Are CSL Limited's (ASX:CSL) Fundamentals Good Enough to Warrant Buying Given The Stock's Recent Weakness?

CSL's Financial Performance: CSL has experienced a 17% decline in share price over the past three months, despite having a respectable return on equity (ROE) of 14%, which is above the industry average of 9.9%. However, its net income growth over the last five years has been low at only 3.3%, significantly below the industry average of 18%.

Future Outlook and Challenges: While CSL maintains a median payout ratio of 48% and has consistently paid dividends for over ten years, the lack of earnings growth raises concerns about potential external challenges affecting the company's performance. Analysts forecast an increase in ROE to 19% in the coming years, suggesting possible future earnings acceleration.