | 14.83% | 0.45% | 2.89% | 0.50% | |
76 Outperform | $48.33B | 69.34 | 7.56% | 2.33% | 5.08% | 13.41% | |
75 Outperform | $43.87B | 39.77 | 16.82% | ― | 89.58% | ― | |
74 Outperform | $118.41B | 29.32 | 22.70% | ― | 10.53% | ― | |
57 Neutral | $42.29B | 166.04 | 90.35% | ― | 53.24% | ― | |
57 Neutral | $22.75B | -17.95 | -6.03% | ― | 7.04% | -25.24% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.