CHARLES RIVER LABORATORIES (CRL) Stock Fundamental Analysis
NYSE:CRL - New York Stock Exchange, Inc. - US1598641074 - Common Stock - Currency: USD
Overall CRL gets a fundamental rating of 4 out of 10. We evaluated CRL against 55 industry peers in the Life Sciences Tools & Services industry. Both the profitability and the financial health of CRL get a neutral evaluation. Nothing too spectacular is happening here. CRL has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
In the past 5 years CRL has always been profitable.
In the past 5 years CRL always reported a positive cash flow from operatings.
1.2 Ratios
CRL's Return On Assets of 0.14% is fine compared to the rest of the industry. CRL outperforms 67.27% of its industry peers.
CRL's Return On Equity of 0.30% is fine compared to the rest of the industry. CRL outperforms 69.09% of its industry peers.
CRL has a better Return On Invested Capital (6.66%) than 72.73% of its industry peers.
CRL had an Average Return On Invested Capital over the past 3 years of 7.32%. This is significantly below the industry average of 13.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.14% | ||
| ROE | 0.3% | ||
| ROIC | 6.66% |
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
The Profit Margin of CRL (0.25%) is better than 67.27% of its industry peers.
CRL's Profit Margin has declined in the last couple of years.
CRL has a better Operating Margin (13.60%) than 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 34.76%. This is in the lower half of the industry: CRL underperforms 63.64% of its industry peers.
CRL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.6% | ||
| PM (TTM) | 0.25% | ||
| GM | 34.76% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CRL is destroying value.
Compared to 1 year ago, CRL has less shares outstanding
CRL has more shares outstanding than it did 5 years ago.
CRL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.01 indicates that CRL is not a great score, but indicates only limited risk for bankruptcy at the moment.
CRL has a Altman-Z score (2.01) which is in line with its industry peers.
The Debt to FCF ratio of CRL is 4.47, which is a neutral value as it means it would take CRL, 4.47 years of fcf income to pay off all of its debts.
CRL's Debt to FCF ratio of 4.47 is fine compared to the rest of the industry. CRL outperforms 74.55% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that CRL is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.65, CRL is not doing good in the industry: 70.91% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 4.47 | ||
| Altman-Z | 2.01 |
ROIC/WACC0.66
WACC10.03%
2.3 Liquidity
A Current Ratio of 1.41 indicates that CRL should not have too much problems paying its short term obligations.
The Current ratio of CRL (1.41) is worse than 76.36% of its industry peers.
A Quick Ratio of 1.13 indicates that CRL should not have too much problems paying its short term obligations.
CRL's Quick ratio of 1.13 is on the low side compared to the rest of the industry. CRL is outperformed by 74.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The earnings per share for CRL have decreased by -3.10% in the last year.
The Earnings Per Share has been growing by 8.93% on average over the past years. This is quite good.
CRL shows a decrease in Revenue. In the last year, the revenue decreased by -1.92%.
The Revenue has been growing by 9.09% on average over the past years. This is quite good.
EPS 1Y (TTM)-3.1%
EPS 3Y-0.03%
EPS 5Y8.93%
EPS Q2Q%8.13%
Revenue 1Y (TTM)-1.92%
Revenue growth 3Y4.59%
Revenue growth 5Y9.09%
Sales Q2Q%-1.08%
3.2 Future
The Earnings Per Share is expected to grow by 5.70% on average over the next years.
The Revenue is expected to grow by 3.74% on average over the next years.
EPS Next Y-8.71%
EPS Next 2Y-0.79%
EPS Next 3Y3.03%
EPS Next 5Y5.7%
Revenue Next Year-5.21%
Revenue Next 2Y-1.06%
Revenue Next 3Y0.79%
Revenue Next 5Y3.74%
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
With a Price/Earnings ratio of 11.11, the valuation of CRL can be described as very reasonable.
Based on the Price/Earnings ratio, CRL is valued cheaper than 96.36% of the companies in the same industry.
CRL is valuated cheaply when we compare the Price/Earnings ratio to 28.79, which is the current average of the S&P500 Index.
CRL is valuated correctly with a Price/Forward Earnings ratio of 12.17.
