CHARLES RIVER LABORATORIES (CRL) Stock Fundamental Analysis
NYSE:CRL - New York Stock Exchange, Inc. - US1598641074 - Common Stock - Currency: USD
Taking everything into account, CRL scores 4 out of 10 in our fundamental rating. CRL was compared to 55 industry peers in the Life Sciences Tools & Services industry. CRL has only an average score on both its financial health and profitability. CRL is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CRL was profitable.
In the past year CRL had a positive cash flow from operations.
CRL had positive earnings in each of the past 5 years.
In the past 5 years CRL always reported a positive cash flow from operatings.
1.2 Ratios
CRL has a Return On Assets of -0.42%. This is in the better half of the industry: CRL outperforms 67.27% of its industry peers.
Looking at the Return On Equity, with a value of -0.99%, CRL is in the better half of the industry, outperforming 69.09% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.12%, CRL is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CRL is significantly below the industry average of 13.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.42% | ||
| ROE | -0.99% | ||
| ROIC | 6.12% |
ROA(3y)4.11%
ROA(5y)4.9%
ROE(3y)9.94%
ROE(5y)12.5%
ROIC(3y)7.32%
ROIC(5y)7.6%
1.3 Margins
CRL's Profit Margin has declined in the last couple of years.
CRL has a Operating Margin of 12.59%. This is in the better half of the industry: CRL outperforms 72.73% of its industry peers.
In the last couple of years the Operating Margin of CRL has remained more or less at the same level.
CRL has a Gross Margin of 34.69%. This is in the lower half of the industry: CRL underperforms 63.64% 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 | 12.59% | ||
| PM (TTM) | N/A | ||
| GM | 34.69% |
OM growth 3Y-8.72%
OM growth 5Y-1.4%
PM growth 3Y-71.55%
PM growth 5Y-51.64%
GM growth 3Y-2.67%
GM growth 5Y-1%
2. Health
2.1 Basic Checks
CRL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CRL has been reduced compared to 1 year ago.
The number of shares outstanding for CRL has been increased compared to 5 years ago.
Compared to 1 year ago, CRL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.17 indicates that CRL is not a great score, but indicates only limited risk for bankruptcy at the moment.
CRL has a Altman-Z score (2.17) which is in line with its industry peers.
CRL has a debt to FCF ratio of 4.46. This is a neutral value as CRL would need 4.46 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.46, CRL is doing good in the industry, outperforming 67.27% of the companies in the same industry.
A Debt/Equity ratio of 0.79 indicates that CRL is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.79, CRL is not doing good in the industry: 74.55% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 4.46 | ||
| Altman-Z | 2.17 |
ROIC/WACC0.63
WACC9.73%
2.3 Liquidity
A Current Ratio of 1.43 indicates that CRL should not have too much problems paying its short term obligations.
CRL has a Current ratio of 1.43. This is in the lower half of the industry: CRL underperforms 76.36% of its industry peers.
A Quick Ratio of 1.16 indicates that CRL should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.16, CRL is not doing good in the industry: 76.36% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.47% over the past year.
The Earnings Per Share has been growing by 8.93% on average over the past years. This is quite good.
The Revenue has decreased by -2.16% in the past year.
The Revenue has been growing by 9.09% on average over the past years. This is quite good.
EPS 1Y (TTM)2.47%
EPS 3Y-0.03%
EPS 5Y8.93%
EPS Q2Q%3.08%
Revenue 1Y (TTM)-2.16%
Revenue growth 3Y4.59%
Revenue growth 5Y9.09%
Sales Q2Q%-2.71%
3.2 Future
Based on estimates for the next years, CRL will show a small growth in Earnings Per Share. The EPS will grow by 5.19% on average per year.
CRL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.71% yearly.
EPS Next Y-6.08%
EPS Next 2Y0.2%
EPS Next 3Y3.05%
EPS Next 5Y5.19%
Revenue Next Year-3.32%
Revenue Next 2Y-0.46%
Revenue Next 3Y1.33%
Revenue Next 5Y1.71%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
The Price/Earnings ratio is 14.60, which indicates a correct valuation of CRL.
Based on the Price/Earnings ratio, CRL is valued cheaper than 92.73% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.15, CRL is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 14.64, the valuation of CRL can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CRL indicates a rather cheap valuation: CRL is cheaper than 89.09% of the companies listed in the same industry.
