CSL share price in focus
CSL is a global biotechnology company that develops and delivers innovative medicines that save lives, protect public health, and help people with life-threatening medical conditions live full lives.
The company is divided into three main business units: CSL Behring, CSL Seqirus and CSL Vifor. Behring, acquired in 2004, manufactures and distributes blood plasma products. Seqirus was formed by a rebranding of BioCSL and the acquired Novartis flu business (bought in 2015), and makes flu-related products and performs pandemic-related services for Governments. Finally, Vifor makes products for iron deficiency and nephrology (renal/kidney care).
CSL has developed a reputation with Australian investors over many decades as being a reliable company and a consistent dividend payer. Many consider an investment in CSL to be an indirect play on the continuing rise in healthcare costs.
NWL shares
Founded in 1999, Netwealth is a wealth management business that provides a platform for financial planners to manage client money.
As of 2024, Netwealth has over 140,000 account holders on its platform and over $88 billion of funds under administration (FUA).
Netwealth’s big advantage is its scale and the user-friendly interface which can be accessed through its online platform. Through one simple dashboard, users can buy and sell investments, track performance, and view charts, reports and tax statements.
CSL share price valuation
We would consider CSL to be a ‘mature’ or ‘blue-chip’ business, so some of the metrics that might be important to us include the debt/equity ratio, average yield, and return on equity, or ROE. For FY24, CSL Ltd reported a debt/equity ratio of 62.8%, meaning the company has more equity than debt.
Over the last 5 years, CSL has delivered an average dividend yield of 1.5% per year. This is important to note if you’re looking for income from your investments.
Finally, in FY24, CSL reported an ROE of 14.6%. For a mature business you generally want to see an ROE of more than 10%, so CSL clears this hurdle.
As a growth company, some of the trends we would be looking for from NWL shares include revenue growth, profit growth, and return on equity (ROE). Over the last 3 years, NWL has increased revenue at a rate of 20.8% per year to hit $255m in FY24. Meanwhile, net profit has risen from $54m to $83m. NWL’s last reported ROE was 62.3%.
Please keep in mind that context is important – these metrics give us some indication of company performance, but we need a lot more info to work out the value of CSL or NWL shares. To learn more about valuation, I’d recommend signing up for one of our free online investing courses.
