CHARLES RIVER LABORATORIES (CRL)
US1598641074 - Common Stock
Taking everything into account, CRL scores 4 out of 10 in our fundamental rating. CRL was compared to 58 industry peers in the Life Sciences Tools & Services industry. While CRL has a great profitability rating, there are quite some concerns on its financial health. CRL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
CRL had positive earnings in the past year.
In the past year CRL had a positive cash flow from operations.
In the past 5 years CRL has always been profitable.
Each year in the past 5 years CRL had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 5.38%, CRL belongs to the best of the industry, outperforming 80.70% of the companies in the same industry.
The Return On Equity of CRL (12.05%) is better than 84.21% of its industry peers.
CRL has a Return On Invested Capital of 7.04%. This is in the better half of the industry: CRL outperforms 78.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CRL is in line with the industry average of 10.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.38% | ||
| ROE | 12.05% | ||
| ROIC | 7.04% |
ROA(3y)5.92%
ROA(5y)5.95%
ROE(3y)14.99%
ROE(5y)15.52%
ROIC(3y)8.07%
ROIC(5y)7.97%
1.3 Margins
Looking at the Profit Margin, with a value of 10.67%, CRL belongs to the top of the industry, outperforming 80.70% of the companies in the same industry.
In the last couple of years the Profit Margin of CRL has grown nicely.
With an excellent Operating Margin value of 15.25%, CRL belongs to the best of the industry, outperforming 80.70% of the companies in the same industry.
CRL's Operating Margin has been stable in the last couple of years.
The Gross Margin of CRL (36.45%) is worse than 61.40% of its industry peers.
In the last couple of years the Gross Margin of CRL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.25% | ||
| PM (TTM) | 10.67% | ||
| GM | 36.45% |
OM growth 3Y0.93%
OM growth 5Y0.35%
PM growth 3Y-2.65%
PM growth 5Y2.84%
GM growth 3Y0.29%
GM growth 5Y-0.02%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CRL is destroying value.
The number of shares outstanding for CRL has been increased compared to 1 year ago.
The number of shares outstanding for CRL has been increased compared to 5 years ago.
The debt/assets ratio for CRL has been reduced compared to a year ago.
2.2 Solvency
CRL has an Altman-Z score of 2.72. This is not the best score and indicates that CRL is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.72, CRL is in line with its industry, outperforming 57.89% of the companies in the same industry.
CRL has a debt to FCF ratio of 6.44. This is a slightly negative value and a sign of low solvency as CRL would need 6.44 years to pay back of all of its debts.
The Debt to FCF ratio of CRL (6.44) is better than 70.18% of its industry peers.
A Debt/Equity ratio of 0.73 indicates that CRL is somewhat dependend on debt financing.
CRL has a worse Debt to Equity ratio (0.73) than 70.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 6.44 | ||
| Altman-Z | 2.72 |
ROIC/WACC0.59
WACC11.97%
2.3 Liquidity
CRL has a Current Ratio of 1.75. This is a normal value and indicates that CRL is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.75, CRL is not doing good in the industry: 70.18% of the companies in the same industry are doing better.
A Quick Ratio of 1.37 indicates that CRL should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.37, CRL is doing worse than 71.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
CRL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.14%.
The Earnings Per Share has been growing by 12.09% on average over the past years. This is quite good.
The Revenue has been growing slightly by 0.49% in the past year.
The Revenue has been growing by 12.75% on average over the past years. This is quite good.
EPS 1Y (TTM)-9.14%
EPS 3Y9.37%
EPS 5Y12.09%
EPS Q2Q%-18.35%
Revenue 1Y (TTM)0.49%
Revenue growth 3Y12.2%
Revenue growth 5Y12.75%
Sales Q2Q%-1.73%
3.2 Future
Based on estimates for the next years, CRL will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.52% on average per year.
Based on estimates for the next years, CRL will show a small growth in Revenue. The Revenue will grow by 5.66% on average per year.
EPS Next Y4.47%
EPS Next 2Y8.36%
EPS Next 3Y9.56%
EPS Next 5Y9.52%
Revenue Next Year2.85%
Revenue Next 2Y5.21%
Revenue Next 3Y6.02%
Revenue Next 5Y5.66%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.87, CRL is valued on the expensive side.
Based on the Price/Earnings ratio, CRL is valued cheaply inside the industry as 96.49% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 24.29, CRL is valued at the same level.
CRL is valuated rather expensively with a Price/Forward Earnings ratio of 17.74.
94.74% of the companies in the same industry are more expensive than CRL, based on the Price/Forward Earnings ratio.
CRL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.87 | ||
| Fwd PE | 17.74 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CRL indicates a rather cheap valuation: CRL is cheaper than 96.49% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CRL indicates a rather cheap valuation: CRL is cheaper than 82.46% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.62 | ||
| EV/EBITDA | 14.47 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CRL does not grow enough to justify the current Price/Earnings ratio.
CRL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.89
PEG (5Y)1.81
EPS Next 2Y8.36%
EPS Next 3Y9.56%
5. Dividend
5.1 Amount
No dividends for CRL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CHARLES RIVER LABORATORIES
NYSE:CRL (7/25/2024, 7:04:00 PM)
After market: 221.81 0 (0%)221.81
-0.6 (-0.27%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.43B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.87 | ||
| Fwd PE | 17.74 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.89
PEG (5Y)1.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.38% | ||
| ROE | 12.05% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.25% | ||
| PM (TTM) | 10.67% | ||
| GM | 36.45% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-9.14%
EPS 3Y9.37%
EPS 5Y
EPS Q2Q%
EPS Next Y4.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.49%
Revenue growth 3Y12.2%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y