Based on the Price/Forward Earnings ratio, CRL is valued cheaply inside the industry as 94.55% of the companies are valued more expensively.
CRL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.11 | ||
| Fwd PE | 12.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CRL is valued cheaper than 100.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CRL is valued cheaper than 96.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.23 | ||
| EV/EBITDA | 8.42 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.24
EPS Next 2Y-0.79%
EPS Next 3Y3.03%
5. Dividend
5.1 Amount
No dividends for CRL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
114.66
-1.1 (-0.95%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners105.79%
Inst Owner Change1.84%
Ins Owners0.83%
Ins Owner Change1.05%
Market Cap5.63B
Analysts63.33
Price Target150.62 (31.36%)
Short Float %5.47%
Short Ratio1.45
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)4.86%
Min EPS beat(2)4.03%
Max EPS beat(2)5.7%
EPS beat(4)4
Avg EPS beat(4)8.54%
Min EPS beat(4)4.03%
Max EPS beat(4)15.8%
EPS beat(8)8
Avg EPS beat(8)7.07%
EPS beat(12)12
Avg EPS beat(12)5.74%
EPS beat(16)16
Avg EPS beat(16)6.05%
Revenue beat(2)2
Avg Revenue beat(2)1.67%
Min Revenue beat(2)0.91%
Max Revenue beat(2)2.43%
Revenue beat(4)3
Avg Revenue beat(4)0.86%
Min Revenue beat(4)-0.86%
Max Revenue beat(4)2.43%
Revenue beat(8)6
Avg Revenue beat(8)1.15%
Revenue beat(12)8
Avg Revenue beat(12)0.97%
Revenue beat(16)11
Avg Revenue beat(16)0.99%
PT rev (1m)-18.76%
PT rev (3m)-31.6%
EPS NQ rev (1m)-0.56%
EPS NQ rev (3m)-12.86%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)-8.99%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-4.85%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.11 | ||
| Fwd PE | 12.17 | ||
| P/S | 1.39 | ||
| P/FCF | 11.23 | ||
| P/OCF | 7.67 | ||
| P/B | 1.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.42 |
EPS(TTM)10.32
EY9%
EPS(NY)9.42
Fwd EY8.22%
FCF(TTM)10.21
FCFY8.91%
OCF(TTM)14.95
OCFY13.04%
SpS82.45
BVpS70.47
TBVpS-2.21
PEG (NY)N/A
PEG (5Y)1.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.14% | ||
| ROE | 0.3% | ||
| ROCE | 8.43% | ||
| ROIC | 6.66% | ||
| ROICexc | 6.86% | ||
| ROICexgc | 15.71% | ||
| OM | 13.6% | ||
| PM (TTM) | 0.25% | ||
| GM | 34.76% | ||
| FCFM | 12.39% |
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-Score6
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 4.47 | ||
| Debt/EBITDA | 2.45 | ||
| Cap/Depr | 64.4% | ||
| Cap/Sales | 5.75% | ||
| Interest Coverage | 4.46 | ||
| Cash Conversion | 80.5% | ||
| Profit Quality | 4871.42% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 2.01 |
F-Score6
WACC10.03%
ROIC/WACC0.66
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)-3.1%
EPS 3Y-0.03%
EPS 5Y8.93%
EPS Q2Q%8.13%
EPS Next Y-8.71%
EPS Next 2Y-0.79%
EPS Next 3Y3.03%
EPS Next 5Y5.7%
Revenue 1Y (TTM)-1.92%
Revenue growth 3Y4.59%
Revenue growth 5Y9.09%
Sales Q2Q%-1.08%
Revenue Next Year-5.21%
Revenue Next 2Y-1.06%
Revenue Next 3Y0.79%
Revenue Next 5Y3.74%
EBIT growth 1Y-15.66%
EBIT growth 3Y-4.53%
EBIT growth 5Y7.56%
EBIT Next Year27.88%
EBIT Next 3Y14.43%
EBIT Next 5Y11.83%
FCF growth 1Y37.29%
FCF growth 3Y-1.94%
FCF growth 5Y8.06%
OCF growth 1Y7.41%
OCF growth 3Y-1.16%
OCF growth 5Y8.84%