Charles River Labs (CRL) AI Stock Analysis

• Market Cap: $7.61B
• Dividend Yield: N/A
• Average Volume (3M): 776.43K
• Price to Earnings (P/E): 449.9
• Beta (1Y): 0.73
• Revenue Growth: -2.16%
• EPS Growth: -107.31%
• Country: US
• Employees: 18,700
• Sector: Healthcare
• Sector Strength: 44
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 2.34
• Shares Outstanding: 49,115,710
• 10 Day Avg. Volume: 550,009
• 30 Day Avg. Volume: 776,435
• PEG Ratio: 0.78
• Price to Book (P/B): 2.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.47
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 7.93
• Enterprise Value/Ebitda: 3.31
• 1Y Price Target: $157.42
• Price Target Upside: 0.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 70 Outperform
• Price Target: $173.00 ▲(10.40%Upside)

Charles River Labs' overall score is driven by strong technical indicators and positive corporate events, suggesting potential for future growth. However, the negative valuation due to recent losses and revenue challenges poses significant risks. The company's strategic initiatives and improved guidance provide a cautiously optimistic outlook.

Positive Factors

Financial Performance

Strong performance in the DSA segment significantly contributed to the company outperforming previous revenue guidance.

Investment Potential

Valuation is significantly lower than the 5-year average, suggesting substantial upside potential.

Strategic Focus

The company is focusing on preclinical demand trends, which indicates a strategic approach to maintaining growth.

Negative Factors

Funding Concerns

Concerns about funding for A&G could pose a challenge, though they have minimal near-term impact from the phase-out of animal testing.

Macro Pressure

DSA/RMS are exposed to macro pressure and FDA's animal testing plans.

Operational Challenges

There is some concern about the shift away from animal testing, which could impact certain operations.

Charles River Labs Business Overview & Revenue Model

Company Description

Charles River Laboratories International, Inc. (CRL) is a leading global contract research organization (CRO) that provides essential products and services to accelerate research and drug development efforts. The company operates in various sectors, including research models and services, discovery and safety assessment, and manufacturing support. Its core offerings include research models, preclinical and clinical laboratory services, and biologics testing solutions, primarily catering to the pharmaceutical, biotechnology, and academic sectors.

How the Company Makes Money

Charles River Laboratories generates revenue through a diversified model that includes three primary segments: Research Models and Services (RMS), Discovery and Safety Assessment (DSA), and Manufacturing Support (MS). RMS provides animal models and associated services, which are crucial for biomedical research. DSA offers preclinical and clinical laboratory services that support drug discovery and safety assessments, a critical step in drug development. The MS segment provides testing and manufacturing services for biologics and biosimilars, ensuring compliance with regulatory standards. Significant partnerships with pharmaceutical and biotech companies, as well as academic institutions, bolster their revenue streams by maintaining steady demand for their comprehensive suite of research and testing services.

Charles River Labs Financial Statement Overview

Summary

Charles River Labs exhibits strong operational cash flows and a stable equity base. However, recent declines in revenue and profitability metrics highlight potential operational challenges. The balance sheet remains leveraged yet stable, though the negative net income impacts ROE and overall profitability outlook.

Income Statement

Charles River Labs has shown a fluctuating revenue growth with a recent decline, indicated by a -2.1% drop in revenue from 2024 to TTM 2025. Gross profit margin remains healthy at 31.8% for TTM 2025, though lower compared to previous years. The net profit margin turned negative to -0.8% in TTM 2025, revealing profitability challenges, exacerbated by declining EBIT and EBITDA margins to 4.8% and 13.6% respectively.

Balance Sheet

The company's debt-to-equity ratio stands at 0.93 for TTM 2025, indicating a moderate level of leverage. The equity ratio is stable at 42.1%, showcasing a good asset base supported by equity. However, the ROE has turned negative due to the net loss, posing concerns about shareholder returns.

Cash Flow

Operating cash flow remains robust at $776 million in TTM 2025, a positive indicator. Free cash flow has increased by 12.3% from the previous year, demonstrating effective cash management. The operating cash flow to net income ratio is high due to a negative net income, suggesting strong operational cash generation despite profitability challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.05B	4.13B	3.98B	3.54B	2.92B
Gross Profit	1.33B	1.50B	1.46B	1.33B	1.07B
EBITDA	581.14M	1.03B	986.15M	854.29M	759.15M
Net Income	10.30M	474.62M	486.23M	390.98M	364.30M
Balance Sheet
Total Assets	7.53B	8.20B	7.60B	7.02B	5.49B
Cash, Cash Equivalents and Short-Term Investments	194.61M	276.77M	233.91M	241.21M	228.42M
Total Debt	2.72B	3.07B	3.10B	2.92B	2.14B
Total Liabilities	4.02B	4.54B	4.58B	4.43B	3.35B
Stockholders Equity	3.46B	3.60B	2.98B	2.53B	2.11B
Cash Flow
Free Cash Flow	501.61M	365.37M	294.91M	532.03M	380.01M
Operating Cash Flow	734.58M	683.90M	619.64M	760.80M	546.58M
Investing Cash Flow	-245.09M	-563.15M	-607.92M	-1.44B	-601.54M
Financing Cash Flow	-550.93M	-85.52M	-42.40M	672.60M	47.25M

Charles River Labs Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 156.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 156.7 is above the 20-day moving average (MA) of 153.97, above the 50-day MA of 146.16, and below the 200-day MA of 164.69, indicating a neutral trend. The MACD of 3.51 indicates Positive momentum. The RSI at 57.23 is Neutral, neither overbought nor oversold. The STOCH value of 20.48 is Neutral, 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
IDXX	79 Outperform	$41.87B	47.93	59.33%	―	5.56%	4.66%
DGX	73 Outperform	$18.65B	21.26	13.35%	1.92%	9.38%	6.43%
QGEN	72 Outperform	$10.46B	115.57	2.67%	2.73%	3.31%	-72.63%
CRL	70 Outperform	$7.61B	449.94	-0.92%	―	-2.16%	-107.31%
NTRA	64 Neutral	$20.26B	―	-18.66%	―	51.50%	53.23%
ILMN	58 Neutral	$15.38B	―	-23.82%	―	-3.47%	25.55%
Sector *	52 Neutral	$7.47B	-0.04	-63.86%	2.34%	16.17%	0.25%

Charles River Labs Corporate Events

Charles River Labs Extends CEO’s Term Amid Shareholder Meeting

On May 20, 2025, Charles River Laboratories extended the employment term of its CEO, James C. Foster, by an additional year, maintaining existing terms. During the same day, the company held its Annual Meeting of Shareholders, electing seven directors, appointing four new board members, and approving executive compensation and auditor appointments, while rejecting a proposal from PETA regarding non-human primate reports.

The most recent analyst rating on (CRL) stock is a Hold with a $235.00 price target. To see the full list of analyst forecasts on Charles River Labs stock, see the CRL Stock Forecast page.

Charles River Labs Appoints New Directors After Agreement

On May 6, 2025, Charles River Laboratories entered a Cooperation Agreement with Elliott Investment Management, leading to the appointment of four new directors to its Board following the 2025 Annual Meeting. This strategic move includes a comprehensive review of the company’s business to enhance long-term shareholder value, with Elliott’s involvement signifying confidence in Charles River’s potential. The changes aim to optimize operations and drive efficiencies, with the new directors bringing significant industry expertise and fresh perspectives.