- CSL is an Australian blue-chip healthcare company and the largest biotech listed on the ASX.
- CSL showed growth in operating revenue, earnings, net profit and in research and development investment in 2020 and 2021, despite the COVID-19 pandemic.
- CSL is a dividend-paying company and has consistently paid dividends since 1997.
Australian-based global biotechnology company, CSL Limited (ASX: CSL), researches, develops, manufactures, and markets vaccines and innovative biotherapies for saving lives, protecting public health and helping those with life-threatening medical conditions.
CSL, headquartered in Melbourne, Australia, was founded in 2016 and obtained listing on the ASX in 1994. The blue-chip healthcare company sits as one of the largest on the ASX. For 2021, in terms of market capitalisation, CSL came in fourth in the ASX behind the BHP Group, Rio Tinto and the Commonwealth Bank of Australia (ASX: CBA). The rest of the top 10 includes Westpac, National Australia Bank (ASX: NAB), Australia and New Zealand Bank (ASX: ANZ), Fortescue Metals Group (ASX: FMG), Wesfarmers and the Macquarie Group.
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CSL has grown to become a global leader in its field, predominantly through acquisitions and has operations in more than 35 countries including in Australia, the US, the UK, Germany, and Switzerland.
Subsidiaries: CSL subsidiaries include global biotechnology leader CSL Behring, US plasma collector CSL Plasma, Seqirus, the world's second-largest influenza vaccines company, Calimmune, a leader in gene-modification and cell delivery technology and Vitaeris, a biopharmaceutical company focused on making a potential treatment option for organ transplant recipients who are experiencing rejection.
Of the two key operations, CSL Behring operates in immunology therapeutics for haematology, cardiovascular and metabolic, respiratory and transplant areas.
Seqirus has a broad range of influenza vaccines, products of national significance such as Q fever vaccine and antivenoms for Australia and other Pacific nations, and other products.
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Step 1: Choose a broker
Brokers are your gateway to investing in shares, but there are a lot to choose from. In order to buy CSL shares, you need a broker with access to the Australian markets.
Features to look for include the following:
Prices to trade Australian shares have been coming down, especially on mobile-first trading platforms. While the brokerage fee is important, be sure to consider them in context with other features, e.g. market access, tradable assets, etc.
A simple-to-use trading platform
With increasing competition in the market, the overall trading experience has improved significantly. Share trading doesn't have to be difficult. Make sure you are happy with the trading experience on whatever platform you choose.
Find a platform that offers thorough company analysis and market reporting. This will help you stay up to date with developments at CSL and any other companies you may wish to track.
Check what options there are to fund your account. Not every broker accepts credit card payments.
Step 2: Fund your account
When you’ve chosen a platform and registered an account, you can fund it. Depending on the platform and the funding method used, it could take several days for funds to be transferred and cleared for investing.
Step 3: Decide how much you'd like to invest
Decide how much to invest in CSL, stick to your budget, and don’t succumb to the fear of missing out. You can employ average-down strategies to dollar cost average over time.
Step 4: Invest in shares or an ETF?
You can invest in CSL shares alone, or invest in an ETF that has an allocation of CSL shares.
The benefit of investing in an ETF is exposure to diversity. It is also a much more passive way to invest compared to making your own trading decisions.
ETFs that hold CSL shares include BetaShares Australian Top 20 Equity Yield Maximise (YMAX), iShares S&P/ASX 20 Index Fund (ILC), and Vanguard MSCI Australian Large Companies Index ETF (VLC).
Step 5: Configure your order
Some brokers allow more order configuration than others. These are the major types of orders.
A market order means buying shares at whatever the next available market price is. For instance, CSL shares could cost $260 when you decide to purchase them, but moments later when the order executes it may actually cost $261.
A limit order allows you to buy shares at a certain price or less. For instance, you could configure the order to execute at $260 or less.
You can use a stop limit to set the maximum price you’re prepared to pay. Stop orders are often configured in addition to limit orders.
A stop loss order lets you specify the price at which you want to exit the trade. They’re typically used to protect profit. For example, you might decide you're going to sell your CSL shares if their price falls to $250. If the price reaches the threshold, your stop loss order will be executed automatically.
Step 6: Place your order
The final step is to place your order. This is typically as easy as pressing a button.
Step 7: Monitor your investment
Whether your goal in buying shares is to benefit from trading on price fluctuations or to hold as long-term investments, it is necessary to watch company performance and business fundamentals. Short-term traders also need to watch for share price movements.
Track CSL performance
CSL is a dividend-paying company and has been consistent in making payments twice a year.
Watch for developments in the biotechnology sector
The Australian biotechnology industry is expected to keep growing over the next five years. Its growth is driven by greater acceptance of and increased demand for biotech products. The industry's anticipated revenues come from a wide range of sources. Besides CSL, the other international operators in the Australian biotechnology sector include Amgen, Gilead, Bayer Crop Science, Acrux, Bionomics and Mesoblast.
Since most of CSL’s key competitors are other global firms, you will need to keep a watch over global developments in biotechnology to get an idea of CSL’s competitiveness over the years.
CSL’s main direct competitors globally include the Spanish company Grifols (NAS: GRFS) and the Japanese-owned Takeda Pharmaceutical Company (NYSE: TAK). However, neither are listed on the ASX.
The Australian biotech sector in the ASX is dwarfed by CSL in terms of market capitalisation, which lists Clinuvel Pharmaceuticals Limited (ASX: CUV) and Regeneus Ltd (ASX: RGS) as CSL peers. You can also consider Sonic Healthcare Ltd (ASX: SHL) and Ramsay Health Care Ltd (ASX: RHC).
Disclaimer: The views expressed in this article are those of the writer’s alone and do not constitute financial advice. Advertisers cannot influence editorial content. However, Finty and/or the writer may have a financial interest in the companies mentioned. Finty is committed to providing factual, honest, and accurate information that is compliant with governing laws and regulations. Do your own due diligence and seek professional advice before deciding to invest in one of the products mentioned. For more information, see Finty’s editorial guidelines and terms and conditions.