The Motley Fool

The CSL share price just hit an all-time high

On Tuesday the CSL Limited (ASX: CSL) share price edged higher and reached an all-time high of $258.77.

When the biotherapeutics giant’s shares hit this level, it meant they had gained almost 40% in 2019.

Why is the CSL share price up 40% this year?

Investors have been fighting to get hold of CSL’s shares this year largely due to its impressive performance in FY 2019.

For the 12 months ended June 30, the company grew its revenue by 11% to US$8,539 million and net profit after tax by 17% to US$1,919 million.

This strong performance was driven partly by strong demand for its Immunoglobulins products. During the 12 months, sales of immunoglobulins grew at an above-market rate of 16% to US$3,543 million. This was thanks to a range of factors including increased usage for chronic therapies, growing awareness and diagnosis, and the expanding usage for secondary immunodeficiency.

But it wasn’t just immunoglobulins delivering growth. It was supported by a 15% jump in Albumin sales and a 6% lift in Speciality sales. The latter was driven by high patient demand for its Haegarda and Kcentra products.

Combined, this led to the core CSL Behring business delivering an 11% increase in total revenue to US$7,343 million.

CSL’s other business, the Seqirus influenza vaccine business, was also on form in FY 2019. It posted a 12% increase in total revenue to US$1,196 million thanks to strong demand for its seasonal influenza vaccines.

Is it too late to invest?

I think CSL’s shares are now fully valued. However, I would still be a buyer if you’re planning to make a buy and hold investment.

This is because, along with Cochlear Limited (ASX: COH) and ResMed Inc. (ASX: RMD), I believe it has outstanding long-term growth potential and expect its shares to provide solid returns for investors over the next decade.

But if CSL is too expensive, then these highly rated growth shares could be great options for you. They are all trading at dirt cheap prices given their current growth profiles. 

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. and CSL Ltd. The Motley Fool Australia has recommended Cochlear Ltd. and ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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