Charles River Laboratories International
Market Cap
US$9.1b
Last Updated
2020/06/05 02:29 UTC
Data Sources
Company Financials +
Executive Summary
Charles River Laboratories International, Inc., an early-stage contract research company, provides drug discovery, non-clinical development, and safety testing services.
Snowflake Analysis
Reasonable growth potential with mediocre balance sheet.
Similar Companies
Share Price & News
How has Charles River Laboratories International's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CRL's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
2.1%
CRL
1.0%
US Life Sciences
3.8%
US Market
1 Year Return
43.0%
CRL
19.8%
US Life Sciences
9.7%
US Market
Return vs Industry: CRL exceeded the US Life Sciences industry which returned 21.2% over the past year.
Return vs Market: CRL exceeded the US Market which returned 9.2% over the past year.
Shareholder returns
| CRL | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.1% | 1.0% | 3.8% |
| 30 Day | 27.7% | 9.0% | 11.4% |
| 90 Day | 18.3% | 16.4% | 6.8% |
| 1 Year | 43.0%43.0% | 20.1%19.8% | 12.1%9.7% |
| 3 Year | 94.7%94.7% | 85.4%84.1% | 36.2%27.2% |
| 5 Year | 152.0%152.0% | 131.7%128.8% | 63.7%45.4% |
Price Volatility Vs. Market
How volatile is Charles River Laboratories International's share price compared to the market and industry in the last 5 years?
Simply Wall St News
Valuation
Is Charles River Laboratories International undervalued compared to its fair value and its price relative to the market?
36.23x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CRL ($183.43) is trading above our estimate of fair value ($144.95)
Significantly Below Fair Value: CRL is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CRL is good value based on its PE Ratio (36.2x) compared to the Life Sciences industry average (37.6x).
PE vs Market: CRL is poor value based on its PE Ratio (36.2x) compared to the US market (16.1x).
Price to Earnings Growth Ratio
PEG Ratio: CRL is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: CRL is good value based on its PB Ratio (5.5x) compared to the US Life Sciences industry average (5.9x).
Next Steps
Future Growth
How is Charles River Laboratories International forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
23.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CRL's forecast earnings growth (23.3% per year) is above the savings rate (2.2%).
Earnings vs Market: CRL's earnings (23.3% per year) are forecast to grow faster than the US market (22.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CRL's revenue (8.3% per year) is forecast to grow slower than the US market (8.8% per year).
High Growth Revenue: CRL's revenue (8.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CRL's Return on Equity is forecast to be high in 3 years time (22.1%)
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Past Performance
How has Charles River Laboratories International performed over the past 5 years?
12.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CRL has high quality earnings.
Growing Profit Margin: CRL's current net profit margins (9.1%) are lower than last year (9.6%).
Past Earnings Growth Analysis
Earnings Trend: CRL's earnings have grown by 12% per year over the past 5 years.
Accelerating Growth: CRL's earnings growth over the past year (8.9%) is below its 5-year average (12% per year).
Earnings vs Industry: CRL earnings growth over the past year (8.9%) underperformed the Life Sciences industry 10.6%.
Return on Equity
High ROE: CRL's Return on Equity (14.8%) is considered low.
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Financial Health
How is Charles River Laboratories International's financial position?
Financial Position Analysis
Short Term Liabilities: CRL's short term assets ($1.2B) exceed its short term liabilities ($690.9M).
Long Term Liabilities: CRL's short term assets ($1.2B) do not cover its long term liabilities ($2.8B).
Debt to Equity History and Analysis
Debt Level: CRL's debt to equity ratio (139.6%) is considered high.
Reducing Debt: CRL's debt to equity ratio has increased from 108.8% to 139.6% over the past 5 years.
Debt Coverage: CRL's debt is well covered by operating cash flow (22.8%).
Interest Coverage: CRL's interest payments on its debt are well covered by EBIT (6.1x coverage).
Balance Sheet
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Dividend
What is Charles River Laboratories International's current dividend yield, its reliability and sustainability?
0.54%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate CRL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate CRL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if CRL's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CRL's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of CRL's dividend in 3 years as they are not forecast to pay a notable one for the US market.
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Management
How experienced are the management team and are they aligned to shareholders interests?
