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Charles River Labs
(NYSE:CRL)
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Rating:56Neutral
Price Target:
$286.00
▼(-3.91% Downside)
Action:Reiterated
Date:09/24/26
CRL scores mid-range mainly because weak recent profitability and negative earnings-based valuation offset stronger cash generation. The score is supported by positive earnings-call momentum (raised 2026 EPS/FCF guidance and margin improvement trajectory) and a generally constructive longer-term technical trend, while leverage and ongoing RMS softness keep risk elevated.
Positive Factors
DSA demand visibility
Stronger bookings, backlog, and book-to-bill indicate improving demand visibility for Discovery and Safety Assessment services. A healthy committed workload can support utilization, revenue conversion, and operating leverage over the next several quarters as customers advance drug pipelines.
Negative Factors
Profitability deterioration
The shift from roughly 11%–12% net margins in 2021–2023 to losses in 2025 and TTM demonstrates a material weakening in earnings power. Sustained losses reduce financial flexibility and make the planned margin recovery dependent on successful cost and operational actions.
Read all positive and negative factors
Positive Factors
Negative Factors
DSA demand visibility
Stronger bookings, backlog, and book-to-bill indicate improving demand visibility for Discovery and Safety Assessment services. A healthy committed workload can support utilization, revenue conversion, and operating leverage over the next several quarters as customers advance drug pipelines.
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
$13.69B
Dividend YieldN/A
Average Volume (3M)913.06K
Price to Earnings (P/E)―
Beta (1Y)0.83
Revenue Growth-0.74%
EPS Growth-268.79%
CountryUS
Employees19,000
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)-4.84
Shares Outstanding47,738,873
10 Day Avg. Volume1,076,509
30 Day Avg. Volume913,059
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$313.13Price Target Upside5.21% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)11.34
Revenue Forecast (FY)$3.91B
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:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call highlighted clear operational progress: better-than-expected Q2 results, sequential margin improvement (420 bps), stronger DSA demand signals with bookings/backlog gains and raised full-year guidance (organic revenue guidance improved by ~150 bps and EPS guidance raised). Strategic actions (divestitures, NHP supply integration, partnerships, AI/digital investments and lab expansions) are positioned to drive further margin and growth upside. However, notable near-term challenges remain: RMS softness driven by North American academic/government funding constraints, Q2 free cash flow decline, higher corporate costs and an elevated tax rate headwind, plus timing risk with material NHP sourcing benefits largely back-loaded into Q4 and pricing improvements not yet realized. On balance, positives (outperformance, raised guidance, bookings/backlog strength, margin momentum and strategic partnerships) outweigh the lowlights, though some operational and timing risks persist.Positive Updates
Beat Quarterly Outlook and Raised Full-Year Guidance
Q2 results exceeded prior outlook for revenue and non-GAAP EPS; company raised full-year organic revenue guidance to flat to +1% (150 bps improvement) and increased non-GAAP EPS guidance to $11.15–$11.45 (8%–11% YoY growth).
Negative Updates
RMS Segment Underperformance
RMS organic revenue declined -1.4% in Q2 driven by lower volumes for small research models and research model services (GEMS) in North America; company still expects low-to-mid single-digit organic RMS decline for the year.
Read all updates
Q2-2026 Updates
Positive
Negative
Beat Quarterly Outlook and Raised Full-Year Guidance
Q2 results exceeded prior outlook for revenue and non-GAAP EPS; company raised full-year organic revenue guidance to flat to +1% (150 bps improvement) and increased non-GAAP EPS guidance to $11.15–$11.45 (8%–11% YoY growth).
