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Quote this valuation with its source: Fair value, Potential value and the price at analysis.
FAQ
CRL — frequently asked questions
Is Charles River Laboratories International Inc. overvalued?
In our latest published analysis dated 2026-09-20, CRL looks meaningfully overvalued. The price recorded at analysis is 278 USD versus our fair value of 131 USD; the high endpoint is presented separately as potential value of 158 USD. That implies roughly 52.8% downside to fair value at that date.
Our latest published report, analyzed 2026-09-20, gives CRL a fair value of 131 USD and a potential value of 158 USD. The conclusion is triangulated across multiple valuation models and weighted by reliability for Charles River Laboratories International Inc.'s archetype; it is a dated research output, not a live price.
Should I buy CRL now?
Our latest published rating for CRL, analyzed 2026-09-20, is Sell. Charles River Laboratories International Inc. looks meaningfully overvalued at the analysis-date price of 278 USD versus fair value of 131 USD; potential value is 158 USD. This is research for educational purposes, not personalized investment advice.
What are the biggest risks for CRL?
The dedicated bear-case section in our report analyzed 2026-09-20 documents Charles River Laboratories International Inc.'s material risks, evidence, thresholds, and thesis-invalidation conditions. Scenario-specific explanations remain in that section so the report does not repeat or decontextualize them elsewhere.
What is CRL's rating?
Our latest published rating for CRL, analyzed 2026-09-20, is Sell, with a published moat assessment of 6.5/10 (Narrow). It reflects our fair value of 131 USD, the potential value of 158 USD, and the price recorded at analysis (278 USD).
Báo cáo này chưa được dịch. Hãy làm mới sau vài phút khi hàng đợi dịch xử lý xong.
§1 Tóm tắt điều hànhEN
Câu trả lời trong 30 giâySell
Giá so với giá trị
Giá
$278.06
Giá trị hợp lý
$131.31
Giá trị tiềm năng
$158.12
Tính đến
2026-09-18
Vì sao luận điểm có thể đúng
A rapid recovery in global biopharmaceutical venture funding and capital market access that drives accelerated IND-enabling study starts, allowing Discovery and Safety Assessment ($2,402.89M revenue) to generate powerful operational leverage above its 17.67% segment margin ($424.56M operating income), combined with an operational turnaround in Manufacturing Support (-$184.28M FY2025 loss) and rapid balance sheet debt paydown.
Điều gì sẽ thay đổi quan điểm của chúng tôi
Discovery and Safety Assessment revenue contracting below -5.0% YoY over the next 12 months.
We rate Charles River Laboratories International Inc. Sell. Shares trade far above our Fair value estimate, reflecting market expectations of an aggressive operational turnaround that is not supported by near-term fundamentals.
Our Sell rating means ordinary investors should liquidate existing holdings and avoid committing new capital to the stock. While Charles River is an industry leader in preclinical testing, its elevated valuation leaves investors vulnerable to substantial capital losses.
The report was prepared at a price of $278.06 on September 18, 2026. Our house conclusion establishes a Fair value of $131.31 and a Potential value of $158.12. The report-date price trades at an upside of -52.8% to Fair value, or an 111.8% premium above our fundamental midpoint estimate, standing well above even our Potential value.
The primary risk that would accelerate downside is a continued contraction in preclinical study volumes driven by early-stage biopharmaceutical funding freezes. If Discovery and Safety Assessment revenue falls more than 5% year over year from its FY2025 level of $2,402.89M, high fixed facility expenses will cause operating profit to de-leverage. Combined with ongoing operating losses in Manufacturing Support, which lost $184.28M in FY2025, and debt service on $3,065.51M in total debt, cash flow available to equity holders would decline significantly.2,6
The strongest reason the business can recover toward Potential value of $158.12 is its entrenched position in safety assessment protocols and proprietary research models. Because drug developers face steep regulatory costs and time delays if they switch testing providers during safety trials, Charles River generated $518.49M in free cash flow in FY2025. If biotechnology funding rebounds and management eliminates manufacturing losses, operating margins could normalize toward peer levels of 15.5%, increasing earnings per share and supporting valuation recovery over time.4
High Regulatory Switching Costs
Preclinical toxicology and safety assessment protocols are embedded directly into regulatory filings with global authorities. Core Discovery and Safety Assessment generated $2,402.89M in FY2025 revenue and $424.56M in segment operating income, as sponsors face severe timeline delays and validation risks if switching CRO partners mid-protocol.6
Proprietary Research Models and Barrier Facility Network
Research Models and Services generated $846.08M in FY2025 revenue and $44.57M in operating profit. CRL's biosecure animal breeding facilities and genetically defined strains represent an essential input for biomedical research that cannot be easily replicated by clinical peers like DGX.3,6
Global Scale and Regulatory Footprint
International revenue across Europe ($1,102.70M), Canada ($501.03M), and Asia-Pacific ($205.02M) provides multi-jurisdictional compliance capabilities that small specialized competitors cannot match.6
Khuyến nghị của hãng
We rate Charles River Laboratories Sell because the share price of $278.06 stands at an unsustainable 111.8% premium to fundamental Fair value of $131.31 amid near-term revenue contraction and substantial balance sheet debt.
