Are CSL Limited's (ASX:CSL) Fundamentals Good Enough to Warrant Buying Given The Stock's Recent Weakness?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 13 2025
0mins
Should l Buy ?
Source: Yahoo Finance
CSL's Financial Performance: CSL has experienced a 17% decline in share price over the past three months, despite having a respectable return on equity (ROE) of 14%, which is above the industry average of 9.9%. However, its net income growth over the last five years has been low at only 3.3%, significantly below the industry average of 18%.
Future Outlook and Challenges: While CSL maintains a median payout ratio of 48% and has consistently paid dividends for over ten years, the lack of earnings growth raises concerns about potential external challenges affecting the company's performance. Analysts forecast an increase in ROE to 19% in the coming years, suggesting possible future earnings acceleration.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy ?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
