Charles River Laboratories International, Inc.
Charles River Laboratories International, Inc. Fundamental Analysis
Charles River Laboratories International, Inc. (CRL) shows weak financial fundamentals with a PE ratio of -57.88, profit margin of -3.59%, and ROE of -4.40%. The company generates $4.0B in annual revenue with weak year-over-year growth of -0.85%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 23.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CRL's fundamental strength across five key dimensions:
Efficiency Score
WeakCRL struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCRL trades at attractive valuation levels.
Growth Score
WeakCRL faces weak or negative growth trends.
Financial Health Score
ExcellentCRL maintains a strong and stable balance sheet.
Profitability Score
WeakCRL struggles to sustain strong margins.
Key Financial Metrics
Is CRL Expensive or Cheap?
P/E Ratio
CRL trades at -57.88 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CRL's PEG of 0.64 indicates potential undervaluation.
Price to Book
The market values Charles River Laboratories International, Inc. at 2.64 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.87 times EBITDA. This is generally considered low.
How Well Does CRL Make Money?
Net Profit Margin
For every $100 in sales, Charles River Laboratories International, Inc. keeps $-3.59 as profit after all expenses.
Operating Margin
Core operations generate 10.68 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-4.40 in profit for every $100 of shareholder equity.
ROA
Charles River Laboratories International, Inc. generates $-2.02 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Charles River Laboratories International, Inc. produces operating cash flow of $737.64M, showing steady but balanced cash generation.
Free Cash Flow
Charles River Laboratories International, Inc. generates strong free cash flow of $518.49M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $10.54 in free cash annually.
FCF Yield
CRL converts 6.20% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-57.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.64
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.64
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.08
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.97
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.29
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.04
vs 25 benchmark
ROA
Return on assets percentage
-0.02
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How CRL Stacks Against Its Sector Peers
| Metric | CRL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -57.88 | 29.43 | Better (Cheaper) |
| ROE | -4.40% | 800.00% | Weak |
| Net Margin | -3.59% | -20145.00% (disorted) | Weak |
| Debt/Equity | 0.97 | 0.30 | Weak (High Leverage) |
| Current Ratio | 1.29 | 4.64 | Neutral |
| ROA | -2.02% | -17936.00% (disorted) | Weak |
CRL outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Charles River Laboratories International, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
37.29%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-139.61%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
34.92%
Industry Style: Defensive, Growth, Innovation
High Growth