§2 Kịch bản tiêu cựcEN
Under a severe capital-cycle stress test combining a 500 bps revenue headwind in Discovery and Safety Assessment ($2,402.89M in FY2025), sustained losses in Manufacturing Support (-$184.28M in FY2025), and a credit spread shock raising WACC above 13.0% from 11.05%, Charles River's operating cash flow ($737.65M in FY2025) would be largely absorbed by capital expenditures ($219.15M in FY2025) and debt service on $3,065.51M total debt. In this downside pathway, consolidated operating margin remains suppressed in the mid-single digits rather than recovering toward the 15.5% industry benchmark, equity value compresses toward $110.15, and multiple derating eliminates near-term valuation support.
Preclinical study cancellations and postponements force operating de-leveraging in safety assessment
Manufacturing Support continues to record operating losses and requires further restructuring
Refinancing friction on balance sheet debt increases overall cost of capital
In the bear scenario, prolonged capital scarcity across early-stage biotechnology sponsors forces sustained pipeline prioritization and study deferrals, suppressing Discovery and Safety Assessment volumes. High fixed barrier-facility costs trigger severe operating de-leveraging while ongoing losses in contract manufacturing prevent margin recovery. Furthermore, debt refinancing under elevated benchmark interest rates increases capital costs and restricts discretionary cash flow, driving equity value significantly below Fair value. Disconfirmation of this downside path would require an immediate inflection in early-stage preclinical study bookings and rapid segment breakeven in manufacturing support.
Các cách luận điểm này có thể đổ vỡ
Accelerated Preclinical Study Cancellations and Volume Contraction
Discovery and Safety Assessment revenue was $2,402.89M in FY2025. If biopharma funding freezes cause cancellations driving DSA revenue growth below -5.0% YoY over the next 12 months, high fixed facility costs trigger operating de-leveraging.6
FV impact
-7.9%
Revenue and EPS growth 5 points lower for five years
Trigger
Within 12 months
Tín hiệu cảnh báo sớm cần theo dõi
Năm diễn biến có thể làm suy yếu luận điểm đầu tư của chúng tôi.
Accelerating preclinical study cancellations and client trial deferrals due to persistent biopharma capital constraints, causing severe operating de-leveraging.
Charles River Laboratories commands an entrenched competitive moat rooted in high regulatory switching costs and specialized infrastructure across early-stage drug discovery and preclinical safety assessment. When biopharmaceutical sponsors initiate good laboratory practice (GLP) toxicology studies to support Investigational New Drug (IND) applications, the protocols, control data, and regulatory submissions are inextricably linked to specific testing facilities and validated animal model strains. Transferring ongoing studies to an alternate provider introduces substantial regulatory audit risk, validation costs, and potential development delays that sponsors rarely absorb willingly. This dynamic protects the Discovery and Safety Assessment segment, which generated $2,402.89M in FY2025 revenue and maintained a 17.67% segment operating margin ($424.56M operating income).
In addition to regulatory stickiness, Charles River maintains efficient scale and proprietary assets in its Research Models and Services segment, which produced $846.08M in FY2025 revenue. Operating specialized, pathogen-free barrier facilities requires extensive capital commitments, rigorous biosafety certifications, and deep colonies of standardized rodent and non-human primate strains. These assets act as a defensive barrier against traditional clinical diagnostic laboratories such as DGX and LH, which do not operate comparable research animal breeding infrastructure.
Despite these structural advantages, the moat is classified as Narrow with a 10-year fade horizon rather than Wide due to capital allocation headwinds in contract manufacturing. In FY2025, the Manufacturing Support division generated an operating loss of -$184.28M, depressing consolidated operating margin to 0.63% and causing FY2025 returns on invested capital of 5.79% to fall below the company's 11.05% WACC. While the core toxicology franchise retains formidable pricing resilience, exposure to volatile cell and gene therapy CDMO assets and client study postponement risks prevent assignment of a wider economic moat, as any operational turnaround remains a conditional underwriting assumption rather than a guaranteed recovery.
