NYSE:CRL

Stock Analysis Report

Charles River Laboratories International

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

Fair value with moderate growth potential.


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

11.5%

CRL

1.6%

US Life Sciences

2.4%

US Market


1 Year Return

-8.2%

CRL

-4.8%

US Life Sciences

-10.0%

US Market

Return vs Industry: CRL underperformed the US Life Sciences industry which returned -4.8% over the past year.

Return vs Market: CRL exceeded the US Market which returned -10% over the past year.


Shareholder returns

CRLIndustryMarket
7 Day11.5%1.6%2.4%
30 Day-6.6%-8.0%-11.0%
90 Day-15.1%-15.0%-19.4%
1 Year-8.2%-8.2%-4.6%-4.8%-8.1%-10.0%
3 Year53.1%53.1%64.8%63.7%17.3%9.6%
5 Year69.4%69.4%87.9%85.3%36.1%21.1%

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?

3.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CRL ($133.33) is trading below our estimate of fair value ($138.32)

Significantly Below Fair Value: CRL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CRL is good value based on its PE Ratio (25.8x) compared to the Life Sciences industry average (30.5x).

PE vs Market: CRL is poor value based on its PE Ratio (25.8x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: CRL is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: CRL is good value based on its PB Ratio (4x) compared to the US Life Sciences industry average (4.6x).


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?

15.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRL's forecast earnings growth (15% per year) is above the savings rate (1.7%).

Earnings vs Market: CRL's earnings (15% per year) are forecast to grow faster than the US market (13.3% per year).

High Growth Earnings: CRL's earnings are forecast to grow, but not significantly.

Revenue vs Market: CRL's revenue (7.7% per year) is forecast to grow faster than the US market (7% per year).

High Growth Revenue: CRL's revenue (7.7% 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 low in 3 years time (17.3%).


Next Steps

Past Performance

How has Charles River Laboratories International performed over the past 5 years?

11.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CRL has high quality earnings.

Growing Profit Margin: CRL's current net profit margins (9.6%) are lower than last year (9.9%).


Past Earnings Growth Analysis

Earnings Trend: CRL's earnings have grown by 11.2% per year over the past 5 years.

Accelerating Growth: CRL's earnings growth over the past year (12.6%) exceeds its 5-year average (11.2% per year).

Earnings vs Industry: CRL earnings growth over the past year (12.6%) underperformed the Life Sciences industry 21.5%.


Return on Equity

High ROE: CRL's Return on Equity (15.2%) is considered low.


Next Steps

Financial Health

How is Charles River Laboratories International's financial position?


Financial Position Analysis

Short Term Liabilities: CRL's short term assets ($1.0B) exceed its short term liabilities ($710.2M).

Long Term Liabilities: CRL's short term assets ($1.0B) do not cover its long term liabilities ($2.3B).


Debt to Equity History and Analysis

Debt Level: CRL's debt to equity ratio (111.5%) is considered high.

Reducing Debt: CRL's debt to equity ratio has increased from 106.3% to 111.5% over the past 5 years.

Debt Coverage: CRL's debt is well covered by operating cash flow (25.9%).

Interest Coverage: CRL's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Charles River Laboratories International's current dividend yield, its reliability and sustainability?

0.80%

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 payouts.

High Dividend: Unable to evaluate CRL's dividend yield against the top 25% of dividend payers, as the company has not reported any 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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.3yrs

Average management tenure


CEO

James Foster (68yo)

28.25s

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 ($USD17.72M) is above average for companies of similar size in the US market ($USD7.52M).

Compensation vs Earnings: James's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Foster
Chairman28.25yrsUS$17.72m0.63% $41.6m
David Smith
Corporate Executive VP & CFO4.67yrsUS$3.51m0.031% $2.1m
David Johst
Corporate Executive VP24.25yrsUS$6.57m0.43% $28.7m
Joseph LaPlume
Corporate Executive Vice President of Corporate Development & Strategy6.25yrsUS$3.01m0.030% $2.0m
Birgit Girshick
Corporate EVP of Global Discovery & Safety Assessment6.5yrsUS$2.99m0.037% $2.5m
Michael Knell
Corporate Senior VP & Chief Accounting Officer3yrsno data0.0014% $90.4k
Todd Spencer
Corporate Vice President of Investor Relationsno datano datano data
Barbara Patterson
Senior Vice President of Regulatory Affairs & Compliance4.25yrsno datano data
Amy Cianciaruso
Corporate Vice President of Public Relations & Corporate Communicationsno datano datano data

6.3yrs

Average Tenure

51yo

Average Age

Experienced Management: CRL's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Foster
Chairman28.25yrsUS$17.72m0.63% $41.6m
Stephen Chubb
Independent Director26.25yrsUS$308.61k0.080% $5.3m
C. Reese
Independent Director12.33yrsUS$322.36k0.12% $8.2m
Richard Wallman
Independent Director9.25yrsUS$317.36k0.059% $3.9m
George Milne
Lead Directorno dataUS$344.86k0.057% $3.7m
Jean-Paul Mangeolle
Independent Director2.25yrsUS$308.61k0.0078% $517.9k
George Massaro
Independent Director17.25yrsUS$328.61k0.024% $1.6m
Robert Bertolini
Independent Director9.25yrsUS$327.36k0.056% $3.7m
Martin MacKay
Independent Director2.75yrsUS$317.36k0.016% $1.0m
Deborah Kochevar
Independent Director11.5yrsUS$314.86k0.017% $1.1m

11.5yrs

Average Tenure

68yo

Average Age

Experienced Board: CRL's board of directors are seasoned and experienced ( 11.5 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$6.598b
  • Shares outstanding: 49.48m
  • Website: https://www.criver.com

Number of Employees


Location

  • Charles River Laboratories International, Inc.
  • 251 Ballardvale Street
  • Wilmington
  • Massachusetts
  • 1887
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CRLNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2000
RV6DB (Deutsche Boerse AG)YesCommon StockDEEURJun 2000
RV6BRSE (Berne Stock Exchange)YesCommon StockCHCHFJun 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 03:35
End of Day Share Price2020/04/07 00:00
Earnings2019/12/28
Annual Earnings2019/12/28


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.