Charles River Labs (CRL) AI Stock Analysis

• Market Cap: $10.67B
• Dividend Yield: N/A
• Average Volume (3M): 592.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: -0.92%
• EPS Growth: -118.96%
• Country: US
• Employees: 18,700
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 2.43
• Shares Outstanding: 49,215,470
• 10 Day Avg. Volume: 405,667
• 30 Day Avg. Volume: 592,012
• PEG Ratio: -9.41
• Price to Book (P/B): 2.74
• Price to Sales (P/S): 2.34
• P/FCF Ratio: 18.91
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 2.44
• Enterprise Value/Gross Profit: 7.56
• Enterprise Value/Ebitda: 19.00
• 1Y Price Target: $202.10
• Price Target Upside: -6.22% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $225.00 ▲(4.40% Upside)

The score is held back primarily by weak financial performance (declining revenue and negative net margin) and unfavorable valuation metrics (negative P/E with no dividend yield provided). These are partially offset by strong technical uptrend signals and a mixed-but-constructive earnings call that emphasized cost savings, portfolio actions, and a large buyback alongside modestly declining revenue guidance.

Positive Factors

Cash generation and conversion

Consistently strong operating cash flow and a cash conversion ratio near 0.73 indicate durable internal funding capacity. That sustained cash generation supports ongoing R&D, targeted capex, debt servicing and enables the company to fund buybacks or reinvest without relying on external financing over the medium term.

Diversified, mission-critical business model

A two-segment model spanning research models and preclinical services ties the business to persistent drug discovery and safety workflows. That diversification across recurring animal model sales, safety testing and early-stage development creates structural client stickiness and steady demand from pharma and biotech over multiple cycles.

Strategic portfolio actions and cost programs

A formal strategic review with divestitures and multi-year cost targets is a structural lever to improve margins and focus on higher-return businesses. Realizing $225M+ of savings and pruning non-core revenue can sustainably raise profitability and free cash flow, improving operational resilience beyond short-term cycles.

Negative Factors

Declining revenue growth and negative net margin

Material top-line contraction and a negative net margin signal structural demand or pricing pressure and limit reinvestment capacity. Persisting negative profitability undermines ROE and could force deeper restructuring or constrain strategic initiatives if revenue recovery and margin restoration do not occur within the medium term.

DSA and manufacturing segment weakness

Organic declines in Discovery & Safety Assessment and manufacturing-facing revenues highlight secular or customer-specific headwinds in higher-margin service lines. Continued softness in DSA and CDMO-related commercial work can structurally compress operating leverage and slow recovery of overall company margins over several quarters.

Leadership succession and compensation changes

A planned leadership transition with elevated pay and sizeable performance equity increases fixed costs and introduces execution risk. While internal succession aids continuity, expanded compensation and governance changes may create agency or short-term incentive pressures, potentially raising structural SG&A or distracting management during execution.

Charles River Labs Business Overview & Revenue Model

Company Description

Charles River Laboratories International, Inc., a non-clinical contract research organization, provides drug discovery, non-clinical development, and safety testing services in the United States, Europe, Canada, the Asia Pacific, and internationally. It operates through three segments: Research Models and Services (RMS), Discovery and Safety Assessment (DSA), and Manufacturing Solutions (Manufacturing). The RMS segment produces and sells rodent research model strains and purpose-bred rats and mice for use by researchers. This segment also provides a range of services to assist its clients in supporting the use of research models in research and screening non-clinical drug candidates, including research models, genetically engineered models and services, insourcing solutions, and research animal diagnostic services. The DSA segment offers early and in vivo discovery services for the identification and validation of novel targets, chemical compounds, and antibodies through delivery of non-clinical drug and therapeutic candidates ready for safety assessment; and safety assessment services, such as toxicology, pathology, safety pharmacology, bioanalysis, drug metabolism, and pharmacokinetics services. The Manufacturing segment provides in vitro methods for conventional and rapid quality control testing of sterile and non-sterile pharmaceuticals and consumer products. This segment also offers specialized testing of biologics that are outsourced by pharmaceutical and biotechnology companies; and avian vaccine services that provide specific-pathogen-free (SPF) fertile chicken eggs, SPF chickens, and diagnostic products used to manufacture vaccines. The company also provides contract vivarium operation services to biopharmaceutical clients. Charles River Laboratories International, Inc. was founded in 1947 and is headquartered in Wilmington, Massachusetts.

How the Company Makes Money

Charles River Labs generates revenue through multiple streams primarily centered around its comprehensive suite of services and products for the life sciences sector. The Research Models and Services segment includes the sale of laboratory animals and related services, which contribute significantly to revenue. The Preclinical Services segment provides services that encompass the early stages of drug development, including in vitro and in vivo testing, safety assessments, and pharmacokinetics. Additionally, CRL forms strategic partnerships with pharmaceutical and biotechnology companies, which can lead to long-term contracts and collaborations, enhancing its revenue. The company also benefits from ongoing demand for its services due to the continuous need for drug development and testing, driven by innovation in the biotech and pharmaceutical industries.

Charles River Labs Financial Statement Overview

Summary

Charles River Labs shows strong revenue growth and cash flow generation, but faces profitability challenges with a negative net income TTM. The balance sheet shows improved leverage, but the negative return on equity highlights ongoing profitability issues.