Lợi nhuận kinh tế
Charles River achieved return on invested capital of 5.79% in FY2025, which temporarily lagged its computed WACC of 11.05% primarily due to non-cash goodwill impairments and operating losses of -$184.28M in Manufacturing Support. However, the core Discovery and Safety Assessment segment generated $424.56M in operating income at a 17.67% operating margin, generating solid economic profits above the cost of capital on its dedicated asset base.1,6
6.5/ 10
Narrow
Sources of advantage
01High Regulatory Switching Costs — Preclinical toxicology and safety assessment protocols are embedded directly into regulatory filings with global authorities. Core Discovery and Safety Assessment generated $2,402.89M in FY2025 revenue and $424.56M in segment operating income, as sponsors face severe timeline delays and validation risks if switching CRO partners mid-protocol.Wide
02Proprietary Research Models and Barrier Facility Network — Research Models and Services generated $846.08M in FY2025 revenue and $44.57M in operating profit. CRL's biosecure animal breeding facilities and genetically defined strains represent an essential input for biomedical research that cannot be easily replicated by clinical peers like DGX.
Mối đe dọa đã biết với lợi thế cạnh tranh
Mối đe dọa
Mức độ
Mốc thời gian
Giảm thiểu
Alternative In Vitro and In Silico Testing Technologies
medium
5-10 years
CRL is actively investing in and integrating digital pathology, computational toxicology, and cell-based assays into its discovery workflows.
Competition from Offshore Lower-Cost Preclinical CROs
The highlighted cell is Fair value when every assumption sits at its base level ($131.31). Each row and column shows what Fair value becomes when one assumption moves.
Free cash flow to the firm stays positive in the first projected year at $346.3M after modeled reinvestment of $0, with terminal value at 34.5% of enterprise value. A sudden drop in free cash flow is not projected unless capital spending relative to revenue, reinvestment, or gross margin resets materially.
Under the base scenario, which carries a probability of 45.0%, biopharmaceutical preclinical study demand stabilizes following near-term budget austerity, and operational restructuring in Manufacturing Support eliminates segment operating losses. Normalized consolidated operating margins expand steadily toward peer benchmarks, driving the equity valuation to $367.67, representing an expected return of 32.2% relative to $278.06. This path is disconfirmed if early-stage biotechnology study cancellations accelerate or if fixed facility costs prevent margin expansion over the next several fiscal quarters.
Robust resurgence in global biotechnology venture capital funding and public capital market access
Rapid re-acceleration in IND-enabling safety assessment study starts across North America and Europe
Manufacturing Support completes operational turnaround and achieves positive operating profit contribution
§7 Cây quyết định lợi nhuậnEN
Vượt
Upgrade to Hold; Re-examine margin normalization trajectory and evaluate whether operating cash flow expansion enables accelerated balance sheet de-leveraging before adjusting positioning.
Kích hoạt: Discovery and Safety Assessment revenue acceleration and Manufacturing Support operating profitability turnaround
An earnings beat driven by accelerating Discovery and Safety Assessment study volume and positive operational contribution in Manufacturing Support would validate normalized margin expansion toward peer levels and reduce near-term balance sheet refinancing pressure.
Đúng kỳ vọng
Maintain Sell; Maintain disciplined capital preservation and continue avoiding equity accumulation given the substantial negative gap between share price $278.06 and Fair value $131.31.
Kích hoạt: Preclinical study volume trends and operating margins tracking consensus expectations
Results matching consensus expectations confirm modest top-line contraction in preclinical services alongside prolonged operating losses in Manufacturing Support, keeping valuation constrained near Fair value $131.31 well below $278.06.
Hụt
Exit the position; Immediately liquidate remaining exposure to avoid severe capital impairment as earnings power collapses toward stressed asset value.
Kích hoạt: Accelerating preclinical study cancellations and deteriorating segment operating margins
An earnings miss driven by accelerating cancellations in Discovery and Safety Assessment and widening losses in Manufacturing Support would severely compress operating cash flow, elevating refinancing risks on balance sheet debt.
Chất lượng lợi nhuận
Earnings quality is characterized by strong underlying cash generation that diverges from GAAP accounting volatility. While reported net income is burdened by non-cash goodwill impairments and restructuring charges in Manufacturing Support, operating cash flow conversion remains healthy due to substantial non-cash depreciation and amortization add-backs. Working capital requirements remain disciplined with stable receivables collection and inventory management across preclinical testing sites. However, margin durability remains split between the high-margin, highly cash-generative Discovery and Safety Assessment core and ongoing drag from unabsorbed fixed overhead in contract manufacturing.
Hiện tạiSubdued study volumes reflecting cautious biopharma venture capital deployment
Vì sao quan trọng
Discovery and Safety Assessment constitutes the majority of consolidated revenue and operating profit; revenue acceleration confirms pipeline recovery while further contraction forces fixed-cost de-leveraging.
