Charles River Laboratories Intl (CRL)
NYSE:CRL
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Charles River Labs
(NYSE:CRL)
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Rating:57Neutral
Price Target:
$155.00
▼(-15.71% Downside)
Action:Reiterated
Date:05/12/26
The score is driven mainly by mixed financial performance—strong revenue rebound and positive free cash flow but ongoing net losses and moderate leverage. Earnings-call guidance supports a gradual improvement narrative (margin expansion and full-year FCF/EPS targets), while valuation is pressured by the negative P/E and technicals are only modestly supportive.
Positive Factors
Revenue rebound & cash generation
A durable revenue rebound combined with positive TTM operating cash flow (~$607M) and FCF (~$391M) provides structural funding for operations, strategic investments and share repurchases. Strong cash generation also cushions the business while earnings normalize, supporting long-term resilience.
Negative Factors
Profitability deterioration
A shift from multi-year positive margins to a negative net margin reflects sustained profitability pressure. Lower gross margins indicate structural cost or mix challenges that, if persistent, will weaken earnings quality and limit the firm's ability to deleverage and reinvest without continued portfolio actions.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue rebound & cash generation
A durable revenue rebound combined with positive TTM operating cash flow (~$607M) and FCF (~$391M) provides structural funding for operations, strategic investments and share repurchases. Strong cash generation also cushions the business while earnings normalize, supporting long-term resilience.
Read all positive factors
Charles River Labs Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue across different business segments, highlighting which areas are driving growth and which may need strategic adjustments.
Breaks down revenue across different business segments, highlighting which areas are driving growth and which may need strategic adjustments.
Data provided by:
The Fly
The FlyCharles River Labs (CRL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.72B
Dividend YieldN/A
Average Volume (3M)870.00K
Price to Earnings (P/E)―
Beta (1Y)0.79
Revenue Growth0.11%
EPS Growth-492.25%
CountryUS
Employees18,700
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)-3.75
Shares Outstanding48,167,730
10 Day Avg. Volume950,101
30 Day Avg. Volume870,000
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)3.19
Price to Sales (P/S)2.51
P/FCF Ratio19.47
Enterprise Value/Market Cap1.37
Enterprise Value/Revenue2.63
Enterprise Value/Gross Profit8.25
Enterprise Value/Ebitda13.16
Forecast
1Y Price Target
$205.38Price Target Upside11.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)11.09
Revenue Forecast (FY)$3.85B
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 international...
How the Company Makes Money
CRL primarily makes money by providing fee-for-service research and development support to life sciences customers. Its revenue model is largely contractual and project-based (and, in some offerings, relationship-based), where customers pay for sp...
Charles River Labs Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: near-term operational and margin headwinds (Q1 organic revenue decline, margin compression, negative free cash flow in the quarter and segment-specific pressures in RMS and DSA) were weighed against clear strategic actions and forward-looking levers (acquisitions to secure NHP supply and expand NAMs, completed divestitures, $100M incremental cost savings in 2026, $300M+ cumulative savings, strong bookings/net book-to-bill and a $200M share repurchase). Management reaffirmed FY guidance for organic revenue and EPS, expects meaningful margin expansion in the second half, and signaled improving demand/proposal trends—resulting in a mix of near-term softness but constructive medium-term outlook.Positive Updates
Reported Revenue and Organic Trend
Reported revenue of $996 million in Q1 2026, up 1.2% year-over-year; organic revenue declined 1.5% year-over-year, in line with prior outlook.
Negative Updates
Operating Margin Compression in Q1
Non-GAAP operating margin declined 280 basis points year-over-year to 16.3% in Q1 2026, driven by higher stock compensation timing, higher NHP sourcing costs and study starts, and lower NHP revenue timing in RMS.
Read all updates
Q1-2026 Updates
Positive
Negative
Reported Revenue and Organic Trend
Reported revenue of $996 million in Q1 2026, up 1.2% year-over-year; organic revenue declined 1.5% year-over-year, in line with prior outlook.
