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Charles River Labs
(NYSE:CRL)
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Rating:61Neutral
Price Target:
$239.00
▲(29.98% Upside)
Action:Reiterated
Date:07/01/26
Overall score reflects a tug-of-war between weaker profitability/earnings quality and moderate leverage (primary drag) versus solid free cash flow, strong price trend above key moving averages, and a cautiously positive outlook from reaffirmed guidance and expected 2H margin recovery driven by cost savings and portfolio actions.
Positive Factors
Strong cash generation
Sustained positive operating cash flow and material free cash flow provide a durable liquidity buffer to fund operations, targeted M&A, share repurchases and debt service while earnings recover. Absolute cash generation reduces refinancing and short-term liquidity risk.
Negative Factors
Profitability erosion and margin compression
Material margin deterioration and a shift to TTM net losses weaken earnings quality and return generation. Restoring historical gross and net margins requires sustained revenue mix improvement, cost realization and execution of savings; until then profitability is structurally impaired.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained positive operating cash flow and material free cash flow provide a durable liquidity buffer to fund operations, targeted M&A, share repurchases and debt service while earnings recover. Absolute cash generation reduces refinancing and short-term liquidity risk.
Read all positive factors
Charles River Labs Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue across different business segments, highlighting which areas are driving growth and which may need strategic adjustments.
Breaks down revenue across different business segments, highlighting which areas are driving growth and which may need strategic adjustments.
Data provided by:
The Fly
The FlyCharles River Labs (CRL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.11B
Dividend YieldN/A
Average Volume (3M)896.94K
Price to Earnings (P/E)―
Beta (1Y)0.72
Revenue Growth0.11%
EPS Growth-492.25%
CountryUS
Employees18,700
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)-3.75
Shares Outstanding48,167,730
10 Day Avg. Volume742,887
30 Day Avg. Volume896,939
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)3.19
Price to Sales (P/S)2.51
P/FCF Ratio19.47
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue2.89
Enterprise Value/Gross Profit9.08
Enterprise Value/Ebitda40.09
Forecast
1Y Price Target
$208.40Price Target Upside13.33% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)11.1
Revenue Forecast (FY)$3.85B
Charles River Labs Business Overview & Revenue Model
Company Description
Charles River Laboratories International, Inc. operates as a contract research organization (CRO), providing essential preclinical services to the pharmaceutical and biotechnology industries. Its core business revolves around assisting clients wit...
How the Company Makes Money
CRL primarily makes money by selling outsourced research and development services and related products to life sciences customers on a fee-for-service basis, typically under project-based statements of work and, in some cases, longer-term or repea...
Charles River Labs Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: near-term operational and margin headwinds (Q1 organic revenue decline, margin compression, negative free cash flow in the quarter and segment-specific pressures in RMS and DSA) were weighed against clear strategic actions and forward-looking levers (acquisitions to secure NHP supply and expand NAMs, completed divestitures, $100M incremental cost savings in 2026, $300M+ cumulative savings, strong bookings/net book-to-bill and a $200M share repurchase). Management reaffirmed FY guidance for organic revenue and EPS, expects meaningful margin expansion in the second half, and signaled improving demand/proposal trends—resulting in a mix of near-term softness but constructive medium-term outlook.Positive Updates
Reported Revenue and Organic Trend
Reported revenue of $996 million in Q1 2026, up 1.2% year-over-year; organic revenue declined 1.5% year-over-year, in line with prior outlook.
Negative Updates
Operating Margin Compression in Q1
Non-GAAP operating margin declined 280 basis points year-over-year to 16.3% in Q1 2026, driven by higher stock compensation timing, higher NHP sourcing costs and study starts, and lower NHP revenue timing in RMS.
Read all updates
Q1-2026 Updates
Positive
Negative
Reported Revenue and Organic Trend
Reported revenue of $996 million in Q1 2026, up 1.2% year-over-year; organic revenue declined 1.5% year-over-year, in line with prior outlook.