Charles River demonstrated strong cash conversion in FY2025 despite GAAP net loss of -$144.34M. Operating cash flow remained robust at $737.65M, supported by non-cash depreciation of $403.31M and stock-based compensation of $71.08M. Free cash flow reached $518.49M, providing vital liquidity to service the company's $3,065.51M total debt load without external equity dilution, while the 19.48% pre-tax cost of debt serves as a modeled synthetic rate rather than contractual cash coupon costs.1,2,4,5
Phân bổ vốn
Capital allocation in FY2025 prioritized organic reinvestment and debt service, with disciplined at $219.15M (5.46% of ) compared to depreciation of $403.31M. Share repurchases totaled $360.67M while issuance was -$121.78M, reducing diluted to 49.56M in FY2025. Given total debt of $3,065.51M and cash of $213.77M, management must redirect discretionary exclusively toward debt reduction rather than buybacks.
The decline in FY2025 ROIC was driven by goodwill write-downs and -$184.28M in Manufacturing Support operating losses. While the underlying core Discovery and Safety Assessment segment generated $424.56M in FY2025 operating income, any rebound in asset productivity and economic value creation remains a conditional underwriting assumption subject to the resolution of CDMO headwinds.
Return on invested capital of 5.79% in FY2025 sits below the computed WACC of 11.05%, reflecting an observed negative economic spread of 5.26 percentage points in FY2025 driven by CDMO losses.
Discovery and Safety Assessment generated $424.56M in operating income at a 17.67% margin in FY2025, while Manufacturing Support lost -$184.28M, driving consolidated operating income down to $25.16M.
Under baseline underwriting assumptions, consolidated margin recovery is conditionally contingent on curtailing CDMO headwinds rather than restructuring the core preclinical franchise.
Doanh thu mới nhất4 T US$CAGR doanh thu +10,2%
Biên hoạt động0,6%10 kỳ tài chính
Dòng tiền tự do mới nhất518,5 Tr US$FY2025
Nợ ròng2,9 T US$FY2025
Phân tích báo cáo kết quả kinh doanhQuy mô kinh doanh chuyển thành lợi nhuận báo cáo như thế nào.
Doanh thu4 T US$Giá vốn doanh thu−2,8 T US$Lợi nhuận gộp1,2 T US$Chi phí hoạt động−1,2 T US$Lợi nhuận hoạt động25,2 Tr US$Các khoản ngoài hoạt động và thuế−169,5 Tr US$Lợi nhuận ròng-144,3 Tr US$
Dữ liệu lịch sử tài chính
Doanh thu
4.015.382.000 US$
Giá vốn doanh thu
2.789.809.000 US$
Lợi nhuận gộp
1.225.573.000 US$
Chi phí hoạt động
1.200.411.000 US$
Lợi nhuận hoạt động
25.162.000 US$
Các khoản ngoài hoạt động và thuế
-169.500.000 US$
Lợi nhuận ròng
-144.338.000 US$
Tổng quan bảng cân đối kế toánCách tài sản đã báo cáo được nắm giữ và tài trợ trong kỳ đã chọn.
StockMarketAgent.AI
Cơ cấu tài sảnNguồn tài trợ
Tổng tài sản7,1 T US$Tiền mặt213,8 Tr US$Tài sản ngắn hạn1,4 T US$Tổng nợ phải trả3,9 T US$Nợ ngắn hạn1,1 T US$Vốn chủ sở hữu3,2 T US$
Dữ liệu phân tích bảng cân đối kế toán
Tổng tài sản
7.135.422.000 US$
Tiền mặt
213.770.000 US$
Tài sản ngắn hạn
1.447.049.000 US$
Tổng nợ phải trả
3.924.228.000 US$
Nợ ngắn hạn
1.120.315.000 US$
Vốn chủ sở hữu
3.169.931.000 US$
Cầu nối dòng tiềnDòng tiền từ hoạt động chuyển thành dòng tiền tự do như thế nào trong FY2024.
StockMarketAgent.AI
Đối chiếu dòng tiền hoạt động
Lợi nhuận ròng22,2 Tr US$Khấu hao và phân bổ+361,7 Tr US$Thù lao bằng cổ phiếu+69,9 Tr US$Điều chỉnh hoạt động khác+280,7 Tr US$Dòng tiền hoạt động734,6 Tr US$
Đối chiếu tiền đầu kỳ đến cuối kỳ
Tiền đầu kỳ284,5 Tr US$Dòng tiền hoạt động+734,6 Tr US$Dòng tiền đầu tư−245,1 Tr US$Dòng tiền tài chính−550,9 Tr US$Ảnh hưởng tỷ giá−17,5 Tr US$Tiền cuối kỳ205,6 Tr US$
734,6 Tr US$ − 233 Tr US$Dòng tiền tự do 501,6 Tr US$
Dữ liệu cầu nối dòng tiền
Lợi nhuận ròng
22.203.000 US$
Dòng tiền vào từ hoạt động
734.577.000 US$
Khấu hao và phân bổ
361.741.000 US$
Thù lao bằng cổ phiếu
69.891.000 US$
Điều chỉnh hoạt động khác
280.742.000 US$
Dòng tiền hoạt động
734.577.000 US$
Tiền sẵn có
1.019.057.000 US$
Tiền đầu kỳ
284.480.000 US$
Dòng tiền ra từ đầu tư
245.086.000 US$
Capex
232.967.000 US$
Hoạt động đầu tư khác
12.119.000 US$
Dòng tiền ra từ tài chính
550.927.000 US$
Mua lại cổ phiếu
119.175.000 US$
Hoàn trả nợ ròng
412.188.000 US$
Hoạt động tài chính khác
19.564.000 US$
Ảnh hưởng tỷ giá
17.474.000 US$
Tiền cuối kỳ
205.570.000 US$
Dòng tiền đầu tư
-245.086.000 US$
Dòng tiền tài chính
-550.927.000 US$
Doanh thu theo phân khúc hoạt độngTỷ trọng trong tổng doanh thu của 2025-12-27.