Read all positive updates
Company Guidance
The company raised its full-year 2026 outlook, now expecting reported revenue to decline 2.5%–3.5% while organic revenue should be flat to up 1% (a 150‑bp improvement versus prior guidance); by segment management guides DSA to low single‑digit organic growth, Manufacturing to low‑ to mid‑single‑digit organic growth, and RMS to a low‑ to mid‑single‑digit organic decline. Full‑year non‑GAAP operating margin is forecast to expand ~120–150 bps, with a clear line of sight to at least a 500‑bp improvement in H2 versus H1 (about half of the H2 improvement from completed portfolio actions and lower NHP sourcing costs, ~150 bps from lower corporate costs, remainder from operational contributions), and non‑GAAP EPS is raised to $11.15–$11.45 (≈8%–11% YoY). Additional metrics: Q3 reported revenue is expected to decline ~4%–6% while Q3 organic revenue should grow ~1%–3%, Q3 non‑GAAP EPS is guided to $2.90–$3.00 (≈20% YoY) with roughly +200 bps sequential margin improvement, full‑year non‑GAAP tax rate 23%–24% (≈+100 bps; ~$0.20 EPS headwind), net interest expense $103M–$108M, free cash flow raised to $400M–$420M, average diluted shares ~48.5M, net leverage ~2.5x, and $300M of share repurchases year‑to‑date (including $100M in Q2) under a $1B authorization.Charles River Labs Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
56
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.00B | 4.02B | 4.05B | 4.13B | 3.98B | 3.54B |
| Gross Profit | 1.29B | 1.23B | 1.33B | 1.50B | 1.46B | 1.33B |
| EBITDA | 220.47M | 410.84M | 581.14M | 1.03B | 986.15M | 820.16M |
| Net Income | -238.46M | -144.34M | 10.30M | 474.62M | 486.23M | 390.98M |
Balance Sheet | ||||||
| Total Assets | 7.53B | 7.14B | 7.53B | 8.20B | 7.60B | 7.02B |
| Cash, Cash Equivalents and Short-Term Investments | 192.03M | 213.77M | 194.61M | 276.77M | 233.91M | 246.30M |
| Total Debt | 3.03B | 3.07B | 2.72B | 3.07B | 3.10B | 3.21B |
| Total Liabilities | 4.69B | 3.92B | 4.02B | 4.54B | 4.58B | 4.43B |
| Stockholders Equity | 2.84B | 3.16B | 3.46B | 3.60B | 2.98B | 2.53B |
Cash Flow | ||||||
| Free Cash Flow | 370.61M | 518.49M | 501.61M | 365.37M | 294.91M | 532.03M |
| Operating Cash Flow | 582.15M | 737.65M | 734.58M | 683.90M | 619.64M | 760.80M |
| Investing Cash Flow | -487.11M | -209.32M | -245.09M | -563.15M | -607.92M | -1.44B |
| Financing Cash Flow | -21.42M | -536.73M | -550.93M | -85.52M | -42.40M | 672.60M |
Charles River Labs Technical Analysis
Positive
297.64
Price Trends
276.07
Positive
235.80
Positive
209.97
Positive
Market Momentum
4.44
Negative
55.62
Neutral
63.61
Neutral
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 297.64 is above the 20-day moving average (MA) of 283.47, above the 50-day MA of 276.07, and above the 200-day MA of 209.97, indicating a bullish trend. The MACD of 4.44 indicates Negative momentum. The RSI at 55.62 is Neutral, neither overbought nor oversold. The STOCH value of 63.61 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $16.69B | 34.47 | 110.15% | ― | 24.67% | 25.88% | |
76 Outperform | $241.26B | 35.17 | 13.35% | 0.28% | 7.23% | 7.47% | |
75 Outperform | $42.91B | 31.76 | 21.95% | ― | 8.22% | 16.68% | |
71 Outperform | $12.49B | 37.77 | 3.54% | ― | 2.08% | -94.18% | |
69 Neutral | $24.70B | 25.35 | 11.57% | 0.93% | 6.41% | 33.31% | |
56 Neutral | $13.69B | -59.96 | -7.72% | ― | -0.74% | -268.79% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
CRL
Charles River Labs
290.19
112.86
63.64%
ICLR
Icon
162.05
-31.84
-16.42%
LH
Labcorp Holdings
308.49
34.32
12.52%
TMO
Thermo Fisher
654.80
113.38
20.94%
IQV
IQVIA Holdings
258.21
51.58
24.96%
MEDP
Medpace Holdings
599.47
66.98
12.58%
Charles River Labs Corporate Events
Business Operations and StrategyFinancial Disclosures
Charles River Labs Unveils New Strategic Growth Vision
Positive
Sep 24, 2026
On September 24, 2026, Charles River Laboratories used its Investor Day to unveil a refreshed “Pathway to Purpose” strategic vision aimed at modernizing operations, strengthening its scientific portfolio, and enhancing its client-centr...
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.