Charles River Laboratories International, Inc. (CRL)
Valuation Overview•Is Charles River Laboratories International, Inc. Overvalued or Undervalued?
Priced at a premium to peer multiples and intrinsic cash flows, demanding strong execution to justify current levels.
Fragile underlying quality score of 38/100; weak margins or elevated debt leverage warrant caution.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Highly distressed profile flashing severe fundamental warning signs.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. This is paired with healthy capital returns, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
CRL struggles with subpar profitability and pressured margins. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company exhibits steady, low-single-digit revenue growth paired with stable bottom-line earnings. Operating efficiency remains adequate with margins around 11.8%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $995.8M | -0.9% | +0.3% | +6.5% | +11.4% | |
| EBITDA | $187.0M | — | -1.5% | — | — | |
| Net Income | -$14.8M | -1501.7% | — | — | — | |
| EPS (Diluted) | $-0.30 | -1555.0% | — | — | — | |
| Free Cash Flow | -$14.8M | +3.4% | +20.7% | +6.4% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 31.9% | 33.3% | 34.9% | 36.1% |
| Operating Margin | 11.8% | 11.1% | 13.2% | 13.9% |
| Net Margin | -4.6% | 2.7% | 6.3% | 7.9% |
| FCF Margin | 9.7% | 11.4% | 11.3% | 12.3% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $1.96 | $2.06 | +5.1% | ||
| Q1'26 | $2.33 | $2.39 | +2.6% | ||
| Q4'25 | $2.32 | $2.43 | +4.7% | ||
| Q3'25 | $2.50 | $3.12 | +24.8% | ||
| Q2'25 | $2.06 | $2.34 | +13.6% | ||
| Q1'25 | $2.50 | $2.66 | +6.4% | ||
| Q4'24 | $2.42 | $2.59 | +7.0% | ||
| Q3'24 | $2.39 | $2.80 | +17.2% |
Total return is +27.3% (1Y), outperforming the benchmark by +2.3%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -8.6% | -17.9% | — |
| 1Y | +27.3% | +2.3% | — |
| 3YCAGR | -4.1% | -24.1% | — |
| 5YCAGR | -12.2% | -25.1% | — |
| 10YCAGR | +8.4% | -5.3% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Charles River Laboratories International, Inc. (CRL) valuation, health, and returns.
Charles River Laboratories International, Inc. is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Slightly expensive versus peers compared to industry peers. overvalued (implying -23.2% downside from DCF intrinsic value of $142.11)
Charles River Laboratories International, Inc. has multiple valuation anchors: DCF Intrinsic Value: $142.11 | Peer Relative Fair Value: $168.61 | Wall Street Analyst Target: $214.14 (implying +15.8% upside). A convergence of these signals offers higher conviction.
Charles River Laboratories International, Inc. displays weak financial health with a composite quality score of 38/100, supported by a Altman Z-Score of 2.0 (grey zone), Piotroski F-Score of 4/9, Return on Invested Capital (ROIC) of 6.3%.
Charles River Laboratories International, Inc. returns capital via buybacks instead of dividends, carrying a 4.1% buyback yield and reducing outstanding shares by -4.0% in the last 12 months.
Charles River Laboratories International, Inc.'s current growth trajectory is Stable. The company achieved -0.9% 1Y revenue growth and -1555.0% 1Y EPS growth, compared to its 3Y revenue CAGR of +0.3%.
Wall Street consensus is Buy based on 37 analysts, beating EPS expectations in 100% of recent quarters with a 40-quarter streak. The consensus price target represents a +15.8% change from current levels.
Investment risks for Charles River Laboratories International, Inc. include: -33.9% 1-year max drawdown, high beta (1.36x market volatility). Volatility risk is characterized by a beta of 1.36x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.