4 T US$Tổng doanh thu
Doanh thu theo phân khúc hoạt độngTỷ trọng
Discovery And Safety Assessment2,4 T US$59,8%−2% so với cùng kỳ
Research Models And Services846,1 Tr US$21,1%+2% so với cùng kỳ
Manufacturing Support766,4 Tr US$19,1%−0,4% so với cùng kỳ
Nguồn: SEC EDGAR · Nộp ngày 2026-02-18 · SEC EDGAR
Dữ liệu cơ cấu doanh thu: Doanh thu theo phân khúc hoạt động
Doanh thu theo phân khúc hoạt động
Doanh thu
Tỷ trọng
so với cùng kỳ
Discovery And Safety Assessment
2,4 T US$
59,8%
-2%
Research Models And Services
846,1 Tr US$
21,1%
2%
Manufacturing Support
766,4 Tr US$
19,1%
-0,4%
Doanh thu theo khu vựcTỷ trọng trong tổng doanh thu của 2025-12-27.
4 T US$Tổng doanh thu
Doanh thu theo khu vựcTỷ trọng
United States2,1 T US$53,3%−4,4% so với cùng kỳ
Europe1,1 T US$27,5%+2,3% so với cùng kỳ
Canada501 Tr US$12,5%+3,9% so với cùng kỳ
Asia Pacific205 Tr US$5,1%+4,1% so với cùng kỳ
Khác64,9 Tr US$1,6%+22,8% so với cùng kỳ
Nguồn: SEC EDGAR · Nộp ngày 2026-02-18 · SEC EDGAR
Dữ liệu cơ cấu doanh thu: Doanh thu theo khu vực
Doanh thu theo khu vực
Doanh thu
Tỷ trọng
so với cùng kỳ
United States
2,1 T US$
53,3%
-4,4%
Europe
1,1 T US$
27,5%
2,3%
Canada
501 Tr US$
12,5%
3,9%
Asia Pacific
205 Tr US$
5,1%
4,1%
Other
64,9 Tr US$
1,6%
22,8%
Doanh thu và lợi nhuậnQuy mô kinh doanh chuyển thành lợi nhuận báo cáo như thế nào.
Tiền mặt và nợThanh khoản sẵn có so với tổng dư nợ.
Tạo dòng tiềnDòng tiền hoạt động so với dòng tiền tự do.
Khả năng sinh lờiDiễn biến biên gộp, biên hoạt động và biên ròng.
Dữ liệu tài chính tại thời điểm được dùng trong phân tích ngày 2026-09-20.
