CHARLES RIVER LABORATORIES (CRL) Stock Fundamental Analysis
NYSE:CRL - New York Stock Exchange, Inc. - US1598641074 - Common Stock - Currency: USD
Taking everything into account, CRL scores 4 out of 10 in our fundamental rating. CRL was compared to 55 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.
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 -0.42%, CRL is in the better half of the industry, outperforming 67.27% of the companies in the same industry.
Looking at the Return On Equity, with a value of -0.99%, CRL is in the better half of the industry, outperforming 69.09% of the companies in the same industry.
CRL has a better Return On Invested Capital (6.12%) than 72.73% 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 13.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.42% | ||
| ROE | -0.99% | ||
| ROIC | 6.12% |
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.
With a decent Operating Margin value of 12.59%, CRL is doing good in the industry, outperforming 72.73% 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.
With a Gross Margin value of 34.69%, CRL is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
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 | 12.59% | ||
| PM (TTM) | N/A | ||
| GM | 34.69% |
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.
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 2.23 indicates that CRL is not a great score, but indicates only limited risk for bankruptcy at the moment.
CRL has a Altman-Z score (2.23) which is in line with its industry peers.
The Debt to FCF ratio of CRL is 4.46, which is a neutral value as it means it would take CRL, 4.46 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CRL (4.46) is better than 67.27% of its industry peers.
CRL has a Debt/Equity ratio of 0.79. This is a neutral value indicating CRL is somewhat dependend on debt financing.
CRL has a Debt to Equity ratio of 0.79. This is in the lower half of the industry: CRL underperforms 74.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 4.46 | ||
| Altman-Z | 2.23 |
ROIC/WACC0.6
WACC10.18%
2.3 Liquidity
CRL has a Current Ratio of 1.43. This is a normal value and indicates that CRL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.43, CRL is doing worse than 76.36% of the companies in the same industry.
CRL has a Quick Ratio of 1.16. This is a normal value and indicates that CRL is financially healthy and should not expect problems in meeting its short term obligations.
CRL has a Quick ratio of 1.16. This is in the lower half of the industry: CRL underperforms 76.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.47% 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.
The Revenue has decreased by -2.16% in the past 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)2.47%
EPS 3Y-0.03%
EPS 5Y8.93%
EPS Q2Q%3.08%
Revenue 1Y (TTM)-2.16%
Revenue growth 3Y4.59%
Revenue growth 5Y9.09%
Sales Q2Q%-2.71%
3.2 Future
CRL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.19% yearly.
Based on estimates for the next years, CRL will show a small growth in Revenue. The Revenue will grow by 1.71% on average per year.
EPS Next Y-6.05%
EPS Next 2Y0.2%
EPS Next 3Y3.14%
EPS Next 5Y5.19%
Revenue Next Year-3.29%
Revenue Next 2Y-0.44%
Revenue Next 3Y1.38%
Revenue Next 5Y1.71%
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
CRL is valuated correctly with a Price/Earnings ratio of 15.34.
Based on the Price/Earnings ratio, CRL is valued cheaper than 89.09% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. CRL is valued slightly cheaper when compared to this.
CRL is valuated correctly with a Price/Forward Earnings ratio of 15.39.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CRL indicates a rather cheap valuation: CRL is cheaper than 89.09% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. CRL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.34 | ||
| Fwd PE | 15.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CRL is valued cheaply inside the industry as 96.36% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CRL indicates a rather cheap valuation: CRL is cheaper than 90.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.9 | ||
| EV/EBITDA | 11.2 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.72
EPS Next 2Y0.2%
EPS Next 3Y3.14%
5. Dividend
5.1 Amount
No dividends for CRL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
159.4
-4.26 (-2.6%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners110.99%
Inst Owner Change-0.01%
Ins Owners0.9%
Ins Owner Change8.66%
Market Cap7.83B
Analysts66.09
Price Target156.96 (-1.53%)
Short Float %5.36%
Short Ratio2.15
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)7.73%
Min EPS beat(2)4.03%
Max EPS beat(2)11.44%
EPS beat(4)4
Avg EPS beat(4)9.24%
Min EPS beat(4)4.03%
Max EPS beat(4)15.8%
EPS beat(8)8
Avg EPS beat(8)7.7%
EPS beat(12)12
Avg EPS beat(12)6.68%
EPS beat(16)16
Avg EPS beat(16)5.87%
Revenue beat(2)2
Avg Revenue beat(2)2.18%
Min Revenue beat(2)0.91%
Max Revenue beat(2)3.45%
Revenue beat(4)3
Avg Revenue beat(4)1.48%
Min Revenue beat(4)-0.86%
Max Revenue beat(4)3.45%
Revenue beat(8)6
Avg Revenue beat(8)1.16%
Revenue beat(12)9
Avg Revenue beat(12)1.3%
Revenue beat(16)11
Avg Revenue beat(16)1.06%
PT rev (1m)-2.23%
PT rev (3m)-13.06%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)5.52%
EPS NY rev (1m)0.12%
EPS NY rev (3m)2.53%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)2.74%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)2.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.34 | ||
| Fwd PE | 15.39 | ||
| P/S | 1.95 | ||
| P/FCF | 13.9 | ||
| P/OCF | 10.08 | ||
| P/B | 2.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.2 |
EPS(TTM)10.39
EY6.52%
EPS(NY)10.36
Fwd EY6.5%
FCF(TTM)11.47
FCFY7.19%
OCF(TTM)15.81
OCFY9.92%
SpS81.89
BVpS65.03
TBVpS-6.82
PEG (NY)N/A
PEG (5Y)1.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.42% | ||
| ROE | -0.99% | ||
| ROCE | 7.75% | ||
| ROIC | 6.12% | ||
| ROICexc | 6.35% | ||
| ROICexgc | 14.43% | ||
| OM | 12.59% | ||
| PM (TTM) | N/A | ||
| GM | 34.69% | ||
| FCFM | 14% |
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 | 0.79 | ||
| Debt/FCF | 4.46 | ||
| Debt/EBITDA | 2.78 | ||
| Cap/Depr | 53.72% | ||
| Cap/Sales | 5.3% | ||
| Interest Coverage | 4.43 | ||
| Cash Conversion | 85.97% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 2.23 |
F-Score4
WACC10.18%
ROIC/WACC0.6
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)2.47%
EPS 3Y-0.03%
EPS 5Y8.93%
EPS Q2Q%3.08%
EPS Next Y-6.05%
EPS Next 2Y0.2%
EPS Next 3Y3.14%
EPS Next 5Y5.19%
Revenue 1Y (TTM)-2.16%
Revenue growth 3Y4.59%
Revenue growth 5Y9.09%
Sales Q2Q%-2.71%
Revenue Next Year-3.29%
Revenue Next 2Y-0.44%
Revenue Next 3Y1.38%
Revenue Next 5Y1.71%
EBIT growth 1Y-19.26%
EBIT growth 3Y-4.53%
EBIT growth 5Y7.56%
EBIT Next Year30.58%
EBIT Next 3Y13.83%
EBIT Next 5Y8.72%
FCF growth 1Y104.63%
FCF growth 3Y-1.94%
FCF growth 5Y8.06%
OCF growth 1Y23.95%
OCF growth 3Y-1.16%
OCF growth 5Y8.84%