| Snowflake Score | |
|---|---|
| Valuation | 6/6 |
| Future Growth | 3/6 |
| Past Performance | 2/6 |
| Financial Health | 4/6 |
| Dividends | 0/6 |
CRL Stock Overview
Charles River Laboratories International, Inc., a non-clinical contract research organization, provides drug discovery, non-clinical development, and safety testing services in the United States, Europe, Canada, the Asia Pacific, and internationally.
Charles River Laboratories International, Inc. Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$196.80 |
| 52 Week High | US$449.34 |
| 52 Week Low | US$181.36 |
| Beta | 1.34 |
| 1 Month Change | -1.72% |
| 3 Month Change | -10.07% |
| 1 Year Change | -52.77% |
| 3 Year Change | 49.34% |
| 5 Year Change | 79.07% |
| Change since IPO | 794.55% |
Recent News & Updates
Charles River raised to Buy at Jefferies on prospects for animal studies
Charles River Laboratories (NYSE:CRL) gained in the pre-market trading Friday after Jefferies upgraded the non-clinical contract research organization (CRO) to Buy from Hold, noting the company’s prospects in the market for non-human primates (NHP). The analysts led by David Windley argued that the NHP supply chain significantly changed during and before the pandemic. They reasoned that demand rose while China halted exports and drug development moved to large molecules and advanced therapies, “That price escalation is unlikely to abate (in fact, should continue rising) in the medium term,” the team wrote, forecasting a ~6x price increase over three years. Jefferies said that the pricing strength would more than offset the softness in CRL’s Discovery and non-NHP Safety Assessment (SA) segment, which according to the analysts, indicated a flattish growth on a constant currency basis in the first half of the year. The team raises the CRL price target from $230 to $240 per share, which stands more than 10% below the current average price target on Wall Street.
Charles River Laboratories International (NYSE:CRL) Has A Pretty Healthy Balance Sheet
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...
Charles River Laboratories: A 'Picks And Shovels' Biomedical Play, Now Attractively Priced
Summary Charles River Labs, or "CRL", provides critical discovery, clinical and safety services to nearly all biotech and pharma companies and has built a hard-earned reputation for quality. With rapid advancements in the medical field occurring more and more frequently, the services the company provides have never been in higher demand. After a 50% drop in shares, the company is now trading at an attractive price for long-term investors and I have recently opened a long position. When you think of the drug development process, what do you envision? Creating a magical compound in a garage somewhere and then simply putting out a press release for the world to rejoice? Of course not, real life is not a 1990s movie. Drug development is a truly painful and dreadfully slow slog of regulations, manufacturing, modeling, safety protocols etc. It can be summed up as 2 steps forward and 1.99 steps backwards, over and over again for around a decade. Only a very, very few companies both have the resources, infrastructure and willpower to accomplish the feat of taking a potential drug from idea, through to the marketplace without the significant help of third parties. Enter Charles River Labs (CRL). Overview This area between a drug idea and a drug reaching the consumer is where Charles River Labs shines. Charles River Labs, or "CRL" for short, originally built its reputation around providing the highest quality animal research models in the business. Over time, the company consistently expanded its offering to include items such as complete drug discovery, preclinical testing, and manufacturing support and today it services nearly all top and mid-tier biopharma players in one form or another. Charles River Labs The company claims to have been a part of the development process of over 80% of FDA approved drugs in the last 3 years. This should demonstrate not only the breadth of the company's reach, but also its ability to garner trust amongst its customers. As of 2021, drug discovery and safety assessments make up nearly 60% of CRL's revenue and the trend of outsourcing to CROs looks set to continue to increase for many years to come. Precedence Research With the rise of cell and gene therapies, along with innovative new drug mechanisms of action currently in development, the medical field looks to be on the cusp of a new golden age in drug development. The reason why this is important to CRL is that in many cases, these new and exciting therapies in development require entirely new facilities and infrastructure to take a drug from a computer screen, through to the clinic and CRL has invested quite a bit in making sure that it can be the partner of choice for these newly developed programs. Charles River Labs The company in 2021 acquired two key pieces to the puzzle in the cell and gene therapy market by way of the acquisitions of Cognate Bioservices and Vigene Biosciences, which both specialize in the manufacturing and production of cell and gene therapy lines. These purchases, along with the other investments the company