Charles River Labs (CRL) AI Stock Analysis

• Market Cap: $10.67B
• Dividend Yield: N/A
• Average Volume (3M): 581.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• 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: 533,608
• 30 Day Avg. Volume: 581,245
• 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: 1.20
• Enterprise Value/Revenue: 3.18
• Enterprise Value/Gross Profit: 9.85
• Enterprise Value/Ebitda: 24.75
• 1Y Price Target: $221.55
• Price Target Upside: 4.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 10.99
• Revenue Forecast (FY): $4.08B

• Rating: 56 Neutral
• Price Target: $225.00 ▲(6.29% Upside)

The score is held back primarily by deteriorating financial performance (declining revenue and negative profitability) and an unfavorable/less interpretable valuation signal (negative P/E). These are partially offset by constructive technical trend strength and a mixed-to-positive earnings call focused on cost savings, portfolio actions, and buybacks that could improve margins and EPS even amid muted top-line guidance.

Positive Factors

Diversified, recurring revenue base

Charles River’s business model spans Research Models and Preclinical Services, providing multiple revenue streams tied to drug development. Durable demand from pharma/biotech and long-term contracts reduce client-concentration risk and support steady utilization across cycles.

Solid operating cash generation

Despite recent losses, CRL converts earnings into cash effectively (FCF/net income ~0.73). Reliable operating cash flow underpins reinvestment, debt servicing, share repurchases and M&A, giving management durable financial flexibility to execute strategic actions.

Strategic M&A and innovation alignment

Acquiring NHP supplier K.F. secures a critical supply chain, while PathoQuest and appointing a CSIO accelerate NAMs/NGS capabilities. These moves strengthen vertical integration and scientific differentiation, supporting longer-term competitive advantage and reduced reliance on external suppliers.

Negative Factors

Declining revenue and negative profitability

Sustained revenue declines and a negative net margin signal scale erosion and pricing/volume pressure. Without a stable revenue rebound, margin recovery is harder, limiting ability to absorb fixed costs and invest in growth initiatives over the medium term.

DSA and Manufacturing segment weakness

Material organic declines in DSA and Manufacturing expose CRL to cyclical CDMO/commercial demand and intensified competition. Persistent underperformance in these end markets impairs utilization, margins, and predictability of future bookings and revenue recovery.

Negative returns despite improved leverage

Although leverage has been managed down, negative ROE indicates the company is not generating acceptable returns on equity. Continued losses or weak returns constrain capital allocation, limit shareholder value creation, and raise the bar for profitable deployment of future investments.

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

Weak recent fundamentals: revenue declined (-12.2% TTM) and net margin is negative (-1.72%). Offsetting factors include a stable gross margin (32.47%), improved leverage (debt-to-equity 0.83), and decent cash conversion (FCF to net income 0.73) despite negative FCF growth (-6.02%).

Income Statement

Charles River Labs has experienced a decline in revenue growth, with a negative growth rate of -12.2% in the TTM period. The company also reported a negative net profit margin of -1.72%, indicating a loss. However, the gross profit margin remains relatively stable at 32.47%, suggesting some operational efficiency. The EBIT and EBITDA margins have decreased, reflecting challenges in maintaining profitability.

Balance Sheet

The company's debt-to-equity ratio has improved slightly to 0.83 in the TTM period, indicating a more balanced leverage position compared to previous years. However, the return on equity is negative at -2.01%, reflecting recent losses. The equity ratio is stable, suggesting a solid asset base relative to equity.

Cash Flow

Operating cash flow remains strong, with a coverage ratio of 0.73, indicating good cash generation relative to net income. However, free cash flow growth is negative at -6.02%, highlighting potential cash flow challenges. The free cash flow to net income ratio is healthy at 0.73, suggesting efficient cash conversion despite recent losses.

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: Neutral
• Last Price: 211.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 211.68 is below the 20-day moving average (MA) of 216.80, above the 50-day MA of 198.31, and above the 200-day MA of 165.04, indicating a neutral trend. The MACD of 5.30 indicates Positive momentum. The RSI at 49.67 is Neutral, neither overbought nor oversold. The STOCH value of 21.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$16.84B	41.48	73.70%	―	13.88%	23.92%
IDXX	77 Outperform	$54.92B	53.64	64.63%	―	8.39%	21.44%
QGEN	73 Outperform	$11.17B	27.67	11.29%	3.31%	5.32%	336.29%
RVTY	69 Neutral	$12.60B	55.57	3.04%	0.29%	3.37%	-18.80%
CRL	56 Neutral	$10.67B	-136.13	-2.32%	―	-0.92%	-118.96%
NEOG	56 Neutral	$2.25B	-3.68	-25.25%	―	-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 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.

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.