Is the CSL Limited (ASX: CSL) share price a buy above $300? CSL hasn't actually fallen much since the start of the share market declines.
CSL is the ASX's biggest company, it's a healthcare giant with a market capitalisation well north of $100 billion. For a long time that type of company size was solely the arena for ASX banks and resource shares.
But steady long-term growth has seen the healthcare share come out on top.
How is CSL and the share price going during the coronavirus?
Since 19 February 2020 the CSL share price is down just over 10%. It's one of the few businesses in the ASX 20 to reaffirm its profit guidance for FY20. As a reminder, that profit guidance is between US$2.11 billion to US$2.17 billion at constant currency.
Despite the ongoing issues, the company is still expecting to be able to grow profit. It's a very solid business with long-term growth thanks to its consistent research and development.
CSL said that it has an estimated $1.1 billion of available liquidity. When you combine that liquidity with the fact that it's still making a solid profit, it's clear the business will do just fine. Which should mean the CSL share price continues to perform defensively.
However, that's not to say there won't be potential issues in FY21. Plasma collections present a challenge, though the company is doing various initiatives to try to mitigate the impact. In the US some states are lifting their restrictions, which could be good news for CSL.
The company said that there are going to be modest delays with its capital projects and clinical trials, but there is potential to accelerate its activity after the crisis has passed to ensure that there's no material change to the original plan.
Foolish takeaway
I don't think that the coronavirus is going to completely derail CSL's growth plans. Its products and services are invaluable for the wider community. I think we need to look ahead to FY22 before there's a normal year of earnings. At this share price, CSL is trading at 33x FY22's estimated earnings.
I believe there are better share investment ideas out there for better value. CSL's size may hamper investor returns.
