Charles River Laboratories Intl (CRL)
NYSE:CRL
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Charles River Labs
(NYSE:CRL)
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Rating:51Neutral
Price Target:
$186.00
▲(1.15% Upside)
Action:ReiteratedDate:02/25/26
The score is held down primarily by the sharp deterioration in recent financial results and a clearly bearish technical trend. Partially offsetting these are resilient cash flow and a cautiously optimistic 2026 outlook (modest EPS/margin improvement driven by cost actions and acquisitions/divestitures), though near-term profitability and free-cash-flow pressure limit upside.
Positive Factors
Strong cash generation
Consistent operating and free cash flow through a loss year provides durable financial flexibility. Reliable cash generation funds capex, funds strategic M&A, supports debt reduction and working capital, and cushions the business against cyclical R&D spending variability over the next 2–6 months.
Negative Factors
Revenue and profit deterioration
A sharp reversal from prior multi-year growth undermines scale economics and pricing leverage. Sustained top-line weakness and negative margins erode returns, constrain reinvestment, and require successful execution of cost and portfolio actions to restore prior profitability levels over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent operating and free cash flow through a loss year provides durable financial flexibility. Reliable cash generation funds capex, funds strategic M&A, supports debt reduction and working capital, and cushions the business against cyclical R&D spending variability over the next 2–6 months.
Read all positive factors
Charles River Labs (CRL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.50B
Dividend YieldN/A
Average Volume (3M)846.95K
Price to Earnings (P/E)―
Beta (1Y)0.73
Revenue Growth-0.85%
EPS Growth-1143.24%
CountryUS
Employees18,700
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)-2.95
Shares Outstanding49,341,960
10 Day Avg. Volume848,582
30 Day Avg. Volume846,951
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)3.19
Price to Sales (P/S)2.51
P/FCF Ratio19.47
Enterprise Value/Market Cap1.41
Enterprise Value/Revenue2.99
Enterprise Value/Gross Profit9.08
Enterprise Value/Ebitda14.97
Forecast
1Y Price Target
$197.30Price Target Upside7.30% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)11.08
Revenue Forecast (FY)$3.94B
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 international...
How the Company Makes Money
CRL primarily makes money by providing fee-for-service research and development support to life sciences customers. Its revenue model is largely contractual and project-based (and, in some offerings, relationship-based), where customers pay for sp...
Charles River Labs Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue across different business segments, highlighting which areas are driving growth and which may need strategic adjustments.
Breaks down revenue across different business segments, highlighting which areas are driving growth and which may need strategic adjustments.
Data provided by:
The Fly
The FlyCharles River Labs Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call paints a cautiously optimistic outlook: Q4 and FY results were broadly in line with prior guidance, DSA bookings, backlog and end‑of‑year biotech funding trends improved materially, and management has action plans (KF acquisition, PathoQuest, cost savings) to address near‑term margin headwinds. However, there are notable short‑term challenges—organic revenue declines in 2025, higher NHP sourcing costs, a sizable near‑term EPS/margin hit in Q1 2026 (accelerated stock comp and timing issues), a decline in free cash flow, and ongoing divestiture execution risk. Guidance for 2026 targets modest EPS growth (4%–9%) and margin expansion, reflecting confidence that strategic moves will offset headwinds over the year while acknowledging non‑linear demand dynamics.Positive Updates
Top- and Bottom-Line Results in Line with Guidance
Reported FY2025 revenue of $4,020,000,000 with non-GAAP EPS nearly flat at $10.28 (vs $10.32 in 2024); management delivered results at the upper end of their November revenue and non-GAAP EPS ranges.
Negative Updates
Organic Revenue Declines Across Periods and Segments
Q4 2025 reported revenue $994,200,000 with an organic decline of 2.6% YoY; FY2025 organic revenue declined 1.6%. All three segments experienced organic revenue declines in Q4.
Read all updates
Q4-2025 Updates
Positive
Negative
Top- and Bottom-Line Results in Line with Guidance
Reported FY2025 revenue of $4,020,000,000 with non-GAAP EPS nearly flat at $10.28 (vs $10.32 in 2024); management delivered results at the upper end of their November revenue and non-GAAP EPS ranges.