has made in recent years have solidified CRL's place in this emerging and exciting field going forward. CRL estimates that the cell and gene therapy field alone is currently a $2.5 billion opportunity that will grow at 25%+ rates over the next 5 years. The company is certainly confident of its own prospects and at the 2021 investor day issued 2024 guidance of low double digit organic revenue growth, which would be an acceleration from the previous 5 year period. In addition, the company expects EPS growth to exceed revenue growth going forward thanks to improving margins and scale in the business. Charles River Labs While the company certainly has a rosy outlook for the future, the current picture is a bit more muddied given short term headwinds of massive currency fluctuations, rising interest rates and a retooling of a manufacturing facility that previously was producing COVID-19 vaccines. These headwinds contributed in a muted 2022 outlook and exacerbated the decline in shares so far this year. The company has indicated that these truly are temporary headwinds and that the long-term picture remains fully intact, however in the current environment, it would not surprise me if more near term turbulence is experienced in the short-term given the disruption of shifting from COVID-19 to regular business. Valuation Charles River Labs has been a truly phenomenal long-term investment for those lucky enough to have invested many years ago, but if you were unfortunate enough to have invested in late 2021 or so far this year, you are likely not a happy camper. CRL shares appeared to have been shot out of a cannon in early 2020 during the pandemic, rising to over $450 a share before the current precipitous, but predictable decline ensued. CRL data by YCharts As you can see by the very interesting chart above, the company has completed a full round trip in valuation levels as measured by the PE ratio. The 10 year average PE ratio of the company sits around 28, firmly above the current 25.33. In addition, the 2022 forward PE ratio is only 20.23, which is well below the company's long term trend line. The company does carry a bit of debt, currently sitting at $3.4 billion, however the company has produced roughly $430 million in free cash flow on average over the past 4 years and the debt maturity profile is very reasonable. The one caveat to this is that the company has exposure to floating rate debt, which makes the steady rise in interest rates a bit of a concern.
Is Now The Time To Look At Buying Charles River Laboratories International, Inc. (NYSE:CRL)?
Charles River Laboratories International, Inc. ( NYSE:CRL ) received a lot of attention from a substantial price...
Charles River Laboratories hits new 52-week low; shares down 43% YTD
Contract research organization Charles River Laboratories (NYSE:CRL) reached a 52-week low on Tuesday of $205.02. Year to date, shares are down 43%. Over the past year, they are down 54%. Earlier in August, Charles River stock fell after cutting its full-year 2022 outlook. Seeking Alpha's Quant Rating downgraded Charles River (CRL) from a hold to a sell on Monday.
Shareholder Returns
| CRL | US Life Sciences | US Market | |
|---|---|---|---|
| 7D | 5.0% | -1.9% | -2.5% |
| 1Y | -52.8% | -32.0% | -23.2% |
Return vs Industry: CRL underperformed the US Life Sciences industry which returned -31.9% over the past year.
Return vs Market: CRL underperformed the US Market which returned -23.2% over the past year.
Price Volatility
| CRL volatility | |
|---|---|
| CRL Average Weekly Movement | 6.2% |
| Life Sciences Industry Average Movement | 9.7% |
| Market Average Movement | 6.8% |
| 10% most volatile stocks in US Market | 15.5% |
| 10% least volatile stocks in US Market | 2.8% |
Stable Share Price: CRL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: CRL's weekly volatility (6%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1947 | 19,300 | Jim Foster | https://www.criver.com |
Charles River Laboratories International, Inc., a non-clinical contract research organization, provides drug discovery, non-clinical development, and safety testing services in the United States, Europe, Canada, the Asia Pacific, and internationally. It operates through three segments: Research Models and Services (RMS), Discovery and Safety Assessment (DSA), and Manufacturing Solutions (Manufacturing). The RMS segment produces and sells rodent research model strains and purpose-bred rats and mice for use by researchers.
Charles River Laboratories International, Inc. Fundamentals Summary
| CRL fundamental statistics | |
|---|---|
| Market Cap | US$10.01b |
| Earnings (TTM) | US$443.35m |
| Revenue (TTM) | US$3.69b |
22.6x
P/E Ratio2.7x
P/S RatioIs CRL overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| CRL income statement (TTM) | |
|---|---|
| Revenue | US$3.69b |
| Cost of Revenue | US$2.31b |
| Gross Profit | US$1.38b |
| Other Expenses | US$937.37m |
| Earnings | US$443.35m |
Last Reported Earnings
Jun 25, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 8.72 |
| Gross Margin | 37.44% |
| Net Profit Margin | 12.02% |
| Debt/Equity Ratio | 110.2% |
How did CRL perform over the long term?
See historical performance and comparison