Charles River Labs (CRL) AI Stock Analysis

• Market Cap: $8.25B
• Dividend Yield: N/A
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: -0.92%
• EPS Growth: -118.96%
• Country: US
• Employees: 18,700
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 2.43
• Shares Outstanding: 49,214,176
• 10 Day Avg. Volume: 1,368,458
• 30 Day Avg. Volume: 1,103,049
• PEG Ratio: -9.41
• Price to Book (P/B): 2.74
• Price to Sales (P/S): 2.34
• P/FCF Ratio: 18.91
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 3.25
• Enterprise Value/Gross Profit: 9.68
• Enterprise Value/Ebitda: 16.27
• 1Y Price Target: $193.67
• Price Target Upside: 15.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 10.21
• Revenue Forecast (FY): $4.00B

• Rating: 56 Neutral
• Price Target: $183.00 ▲(8.90% Upside)

Charles River Labs exhibits strong revenue growth and cash flow generation, but faces significant profitability challenges. Technical indicators show positive momentum, but valuation metrics are concerning due to negative earnings. The earnings call highlighted strategic initiatives but also revealed ongoing operational challenges.

Positive Factors

Strategic Portfolio Strengthening

By divesting underperforming assets and focusing on core markets, Charles River Labs aims to enhance profitability and streamline operations, which can lead to improved financial performance and competitive positioning in the long term.

Cash Flow Generation

Strong cash flow generation indicates Charles River Labs' ability to fund operations, invest in growth opportunities, and return capital to shareholders, supporting long-term financial health and strategic flexibility.

Biotech Funding Improvement

Improved biotech funding suggests increased demand for Charles River Labs' services, potentially driving revenue growth and strengthening its market position as a key partner in drug development.

Negative Factors

Profitability Challenges

Ongoing profitability challenges, as evidenced by negative net profit margins, may hinder Charles River Labs' ability to sustain long-term growth and reinvest in its business, affecting future competitiveness.

Revenue Decline in Key Segments

Declining revenues in key segments like DSA and Manufacturing could indicate structural issues or competitive pressures, potentially impacting Charles River Labs' overall growth trajectory and market share.

Operating Margin Decline

A declining operating margin suggests reduced operational efficiency, which can limit Charles River Labs' ability to invest in growth initiatives and maintain competitive pricing, impacting long-term profitability.

Charles River Labs Business Overview & Revenue Model

Company Description

Charles River Laboratories (CRL) is a leading global provider of laboratory services and products for the pharmaceutical and biotechnology industries. The company specializes in early-stage drug development, offering a comprehensive suite of services including preclinical and clinical research, toxicology testing, and laboratory animal medicine. With a focus on accelerating the drug development process, CRL supports its clients through a range of solutions that integrate scientific expertise and innovative technologies.

How the Company Makes Money

Charles River Labs generates revenue through a diversified model that includes multiple key streams. The primary revenue comes from its services, which encompass preclinical services such as safety assessment, laboratory animal services, and research models, as well as clinical services that assist in the later stages of drug development. The company also earns revenue from selling research models and related products. Significant partnerships with pharmaceutical and biotechnology companies enhance CRL's earnings by providing steady contracts for research and development services. Additionally, the company occasionally engages in collaborations or joint ventures that can lead to new revenue opportunities. Overall, CRL's strong reputation and extensive service offerings position it as a reliable partner for clients in the drug development process.

Charles River Labs Financial Statement Overview

Summary

Charles River Labs shows strong revenue growth and cash flow generation, but faces profitability challenges with a negative net income TTM. The balance sheet shows improved leverage, but the negative return on equity highlights ongoing profitability issues.

Income Statement

The income statement shows mixed results. The TTM data reveals a negative net profit margin of -1.72%, indicating a loss, which is a significant decline from the previous year's positive margin. Revenue growth is strong at 15% TTM, but the gross profit margin has decreased to 23.61% from 32.88% in the previous year. The EBIT and EBITDA margins have also declined, reflecting reduced operational efficiency.

