Charles River Labs (CRL) AI Stock Analysis

• Market Cap: $9.65B
• Dividend Yield: N/A
• Average Volume (3M): 902.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• 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: 799,294
• 30 Day Avg. Volume: 902,802
• PEG Ratio: -9.41
• Price to Book (P/B): 2.74
• Price to Sales (P/S): 2.34
• P/FCF Ratio: 18.91
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 2.44
• Enterprise Value/Gross Profit: 7.56
• Enterprise Value/Ebitda: 19.00
• 1Y Price Target: $200.55
• Price Target Upside: 3.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 10.24
• Revenue Forecast (FY): $4.01B

• Rating: 60 Neutral
• Price Target: $196.00 ▲(1.11% Upside)

Charles River Labs' overall stock score is primarily impacted by its financial performance challenges, including declining revenue and profitability. Technical analysis shows positive momentum, but valuation concerns with a negative P/E ratio weigh heavily. The earnings call provides a mixed outlook, with strategic initiatives offering some optimism amid operational challenges.

Positive Factors

Strategic Portfolio Adjustments

By divesting non-core assets and focusing on core markets, Charles River Labs aims to enhance profitability and shareholder value, indicating a strategic focus on long-term growth.

Biotech Funding Improvement

Improved biotech funding suggests increased demand for Charles River Labs' services, potentially boosting revenue and market position in the long term.

NAMs Capabilities Development

Investing in innovative NAMs capabilities positions Charles River Labs at the forefront of industry trends, enhancing its competitive advantage and future growth potential.

Negative Factors

Revenue Decline

A decline in revenue indicates challenges in maintaining growth, which could impact the company's ability to invest in new opportunities and sustain long-term profitability.

Operating Margin Decline

Decreasing operating margins suggest potential inefficiencies and cost pressures, which could hinder Charles River Labs' ability to maintain competitive pricing and profitability.

Earnings Per Share Decline

A decline in earnings per share reflects reduced profitability, which may affect investor confidence and the company's ability to fund future growth initiatives.

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

Charles River Labs shows strong revenue growth and cash flow generation, but faces profitability challenges with a negative net income TTM. The balance sheet shows 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 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: Positive
• Last Price: 193.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 193.85 is above the 20-day moving average (MA) of 183.89, above the 50-day MA of 179.06, and above the 200-day MA of 157.16, indicating a bullish trend. The MACD of 6.10 indicates Negative momentum. The RSI at 63.40 is Neutral, neither overbought nor oversold. The STOCH value of 70.96 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
MEDP	79 Outperform	$15.69B	39.18	73.70%	―	13.88%	23.92%
IDXX	78 Outperform	$55.54B	55.26	64.63%	―	8.39%	21.44%
QGEN	77 Outperform	$9.80B	24.39	11.29%	3.35%	5.32%	336.29%
RVTY	67 Neutral	$10.97B	48.39	3.04%	0.29%	3.37%	-18.80%
CRL	60 Neutral	$9.65B	-124.66	-2.32%	―	-0.92%	-118.96%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
NEOG	50 Neutral	$1.54B	-1.55	-39.71%	―	-2.77%	-4327.53%

Charles River Labs Corporate Events

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.

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.

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.