Dữ liệu lịch sử tài chính
Kỳ
Doanh thu
EBITDA
Lợi nhuận ròng
Dòng tiền hoạt động
Dòng tiền tự do
Capex
Khấu hao và phân bổ
Thù lao bằng cổ phiếu
Mua lại cổ phiếu
Cổ tức đã trả
Phát hành nợ ròng
Dòng tiền đầu tư
Dòng tiền tài chính
Tiền đầu kỳ
Tiền cuối kỳ
Tiền mặt và đầu tư
Tổng nợ
Biên hoạt động
ROIC
WACC
Chênh lệch ROIC−WACC
2016-12-31
1,7 T US$
377,3 Tr US$
154,8 Tr US$
316,9 Tr US$
261,6 Tr US$
55,3 Tr US$
126,7 Tr US$
43,6 Tr US$
12,3 Tr US$
0 US$
—
-692,7 Tr US$
380,8 Tr US$
—
119,9 Tr US$
121,4 Tr US$
1,2 T US$
14,1%
—
5,5%
—
2017-12-30
1,9 T US$
457,9 Tr US$
123,4 Tr US$
318,1 Tr US$
235,6 Tr US$
82,4 Tr US$
131,2 Tr US$
44 Tr US$
106,9 Tr US$
0 US$
—
-72,6 Tr US$
-208,5 Tr US$
119,9 Tr US$
166,3 Tr US$
192,3 Tr US$
1,1 T US$
15,5%
—
5,2%
—
2018-12-29
2,3 T US$
507,2 Tr US$
226,4 Tr US$
441,1 Tr US$
301,1 Tr US$
140,1 Tr US$
161,8 Tr US$
47,3 Tr US$
13,8 Tr US$
—
—
-955 Tr US$
558,1 Tr US$
166,3 Tr US$
197,3 Tr US$
196,3 Tr US$
1,6 T US$
14,6%
—
5,9%
—
2019-12-28
2,6 T US$
563,1 Tr US$
252 Tr US$
480,9 Tr US$
340,4 Tr US$
140,5 Tr US$
198,1 Tr US$
57,3 Tr US$
18,1 Tr US$
34,5 Tr US$
—
-681,5 Tr US$
231,9 Tr US$
197,3 Tr US$
240 Tr US$
239 Tr US$
2 T US$
13,4%
—
5,7%
—
2020-12-26
2,9 T US$
768,5 Tr US$
364,3 Tr US$
546,6 Tr US$
380 Tr US$
166,6 Tr US$
234,9 Tr US$
56,3 Tr US$
24 Tr US$
46,6 Tr US$
—
-601,5 Tr US$
47,2 Tr US$
240 Tr US$
233,1 Tr US$
229,4 Tr US$
2,2 T US$
14,8%
—
5,0%
—
2021-12-25
3,5 T US$
820,2 Tr US$
391 Tr US$
760,8 Tr US$
532 Tr US$
228,8 Tr US$
265,5 Tr US$
71,5 Tr US$
40,7 Tr US$
45,7 Tr US$
—
-1,4 T US$
672,6 Tr US$
233,1 Tr US$
246,3 Tr US$
242,3 Tr US$
3,2 T US$
16,7%
—
5,5%
—
2022-12-31
4 T US$
986,1 Tr US$
486,2 Tr US$
619,6 Tr US$
294,9 Tr US$
324,7 Tr US$
303,9 Tr US$
73,6 Tr US$
38,7 Tr US$
—
19,8 Tr US$
-607,9 Tr US$
-42,4 Tr US$
246,3 Tr US$
241,2 Tr US$
234,9 Tr US$
3,1 T US$
16,4%
—
7,7%
—
2023-12-30
4,1 T US$
1 T US$
474,6 Tr US$
683,9 Tr US$
365,4 Tr US$
318,5 Tr US$
314,1 Tr US$
72 Tr US$
24,2 Tr US$
25,6 Tr US$
-75,3 Tr US$
-563,2 Tr US$
-85,5 Tr US$
241,2 Tr US$
284,5 Tr US$
276,8 Tr US$
3,1 T US$
14,9%
—
8,0%
—
2024-12-28
4 T US$
581,1 Tr US$
22,2 Tr US$
734,6 Tr US$
501,6 Tr US$
233 Tr US$
361,7 Tr US$
69,9 Tr US$
119,2 Tr US$
—
-412,2 Tr US$
-245,1 Tr US$
-550,9 Tr US$
284,5 Tr US$
205,6 Tr US$
194,7 Tr US$
2,7 T US$
5,6%
—
8,0%
—
2025-12-27
4 T US$
410,8 Tr US$
-144,3 Tr US$
737,6 Tr US$
518,5 Tr US$
219,2 Tr US$
403,3 Tr US$
71,1 Tr US$
360,7 Tr US$
—
-121,8 Tr US$
-209,3 Tr US$
-536,7 Tr US$
205,6 Tr US$
216 Tr US$
213,8 Tr US$
3,1 T US$
0,6%
—
9,6%
—
§9 So sánh định giá với các doanh nghiệp cùng ngành
Giá trị hợp lýReport-date price
Charles River Laboratories International Inc.CRL
Giá / giá trị hợp lý
Giá trị hợp lý131,31 US$Report-date price278,06 US$
Ngày đánh giá
Hào kinh tếNarrow
Bảng điểm đầu tư40 / 100
Labcorp Holdings Inc.LH
Giá / giá trị hợp lý
Giá trị hợp lý263,85 US$Report-date price311,71 US$
Ngày đánh giá
Hào kinh tếNarrow
Bảng điểm đầu tư63 / 100
Quest Diagnostics IncorporatedDGX
Giá / giá trị hợp lý
Giá trị hợp lý226,02 US$Report-date price190,18 US$
Ngày đánh giá
Hào kinh tếNarrow
Bảng điểm đầu tư64 / 100
Charles River Laboratories International Inc.CRL
Giá / giá trị hợp lý
Giá trị hợp lý131,31 US$Report-date price278,06 US$
Charles River Laboratories International Inc. (CRL) trades at 22.5x forward earnings against a peer median of 20.4x. Its EV/EBITDA of 19.0x compares with a peer median of 14.7x. The comparison uses 4 peers: Revvity Inc., Labcorp Holdings Inc., Quest Diagnostics Incorporated and Natera Inc., as of 2026-09-19.
