Can the company’s shares stage a rebound towards the backend of this year?
The post How is the CSL (ASX:CSL) share price performing against its sector in 2021? appeared first on The Motley Fool Australia. –
The CSL Limited (ASX: CSL) share price has failed to outperform the market as opposed to traditional times. The global biotech noted that the pandemic is causing challenging conditions on its business operations.
At the time of writing, CSL shares are fetching for $302.39, down 1.02%.
What’s happened to CSL recently?
During mid-August, CSL provided investors with its full-year results for the 2021 financial year.
The company noted that its CSL Behring’s portfolio faced headwinds, while its Seqirus business recorded strong tailwinds over the 12 months.
Under the CSL Behring banner, sales of its leading subcutaneous immunoglobulin product, Hizentra, grew by 15%. This contributed to the overall revenue of US$8.8 billion for the CSL Behring portfolio, up 6% on FY20.
CSL’s Seqirus business experienced a strong surge in seasonal influenza vaccines, up 41%. A record volume of around 130 million doses was distributed around the world. As a whole, Seqirus revenue jumped to US$1.7 billion, up 30% from the prior corresponding period.
Investors were also updated on the company’s plasma collection issues.
CSL noted that federal government stimulus packages from early 2021 had driven down the number of donors per week. This momentarily affected plasma levels before soaring again on the back of vaccine momentum, further marketing initiatives, and a “stimulus burn-off”.
As such, plasma collection numbers are down around 20% compared to FY20’s levels.
CSL opened 25 new facilities to attract lapsed and new donors through its doors. In FY22, the company plans to open another 40 centres, expanding its presence, mostly across the United States.
How does the CSL share price compare to the Health Care sector?
Over the last 12 months, the CSL share price has moved 7% higher, with year-to-date also up around 6%. The company’s shares hit a 52-week high of $320.42 in November 2020, before moving in circles.
In contrast, the S&P/ASX 200 Health Care index (ASX: XHJ) has gained 12% from this time last year and is up 11.5% year-to-date. The sectors also registered a record high of 48,213 points in late August.
Undoubtedly, CSL shares are lagging behind the Health Care Index which has continued to accelerate since March 2020.
Based on today’s price, CSL commands a market capitalisation of roughly $137.7 billion, with approximately 455 million shares on issue.
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Motley Fool contributor Aaron Teboneras owns shares of CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.