CHARLES RIVER LABORATORIES (CRL)

US1598641074 - Common Stock

247.71  +0.81 (+0.33%)

After market: 247.71 0 (0%)

Fundamental Rating

5

Taking everything into account, CRL scores 5 out of 10 in our fundamental rating. CRL was compared to 61 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.



7

1. Profitability

1.1 Basic Checks

In the past year CRL was profitable.
CRL had a positive operating cash flow in the past year.
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 better Return On Assets (5.79%) than 83.61% of its industry peers.
CRL has a better Return On Equity (13.20%) than 86.89% of its industry peers.
CRL has a Return On Invested Capital of 7.40%. This is amongst the best in the industry. CRL outperforms 85.25% of its industry peers.
CRL had an Average Return On Invested Capital over the past 3 years of 8.07%. This is in line with the industry average of 9.17%.
Industry RankSector Rank
ROA 5.79%
ROE 13.2%
ROIC 7.4%
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

The Profit Margin of CRL (11.49%) is better than 78.69% of its industry peers.
CRL's Profit Margin has improved in the last couple of years.
The Operating Margin of CRL (15.82%) is better than 80.33% of its industry peers.
CRL's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 36.89%, CRL is doing worse than 60.66% of the companies in the same industry.
CRL's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 15.82%
PM (TTM) 11.49%
GM 36.89%
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%

3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CRL is destroying value.
The number of shares outstanding for CRL has been increased compared to 1 year ago.
Compared to 5 years ago, CRL has more shares outstanding
The debt/assets ratio for CRL has been reduced compared to a year ago.

2.2 Solvency

CRL has an Altman-Z score of 2.82. 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.
CRL has a better Altman-Z score (2.82) than 62.30% of its industry peers.
The Debt to FCF ratio of CRL is 7.26, which is on the high side as it means it would take CRL, 7.26 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.26, CRL is in the better half of the industry, outperforming 68.85% of the companies in the same industry.
CRL has a Debt/Equity ratio of 0.74. This is a neutral value indicating CRL is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.74, CRL is doing worse than 78.69% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.74
Debt/FCF 7.26
Altman-Z 2.82
ROIC/WACC0.64
WACC11.56%

2.3 Liquidity

CRL has a Current Ratio of 1.52. This is a normal value and indicates that CRL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.52, CRL is doing worse than 85.25% of the companies in the same industry.
CRL has a Quick Ratio of 1.16. This is a normal value and indicates that CRL is financially healthy and should not expect problems in meeting its short term obligations.
CRL's Quick ratio of 1.16 is on the low side compared to the rest of the industry. CRL is outperformed by 81.97% of its industry peers.
Industry RankSector Rank
Current Ratio 1.52
Quick Ratio 1.16

5

3. Growth

3.1 Past

The earnings per share for CRL have decreased by -4.31% in the last year.
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 3.86% in the past year.
Measured over the past years, CRL shows a quite strong growth in Revenue. The Revenue has been growing by 12.75% on average per year.
EPS 1Y (TTM)-4.31%
EPS 3Y9.37%
EPS 5Y12.09%
EPS growth Q2Q-17.45%
Revenue 1Y (TTM)3.86%
Revenue growth 3Y12.2%
Revenue growth 5Y12.75%
Revenue growth Q2Q-7.85%

3.2 Future

CRL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.63% yearly.
CRL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.01% yearly.
EPS Next Y2.51%
EPS Next 2Y7.82%
EPS Next 3Y10.68%
EPS Next 5Y14.63%
Revenue Next Year3.19%
Revenue Next 2Y5.44%
Revenue Next 3Y6.11%
Revenue Next 5Y7.01%

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 accelerating.
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.

5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 23.26, the valuation of CRL can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CRL indicates a rather cheap valuation: CRL is cheaper than 90.16% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CRL to the average of the S&P500 Index (26.35), we can say CRL is valued inline with the index average.
A Price/Forward Earnings ratio of 22.69 indicates a rather expensive valuation of CRL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CRL indicates a rather cheap valuation: CRL is cheaper than 88.52% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CRL to the average of the S&P500 Index (21.63), we can say CRL is valued inline with the index average.
Industry RankSector Rank
PE 23.26
Fwd PE 22.69

4.2 Price Multiples

93.44% of the companies in the same industry are more expensive than CRL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CRL is valued a bit cheaper than the industry average as 75.41% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 34.78
EV/EBITDA 15.55

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.
The decent profitability rating of CRL may justify a higher PE ratio.
PEG (NY)9.27
PEG (5Y)1.92
EPS Next 2Y7.82%
EPS Next 3Y10.68%

0

5. Dividend

5.1 Amount

CRL does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

CHARLES RIVER LABORATORIES

NYSE:CRL (2/23/2024, 7:04:00 PM)

After market: 247.71 0 (0%)

247.71

+0.81 (+0.33%)

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 Cap12.71B
Analysts
Price Target
Dividend
Industry RankSector 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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE 23.26
Fwd PE 22.69
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)9.27
PEG (5Y)1.92
Profitability
Industry RankSector Rank
ROA 5.79%
ROE 13.2%
ROCE
ROIC
ROICexc
ROICexgc
OM 15.82%
PM (TTM) 11.49%
GM 36.89%
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 RankSector Rank
Debt/Equity 0.74
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.52
Quick Ratio 1.16
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)
Growth
EPS 1Y (TTM)-4.31%
EPS 3Y9.37%
EPS 5Y
EPS growth Q2Q
EPS Next Y2.51%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.86%
Revenue growth 3Y12.2%
Revenue growth 5Y
Revenue growth 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