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Csl Ltd (CSLLY)
:CSLLY

CSL (CSLLY) AI Stock Analysis

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CSL

(OTC:CSLLY)

Rating:77Outperform
Price Target:
$90.00
▲(12.46%Upside)
CSL's overall score is driven by strong financial performance and a positive earnings call outlook, highlighting its robust growth and profitability. Technical analysis shows potential for bullish momentum, but high valuation poses a risk if growth expectations are not met. Despite challenges, CSL remains well-positioned in the biotechnology industry.

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

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 Earnings Call Summary

Earnings Call Date:Feb 11, 2025
(Q2-2025)
|
% Change Since: -0.20%|
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.
Q2-2025 Updates
Positive Updates
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.
Negative Updates
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.

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.
Income Statement
85
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
78
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
82
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.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
14.98B14.69B19.59B14.47B10.33B9.41B
Gross Profit
7.36B7.56B9.47B7.68B5.74B5.28B
EBIT
3.12B2.76B4.36B3.94B3.11B2.76B
EBITDA
4.98B4.73B5.85B3.46B2.72B2.18B
Net Income Common Stockholders
2.76B2.64B3.34B3.11B2.39B2.17B
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.52B1.66B2.33B15.18B1.81B1.19B
Total Assets
38.45B38.02B54.43B41.22B18.16B15.46B
Total Debt
11.96B12.18B18.37B14.04B5.81B5.99B
Net Debt
10.44B10.53B16.04B-1.13B4.00B4.80B
Total Liabilities
17.90B18.62B27.65B20.02B9.74B8.94B
Stockholders Equity
18.56B17.33B23.72B21.20B8.38B6.53B
Cash FlowFree Cash Flow
1.88B1.51B1.35B1.90B1.97B1.16B
Operating Cash Flow
2.97B2.76B3.87B3.62B3.65B2.57B
Investing Cash Flow
-924.09M-1.26B-17.61B-2.26B-1.68B-1.41B
Financing Cash Flow
-1.43B-1.28B677.92M10.58B-1.41B-664.30M

CSL Technical Analysis

Technical Analysis Sentiment
Negative
Last Price80.03
Price Trends
50DMA
78.06
Positive
100DMA
80.26
Negative
200DMA
87.44
Negative
Market Momentum
MACD
0.44
Negative
RSI
51.28
Neutral
STOCH
28.72
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 80.03 is above the 20-day moving average (MA) of 78.50, above the 50-day MA of 78.06, and below the 200-day MA of 87.44, indicating a neutral trend. The MACD of 0.44 indicates Negative momentum. The RSI at 51.28 is Neutral, neither overbought nor oversold. The STOCH value of 28.72 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 (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$77.23B27.9815.36%1.61%7.60%9.47%
70
Outperform
$35.52B41.2917.33%78.01%
67
Neutral
$52.67B12.4215.96%0.36%7.52%15.65%
64
Neutral
$39.61B-414.62%17.21%21.16%
61
Neutral
$27.80B-3.87%0.58%-764.64%
58
Neutral
$114.65B-5.64%8.55%-124.45%
54
Neutral
$5.28B3.29-45.38%2.80%16.77%-0.08%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CSLLY
CSL
80.03
-14.88
-15.68%
ALNY
Alnylam Pharma
308.00
158.70
106.30%
REGN
Regeneron
483.07
-514.96
-51.60%
VRTX
Vertex Pharmaceuticals
443.82
-41.71
-8.59%
ARGX
Argenx Se
580.59
193.79
50.10%
BNTX
BioNTech SE
110.15
8.34
8.19%
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.