CHARLES RIVER LABORATORIES (CRL) Stock Fundamental Analysis
USA - NYSE:CRL - US1598641074 - Common Stock
178.52 USD
+3.57 (+2.04%)
178.52 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to CRL. CRL was compared to 57 industry peers in the Life Sciences Tools & Services industry. CRL has an average financial health and profitability rating. CRL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CRL was profitable.
In the past year CRL had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of -0.92%, CRL is in line with its industry, outperforming 57.89% of the companies in the same industry.
With a Return On Equity value of -2.06%, CRL perfoms like the industry average, outperforming 56.14% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.72%, CRL is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CRL is significantly below the industry average of 14.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.92% | ||
| ROE | -2.06% | ||
| ROIC | 5.72% |
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 11.64%, CRL is in the better half of the industry, outperforming 71.93% of the companies in the same industry.
In the last couple of years the Operating Margin of CRL has remained more or less at the same level.
CRL has a worse Gross Margin (35.03%) than 63.16% of its industry peers.
CRL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.64% | ||
| PM (TTM) | N/A | ||
| GM | 35.03% |
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.
The number of shares outstanding for CRL has been reduced compared to 1 year ago.
Compared to 5 years ago, CRL has more shares outstanding
The debt/assets ratio for CRL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.40 indicates that CRL is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.40, CRL perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
CRL has a debt to FCF ratio of 4.04. This is a neutral value as CRL would need 4.04 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.04, CRL is doing good in the industry, outperforming 71.93% of the companies in the same industry.
CRL has a Debt/Equity ratio of 0.70. This is a neutral value indicating CRL is somewhat dependend on debt financing.
CRL's Debt to Equity ratio of 0.70 is on the low side compared to the rest of the industry. CRL is outperformed by 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 4.04 | ||
| Altman-Z | 2.4 |
ROIC/WACC0.56
WACC10.15%
2.3 Liquidity
A Current Ratio of 1.36 indicates that CRL should not have too much problems paying its short term obligations.
CRL's Current ratio of 1.36 is on the low side compared to the rest of the industry. CRL is outperformed by 78.95% of its industry peers.
CRL has a Quick Ratio of 1.10. This is a normal value and indicates that CRL is financially healthy and should not expect problems in meeting its short term obligations.
CRL's Quick ratio of 1.10 is on the low side compared to the rest of the industry. CRL is outperformed by 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.49% over the past year.
CRL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.93% yearly.
CRL shows a decrease in Revenue. In the last year, the revenue decreased by -1.21%.
The Revenue has been growing by 9.09% on average over the past years. This is quite good.
EPS 1Y (TTM)4.49%
EPS 3Y-0.03%
EPS 5Y8.93%
EPS Q2Q%11.43%
Revenue 1Y (TTM)-1.21%
Revenue growth 3Y4.59%
Revenue growth 5Y9.09%
Sales Q2Q%0.59%
3.2 Future
CRL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.95% yearly.
The Revenue is expected to grow by 2.43% on average over the next years.
EPS Next Y-0.27%
EPS Next 2Y2.3%
EPS Next 3Y4.52%
EPS Next 5Y5.95%
Revenue Next Year-1.08%
Revenue Next 2Y0.5%
Revenue Next 3Y2.15%
Revenue Next 5Y2.43%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.67, which indicates a correct valuation of CRL.
CRL's Price/Earnings ratio is rather cheap when compared to the industry. CRL is cheaper than 92.98% of the companies in the same industry.
When comparing the Price/Earnings ratio of CRL to the average of the S&P500 Index (27.40), we can say CRL is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.53 indicates a correct valuation of CRL.
89.47% of the companies in the same industry are more expensive than CRL, based on the Price/Forward Earnings ratio.
