Australia Stock Alert

AUSTR

Morning Alert: CSL decreases 0.3%, leads Pharmaceuticals & biotechnology sector lower July 27, 2017 11:00:00 AEST

NEWS BITES - AUSTRALIA

CSL Limited (ASX:CSL) has decreased 0.3% to trade at $A129.59 vs. the Pharmaceuticals & biotechnology sector which weakened 43.6 points (or 0.3%) to 16,214.2. Representing a weighting of about 87.0% of the sector, the stock accounted for the loss. The shares have underperformed 87% of the market in the past month.

SECTION 1: Technical indicators

Bearish:

The negative 2.09 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal (12-day minus 26-day Exponential Moving Averages). Both the 12-day and the 26-day EMA are falling - another bearish signal. In the past week, the stock's MACD has been negative every day, a reinforcing bearish signal.

The price tumbled 8.0% in the last month.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Parity:

Price/Earnings of 38.3 [42.0]

Dividend yield of 1.3% [1.2%]

Undervaluation:

Return on Assets 16.4% [11.4%]

Overvaluation:

Return on Capital Employed 26.3% [36.0%]

Note

The stock is at a discount of 10.6% to the 12-month high of $A145.0 on 26 Jun, 2017. It is also at a premium of 42.4% to the 12-month low of $A91.0 on 12 Dec, 2016.

Bullish:

In the last three months the stock has hit a new 52-week high eleven times, pointing to a significant uptrend.

The present value of AUD1,000 invested one year ago is $A1,134 [vs $A1,039 for the All Ordinaries Index], including a capital gain of $A117 and dividend reinvested of $A18. The total return to shareholders for 1 year is 13.4%.

SECTION 2: Ranking

DescriptionValueRank In Market
MCap $US billion46.8In Top 2%
Today's Volatility %0.7In Top Quartile
Price/MAP2001.1In Top Quartile
52-week Range (in $A)91.0-145.0
1-month Range (in $A)125.2-142.6

SECTION 3: Earnings

Annual Report: CSL Net Profit down 9.9%

CSL (ASX:CSL) reported net profit for the year-ended 30 June 2016 of $US1.2b, down 9.9% from $US1.4b in the previous year.

Major changes compared with previous year:

Favourable Changes:

- Total revenue up 12% from $US5.6b to $US6.3b

- Total non-current assets to Total Assets up from 47.8% to 49.5%

- Fixed Assets to Total Assets up from 28.8% to 31.6%

- Total Liabilities to Operating Cash Flow of 4.2 compares favourably with the Joseph Piotroski benchmark of less than 4. However, it has deteriorated by 58.2% from the previous year's ratio of 2.7.

Unfavourable Changes:

- Net profit down 9.9% from $US1.4b to $US1.2b

- EPS down 7.9% from $US2.91 to $US2.68

- EBIT Margin down from 32.5% to 27.5%

- Interest cover down 23.6% from 29.8 to 22.7

- EBIT to total assets down from 27.7% to 21.5%

- Total revenue to total assets down from 0.9 to 0.8

- Cost of Goods Sold to Sales up from 46.3% to 48.1%

- Profit before tax to Sales down from 30.5% to 24.7%

- Sales and marketing expenses to Sales up from 8.9% to 9.8%

- Debt to Equity up 47% from 0.8 to 1.2

- Total liabilities to Total assets up 15.8% from 0.6 to 0.7

- Current ratio down 22.1% from 3.6 to 2.8

- Working capital to total assets down from 37.5% to 32.3%

- Retained earnings to total assets down from 93.8% to 87.2%

- Total current assets to Total Assets down from 52.2% to 50.5%

- Current Debtors to Total Assets down from 15.7% to 14.6%

- Net tangible assets per share down 4.5% from $US5.82 to $US5.56

Note:

- Tax expenses to Sales down from 6% to 5%

- Current Inventory to Total Assets up from 27.4% to 28.5%

SECTION 4: Recent News of CSL

July 12: CSL buys back 47,307 shares

CSL (CSL.AU) announced a buyback of 47,307 shares worth $A6,255,168 (or $US4,777,697) on July 11, 2017. The buyback price was $A132.22.

July 11: CSL: Daily share buy-back notice - Appendix 3E

Source: Australian Securities Exchange

July 10: CSL buys back 246,394 shares

CSL (CSL.AU) announced a buyback of 246,394 shares worth $A33,274,278 (or $US25,315,070) on July 07, 2017. The buyback price was $A135.04.

July 10: CSL Response to Patent Infringement Complaint

CSL Limited (ASX:CSL ; USOTC:CSLLY) has become aware that Bioverativ has filed complaints in the U.S. District Court for the District of Delaware and with the International Trade Commission. Bioverativ allege s that the use of Idelvion(Registered), a novel factor IX albumin fusion protein developed by CSL Behring, by patients and physicians constitutes patent infringement, and that by virtue of the US Food and Drug Administration (FDA) approved label for Idelvion(Registered), CSL therefore infringes three Bioverativ patents.

July 07: CSL buys back 146,883 shares

CSL (CSL.AU) announced a buyback of 146,883 shares worth $A20,135,456 (or $US15,270,730) on July 06, 2017. The buyback price was $A137.09.

CSL Limited (AU:CSL; ASX:CSL; AX:CSL)

ISIN: AU000000CSL8

PermID: 4295856855

Source: www.BuySellSignals.com