CRL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.6 | ||
| Fwd PE | 14.64 |
4.2 Price Multiples
CRL's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CRL is cheaper than 96.36% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CRL is valued cheaper than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.23 | ||
| EV/EBITDA | 10.69 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.64
EPS Next 2Y0.2%
EPS Next 3Y3.05%
5. Dividend
5.1 Amount
No dividends for CRL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
151.73
+1.72 (+1.15%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners110.99%
Inst Owner Change0.49%
Ins Owners0.9%
Ins Owner Change8.66%
Market Cap7.45B
Analysts66.67
Price Target156.96 (3.45%)
Short Float %4.98%
Short Ratio1.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.73%
Min EPS beat(2)4.03%
Max EPS beat(2)11.44%
EPS beat(4)4
Avg EPS beat(4)9.24%
Min EPS beat(4)4.03%
Max EPS beat(4)15.8%
EPS beat(8)8
Avg EPS beat(8)7.7%
EPS beat(12)12
Avg EPS beat(12)6.68%
EPS beat(16)16
Avg EPS beat(16)5.87%
Revenue beat(2)2
Avg Revenue beat(2)2.18%
Min Revenue beat(2)0.91%
Max Revenue beat(2)3.45%
Revenue beat(4)3
Avg Revenue beat(4)1.48%
Min Revenue beat(4)-0.86%
Max Revenue beat(4)3.45%
Revenue beat(8)6
Avg Revenue beat(8)1.16%
Revenue beat(12)9
Avg Revenue beat(12)1.3%
Revenue beat(16)11
Avg Revenue beat(16)1.06%
PT rev (1m)4.21%
PT rev (3m)-15.7%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)5.47%
EPS NY rev (1m)0.09%
EPS NY rev (3m)2.49%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)2.61%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.6 | ||
| Fwd PE | 14.64 | ||
| P/S | 1.85 | ||
| P/FCF | 13.23 | ||
| P/OCF | 9.6 | ||
| P/B | 2.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.69 |
EPS(TTM)10.39
EY6.85%
EPS(NY)10.36
Fwd EY6.83%
FCF(TTM)11.47
FCFY7.56%
OCF(TTM)15.81
OCFY10.42%
SpS81.89
BVpS65.03
TBVpS-6.82
PEG (NY)N/A
PEG (5Y)1.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.42% | ||
| ROE | -0.99% | ||
| ROCE | 7.75% | ||
| ROIC | 6.12% | ||
| ROICexc | 6.35% | ||
| ROICexgc | 14.43% | ||
| OM | 12.59% | ||
| PM (TTM) | N/A | ||
| GM | 34.69% | ||
| FCFM | 14% |
ROA(3y)4.11%
ROA(5y)4.9%
ROE(3y)9.94%
ROE(5y)12.5%
ROIC(3y)7.32%
ROIC(5y)7.6%
ROICexc(3y)7.59%
ROICexc(5y)7.91%
ROICexgc(3y)18.25%
ROICexgc(5y)19.94%
ROCE(3y)9.27%
ROCE(5y)9.62%
ROICexcg growth 3Y-14.69%
ROICexcg growth 5Y-4.68%
ROICexc growth 3Y-7.59%
ROICexc growth 5Y-3.19%
OM growth 3Y-8.72%
OM growth 5Y-1.4%
PM growth 3Y-71.55%
PM growth 5Y-51.64%
GM growth 3Y-2.67%
GM growth 5Y-1%
F-Score4
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 4.46 | ||
| Debt/EBITDA | 2.78 | ||
| Cap/Depr | 53.72% | ||
| Cap/Sales | 5.3% | ||
| Interest Coverage | 4.43 | ||
| Cash Conversion | 85.97% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 2.17 |
F-Score4
WACC9.73%
ROIC/WACC0.63
Cap/Depr(3y)90.89%
Cap/Depr(5y)85.95%
Cap/Sales(3y)7.21%
Cap/Sales(5y)6.76%
Profit Quality(3y)1669.68%
Profit Quality(5y)1049.89%
High Growth Momentum
Growth
EPS 1Y (TTM)2.47%
EPS 3Y-0.03%
EPS 5Y8.93%
EPS Q2Q%3.08%
EPS Next Y-6.08%
EPS Next 2Y0.2%
EPS Next 3Y3.05%
EPS Next 5Y5.19%
Revenue 1Y (TTM)-2.16%
Revenue growth 3Y4.59%
Revenue growth 5Y9.09%
Sales Q2Q%-2.71%
Revenue Next Year-3.32%
Revenue Next 2Y-0.46%
Revenue Next 3Y1.33%
Revenue Next 5Y1.71%
EBIT growth 1Y-19.26%
EBIT growth 3Y-4.53%
EBIT growth 5Y7.56%
EBIT Next Year30.58%
EBIT Next 3Y13.83%
EBIT Next 5Y8.72%
FCF growth 1Y104.63%
FCF growth 3Y-1.94%
FCF growth 5Y8.06%
OCF growth 1Y23.95%
OCF growth 3Y-1.16%
OCF growth 5Y8.84%