CRL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.67 | ||
| Fwd PE | 16.53 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CRL indicates a rather cheap valuation: CRL is cheaper than 98.25% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CRL is valued cheaply inside the industry as 91.23% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.19 | ||
| EV/EBITDA | 12.16 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.87
EPS Next 2Y2.3%
EPS Next 3Y4.52%
5. Dividend
5.1 Amount
CRL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
178.52
+3.57 (+2.04%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners105.46%
Inst Owner Change-1.22%
Ins Owners0.88%
Ins Owner Change6.07%
Market Cap8.78B
Analysts71.3
Price Target182.76 (2.38%)
Short Float %5.27%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.56%
Min EPS beat(2)11.44%
Max EPS beat(2)23.68%
EPS beat(4)4
Avg EPS beat(4)11.21%
Min EPS beat(4)4.03%
Max EPS beat(4)23.68%
EPS beat(8)8
Avg EPS beat(8)10.55%
EPS beat(12)12
Avg EPS beat(12)8.62%
EPS beat(16)16
Avg EPS beat(16)6.82%
Revenue beat(2)2
Avg Revenue beat(2)3.59%
Min Revenue beat(2)3.45%
Max Revenue beat(2)3.74%
Revenue beat(4)4
Avg Revenue beat(4)2.63%
Min Revenue beat(4)0.91%
Max Revenue beat(4)3.74%
Revenue beat(8)7
Avg Revenue beat(8)1.68%
Revenue beat(12)10
Avg Revenue beat(12)1.88%
Revenue beat(16)11
Avg Revenue beat(16)1.12%
PT rev (1m)0.36%
PT rev (3m)13.79%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)-1.22%
EPS NY rev (1m)0.74%
EPS NY rev (3m)6.15%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)2.83%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)2.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.67 | ||
| Fwd PE | 16.53 | ||
| P/S | 2.18 | ||
| P/FCF | 15.19 | ||
| P/OCF | 11.16 | ||
| P/B | 2.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.16 |
EPS(TTM)10.71
EY6%
EPS(NY)10.8
Fwd EY6.05%
FCF(TTM)11.76
FCFY6.59%
OCF(TTM)16
OCFY8.96%
SpS81.87
BVpS68.14
TBVpS-3.77
PEG (NY)N/A
PEG (5Y)1.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.92% | ||
| ROE | -2.06% | ||
| ROCE | 7.24% | ||
| ROIC | 5.72% | ||
| ROICexc | 5.88% | ||
| ROICexgc | 13.43% | ||
| OM | 11.64% | ||
| PM (TTM) | N/A | ||
| GM | 35.03% | ||
| FCFM | 14.36% |
ROA(3y)4.11%
ROA(5y)4.9%
ROE(3y)9.94%
ROE(5y)12.5%
ROIC(3y)7.32%
ROIC(5y)7.6%
ROICexc(3y)7.59%
ROICexc(5y)7.91%
ROICexgc(3y)18.25%
ROICexgc(5y)19.94%
ROCE(3y)9.27%
ROCE(5y)9.62%
ROICexcg growth 3Y-14.69%
ROICexcg growth 5Y-4.68%
ROICexc growth 3Y-7.59%
ROICexc growth 5Y-3.19%
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%
F-Score4
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 4.04 | ||
| Debt/EBITDA | 2.59 | ||
| Cap/Depr | 48.58% | ||
| Cap/Sales | 5.19% | ||
| Interest Coverage | 4.15 | ||
| Cash Conversion | 87.57% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 2.4 |
F-Score4
WACC10.15%
ROIC/WACC0.56
Cap/Depr(3y)90.89%
Cap/Depr(5y)85.95%
Cap/Sales(3y)7.21%
Cap/Sales(5y)6.76%
Profit Quality(3y)1669.68%
Profit Quality(5y)1049.89%
High Growth Momentum
Growth
EPS 1Y (TTM)4.49%
EPS 3Y-0.03%
EPS 5Y8.93%
EPS Q2Q%11.43%
EPS Next Y-0.27%
EPS Next 2Y2.3%
EPS Next 3Y4.52%
EPS Next 5Y5.95%
Revenue 1Y (TTM)-1.21%
Revenue growth 3Y4.59%
Revenue growth 5Y9.09%
Sales Q2Q%0.59%
Revenue Next Year-1.08%
Revenue Next 2Y0.5%
Revenue Next 3Y2.15%
Revenue Next 5Y2.43%
EBIT growth 1Y-25.61%
EBIT growth 3Y-4.53%
EBIT growth 5Y7.56%
EBIT Next Year34.27%
EBIT Next 3Y14.36%
EBIT Next 5Y10.95%
FCF growth 1Y99.92%
FCF growth 3Y-1.94%
FCF growth 5Y8.06%
OCF growth 1Y25.98%
OCF growth 3Y-1.16%
OCF growth 5Y8.84%