Why has CSL share price not performed over the past 5-years?
Good question!
Trading revenue has increased over the past 10 years ...
... and so has NPAT .....
....but while earnings per share have increased over 10 years they flat lined from Jun 20 to Jun 23...
.... and tellingly, Return on Equity has tanked...dramatically!
That implies that CSL have, over recent years, invested a lot of money for very little return..
... which means the high PE ratio could no longer be supported....
... and the share price has had to re-adjust - as it is ...
The bright spot is that it looks like the Return on Equity might have bottomed ...
...and hopefully the share price will stabilise and might recover in time.
(all data from Market Index)
(20min delay)