Is the CSL Limited (ASX: CSL) share price a buy?
In the initial stages of the coronavirus share market sell off the CSL share price remained strong in Australian dollar terms as the US dollar strengthened.
But over the past week the CSL share price has actually fallen by 7% despite the share market strengthening.
CSL was seen as a bastion of safety with its healthcare services. It's the number one in global plasma therapies and the number two for flu vaccines. Those are essential services.
That's why the CSL share price didn't drop anywhere near as much as shares like National Australia Bank Ltd (ASX: NAB) or Qantas Airways Limited (ASX: QAN).
But we saw the Australian dollar weaken to as low as $0.57 compared to the US dollar during March 2020. The Aussie dollar has since strengthened to $0.68. That makes a big difference when looking at CSL's earnings which are reported (and a large portion is generated) in US dollars.
CSL recently announced new debt facilities to strengthen its debt profile.
Is it a good time to buy CSL at this share price?
The healthcare giant is aiming for a net profit in FY20 of between US$2.11 billion to US$2.17 billion. This would be another solid result after years of impressive growth already. The company continues to invest heavily into research and development to ensure that it continues to produce the new needed products for people. New treatments could make a big difference to the world. It's one of many businesses looking to find a coronavirus treatment.
I think it makes a lot of sense to invest in CSL when the Australian dollar is so strong. It's certainly not cheap, so I wouldn't want to buy a lot. But I'd be willing to be some today.
