CHARLES RIVER LABORATORIES (CRL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CRL - US1598641074 - Common Stock
220.91 USD
+5.4 (+2.51%)
220.91 USD
0 (0%)
Overall CRL gets a fundamental rating of 4 out of 10. We evaluated CRL against 57 industry peers in the Life Sciences Tools & Services industry. CRL has only an average score on both its financial health and profitability. CRL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
CRL had positive earnings in the past year.
CRL had a positive operating cash flow in the past year.
CRL had positive earnings in each of the past 5 years.
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 -1.11%, CRL is in line with its industry, outperforming 57.89% of the companies in the same industry.
Looking at the Return On Equity, with a value of -2.45%, CRL is in line with its industry, outperforming 59.65% of the companies in the same industry.
CRL has a Return On Invested Capital of 5.84%. This is in the better half of the industry: CRL outperforms 73.68% of its industry peers.
CRL had an Average Return On Invested Capital over the past 3 years of 7.32%. This is significantly below the industry average of 13.75%.
| 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
In the last couple of years the Profit Margin of CRL has declined.
CRL's Operating Margin of 11.73% is fine compared to the rest of the industry. CRL outperforms 71.93% of its industry peers.
In the last couple of years the Operating Margin of CRL has remained more or less at the same level.
Looking at the Gross Margin, with a value of 34.68%, CRL is doing worse than 61.40% of the companies in the same industry.
In the last couple of years the Gross Margin of CRL has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CRL is destroying value.
CRL has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CRL has been increased compared to 5 years ago.
Compared to 1 year ago, CRL has an improved debt to assets ratio.
2.2 Solvency
CRL has an Altman-Z score of 2.76. This is not the best score and indicates that CRL is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.76, CRL is doing good in the industry, outperforming 63.16% of the companies in the same industry.
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.
CRL has a better Debt to FCF ratio (4.02) than 75.44% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that CRL is somewhat dependend on debt financing.
CRL has a worse Debt to Equity ratio (0.64) than 71.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 4.02 | ||
| Altman-Z | 2.76 |
ROIC/WACC0.55
WACC10.65%
2.3 Liquidity
A Current Ratio of 1.37 indicates that CRL should not have too much problems paying its short term obligations.
The Current ratio of CRL (1.37) is worse than 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 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
CRL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.25%.
The Earnings Per Share has been growing by 8.93% on average over the past years. This is quite good.
CRL shows a decrease in Revenue. In the last year, the revenue decreased by -0.92%.
CRL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.09% yearly.
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 2Y3.1%
EPS Next 3Y5.39%
EPS Next 5Y6.56%
Revenue Next Year-0.56%
Revenue Next 2Y0.55%
Revenue Next 3Y1.91%
Revenue Next 5Y2.25%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 20.94, CRL is valued on the expensive side.
87.72% of the companies in the same industry are more expensive than CRL, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.19, CRL is valued a bit cheaper.
With a Price/Forward Earnings ratio of 20.14, CRL is valued on the expensive side.
Based on the Price/Forward Earnings ratio, CRL is valued cheaper than 89.47% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CRL to the average of the S&P500 Index (23.92), we can say CRL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.94 | ||
| Fwd PE | 20.14 |
4.2 Price Multiples
CRL's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CRL is cheaper than 91.23% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CRL indicates a rather cheap valuation: CRL is cheaper than 89.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20 | ||
| EV/EBITDA | 14.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CRL does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)125.94
PEG (5Y)2.35
EPS Next 2Y3.1%
EPS Next 3Y5.39%
5. Dividend
5.1 Amount
CRL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
220.91
+5.4 (+2.51%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners107.25%
Inst Owner Change0.49%
Ins Owners0.89%
Ins Owner Change0.17%
Market Cap10.87B
Revenue(TTM)4.02B
Net Income(TTM)-83.48M
Analysts79.09
Price Target201.38 (-8.84%)
Short Float %4.95%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)13.28%
Min EPS beat(2)2.88%
Max EPS beat(2)23.68%
EPS beat(4)4
Avg EPS beat(4)10.51%
Min EPS beat(4)2.88%
Max EPS beat(4)23.68%
EPS beat(8)8
Avg EPS beat(8)9.19%
EPS beat(12)12
Avg EPS beat(12)8.5%
EPS beat(16)16
Avg EPS beat(16)6.77%
Revenue beat(2)2
Avg Revenue beat(2)2.06%
Min Revenue beat(2)0.38%
Max Revenue beat(2)3.74%
Revenue beat(4)4
Avg Revenue beat(4)2.12%
Min Revenue beat(4)0.38%
Max Revenue beat(4)3.74%
Revenue beat(8)7
Avg Revenue beat(8)1.53%
Revenue beat(12)10
Avg Revenue beat(12)1.83%
Revenue beat(16)12
Avg Revenue beat(16)1.25%
PT rev (1m)4.22%
PT rev (3m)10.19%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)-2.03%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.94 | ||
| Fwd PE | 20.14 | ||
| P/S | 2.7 | ||
| P/FCF | 20 | ||
| P/OCF | 14.51 | ||
| P/B | 3.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.29 |
EPS(TTM)10.55
EY4.78%
EPS(NY)10.97
Fwd EY4.97%
FCF(TTM)11.05
FCFY5%
OCF(TTM)15.23
OCFY6.89%
SpS81.75
BVpS69.19
TBVpS-1.79
PEG (NY)125.94
PEG (5Y)2.35
Graham Number128.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.11% | ||
| ROE | -2.45% | ||
| ROCE | 7.39% | ||
| ROIC | 5.84% | ||
| ROICexc | 6.03% | ||
| ROICexgc | 13.86% | ||
| OM | 11.73% | ||
| PM (TTM) | N/A | ||
| GM | 34.68% | ||
| FCFM | 13.51% |
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%
ROICexgc growth 3Y-14.69%
ROICexgc 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 Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 4.02 | ||
| Debt/EBITDA | 2.43 | ||
| Cap/Depr | 48.19% | ||
| Cap/Sales | 5.12% | ||
| Interest Coverage | 4.36 | ||
| Cash Conversion | 83.34% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 2.76 |
F-Score4
WACC10.65%
ROIC/WACC0.55
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)4.25%
EPS 3Y-0.03%
EPS 5Y8.93%
EPS Q2Q%-6.18%
EPS Next Y0.17%
EPS Next 2Y3.1%
EPS Next 3Y5.39%
EPS Next 5Y6.56%
Revenue 1Y (TTM)-0.92%
Revenue growth 3Y4.59%
Revenue growth 5Y9.09%
Sales Q2Q%-0.49%
Revenue Next Year-0.56%
Revenue Next 2Y0.55%
Revenue Next 3Y1.91%
Revenue Next 5Y2.25%
EBIT growth 1Y-22.72%
EBIT growth 3Y-4.53%
EBIT growth 5Y7.56%
EBIT Next Year29.81%
EBIT Next 3Y11.7%
EBIT Next 5Y9.91%
FCF growth 1Y47.54%
FCF growth 3Y-1.94%
FCF growth 5Y8.06%
OCF growth 1Y7.42%
OCF growth 3Y-1.16%
OCF growth 5Y8.84%
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.