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%)
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. Both the profitability and the financial health of CRL get a neutral evaluation. Nothing too spectacular is happening here. 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 -1.11%, CRL is in line with its industry, outperforming 57.89% of the companies in the same industry.
CRL has a Return On Equity (-2.45%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 5.84%, CRL is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CRL is significantly below the industry average of 14.00%.
| 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.
With a decent Operating Margin value of 11.73%, CRL is doing good in 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.
Looking at the Gross Margin, with a value of 34.68%, CRL is doing worse than 63.16% 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 | 11.73% | ||
| 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
CRL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CRL has less shares outstanding than it did 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 2.72 indicates that CRL is not a great score, but indicates only limited risk for bankruptcy at the moment.
CRL has a better Altman-Z score (2.72) than 63.16% of its industry peers.
The Debt to FCF ratio of CRL is 4.02, which is a neutral value as it means it would take CRL, 4.02 years of fcf income to pay off all of its debts.
CRL has a Debt to FCF ratio of 4.02. This is in the better half of the industry: CRL outperforms 75.44% of its industry peers.
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 71.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 4.02 | ||
| Altman-Z | 2.72 |
ROIC/WACC0.55
WACC10.64%
2.3 Liquidity
CRL has a Current Ratio of 1.37. 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 (1.37) than 80.70% 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 has a worse Quick ratio (1.10) than 75.44% 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.
CRL shows a decrease in Revenue. In the last year, the revenue decreased by -0.92%.
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
The Earnings Per Share is expected to grow by 6.83% on average over the next years.
CRL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.25% yearly.
EPS Next Y0.17%
EPS Next 2Y3.1%
EPS Next 3Y5.39%
EPS Next 5Y6.83%
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.
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
CRL is valuated rather expensively with a Price/Earnings ratio of 20.94.
Compared to the rest of the industry, the Price/Earnings ratio of CRL indicates a rather cheap valuation: CRL is cheaper than 92.98% of the companies listed in the same industry.
CRL is valuated rather cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
CRL is valuated rather expensively with a Price/Forward Earnings ratio of 20.14.
Based on the Price/Forward Earnings ratio, CRL is valued cheaply inside the industry as 89.47% of the companies are valued more expensively.
CRL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.94 | ||
| Fwd PE | 20.14 |
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 92.98% of the companies listed in the same industry.
CRL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CRL is cheaper than 89.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20 | ||
| EV/EBITDA | 14 |
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%
Ins Owners0.89%
Ins Owner Change0.17%
Market Cap10.87B
Revenue(TTM)4.02B
Net Income(TTM)-83.48M
Analysts77.27
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)4.41%
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 |
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 | 2.72 |
F-Score4
WACC10.64%
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 5Y6.83%
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.