Balance Sheet

The balance sheet indicates moderate stability with a debt-to-equity ratio of 0.83 TTM, which is an improvement from the previous year. However, the return on equity is negative at -2.01% TTM, highlighting profitability challenges. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis shows a robust free cash flow growth rate of 270.9% TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy at 0.73, suggesting efficient cash conversion. However, the free cash flow to net income ratio indicates reliance on cash flow rather than profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2019	Dec 2018
Income Statement
Total Revenue	3.02B	4.05B	4.13B	3.98B	2.62B	2.27B
Gross Profit	1.01B	1.33B	1.50B	1.46B	958.31M	840.07M
EBITDA	602.88M	581.14M	1.03B	986.15M	563.06M	507.23M
Net Income	132.22M	10.30M	474.62M	486.23M	252.02M	226.37M
Balance Sheet
Total Assets	7.51B	7.53B	8.20B	7.60B	4.69B	3.86B
Cash, Cash Equivalents and Short-Term Investments	207.67M	194.61M	276.77M	233.91M	238.01M	195.44M
Total Debt	2.63B	2.72B	3.07B	3.10B	2.00B	1.67B
Total Liabilities	4.06B	4.02B	4.54B	4.58B	3.03B	2.52B
Stockholders Equity	3.41B	3.46B	3.60B	2.98B	1.63B	1.32B
Cash Flow
Free Cash Flow	459.92M	501.61M	365.37M	294.91M	340.42M	301.09M
Operating Cash Flow	590.13M	734.58M	683.90M	619.64M	480.94M	441.14M
Investing Cash Flow	-116.51M	-245.09M	-563.15M	-607.92M	-681.50M	-955.00M
Financing Cash Flow	-484.86M	-550.93M	-85.52M	-42.40M	231.94M	558.06M

Charles River Labs Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 168.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRL, the sentiment is Neutral. The current price of 168.05 is below the 20-day moving average (MA) of 179.91, above the 50-day MA of 167.95, and above the 200-day MA of 154.86, indicating a neutral trend. The MACD of 1.02 indicates Positive momentum. The RSI at 42.40 is Neutral, neither overbought nor oversold. The STOCH value of 24.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CRL.

Charles River Labs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MEDP	79 Outperform	$16.68B	41.20	73.70%	―	13.88%	23.92%
IDXX	78 Outperform	$56.57B	56.16	64.63%	―	8.39%	21.44%
QGEN	68 Neutral	$9.45B	23.50	11.29%	2.88%	5.32%	336.29%
RVTY	66 Neutral	$10.15B	44.77	3.04%	0.29%	3.37%	-18.80%
CRL	56 Neutral	$8.25B	―	-2.32%	―	-0.92%	-118.96%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
NEOG	51 Neutral	$1.30B	―	-39.71%	―	-2.77%	-4327.53%

Charles River Labs Corporate Events

Charles River Labs CFO Resignation and Interim Appointment

On September 12, 2025, Flavia H. Pease announced her resignation as Chief Financial Officer of Charles River Laboratories, effective September 29, 2025, to pursue another opportunity. Her departure is not due to any disagreements with the company. Michael G. Knell, the Corporate Senior Vice President and Chief Accounting Officer, has been appointed as the interim CFO. The company has begun a search for a permanent successor. Charles River Laboratories reaffirmed its 2025 financial guidance for revenue and non-GAAP earnings per share, indicating confidence in its market position and long-term growth opportunities.

The most recent analyst rating on (CRL) stock is a Hold with a $161.00 price target. To see the full list of analyst forecasts on Charles River Labs stock, see the CRL Stock Forecast page.

Charles River Laboratories Reports Q2 2025 Earnings

Charles River Laboratories International, Inc. is a global provider of essential products and services that aid pharmaceutical and biotechnology companies, government agencies, and academic institutions in accelerating their research and drug development efforts.

Charles River Labs Reports Mixed Q2 Earnings Call

The earnings call for Charles River Laboratories International presented a mixed sentiment. While the company showcased strong performance in its Discovery and Safety Assessment (DSA) segment and raised its financial guidance, it also faced challenges such as declining DSA revenue, increased cancellations, and headwinds in the Contract Development and Manufacturing Organization (CDMO) business. The highlights and lowlights were balanced, reflecting both optimism and caution.