Charles River Laboratories International Inc
Exchange: NYSESector: HealthcareIndustry: Diagnostics & Research
Charles River Laboratories International, Inc. is a global provider of solutions, which accelerate the early-stage drug discovery and development process. The focus of its business is in vivo biology; its portfolio includes research models and services required to enable in vivo drug discovery and development. The Company operates in two segments: Research Models and Services (RMS) and Preclinical Services (PCS). Through its RMS segment, the Company has been supplying research models to the drug development industry. The Company is engaged in the production and sale of rodent research model strains, principally genetically and microbiologically defined purpose-bred rats and mice. Its PCS business segment provides services that enable its clients to outsource their critical, regulatory-required safety assessment and related drug development activities to the Company. In August 2012, the Company acquired Accugenix, Inc. In January 2013, the Company acquired 75% ownership of Vital River.
Did you know?
Trading 4% above its estimated fair value of $161.69.
Current Price
$167.74
-9.23%GoodMoat Value
$161.69
3.6% overvaluedProfile
Valuation (TTM)
Market Cap$8.26B
P/E-57.19
EV$10.13B
P/B2.61
Shares Out49.22M
P/Sales2.06
Revenue$4.02B
EV/EBITDA25.97
Charles River Laboratories International Inc (CRL) Stock Analysis
GoodMoat Analysis
Charles River Laboratories is a leading contract research organization (CRO) providing essential drug discovery and development services. While it may possess a narrow moat through switching costs and niche dominance, its current financial quality is unfavourable, with negative profitability and declining revenue, failing the initial gate for a value investment.
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Charles River Laboratories (CRL) operates as a contract research organization (CRO), providing critical services like research models, safety assessment, and manufacturing support to pharmaceutical and biotech clients. Applying the GoodMoat framework, its potential moat likely stems from **Switching Costs** (its services are mission-critical and embedded in long, complex client R&D processes) and **Niche Dominance** as a key player in preclinical research. However, a full Moat Score is difficult to ascertain without deeper data on contracts, scale, and competitive positioning. More critically, the company currently fails the **Quality Indicators** gate. Key metrics are weak: it is not GAAP profitable (EPS of -$2.91, Profit Margin of -3.6%), revenue growth is negative (-0.8% YoY), and ROE is negative (-4.6%). While the Free Cash Flow Yield of 6.4% is positive, the presence of multiple weak quality ratings suggests the business lacks the fundamental strength required by the framework's Step 1. The GoodMoat Target price of $161.69 is close to the current $165.89, indicating a marginal valuation at best, but this is secondary given the quality concerns. For a value investor focused on durable advantages and financial health, CRL's current profile does not pass the initial screening and warrants significant caution. Further investigation would require a clear thesis on a return to sustained profitability and moat durability. Analysis based on data as of 2024-05-15.
Market Cap$8.26B
Current Price$167.74
P/E Ratio-57.19
Forward P/E—
PEG Ratio-1.74
EPS$-2.91
Book Value$64.30
P/B Ratio2.61
CRL Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 7.3% FCF growth (CAGR)
Cash vs Debt
Net Debt: 2.4B
Revenue
2.6B
FY19
2.9B
FY20
3.5B
FY21
4.0B
FY22
4.1B
FY23
4.0B
FY24
4.0B
FY25
Net Income
252M
FY19
364M
FY20
391M
FY21
486M
FY22
475M
FY23
22M
FY24
—
FY25
CRL 52-Week Range
$114.66
$226.77
50-Day MA: $168.80200-Day MA: $175.68
Did you know?
Earnings per share grew at a -38.5% CAGR.
Charles River Laboratories International Inc (CRL) Financial Summary
Charles River Laboratories International Inc (CRL) is a Healthcare company in the Diagnostics & Research industry, listed on NYSE. The stock currently trades at $167.74 with a market capitalization of $8.26B.
Key valuation metrics include a P/E ratio of -57.19, price-to-book ratio of 2.61, and EPS of $-2.91. The company reports a profit margin of -3.6% and return on equity of -4.6%.
CRL Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $8.26B |
| P/E Ratio | -57.19 |
| EPS | $-2.91 |
| P/B Ratio | 2.61 |
| P/S Ratio | 2.06 |
| EV/EBITDA | 25.97 |
| Profit Margin | -3.6% |
| Return on Equity | -4.6% |
| Debt/Equity | 0.81 |
CRL Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $2.62B | $252.02M |
| FY20 | $2.92B | $364.30M |
| FY21 | $3.54B | $390.98M |
| FY22 | $3.98B | $486.23M |
| FY23 | $4.13B | $474.62M |
| FY24 | $4.05B | $22.20M |
| FY25 | $4.02B | $-144.34M |
Charles River Laboratories International Inc (CRL) Valuation
Based on GoodMoat's DCF model, Charles River Laboratories International Inc has a fair value estimate of $161.69. At the current price of $167.74, the stock appears 3.7% overvalued relative to our intrinsic value estimate.
CRL Quality Indicators
Charles River Laboratories International Inc maintains a profit margin of -3.6% and an operating margin of 0.6%. Return on equity stands at -4.6%. The current ratio is 1.29. Debt-to-equity ratio is 0.81.
About Charles River Laboratories International Inc
Charles River Laboratories International, Inc. is a global provider of solutions, which accelerate the early-stage drug discovery and development process. The focus of its business is in vivo biology; its portfolio includes research models and services required to enable in vivo drug discovery and development. The Company operates in two segments: Research Models and Services (RMS) and Preclinical Services (PCS). Through its RMS segment, the Company has been supplying research models to the drug development industry. The Company is engaged in the production and sale of rodent research model strains, principally genetically and microbiologically defined purpose-bred rats and mice. Its PCS business segment provides services that enable its clients to outsource their critical, regulatory-required safety assessment and related drug development activities to the Company. In August 2012, the Company acquired Accugenix, Inc. In January 2013, the Company acquired 75% ownership of Vital River.
CRL Free Cash Flow
Charles River Laboratories International Inc generated $518.49M in trailing twelve-month free cash flow, representing an FCF yield of 6.28%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
CRL Shares Outstanding
Charles River Laboratories International Inc has 0.05 billion shares outstanding at a share price of $167.74, giving it a market capitalization of $8.26B.
CRL Recent Insider Trades
Recent insider transactions at Charles River Laboratories International Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| LaPlume Joseph W (EVP, Corp Strategy & Develop) | BUY | 25 | $4363.50 |
| LaPlume Joseph W (EVP, Corp Strategy & Develop) | SELL | 400 | $65488.00 |