Read all positive updates
Company Guidance
Management reaffirmed 2026 targets calling for organic revenue to decline 0.5%–1.5% (reported revenue to fall ~4.0%–5.5%, a 50‑bp downward FX revision), non‑GAAP EPS of $10.80–$11.30 (≈5%–10% growth versus 2025, including ~ $0.10 accretion from divestitures), and free cash flow of $375M–$400M; they expect ~120–150 basis points of operating‑margin expansion in 2026 (with most benefit in 2H and the second half >500 bps higher than the first six months), Q2 reported revenue down mid‑to‑high single digits but organic down low single digits, and Q2 EPS to rise at least 30% sequentially from Q1’s $2.06; other metrics/assumptions include Q1 DSA net book‑to‑bill 1.04x, backlog $1.92B, net bookings $622M, net leverage ~2.6x, net interest guidance $103M–$108M, non‑GAAP tax rate 22%–23% (trending low), ~$200M of share repurchases completed YTD, incremental cost savings of at least $100M in 2026 (>$300M cumulative annualized), and divestitures expected to reduce reported revenue guidance by ~500 bps.Charles River Labs Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
54
Neutral
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.03B | 4.02B | 4.05B | 4.13B | 3.98B | 3.54B |
| Gross Profit | 1.28B | 1.23B | 1.33B | 1.50B | 1.46B | 1.33B |
| EBITDA | 290.56M | 410.84M | 581.14M | 1.03B | 986.15M | 820.16M |
| Net Income | -184.65M | -144.34M | 10.30M | 474.62M | 486.23M | 390.98M |
Balance Sheet | ||||||
| Total Assets | 7.73B | 7.14B | 7.53B | 8.20B | 7.60B | 7.02B |
| Cash, Cash Equivalents and Short-Term Investments | 191.83M | 213.77M | 194.61M | 276.77M | 233.91M | 246.30M |
| Total Debt | 3.06B | 3.07B | 2.72B | 3.07B | 3.10B | 3.21B |
| Total Liabilities | 4.74B | 3.92B | 4.02B | 4.54B | 4.58B | 4.43B |
| Stockholders Equity | 2.94B | 3.16B | 3.46B | 3.60B | 2.98B | 2.53B |
Cash Flow | ||||||
| Free Cash Flow | 391.29M | 518.49M | 501.61M | 365.37M | 294.91M | 532.03M |
| Operating Cash Flow | 607.03M | 737.65M | 734.58M | 683.90M | 619.64M | 760.80M |
| Investing Cash Flow | -552.55M | -209.32M | -245.09M | -563.15M | -607.92M | -1.44B |
| Financing Cash Flow | -83.68M | -536.73M | -550.93M | -85.52M | -42.40M | 672.60M |
Charles River Labs Technical Analysis
Positive
183.88
Price Trends
180.40
Positive
174.74
Positive
180.44
Positive
Market Momentum
13.78
Negative
78.88
Negative
91.35
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRL, the sentiment is Positive. The current price of 183.88 is below the 20-day moving average (MA) of 197.84, above the 50-day MA of 180.40, and above the 200-day MA of 180.44, indicating a bullish trend. The MACD of 13.78 indicates Negative momentum. The RSI at 78.88 is Negative, neither overbought nor oversold. The STOCH value of 91.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRL.
Charles River Labs Risk Analysis
Charles River Labs disclosed 41 risk factors in its most recent earnings report. Charles River Labs reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Charles River Labs Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $44.00B | 40.80 | 70.87% | ― | 13.08% | 25.40% | |
71 Outperform | $8.26B | 21.22 | 11.28% | 3.31% | 4.79% | 333.61% | |
71 Outperform | $13.14B | 28.43 | 120.89% | ― | 24.19% | 20.19% | |
63 Neutral | $12.69B | 54.17 | 3.28% | 0.29% | 4.79% | -16.36% | |
61 Neutral | $11.11B | -61.52 | -5.74% | ― | 0.11% | -492.25% | |
55 Neutral | $2.03B | -3.33 | -29.00% | ― | -3.91% | -25.31% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
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Charles River Labs Corporate Events
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Charles River Labs Shareholders Approve New Incentive Plan
Positive
May 11, 2026
At its annual meeting of shareholders held on May 5, 2026, Charles River Laboratories International, Inc. secured approval for its 2026 Long-Term Incentive Plan, which had been adopted by the board in March pending shareholder consent. The plan is...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.