Charles River Labs (CRL) AI Stock Analysis

• Market Cap: $8.79B
• Dividend Yield: N/A
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: -0.92%
• EPS Growth: -118.96%
• Country: US
• Employees: 18,700
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 2.39
• Shares Outstanding: 49,227,800
• 10 Day Avg. Volume: 1,421,478
• 30 Day Avg. Volume: 1,036,815
• PEG Ratio: 0.04
• Price to Book (P/B): 3.19
• Price to Sales (P/S): 2.51
• P/FCF Ratio: 19.47
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 2.90
• Enterprise Value/Gross Profit: 8.81
• Enterprise Value/Ebitda: 14.53
• 1Y Price Target: $204.30
• Price Target Upside: 14.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 11.05
• Revenue Forecast (FY): $4.06B

• Rating: 51 Neutral
• Price Target: $167.00 ▼(-6.44% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 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 cash flow (~$0.74B) and solid free cash flow (~$0.52B in 2025) provide durable internal funding. This supports capex, acquisitions, debt repayment and strategic reshaping without heavy reliance on external financing, helping the company weather cyclical revenue shifts.

Improving balance sheet

Leverage improvement to ~0.81 D/E and a sizeable equity base strengthen financial flexibility and lower refinancing risk. A healthier capital structure supports M&A, targeted capex and margin improvement plans while reducing interest exposure and preserving optionality during demand variability.

Margin accretion initiatives

Targeted cost-savings (> $100M incremental in 2026; >$300M cumulative) plus bolt-on acquisitions that add supply-chain and testing capabilities are structural margin drivers. If executed, these actions should sustainably improve operating margins and EPS while offsetting secular revenue headwinds.

Negative Factors

Revenue deterioration

A sharp reversal from multi-year growth—2025 revenue fell materially and profitability swung to a loss—reduces operating leverage and constrains reinvestment. Persistently weaker top-line trends raise execution risk for margin recovery and make growth-dependent initiatives harder to fund organically.

NHP sourcing & RMS timing risk

Reliance on open-market non‑human primate purchases at elevated prices and timing shifts in RMS shipments are structural supply-chain risks. They compress margins, create revenue timing volatility, and reflect limited NHP supplier depth—a persistent headwind until supply is secured at scale.

Divestitures shrink scale and add execution risk

Selling ~7% of 2025 revenue and discovery assets reduces scale and recurring revenue diversity. While the moves aim to sharpen profitability, execution and timing uncertainty can depress near-term growth, disrupt client relationships, and concentrate reliance on remaining segments for recovery.

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

Mixed fundamentals. The income statement is weak (revenue down sharply in 2025 and profitability swinging to a loss), which weighs heavily. Offsetting this, cash generation remains strong (solid operating and free cash flow) and leverage has improved versus prior years, supporting balance-sheet resilience.

Income Statement

Revenue has deteriorated recently, with 2025 down ~21% year over year after a slight decline in 2024, reversing the prior multi-year growth trend. Profitability has also weakened materially: net income swung from a solid profit in 2022–2023 to near-breakeven in 2024 and a loss in 2025, with net margin turning negative (~-3.6%). Margins were healthy in 2021–2023 (double-digit net margins), but the sharp compression and earnings volatility over the last two years weigh heavily on the quality and stability of results.

Balance Sheet

The balance sheet is reasonably supported by a sizeable equity base (equity remains meaningfully above $3B), and leverage has improved versus earlier years. Debt-to-equity is now ~0.81 (2025) versus above 1.0 in 2020–2022, indicating a better capital structure trajectory. The key concern is returns to shareholders: return on equity turned negative in 2025 following very low returns in 2024, reflecting weakened profitability rather than excessive leverage.

Cash Flow

Cash generation remains a clear strength despite the earnings downturn. Operating cash flow stayed strong and stable (~$0.74B in 2025), and free cash flow remained solid (~$0.52B in 2025). However, free cash flow growth was sharply negative in 2025, and cash flow has not consistently scaled with earlier peak profitability. Still, the company’s ability to produce substantial operating and free cash flow through a period of net losses supports a higher cash flow score.

