Charles River Laboratories International, Inc. (NYSE: CRL)

Sector: Healthcare Industry: Diagnostics & Research CIK: 0001100682
P/B 3.11
P/E -126.99
P/S 2.63
Market Cap 10.60 Bn
ROIC (Qtr) 1.46
Div Yield % 0.00
Rev 1y % (Qtr) -0.49
Total Debt (Qtr) 2.63 Bn
Debt/Equity (Qtr) 0.77

About

Stock Price Chart

Analysis

Pros

  • Operating cash flow of 749.49M provides exceptional 281.97x coverage of minority interest expenses 2.66M, showing strong core operations.
  • Operating cash flow of 749.49M provides strong 10.60x coverage of stock compensation 70.69M, indicating sustainable incentive practices.
  • Robust free cash flow of 543.67M exceeds capital expenditure of 205.82M by 2.64x, indicating strong organic growth funding capability.
  • Tangible assets of 4.02B provide exceptional 16.91x coverage of deferred revenue 237.73M, showing strong service capability backing.
  • Operating cash flow of 749.49M provides strong 3.15x coverage of deferred revenue 237.73M, indicating service delivery capability.

Cons

  • Operating cash flow of 749.49M barely covers its investment activities of (192.62M), with a coverage ratio of -3.89, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 207.10M provide limited coverage of acquisition spending of (2.71M), which is -76.28x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 734.48M relative to inventory of 302.55M (2.43 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating earnings of 86.64M show weak coverage of depreciation charges of 427.14M, with a 0.20 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 543.67M represents just -3.81x of debt issuance (142.62M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer Comparison

Companies in the Diagnostics & Research
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TMO Thermo Fisher Scientific Inc. 216.83 Bn 33.00 4.96 35.68 Bn
2 DHR Danaher Corp /De/ 162.47 Bn 46.38 6.69 16.86 Bn
3 IDXX Idexx Laboratories Inc /De 56.88 Bn 55.36 13.65 1.09 Bn
4 A Agilent Technologies, Inc. 39.82 Bn 32.64 5.87 3.41 Bn
5 IQV Iqvia Holdings Inc. 38.85 Bn 30.28 2.44 15.19 Bn
6 NTRA Natera, Inc. 31.32 Bn -101.29 14.80 0.18 Bn
7 MTD Mettler Toledo International Inc/ 28.99 Bn 34.68 7.35 2.21 Bn
8 WAT Waters Corp /De/ 22.92 Bn 35.32 7.38 1.49 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 1.76 2.69
EV to Cash from Ops. 17.62 18.14
EV to Debt 5.02 52.51
EV to EBIT 152.42 19.22
EV to EBITDA 23.25 4.35
EV to Free Cash Flow [EV/FCF] 24.29 2.84
EV to Market Cap 1.25 1.52
EV to Revenue 3.28 4.79
Price to Book Value [P/B] 3.11 1.34
Price to Earnings [P/E] -126.99 22.02

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio -69.34 -1.96
Dividend Payout Ratio % 0.00 2.83
Dividend per Basic Share 0.00 0.19
FCF Dividend Payout Ratio % 0.00 1.92
Interest Coverage 0.78 -126.58

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % 12.67 -31.50
Cash and Equivalents Growth (1y) % -1.46 21.37
Dividend Growth (1y) % 0.00 0.24
EBIAT Growth (1y) % -46.11 -55.24
EBITDA Growth (1y) % -34.56 -447.96
EBIT Growth (1y) % -86.59 -40.50
EBT Growth (1y) % -104.83 -70.94
EPS Growth (1y) % -118.88 -70.02
FCF Growth (1y) % -3.00 56.33
Gross Profit Growth (1y) % -8.06 185.11

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.54 0.56
Cash Payout Ratio 0.00 0.01
Cash Ratio 0.18 1.21
Current Ratio 1.37 2.64
Debt to Equity Ratio 0.77 -0.80
Interest Cover Ratio 0.78 -126.58
Times Interest Earned 0.78 -126.58

Profitability

Metric Value Industry Percentile
EBITDA Margin % 12.80 -129.91
EBIT Margin % 2.15 -156.71
EBT Margin % -0.62 -162.23
Gross Margin % 32.30 47.70
Net Profit Margin % -2.10 -189.30