4.6yrs
Average management tenure
CEO
James Foster (68yo)
28.42yrs
Tenure
US$17,722,105
Compensation
Mr. James C. Foster, J.D., has been the Chairman of the Board since 2000 of Charles River Laboratories, Inc. (“CRL”) and has been its Chief Executive Officer and President since 1992. He joined CRL in 1976 ...
CEO Compensation Analysis
Compensation vs Market: James's total compensation ($USD17.72M) is above average for companies of similar size in the US market ($USD7.24M).
Compensation vs Earnings: James's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 28.42yrs | US$17.72m | 0.56% $50.4m | |
| Corporate Executive VP & CFO | 4.83yrs | US$3.51m | 0.028% $2.5m | |
| Corporate Executive Vice President of Corporate Development & Strategy | 6.42yrs | US$3.01m | 0.011% $981.3k | |
| Corporate EVP of Global Discovery & Safety Assessment | 6.67yrs | US$2.99m | 0.036% $3.2m | |
| Corporate Senior VP & Chief Accounting Officer | 3.17yrs | no data | 0.0017% $151.6k | |
| Corporate Senior VP & Chief Information Officer | 0.42yr | no data | no data | |
| Corporate Vice President of Investor Relations | no data | no data | no data | |
| Senior Vice President of Regulatory Affairs & Compliance | 4.42yrs | no data | no data | |
| Corporate Vice President of Public Relations & Corporate Communications | no data | no data | no data | |
| Chief Marketing Officer & Senior VP | 4.42yrs | no data | no data |
4.6yrs
Average Tenure
49yo
Average Age
Experienced Management: CRL's management team is considered experienced (4.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 28.42yrs | US$17.72m | 0.56% $50.4m | |
| Independent Director | 26.42yrs | US$308.61k | 0.076% $6.9m | |
| Independent Director | 12.5yrs | US$322.36k | 0.12% $11.3m | |
| Independent Director | 9.42yrs | US$317.36k | 0.059% $5.4m | |
| Independent Lead Director | no data | US$344.86k | 0.057% $5.1m | |
| Independent Director | 17.42yrs | US$328.61k | 0.023% $2.0m | |
| Independent Director | 0.67yr | US$161.10k | 0.0022% $196.1k | |
| Independent Director | 9.42yrs | US$327.36k | 0.056% $5.1m | |
| Independent Director | 2.92yrs | US$317.36k | 0.016% $1.4m | |
| Independent Director | 11.67yrs | US$314.86k | 0.017% $1.5m |
11.7yrs
Average Tenure
68yo
Average Age
Experienced Board: CRL's board of directors are seasoned and experienced ( 11.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CRL insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Charles River Laboratories International, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Charles River Laboratories International, Inc.
- Ticker: CRL
- Exchange: NYSE
- Founded: 1947
- Industry: Life Sciences Tools and Services
- Sector: Pharmaceuticals & Biotech
- Market Cap: US$9.077b
- Shares outstanding: 49.49m
- Website: https://www.criver.com
Number of Employees
Location
- Charles River Laboratories International, Inc.
- 251 Ballardvale Street
- Wilmington
- Massachusetts
- 1887
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CRL | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jun 2000 |
| RV6 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jun 2000 |
Biography
Charles River Laboratories International, Inc., an early-stage contract research company, provides drug discovery, non-clinical development, and safety testing services. It operates through three segments: Research Models and Services (RMS), Discovery and Safety Assessment (DSA), and Manufacturing Support (Manufacturing). The RMS segment produces and sells research model strains primarily purpose-bred rats and mice for use by researchers. It also provides a range of services to assist its clients in supporting the use of research models in research and screening non-clinical drug candidates, including genetically engineered models and services, insourcing solutions, and research animal diagnostic services. The DSA segment offers early and in vivo discovery services for the identification of a druggable target through delivery of non-clinical drug and therapeutic candidates ready for safety assessment; and safety assessment services, such as bioanalysis, drug metabolism, pharmacokinetics, safety pharmacology, toxicology, and pathology services. The Manufacturing segment provides in vitro methods for conventional and rapid quality control testing of sterile and non-sterile biopharmaceuticals, and consumer products. It also offers specialized testing of biologics that are outsourced by pharmaceutical and biotechnology companies; and avian vaccine services that provide specific-pathogen-free fertile chicken eggs, SPF chickens, and diagnostic products used to manufacture vaccines.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/05 02:29 |
| End of Day Share Price | 2020/06/04 00:00 |
| Earnings | 2020/03/28 |
| Annual Earnings | 2019/12/28 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.