§10 Ngành và chu kỳEN
Pha chu kỳ
Contraction
The healthcare products industry exhibits a capex-to-revenue benchmark of 4.5% and capex-to-depreciation of 0.80x. Charles River's FY2025 capital expenditures were $219.15M on $4,015.38M revenue (capex intensity 5.46%), with depreciation of $403.31M yielding capex/depreciation of 0.54x, reflecting capital discipline and disciplined facility maintenance.5
Chu kỳ tăng giá
In an expansionary biotech funding environment, venture capital and public equity markets provide abundant capital to early-stage biopharma, driving an acceleration in candidate nominations and IND-enabling toxicology studies. This boosts Discovery and Safety Assessment volumes and pricing power, lifting operating margins toward peer levels above 15.5%.
Chu kỳ giảm giá
During cyclical funding pauses and rising interest rates, early-stage biotechnology sponsors prioritize cash conservation and defer preclinical research, creating volume declines in discovery studies. In FY2025, consolidated operating margin fell to 0.63%, and FY2026 consensus projects a revenue contraction of -2.6%.
Xu hướng dài hạn
Xu hướng
Tác động
Ghi chú
Regulatory Complexity and Standards in Toxicology
positive
Stringent regulatory standards enforced by the FDA and global regulators for safety pharmacology and biologics toxicity require specialized GLP-compliant testing infrastructure, where CRL's validated facilities support its competitive positioning under baseline underwriting assumptions.
Outsourcing of Biopharmaceutical R&D
positive
Global pharmaceutical firms increasingly shutter internal vivariums and preclinical laboratories in favor of variable-cost outsourcing to scaled CROs with multi-site international capabilities.
Định vị
Charles River occupies the leading market position in early-stage preclinical safety assessment and proprietary animal research models, generating $2,402.89M in DSA revenue and $846.08M in RMS revenue in FY2025. Unlike clinical diagnostic peers DGX and LH that cater to routine healthcare testing, CRL is heavily exposed to upstream biopharmaceutical R&D expenditure cycles.3,6
§11 Quản lý vị thếEN
Quy mô vị thế
0%
With the shares trading at $278.06, representing an 111.8% premium to our Fair value midpoint of $131.31, Charles River Laboratories offers a highly unfavorable risk-reward profile. The presence of $3,065.51M in total debt alongside near-term consensus revenue contraction of -2.6% for FY2026 mandates zero capital allocation and a full Sell recommendation.2
Rủi ro
Disciplined risk management favors capital preservation and avoiding averaging down into an overextended stock. Charles River faces an asymmetric downside skew due to its $3,065.51M total debt load, elevated capital costs modeled under a 19.48% synthetic pre-tax cost of debt valuation assumption, and vulnerability to cyclical biotech R&D cutbacks, suggesting capital is more prudently allocated to opportunities offering a genuine margin of safety.
Đợt vào lệnh
Mức
Hành động
Lý do
Above $200.00
Do not allocate new capital; liquidate existing long positions
With shares trading at $278.06, representing an 111.8% premium to our Fair value midpoint of $131.31, the stock offers no fundamental margin of safety and significant downside risk.2
Growth Investors
Avoid
Biopharmaceutical venture capital caution and pipeline reprioritization drive consensus FY2026 revenue contraction of -2.6%, removing top-line momentum in the near term.
Institutional Quality Compounders
Avoid
Substantial balance sheet debt of $3,065.51M under a 19.48% pre-tax cost of debt alongside -$184.28M in Manufacturing Support losses impairs capital efficiency below the cost of capital.1,2,6
§14 Khuyến nghị cuối cùngEN
Hành động
Bán
We recommend a complete Sell rating on Charles River Laboratories International Inc. Shares at $278.06 trade 111.8% above our fundamental Fair value midpoint of $131.31, creating a severely negative risk-reward skew for equity holders.2
Although the company's core Discovery and Safety Assessment franchise retains an entrenched competitive position ($2,402.89M revenue), current valuations aggressively price in an immediate margin normalization that overlooks ongoing contract manufacturing losses (-$184.28M in FY2025), near-term revenue contraction (-2.6% consensus in FY2026), and elevated debt service obligations on $3,065.51M total debt.
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Sources
The records this analysis drew on, as they stood when it was run.
Not every cited input appears here: internal calculations and intermediate model outputs have no external record, and some citations could not be matched to one.