Read all positive updates
Company Guidance
Charles River’s 2026 guidance calls for organic revenue to be down ~1% to at least flat (reported revenue essentially flat to +1.5% with a +1% to +1.5% FX tailwind), consolidated operating margin to expand 20–50 bps from 19.8% in 2025, and non‑GAAP EPS of $10.70–$11.20 (≈+4% to +9%), which embeds a ~$0.25 EPS benefit from the KF acquisition; segment outlooks include RMS organic down low‑ to mid‑single digits (NHP revenue below 2025 is an ~200‑bp headwind; small research models global flat to slightly up), DSA organic roughly flat to a low‑single‑digit decline (return to growth in H2 contingent on net book‑to‑bill averaging >1x), and Manufacturing rebounding to low‑single‑digit organic growth with Microbial Solutions mid‑single‑digit growth. Management expects the KF deal to add >50 bps to consolidated margin (and >100 bps to DSA) in 2026, at least $100M of incremental cost savings above 2025 (building toward >$300M cumulative annualized), a non‑GAAP tax rate of 22–23%, adjusted net interest of $95M–$100M, free cash flow of $375M–$400M (vs. $518.5M in 2025), capex ≈$200M (~5% of revenue), a Q1 operating margin in the mid‑teens with Q1 EPS down high‑teens y/y (≈$0.15 headwind from accelerated stock comp), and an average diluted share count that is expected to be slightly higher.Charles River Labs Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
62
Positive
Cash Flow
71
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.02B | 4.05B | 4.13B | 3.98B | 3.54B |
| Gross Profit | 1.23B | 1.33B | 1.50B | 1.46B | 1.33B |
| EBITDA | 911.15M | 581.14M | 1.03B | 986.15M | 820.16M |
| Net Income | -144.34M | 10.30M | 474.62M | 486.23M | 390.98M |
Balance Sheet | |||||
| Total Assets | 7.14B | 7.53B | 8.20B | 7.60B | 7.02B |
| Cash, Cash Equivalents and Short-Term Investments | 213.77M | 194.61M | 276.77M | 233.91M | 246.30M |
| Total Debt | 3.07B | 2.72B | 3.07B | 3.10B | 3.21B |
| Total Liabilities | 3.92B | 4.02B | 4.54B | 4.58B | 4.43B |
| Stockholders Equity | 3.16B | 3.46B | 3.60B | 2.98B | 2.53B |
Cash Flow | |||||
| Free Cash Flow | 518.49M | 501.61M | 365.37M | 294.91M | 532.03M |
| Operating Cash Flow | 737.65M | 734.58M | 683.90M | 619.64M | 760.80M |
| Investing Cash Flow | -209.32M | -245.09M | -563.15M | -607.92M | -1.44B |
| Financing Cash Flow | -536.73M | -550.93M | -85.52M | -42.40M | 672.60M |
Charles River Labs Technical Analysis
Positive
183.88
Price Trends
169.17
Positive
185.52
Negative
175.21
Positive
Market Momentum
3.20
Negative
62.44
Neutral
79.75
Neutral
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 183.88 is above the 20-day moving average (MA) of 170.25, above the 50-day MA of 169.17, and above the 200-day MA of 175.21, indicating a bullish trend. The MACD of 3.20 indicates Negative momentum. The RSI at 62.44 is Neutral, neither overbought nor oversold. The STOCH value of 79.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRL.
Charles River Labs Risk Analysis
Charles River Labs disclosed 40 risk factors in its most recent earnings report. Charles River Labs reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Charles River Labs Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $44.73B | 54.58 | 69.78% | ― | 10.42% | 22.38% | |
70 Outperform | $11.91B | 27.57 | 120.89% | ― | 24.19% | 20.19% | |
65 Neutral | $7.00B | 22.80 | 11.85% | 3.31% | 5.65% | 411.58% | |
62 Neutral | $9.67B | 27.94 | 3.24% | 0.29% | 3.67% | -12.98% | |
55 Neutral | $1.98B | -35.95 | -29.00% | ― | -3.91% | -25.31% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $8.50B | -9.06 | -4.40% | ― | -0.85% | -1143.24% |
* Healthcare Sector Average
CRL
Charles River Labs
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56.91
49.31%
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Charles River Labs Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Charles River Labs divests units to sharpen profitability focus
Positive
Feb 25, 2026
On February 25, 2026, Charles River Laboratories said it will divest its contract development and manufacturing organization and Cell Solutions businesses to GI Partners, exiting facilities in Tennessee, Maryland, the U.K., and California that gen...
Executive/Board Changes
Charles River Labs Appoints Glenn Coleman as New CFO
Positive
Feb 18, 2026
On February 18, 2026, Charles River Laboratories announced the appointment of Glenn Coleman as Corporate Executive Vice President and Chief Financial Officer, with a tentative start date of April 6, 2026. Coleman brings more than 30 years of finan...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.