Level One Spotlight – CSL

28/02/2018
Posted in Wealth
28/02/2018 Level One

Spotlight on CSL

Many of our clients will already be familiar with CSL. CSL is a global healthcare company and it’s a stock that has been included in the majority of our portfolios over the past few years. CSL’s core focus is on rare and serious diseases and influenza vaccines.

 

CSL Company History

CSL formerly known as The Commonwealth Serum Laboratories was established in Australia in 1916 to service the health needs of a nation isolated by war. Over the ensuing years, CSL provided Australians with rapid access to 20th century medical advances, including insulin and penicillin, and vaccines against influenza, polio and other infectious diseases. CSL Limited was incorporated in 1991 and listed on the Australian Securities Exchange (ASX) in 1994.

CSL’s businesses include:

  • CSL Behring – is a global biotechnology leader with the broadest range of quality medicines in the industry and substantial markets throughout the world. Their therapies are indicated for bleeding disorders, immunodeficiencies, hereditary angioedema, neurological disorders and Alpha-1 Antitrypsin Deficiency.
  • CSL Plasma – A subsidiary of CSL Behring, CSL Plasma is the largest collector of human blood plasma in the world, sourcing plasma from hundreds of thousands of donors globally to produce a range of life-saving medicines for critically ill patients.
  • Seqirus – is one of the largest influenza vaccine companies in the world and a major partner in the prevention and control of influenza globally. It is a transcontinental partner in pandemic preparedness and response, and a leading supplier of influenza vaccines to global markets for both northern and southern hemisphere seasons.

 

CSL Stock Performance

CSL has provided some outstanding results for shareholders and is up 40% over the last twelve months.  This strong return isn’t a one off as demonstrated in the below 10 year price graph.

If you were lucky enough to acquire CSL back at the start of 2008 (pre Global Financial Crisis) at $36.50 you would be sitting on a 352% return with the shares now sitting around $165.

To put this into perspective, if you purchased $10,000 worth of CSL shares 10 years ago your holding would now be worth just over $45,000.

 

CSL as Part of an Investment Portfolio

CSL is classified as a ‘growth’ stock within our portfolios, with CSL paying a modest dividend currently around 1.18% per annum. Due to the nature of their company, revenue is reinvested back into the business for research and development, as well as acquisitions.

Sometimes low income yields turn clients off stocks, but this is a perfect example of why you should aim for a diversified investment portfolio that focuses on a combination of both growth and income stocks.

Level One Financial Planning offers investment services both personally and within the superannuation environment. Our portfolios invest in listed Australian shares such as CSL. If you are interested in reviewing your current situation or exploring this further, please contact our office on 02 4227 6744 or fp@levelone.com.au.

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