Income Statement

The income statement shows mixed results. The TTM data reveals a negative net profit margin of -1.72%, indicating a loss, which is a significant decline from the previous year's positive margin. Revenue growth is strong at 15% TTM, but the gross profit margin has decreased to 23.61% from 32.88% in the previous year. The EBIT and EBITDA margins have also declined, reflecting reduced operational efficiency.

Balance Sheet

The balance sheet indicates moderate stability with a debt-to-equity ratio of 0.83 TTM, which is an improvement from the previous year. However, the return on equity is negative at -2.01% TTM, highlighting profitability challenges. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis shows a robust free cash flow growth rate of 270.9% TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy at 0.73, suggesting efficient cash conversion. However, the free cash flow to net income ratio indicates reliance on cash flow rather than profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.02B	4.05B	4.13B	3.98B	3.54B	2.92B
Gross Profit	1.30B	1.33B	1.50B	1.46B	1.33B	1.07B
EBITDA	516.43M	581.14M	1.03B	986.15M	820.16M	768.47M
Net Income	-83.48M	10.30M	474.62M	486.23M	390.98M	364.30M
Balance Sheet
Total Assets	7.51B	7.53B	8.20B	7.60B	7.02B	5.49B
Cash, Cash Equivalents and Short-Term Investments	207.67M	194.61M	276.77M	233.91M	246.30M	229.45M
Total Debt	2.63B	2.72B	3.07B	3.10B	3.21B	2.16B
Total Liabilities	4.06B	4.02B	4.54B	4.58B	4.43B	3.35B
Stockholders Equity	3.41B	3.46B	3.60B	2.98B	2.53B	2.11B
Cash Flow
Free Cash Flow	543.67M	501.61M	365.37M	294.91M	532.03M	380.01M
Operating Cash Flow	749.49M	734.58M	683.90M	619.64M	760.80M	546.58M
Investing Cash Flow	-192.62M	-245.09M	-563.15M	-607.92M	-1.44B	-601.54M
Financing Cash Flow	-560.74M	-550.93M	-85.52M	-42.40M	672.60M	47.25M

Charles River Labs Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 215.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRL, the sentiment is Positive. The current price of 215.51 is above the 20-day moving average (MA) of 201.95, above the 50-day MA of 185.60, and above the 200-day MA of 159.42, indicating a bullish trend. The MACD of 8.05 indicates Negative momentum. The RSI at 74.53 is Negative, neither overbought nor oversold. The STOCH value of 93.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRL.

Charles River Labs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MEDP	79 Outperform	$17.27B	41.96	73.70%	―	13.88%	23.92%
IDXX	78 Outperform	$57.06B	56.47	64.63%	―	8.39%	21.44%
QGEN	77 Outperform	$10.80B	24.83	11.29%	3.31%	5.32%	336.29%
RVTY	67 Neutral	$11.68B	50.86	3.04%	0.29%	3.37%	-18.80%
CRL	59 Neutral	$10.67B	-138.59	-2.32%	―	-0.92%	-118.96%
NEOG	56 Neutral	$1.60B	-3.50	-39.71%	―	-2.77%	-4327.53%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Charles River Labs Corporate Events

Charles River Labs Announces CEO Succession and Leadership Changes

On January 8, 2026, Charles River Laboratories announced a leadership transition under which long-time Chairman, President and Chief Executive Officer James C. Foster will step down as CEO and Chair of the Board effective May 5, 2026, while remaining on the board as a non-executive director. Chief Operating Officer Birgit Girshick will become Chief Executive Officer on that date and has been nominated to join the board at the 2026 annual shareholders’ meeting, with Lead Independent Director Martin Mackay slated to become Chair of the Board and the board expanding from 11 to 12 members with consent from Elliott-affiliated shareholders, reflecting a carefully structured change in governance and continuity of leadership. In connection with her promotion, Girshick’s compensation package will be significantly enhanced, including a higher base salary, an increased target annual cash incentive, and a substantial equity grant largely in performance share units, along with change-in-control protections and retirement treatment for certain equity awards, underscoring the board’s commitment to aligning her incentives with long-term performance. The compensation committee also approved a two-year cliff-vesting restricted stock unit grant valued at $3 million for Foster in recognition of his service as CEO during part of fiscal 2026, after which he is expected to receive compensation consistent with other non-executive directors.

The most recent analyst rating on (CRL) stock is a Buy with a $215.00 price target. To see the full list of analyst forecasts on Charles River Labs stock, see the CRL Stock Forecast page.

Charles River Labs Joins Evercore Healthcare Conference

Charles River Laboratories announced its participation in the Evercore 8th Annual Healthcare Conference on December 3, 2025, where it plans to discuss fourth-quarter demand trends. The company has observed improvements in its DSA net book-to-bill ratio since the third fiscal quarter of 2025, despite potential seasonal impacts on proposal and booking activities during the holiday period. The company remains optimistic about the positive momentum and upward trends in its operations.

The most recent analyst rating on (CRL) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on Charles River Labs stock, see the CRL Stock Forecast page.

SEC Concludes Investigation on Charles River Labs

On May 16, 2023, Charles River Laboratories received an inquiry from the SEC’s Enforcement Division regarding the sourcing of non-human primates, which led to an independent investigation by the company’s Audit Committee. On November 14, 2025, the SEC concluded its investigation without recommending enforcement action, and the company’s independent investigation also found no material issues.

The most recent analyst rating on (CRL) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on Charles River Labs stock, see the CRL Stock Forecast page.