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

• Technical Analysis Sentiment: Positive
• Last Price: 178.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 178.49 is above the 20-day moving average (MA) of 177.67, below the 50-day MA of 197.79, and above the 200-day MA of 171.04, indicating a neutral trend. The MACD of -9.02 indicates Negative momentum. The RSI at 47.00 is Neutral, neither overbought nor oversold. The STOCH value of 92.96 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	76 Outperform	$12.82B	29.54	70.23%	―	13.88%	23.92%
QGEN	72 Outperform	$10.30B	24.37	11.57%	3.31%	5.32%	336.29%
IDXX	70 Outperform	$52.29B	50.21	66.20%	―	8.39%	21.44%
RVTY	64 Neutral	$10.99B	47.36	3.22%	0.29%	3.37%	-18.80%
NEOG	56 Neutral	$2.44B	-4.04	-25.25%	―	-2.77%	-4327.53%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CRL	51 Neutral	$8.79B	-60.38	-4.36%	―	-0.92%	-118.96%

Charles River Labs Corporate Events

Charles River Labs divests units to sharpen profitability focus

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 generated $143 million in 2025 revenue. These units focus on producing advanced gene and cell therapies and supplying human-derived cellular materials, signaling a strategic shift away from certain manufacturing activities toward higher-margin core operations.

The company also agreed on February 25, 2026 to sell selected European Discovery Services assets to IQVIA for about $145 million in cash plus up to $10 million in additional payments, covering sites in the U.K., Germany, Finland, and the Netherlands that delivered $144 million in 2025 revenue. While the disposals will cut 2026 reported revenue by slightly more than $200 million and weigh on top-line growth, Charles River lifted its 2026 non-GAAP earnings guidance to $10.80–$11.30 per share, expecting at least a 100-basis-point operating margin improvement and underscoring a pivot toward profitability and streamlined discovery capabilities.

The most recent analyst rating on (CRL) stock is a Buy 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 Glenn Coleman as New CFO

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 financial and operational management experience, including senior leadership roles at Premier, Inc., Dentsply Sirona Inc., Integra LifeSciences, Curtiss-Wright, and Alcatel-Lucent, and he is a Certified Public Accountant.

Under an at-will offer letter, Coleman will receive an annual base salary of $800,000, eligibility for a target bonus equal to 85% of his 2026 base salary, and a 2026 equity award valued at $3 million, split between Performance Share Units and Restricted Stock Units. He will also receive a $1.875 million one-time cash award paid in two installments and a $3.5 million new-hire RSU grant vesting over four years, as he succeeds interim CFO Michael G. Knell, who returns full-time to his role as Corporate Senior Vice President and Chief Accounting Officer.

The most recent analyst rating on (CRL) stock is a Buy with a $251.00 price target. To see the full list of analyst forecasts on Charles River Labs stock, see the CRL Stock Forecast page.

Charles River Labs outlines 2026 outlook and acquisitions

At the J.P. Morgan Conference, Charles River Laboratories reported that demand in its Discovery and Safety Assessment (DSA) segment strengthened in the second half of 2025, driven mainly by small and mid-sized biotech clients, producing a preliminary net book-to-bill ratio of about 1.1x in the fourth quarter of 2025 and improved global biopharma bookings. For 2026, the company indicated that organic revenue growth at the top end of its guidance is expected to be at least flat for both the consolidated business and the DSA segment, with a return to revenue growth anticipated in the second half of the year, aided by favorable DSA demand indicators and FX tailwinds, though Manufacturing gains are expected to be offset by headwinds in RMS. Charles River also highlighted plans for more than $100 million in incremental cost savings in 2026 to mitigate inflation until revenue growth strengthens, and noted that its outlook does not yet factor in the impact of two planned acquisitions, which are expected to be accretive to margins once completed. The company announced an agreement to acquire the assets of K.F. (Cambodia) Ltd., a Cambodia-based supplier of non-human primates for regulated biomedical and pharmaceutical research, for approximately $510 million, with closing expected early in the first quarter of 2026, integrating the business into its DSA operations and projecting accretion to non-GAAP EPS in 2026 and 2027. It also exercised an option to acquire the remaining 79% of PathoQuest SAS, a Paris-based provider of next-generation sequencing solutions for biopharmaceutical manufacturing quality-control testing, for about €51.6 million, with closing targeted by the end of the first quarter of 2026; PathoQuest is expected to contribute modest revenue in 2026 and will be integrated into Charles River’s Biologics Testing unit within Manufacturing Solutions, supporting the company’s positioning in advanced testing services.

The most recent analyst rating on (CRL) stock is a Buy with a $260.00 price target. To see the full list of analyst forecasts on Charles River Labs stock, see the CRL Stock Forecast page.

Charles River Labs 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.