Charles River Labs (CRL) AI Stock Analysis

• Market Cap: $9.70B
• Dividend Yield: N/A
• Average Volume (3M): 1.00M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: -1.21%
• EPS Growth: -115.44%
• Country: US
• Employees: 18,700
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 3.12
• Shares Outstanding: 49,214,176
• 10 Day Avg. Volume: 1,018,083
• 30 Day Avg. Volume: 1,000,325
• PEG Ratio: -9.49
• Price to Book (P/B): 2.76
• Price to Sales (P/S): 2.36
• P/FCF Ratio: 19.07
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 2.49
• Enterprise Value/Gross Profit: 7.68
• Enterprise Value/Ebitda: 19.02
• 1Y Price Target: $183.20
• Price Target Upside: -6.19% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 60 Neutral
• Price Target: $198.00 ▲(1.39% Upside)

Charles River Labs' overall stock score is driven by strong technical momentum and a cautiously optimistic earnings call. However, the company's financial performance is hindered by profitability challenges and a negative P/E ratio, which impacts its valuation. The absence of corporate events and dividend yield further weigh on the score.

Positive Factors

Strategic Collaboration

The collaboration with X-Chem enhances Charles River's drug discovery capabilities, leveraging a library of over 15B compounds. This strategic move strengthens its competitive position and provides clients with advanced resources, potentially leading to increased client engagement and revenue growth.

Positive NHP Supply Update

The clearance of NHP shipments improves Charles River's operational flexibility and planning. This regulatory development ensures a steady supply of critical research models, supporting the company's service offerings and enhancing its ability to meet client needs efficiently.

Strong Operating Margin

The improvement in operating margin reflects successful cost management and operational efficiency. Sustained margin strength provides Charles River with financial stability and the ability to reinvest in growth initiatives, maintaining its competitive edge in the industry.

Negative Factors

Profitability Challenges

The negative net profit margin highlights ongoing profitability issues, which could strain financial resources and limit growth investments. Addressing these challenges is crucial for long-term sustainability and improving shareholder value.

Decline in DSA Revenue

The decline in DSA revenue indicates challenges in one of Charles River's key segments. This trend may impact overall revenue growth and necessitates strategic adjustments to regain momentum and address client needs effectively.

Flat Organic Revenue Outlook

The forecasted decline in organic revenue reflects ongoing market uncertainties and demand challenges. This outlook may hinder Charles River's growth prospects and requires strategic initiatives to drive new business and stabilize revenue streams.

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 a diversified model that includes multiple key streams. The primary revenue comes from its services, which encompass preclinical services such as safety assessment, laboratory animal services, and research models, as well as clinical services that assist in the later stages of drug development. The company also earns revenue from selling research models and related products. Significant partnerships with pharmaceutical and biotechnology companies enhance CRL's earnings by providing steady contracts for research and development services. Additionally, the company occasionally engages in collaborations or joint ventures that can lead to new revenue opportunities. Overall, CRL's strong reputation and extensive service offerings position it as a reliable partner for clients in the drug development process.

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 indicates moderate stability with 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 2019	Dec 2018
Income Statement
Total Revenue	4.03B	4.05B	4.13B	3.98B	2.62B	2.27B
Gross Profit	1.31B	1.33B	1.50B	1.46B	958.31M	840.07M
EBITDA	528.39M	581.14M	1.03B	986.15M	563.06M	507.23M
Net Income	-69.22M	10.30M	474.62M	486.23M	252.02M	226.37M
Balance Sheet
Total Assets	7.56B	7.53B	8.20B	7.60B	4.69B	3.86B
Cash, Cash Equivalents and Short-Term Investments	182.82M	194.61M	276.77M	233.91M	238.01M	195.44M
Total Debt	2.79B	2.72B	3.07B	3.10B	2.00B	1.67B
Total Liabilities	4.16B	4.02B	4.54B	4.58B	3.03B	2.52B
Stockholders Equity	3.35B	3.46B	3.60B	2.98B	1.63B	1.32B
Cash Flow
Free Cash Flow	578.50M	501.61M	365.37M	294.91M	340.42M	301.09M
Operating Cash Flow	787.45M	734.58M	683.90M	619.64M	480.94M	441.14M
Investing Cash Flow	-180.25M	-245.09M	-563.15M	-607.92M	-681.50M	-955.00M
Financing Cash Flow	-615.66M	-550.93M	-85.52M	-42.40M	231.94M	558.06M

Charles River Labs Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 195.28
• 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 195.28 is above the 20-day moving average (MA) of 177.25, above the 50-day MA of 165.05, and above the 200-day MA of 154.72, indicating a bullish trend. The MACD of 8.62 indicates Negative momentum. The RSI at 72.64 is Negative, neither overbought nor oversold. The STOCH value of 87.59 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	―	$17.05B	41.72	73.70%	―	13.88%	23.92%
IDXX	―	$51.27B	53.89	64.87%	―	6.68%	18.84%
RVTY	―	$11.48B	41.96	3.12%	0.29%	3.33%	32.86%
QGEN	―	$10.68B	28.87	10.81%	2.59%	5.15%	412.41%
CRL	―	$9.70B	―	-1.96%	―	-1.21%	-115.44%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
NEOG	―	$1.35B	―	-39.71%	―	-2.77%	-4327.53%

Charles River Labs Corporate Events

Charles River Labs CFO Resignation and Interim Appointment

On September 12, 2025, Flavia H. Pease announced her resignation as Chief Financial Officer of Charles River Laboratories, effective September 29, 2025, to pursue another opportunity. Her departure is not due to any disagreements with the company. Michael G. Knell, the Corporate Senior Vice President and Chief Accounting Officer, has been appointed as the interim CFO. The company has begun a search for a permanent successor. Charles River Laboratories reaffirmed its 2025 financial guidance for revenue and non-GAAP earnings per share, indicating confidence in its market position and long-term growth opportunities.

The most recent analyst rating on (CRL) stock is a Hold with a $161.00 price target. To see the full list of analyst forecasts on Charles River Labs stock, see the CRL Stock Forecast page.

Charles River Laboratories Reports Q2 2025 Earnings

Charles River Laboratories International, Inc. is a global provider of essential products and services that aid pharmaceutical and biotechnology companies, government agencies, and academic institutions in accelerating their research and drug development efforts.

Charles River Labs Reports Mixed Q2 Earnings Call

The earnings call for Charles River Laboratories International presented a mixed sentiment. While the company showcased strong performance in its Discovery and Safety Assessment (DSA) segment and raised its financial guidance, it also faced challenges such as declining DSA revenue, increased cancellations, and headwinds in the Contract Development and Manufacturing Organization (CDMO) business. The highlights and lowlights were balanced, reflecting both optimism and caution.