Structural Margin Compression from CDMO Losses and Fixed Costs
Consolidated operating margin fell to 0.63% in FY2025 ($25.16M operating income on $4,015.38M revenue,) due to -$184.28M in Manufacturing Support operating losses. If consolidated operating margin remains below 6.0% rather than rebounding to modeled levels of 10.71% to 14.81%, normalized earnings power collapses.5,6
FV impact
0%
Operating margin 6 points lower throughout
Trigger
Within 24 months
Refinancing Distress and Capital Cost Expansion
CRL carries $3,065.51M in total debt against cash of $213.77M. Computed WACC is 11.05% with pre-tax cost of debt at 19.48%. A credit spread widening that raises WACC above 13.0% reduces DCF equity value toward zero.1,2,5
The valuation assumes a 16.5x terminal P/E multiple anchored to clinical testing peer LH at 16.17x. If early-stage biotech volatility prompts market derating to 13.0x forward P/E, forward earnings fair value decreases significantly.
FV impact
-20%
Terminal multiple 20% lower
Trigger
Within 12 months
Failure of Manufacturing Support turnaround and structural fixed-cost absorption deficit preventing margin recovery toward peer benchmark of 15.5%.
Refinancing friction and credit spread widening on $3,065.51M total debt, where capital costs reflect a synthetic pre-tax cost of debt valuation assumption of 19.48% rather than observed contractual debt servicing yields.
03Global Scale and Regulatory Footprint — International revenue across Europe ($1,102.70M), Canada ($501.03M), and Asia-Pacific ($205.02M) provides multi-jurisdictional compliance capabilities that small specialized competitors cannot match.Moderate
2-4 years
Global regulatory agencies require rigorous GLP adherence and audited audit trails; CRL's accredited Western facility network in North America and Europe ($1,102.70M) provides superior compliance assurance.6
Valuation multiple expands toward high-growth life sciences tools and testing peer levels
In the bull scenario, assigned a probability of 25.0%, a decisive recovery in global biopharma venture funding spurs candidate progression into IND-enabling toxicology studies. Discovery and Safety Assessment study volume re-accelerates sharply, allowing substantial fixed-cost operating leverage to drive consolidated margins above peer benchmarks. Combined with a successful turnaround in Manufacturing Support and rapid debt repayment, equity value reaches Potential value of $459.24, delivering a return of 65.2% from $278.06. Investors would confirm this trajectory through sequential quarterly revenue growth re-acceleration and expanding backlog over the next year.
Hiện tạiPersistent operating losses driven by cell and gene therapy client delays and facility underutilization
Vì sao quan trọng
Restoring breakeven or positive operating contribution in manufacturing support eliminates a massive consolidated margin drag and accelerates overall operating margin normalization.
Hiện tạiHealthy organic cash conversion supporting routine debt service
Vì sao quan trọng
Given substantial balance sheet debt, sustained free cash flow is vital to pay down obligations and lower annual interest burdens without dilutive equity financing.
05
Chỉ số:
International Revenue Durability Across Europe and Asia
Hiện tạiStable international study placement buffering domestic biotech softness
Net debt of $2,851.74M ($3,065.51M total debt less $213.77M cash) combines with a calculated synthetic pre-tax cost of debt of 19.48% to push computed WACC to 11.05%.
Elevated leverage restricts capital allocation optionality and depresses DCF equity value until de-leveraging milestones are achieved.
Natera, Inc.NTRA
Giá / giá trị hợp lý
Giá trị hợp lý75,94 US$Report-date price410,35 US$
Ngày đánh giá
Hào kinh tếNarrow
Bảng điểm đầu tư51 / 100
Biên
CRL
Charles River Laboratories International Inc.
$13.4B
22.5x
3.3x
19.0x
-7.5%
—
RVTY
Revvity Inc.
$16.0B
24.3x
5.5x
20.9x
3.2%
17.1%
LH
Labcorp Holdings Inc.
$26.0B
16.2x
1.8x
14.1x
11.7%
12.2%
DGX
Quest Diagnostics Incorporated
$27.2B
20.4x
2.4x
14.7x
14.6%
15.2%
NTRA
Natera Inc.
$53.2B
19.7x
-12.5%
-10.3%
Prolonged Higher Capital Costs in Early-Stage Biotech
negative
Higher risk-free benchmark rates constrain private biotech venture funding, extending the duration of early-stage pipeline reprioritizations and curbing study starts.
At or below Fair value of $131.31
Re-evaluate only upon verified operational turnaround and deleveraging
Re-underwrite intrinsic value only if the shares de-rate to Fair value and Manufacturing Support eliminates operating losses (-$184.28M in FY2025).
Continued quarterly operating losses exceeding -$25.0M
Reduce normalized earnings power projections and reject any early entry thesis.
Total Debt Deleveraging Progress
Total debt remaining above $3,000.0M through FY2026
Factor elevated ongoing debt service and capital costs into multi-stage valuation.