Read all positive updates
Company Guidance
Management reaffirmed 2026 targets calling for organic revenue to decline 0.5%–1.5% (reported revenue to fall ~4.0%–5.5%, a 50‑bp downward FX revision), non‑GAAP EPS of $10.80–$11.30 (≈5%–10% growth versus 2025, including ~ $0.10 accretion from divestitures), and free cash flow of $375M–$400M; they expect ~120–150 basis points of operating‑margin expansion in 2026 (with most benefit in 2H and the second half >500 bps higher than the first six months), Q2 reported revenue down mid‑to‑high single digits but organic down low single digits, and Q2 EPS to rise at least 30% sequentially from Q1’s $2.06; other metrics/assumptions include Q1 DSA net book‑to‑bill 1.04x, backlog $1.92B, net bookings $622M, net leverage ~2.6x, net interest guidance $103M–$108M, non‑GAAP tax rate 22%–23% (trending low), ~$200M of share repurchases completed YTD, incremental cost savings of at least $100M in 2026 (>$300M cumulative annualized), and divestitures expected to reduce reported revenue guidance by ~500 bps.Charles River Labs Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
54
Neutral
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.03B | 4.02B | 4.05B | 4.13B | 3.98B | 3.54B |
| Gross Profit | 1.28B | 1.23B | 1.33B | 1.50B | 1.46B | 1.33B |
| EBITDA | 804.20M | 911.15M | 581.14M | 1.03B | 986.15M | 820.16M |
| Net Income | -184.65M | -144.34M | 10.30M | 474.62M | 486.23M | 390.98M |
Balance Sheet | ||||||
| Total Assets | 7.73B | 7.14B | 7.53B | 8.20B | 7.60B | 7.02B |
| Cash, Cash Equivalents and Short-Term Investments | 191.83M | 213.77M | 194.61M | 276.77M | 233.91M | 246.30M |
| Total Debt | 3.06B | 3.07B | 2.72B | 3.07B | 3.10B | 3.21B |
| Total Liabilities | 4.74B | 3.92B | 4.02B | 4.54B | 4.58B | 4.43B |
| Stockholders Equity | 2.94B | 3.16B | 3.46B | 3.60B | 2.98B | 2.53B |
Cash Flow | ||||||
| Free Cash Flow | 391.29M | 518.49M | 501.61M | 365.37M | 294.91M | 532.03M |
| Operating Cash Flow | 607.03M | 737.65M | 734.58M | 683.90M | 619.64M | 760.80M |
| Investing Cash Flow | -552.55M | -209.32M | -245.09M | -563.15M | -607.92M | -1.44B |
| Financing Cash Flow | -83.68M | -536.73M | -550.93M | -85.52M | -42.40M | 672.60M |
Charles River Labs Technical Analysis
Negative
183.88
Price Trends
167.79
Negative
179.90
Negative
175.91
Negative
Market Momentum
-4.57
Positive
41.45
Neutral
48.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRL, the sentiment is Negative. The current price of 183.88 is above the 20-day moving average (MA) of 165.32, above the 50-day MA of 167.79, and above the 200-day MA of 175.91, indicating a bearish trend. The MACD of -4.57 indicates Positive momentum. The RSI at 41.45 is Neutral, neither overbought nor oversold. The STOCH value of 48.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRL.
Charles River Labs Risk Analysis
Charles River Labs disclosed 41 risk factors in its most recent earnings report. Charles River Labs reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Charles River Labs Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $44.12B | 40.41 | 70.87% | ― | 13.08% | 25.40% | |
72 Outperform | $12.36B | 27.57 | 120.89% | ― | 24.19% | 20.19% | |
65 Neutral | $7.25B | 30.45 | 11.28% | 3.31% | 4.79% | 333.61% | |
63 Neutral | $10.82B | 60.67 | 3.28% | 0.29% | 4.79% | -16.36% | |
57 Neutral | $7.72B | -131.22 | -5.74% | ― | 0.11% | -492.25% | |
55 Neutral | $1.94B | -35.95 | -29.00% | ― | -3.91% | -25.31% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
CRL
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15.03%
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Charles River Labs Corporate Events
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Charles River Labs Shareholders Approve New Incentive Plan
Positive
May 11, 2026
At its annual meeting of shareholders held on May 5, 2026, Charles River Laboratories International, Inc. secured approval for its 2026 Long-Term Incentive Plan, which had been adopted by the board in March pending shareholder consent. The plan is...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Charles River Labs divests units to sharpen profitability focus
Positive
Feb 25, 2026
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 gen...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.