📊 CRL Key Takeaways
Is Charles River Laboratories International, Inc.. (CRL) a Good Investment?
Charles River Laboratories is experiencing fundamental deterioration with negative net profitability (-1.5% net margin) and negative free cash flow (-$14.8M) despite maintaining positive operating income. Declining revenue (-0.9% YoY), minimal cash reserves ($191.8M), and substantial debt ($2.7B) create an unsustainable financial position that requires urgent operational improvement or significant debt reduction.
Charles River Laboratories shows a sharp disconnect between cash generation and reported earnings quality: free cash flow remains solid, but profitability has deteriorated materially, with negative net income, very thin operating margin, and weak interest coverage. Revenue is slightly declining, which makes the margin compression more concerning because the business currently has limited cushion to absorb costs or debt burden. The fundamentals suggest a company with resilient cash conversion but pressured core economics and elevated execution risk.
Charles River Laboratories International, Inc.. Key Strengths (CRL)
- Positive operating income of $119.9M demonstrates core business profitability
- Reasonable gross margin of 30.1% indicates pricing power and competitive positioning
- Moderate leverage with Debt/Equity ratio of 0.91x, below concerning thresholds
- Strong operating cash flow and free cash flow generation relative to revenue
- Adequate near-term liquidity with current and quick ratios above 1.0x
- Moderate debt/equity on book basis and a sizable equity base
CRL Stock Risks: Charles River Laboratories International, Inc.. Investment Risks
- Negative free cash flow of -$14.8M combined with capex exceeding operating cash flow signals unsustainable cash position
- Minimal liquidity with Quick Ratio of 1.03x and only $191.8M cash against $2.7B debt creates financial vulnerability
- