Another Australian company winning on the world stage

World beating company delivers again, but is it cheap enough to buy?

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Blood products company, CSL Limited (ASX: CSL) has today reported a full year net profit of $983m, up 4.5% over the previous year. In constant currency terms, profit was up 16%, but the strong Australian dollar reduced the profit by $108m.

Sales revenues were up 7%, while earnings per share was up 9% to $1.89, thanks to the company’s ongoing share buyback, which CSL has suggested maybe increased by a further $900m, once the current program has been completed. The company still has around $207m left of its existing buyback. In the last three years, CSL has spent more than $3 billion buying back shares.

Research and development expenditure rose 13% in constant currency terms, to $355m, as CSL continues to invest in future blood plasma products. Its existing business appears to be doing exceptionally well, with sales of Immunoglobin and Albumin both up 15% and speciality products up 18%.

With a number of other products in its pipeline, either under development or undergoing trials, CSL looks well placed to generate growth over the next few years. In fact, the company expects profits to grow at 12% using current exchange rates. Any fall in the value of the Australian dollar against the US dollar, is likely to raise that growth rate.

CSL is regarded as one of Australia’s world beating companies, alongside Cochlear Limited (ASX: COH), Computershare (ASX: CPU), Aristocrat Leisure Limited (ASX: ALL) and BHP Billiton Limited (ASX: BHP) to name but a few. These companies are market leaders in their respective fields, with large market shares and competitive advantages that make it difficult for competitors to knock them down.

Today’s result confirms that CSL is still standing tall and appears to have a continuing strong future ahead of it.

The Foolish bottom line

CSL trades on a P/E ratio of over 22 at the current price of $42.39, and although it shares look expensive, the company continues to deliver attractive results.

If you’re in the market for some high yielding ASX shares, look no further than our “Secure Your Future with 3 Rock-Solid Dividend Stocks” report. In this free report, we’ve put together our best ideas for investors who are looking for solid companies with high dividends and good growth potential. Click here now to find out the names of our three favourite income ideas. But hurry – the report is free for only a limited time.

More reading

Motley Fool writer/analyst Mike King owns shares in CSL, Cochlear and BHP. The Motley Fool‘s purpose is to help the world invest, better. Take Stock is The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it’s still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

asx share price competitions represented by businessmen arm wrestling
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

person reading news on mobile phone
⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »