CHARLES RIVER LABORATORIES (CRL) Stock Fundamental Analysis
USA - NYSE:CRL - US1598641074 - Common Stock
152.24 USD
-0.65 (-0.43%)
152.24 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to CRL. 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 correct valuation and a medium growth rate.
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.
In the past 5 years CRL has always 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 (-0.92%) which is in line with its industry peers.
CRL's Return On Equity of -2.06% is in line compared to the rest of the industry. CRL outperforms 56.36% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.72%, CRL is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
CRL had an Average Return On Invested Capital over the past 3 years of 7.32%. This is significantly below the industry average of 15.96%.
| 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
In the last couple of years the Profit Margin of CRL has declined.
CRL has a Operating Margin of 11.64%. This is in the better half of the industry: CRL outperforms 70.91% 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 35.03%, CRL is doing worse than 61.82% of the companies in the same industry.
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.
Compared to 1 year ago, CRL has less shares outstanding
The number of shares outstanding for CRL has been increased compared to 5 years ago.
CRL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.22 indicates that CRL is not a great score, but indicates only limited risk for bankruptcy at the moment.
CRL has a Altman-Z score of 2.22. This is comparable to the rest of the industry: CRL outperforms 60.00% of its industry peers.
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.
CRL has a better Debt to FCF ratio (4.04) than 70.91% of its industry peers.
CRL has a Debt/Equity ratio of 0.70. This is a neutral value indicating CRL is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.70, CRL is not doing good in the industry: 74.55% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 4.04 | ||
| Altman-Z | 2.22 |
ROIC/WACC0.57
WACC10%
2.3 Liquidity
CRL has a Current Ratio of 1.36. 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 worse Current ratio (1.36) than 78.18% of its industry peers.
A Quick Ratio of 1.10 indicates that CRL should not have too much problems paying 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 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| 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 4.49%.
The Earnings Per Share has been growing by 8.93% on average over the past years. This is quite good.
Looking at the last year, CRL shows a decrease in Revenue. The Revenue has decreased by -1.21% in the last year.
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)4.49%
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.
CRL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.43% yearly.
EPS Next Y-1.01%
EPS Next 2Y2.26%
EPS Next 3Y4.23%
EPS Next 5Y5.95%
Revenue Next Year-1.06%
Revenue Next 2Y0.54%
Revenue Next 3Y2.17%
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.
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 14.21, CRL is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of CRL indicates a rather cheap valuation: CRL is cheaper than 94.55% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.27. CRL is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.11, the valuation of CRL can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CRL indicates a rather cheap valuation: CRL is cheaper than 90.91% of the companies listed in the same industry.
CRL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.21 | ||
| Fwd PE | 14.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CRL is valued cheaply inside the industry as 98.18% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CRL is valued cheaply inside the industry as 96.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.95 | ||
| EV/EBITDA | 10.72 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.59
EPS Next 2Y2.26%
EPS Next 3Y4.23%
5. Dividend
5.1 Amount
CRL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
152.24
-0.65 (-0.43%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners111.57%
Inst Owner Change1.14%
Ins Owners0.91%
Ins Owner Change6.07%
Market Cap7.49B
Analysts69.57
Price Target182.1 (19.61%)
Short Float %5.49%
Short Ratio3.06
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)10.72%
PT rev (3m)13.42%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-1.19%
EPS NY rev (1m)5.36%
EPS NY rev (3m)5.49%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)2.93%
Revenue NY rev (1m)2.29%
Revenue NY rev (3m)2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.21 | ||
| Fwd PE | 14.11 | ||
| P/S | 1.86 | ||
| P/FCF | 12.95 | ||
| P/OCF | 9.51 | ||
| P/B | 2.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.72 |
EPS(TTM)10.71
EY7.03%
EPS(NY)10.79
Fwd EY7.09%
FCF(TTM)11.76
FCFY7.72%
OCF(TTM)16
OCFY10.51%
SpS81.87
BVpS68.14
TBVpS-3.77
PEG (NY)N/A
PEG (5Y)1.59
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 | 2.22 |
F-Score4
WACC10%
ROIC/WACC0.57
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-1.01%
EPS Next 2Y2.26%
EPS Next 3Y4.23%
EPS Next 5Y5.95%
Revenue 1Y (TTM)-1.21%
Revenue growth 3Y4.59%
Revenue growth 5Y9.09%
Sales Q2Q%0.59%
Revenue Next Year-1.06%
Revenue Next 2Y0.54%
Revenue Next 3Y2.17%
Revenue Next 5Y2.43%
EBIT growth 1Y-25.61%
EBIT growth 3Y-4.53%
EBIT growth 5Y7.56%
EBIT Next Year28.55%
EBIT Next 3Y12.77%
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%