CHARLES RIVER LABORATORIES (CRL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CRL - US1598641074 - Common Stock
216.88 USD
-2.65 (-1.21%)
216.88 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to CRL. CRL was compared to 58 industry peers in the Life Sciences Tools & Services industry. CRL has only an average score on both its financial health and profitability. CRL is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year CRL was profitable.
- CRL had a positive operating cash flow in the past year.
- Each year in the past 5 years CRL has been profitable.
- CRL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- CRL has a Return On Assets (-1.11%) which is in line with its industry peers.
- Looking at the Return On Equity, with a value of -2.45%, CRL is in the better half of the industry, outperforming 60.34% of the companies in the same industry.
- CRL's Return On Invested Capital of 5.84% is fine compared to the rest of the industry. CRL outperforms 74.14% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CRL is significantly below the industry average of 13.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.11% | ||
| ROE | -2.45% | ||
| ROIC | 5.84% |
ROA(3y)4.11%
ROA(5y)4.9%
ROE(3y)9.94%
ROE(5y)12.5%
ROIC(3y)7.32%
ROIC(5y)7.6%
1.3 Margins
- CRL's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 11.73%, CRL is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
- CRL's Operating Margin has been stable in the last couple of years.
- CRL has a Gross Margin of 34.68%. This is in the lower half of the industry: CRL underperforms 62.07% of its industry peers.
- CRL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.73% | ||
| PM (TTM) | N/A | ||
| GM | 34.68% |
OM growth 3Y-8.72%
OM growth 5Y-1.4%
PM growth 3Y-71.55%
PM growth 5Y-51.64%
GM growth 3Y-2.67%
GM growth 5Y-1%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CRL is destroying value.
- Compared to 1 year ago, CRL has less shares outstanding
- CRL has more shares outstanding than it did 5 years ago.
- CRL has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.75 indicates that CRL is not a great score, but indicates only limited risk for bankruptcy at the moment.
- CRL has a Altman-Z score (2.75) which is in line with its industry peers.
- CRL has a debt to FCF ratio of 4.02. This is a neutral value as CRL would need 4.02 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 4.02, CRL is in the better half of the industry, outperforming 74.14% of the companies in the same industry.
- CRL has a Debt/Equity ratio of 0.64. This is a neutral value indicating CRL is somewhat dependend on debt financing.
- CRL's Debt to Equity ratio of 0.64 is on the low side compared to the rest of the industry. CRL is outperformed by 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 4.02 | ||
| Altman-Z | 2.75 |
ROIC/WACC0.54
WACC10.77%
2.3 Liquidity
- A Current Ratio of 1.37 indicates that CRL should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.37, CRL is doing worse than 79.31% of the companies in the same industry.
- A Quick Ratio of 1.10 indicates that CRL should not have too much problems paying its short term obligations.
- CRL has a Quick ratio of 1.10. This is in the lower half of the industry: CRL underperforms 74.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 4.25% over the past year.
- Measured over the past years, CRL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.93% on average per year.
- Looking at the last year, CRL shows a decrease in Revenue. The Revenue has decreased by -0.92% in the last year.
- Measured over the past years, CRL shows a quite strong growth in Revenue. The Revenue has been growing by 9.09% on average per year.
EPS 1Y (TTM)4.25%
EPS 3Y-0.03%
EPS 5Y8.93%
EPS Q2Q%-6.18%
Revenue 1Y (TTM)-0.92%
Revenue growth 3Y4.59%
Revenue growth 5Y9.09%
Sales Q2Q%-0.49%
3.2 Future
- Based on estimates for the next years, CRL will show a small growth in Earnings Per Share. The EPS will grow by 6.56% on average per year.
- Based on estimates for the next years, CRL will show a small growth in Revenue. The Revenue will grow by 2.25% on average per year.
EPS Next Y0.17%
EPS Next 2Y3.21%
EPS Next 3Y5.65%
EPS Next 5Y6.56%
Revenue Next Year-0.59%
Revenue Next 2Y0.55%
Revenue Next 3Y1.9%
Revenue Next 5Y2.25%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 20.56, CRL is valued on the expensive side.
- Based on the Price/Earnings ratio, CRL is valued cheaply inside the industry as 91.38% of the companies are valued more expensively.
- CRL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.60.
- With a Price/Forward Earnings ratio of 19.73, CRL is valued on the expensive side.
- CRL's Price/Forward Earnings ratio is rather cheap when compared to the industry. CRL is cheaper than 91.38% of the companies in the same industry.
- CRL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.56 | ||
| Fwd PE | 19.73 |
4.2 Price Multiples
- CRL's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CRL is cheaper than 93.10% of the companies in the same industry.
- 89.66% of the companies in the same industry are more expensive than CRL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.63 | ||
| EV/EBITDA | 14.22 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)123.65
PEG (5Y)2.3
EPS Next 2Y3.21%
EPS Next 3Y5.65%
5. Dividend
5.1 Amount
- No dividends for CRL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CHARLES RIVER LABORATORIES / CRL FAQ
What is the fundamental rating for CRL stock?
ChartMill assigns a fundamental rating of 4 / 10 to CRL.
What is the valuation status of CHARLES RIVER LABORATORIES (CRL) stock?
ChartMill assigns a valuation rating of 5 / 10 to CHARLES RIVER LABORATORIES (CRL). This can be considered as Fairly Valued.
How profitable is CHARLES RIVER LABORATORIES (CRL) stock?
CHARLES RIVER LABORATORIES (CRL) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for CRL stock?
The Earnings per Share (EPS) of CHARLES RIVER LABORATORIES (CRL) is expected to grow by 0.17% in the next year.