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 worldwide.

Rewards

Trading at 6.9% below its fair value

Earnings are forecast to grow 16.92% per year

Earnings grew by 71% over the past year

Risk Analysis

Has a high level of debt



Snowflake Analysis

Solid track record with reasonable 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.7%

CRL

1.4%

US Life Sciences

-0.3%

US Market


1 Year Return

13.5%

CRL

24.0%

US Life Sciences

18.6%

US Market

Return vs Industry: CRL underperformed the US Life Sciences industry which returned 24% over the past year.

Return vs Market: CRL underperformed the US Market which returned 18.6% over the past year.


Shareholder returns

CRLIndustryMarket
7 Day0.7%1.4%-0.3%
30 Day14.8%9.8%2.2%
90 Day8.6%8.6%5.6%
1 Year13.5%13.5%24.2%24.0%21.1%18.6%
3 Year97.2%97.2%105.2%103.4%45.6%36.2%
5 Year133.4%133.4%136.6%133.4%71.1%52.2%

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?

6.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CRL ($146.23) is trading below our estimate of fair value ($157.06)

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 (30.6x) compared to the Life Sciences industry average (35.7x).

PE vs Market: CRL is poor value based on its PE Ratio (30.6x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: CRL is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: CRL is good value based on its PB Ratio (4.7x) compared to the US Life Sciences industry average (5.3x).


Next Steps

Future Growth

How is Charles River Laboratories International forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

16.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRL's forecast earnings growth (16.9% per year) is above the savings rate (1.7%).

Earnings vs Market: CRL's earnings (16.9% per year) are forecast to grow faster than the US market (14.2% 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 (7.4% 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 high in 3 years time (22.6%)


Next Steps

Past Performance

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

10.1%

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 higher than last year (6.3%).


Past Earnings Growth Analysis

Earnings Trend: CRL's earnings have grown by 10.1% per year over the past 5 years.

Accelerating Growth: CRL's earnings growth over the past year (71%) exceeds its 5-year average (10.1% per year).

Earnings vs Industry: CRL earnings growth over the past year (71%) exceeded the Life Sciences industry 34.6%.


Return on Equity

High ROE: CRL's Return on Equity (14.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Charles River Laboratories International's financial position?


Financial Position Analysis

Short Term Liabilities: CRL's short term assets ($972.4M) exceed its short term liabilities ($681.6M).

Long Term Liabilities: CRL's short term assets ($972.4M) do not cover its long term liabilities ($2.3B).


Debt to Equity History and Analysis

Debt Level: CRL's debt to equity ratio (120.6%) is considered high.

Reducing Debt: CRL's debt to equity ratio has increased from 110.1% to 120.6% over the past 5 years.

Debt Coverage: CRL's debt is well covered by operating cash flow (23.3%).

Interest Coverage: CRL's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet

Inventory Level: CRL has a high level of physical assets or inventory.

Debt Coverage by Assets: CRL's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage0.4%forecastin3Years0%

Current dividend yield vs market & industry

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

What is the CEO of Charles River Laboratories International's salary, the management and board of directors tenure and is there insider trading?

4.5yrs

Average management tenure


CEO

James Foster (68yo)

27.9yrs

Tenure

US$14,450,802

Compensation

Mr. James C. Foster, J.D., has been the Chairman of the Board of Charles River Laboratories, Inc. (“CRL”) since 2000 and has been its Chief Executive Officer since 1992. Mr. Foster has been the President o ...


CEO Compensation Analysis

Compensation vs Market: James's total compensation ($USD14.45M) is above average for companies of similar size in the US market ($USD6.81M).

Compensation vs Earnings: James's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.5yrs

Average Tenure

55yo

Average Age

Experienced Management: CRL's management team is considered experienced (4.5 years average tenure).


Board Age and Tenure

11.2yrs

Average Tenure

68yo

Average Age

Experienced Board: CRL's board of directors are seasoned and experienced ( 11.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$502,12230 May 19
William Barbo
EntityIndividual
Role
Senior Key Executive
Chief Commercial Officer & Executive VP
Shares4,000
Max PriceUS$126.19
SellUS$189,39212 Mar 19
Joseph LaPlume
EntityIndividual
Shares1,370
Max PriceUS$138.37
SellUS$635,20101 Mar 19
William Barbo
EntityIndividual
Role
Senior Key Executive
Chief Commercial Officer & Executive VP
Shares4,500
Max PriceUS$141.38
SellUS$25,88612 Dec 18
James Foster
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares200
Max PriceUS$129.43

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • David Johst (57yo)

    Executive VP of Human Resources

    • Tenure: 23.9yrs
    • Compensation: US$5.27m
  • James Foster (68yo)

    Chairman

    • Tenure: 27.9yrs
    • Compensation: US$14.45m
  • Amy Cianciaruso

    Corporate Vice President of Public Relations & Corporate Communications

    • Tenure: 0yrs
  • William Barbo (58yo)

    Chief Commercial Officer & Executive VP

    • Tenure: 3.2yrs
    • Compensation: US$2.58m
  • Michael Knell (42yo)

    Corporate Senior VP & Chief Accounting Officer

    • Tenure: 2.7yrs
  • David Smith (53yo)

    Corporate Executive VP & CFO

    • Tenure: 4.3yrs
    • Compensation: US$3.24m
  • Birgit Girshick (49yo)

    EVP of Discovery & Safety Assessment

    • Tenure: 6.2yrs
    • Compensation: US$2.52m
  • Shanna Cotti-Osmanski

    Chief Information Officer & Corporate Senior VP of Information Technology

    • Tenure: 4.6yrs
  • Barbara Patterson

    Senior Vice President of Regulatory Affairs & Compliance

    • Tenure: 3.9yrs
  • Todd Spencer

    Corporate Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Stephen Chubb (75yo)

    Independent Director

    • Tenure: 25.9yrs
    • Compensation: US$280.05k
  • C. Reese (74yo)

    Independent Director

    • Tenure: 12yrs
    • Compensation: US$290.05k
  • Richard Wallman (68yo)

    Independent Director

    • Tenure: 8.9yrs
    • Compensation: US$285.05k
  • James Foster (68yo)

    Chairman

    • Tenure: 27.9yrs
    • Compensation: US$14.45m
  • George Milne (75yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$305.05k
  • Jean-Paul Mangeolle (57yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$280.05k
  • George Massaro (71yo)

    Independent Director

    • Tenure: 16.9yrs
    • Compensation: US$300.05k
  • Bob Bertolini (58yo)

    Independent Director

    • Tenure: 8.9yrs
    • Compensation: US$295.05k
  • Martin MacKay (63yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$275.05k
  • Deborah Kochevar (62yo)

    Independent Director

    • Tenure: 11.2yrs
    • Compensation: US$275.05k

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$7.020b
  • Shares outstanding: 48.84m
  • 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

Biography

Charles River Laboratories International, Inc., an early-stage contract research company, provides drug discovery, non-clinical development, and safety testing services worldwide. It operates in three segm ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 23:33
End of Day Share Price2019/12/06 00:00
Earnings2019/09/28
Annual Earnings2018/12/29


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.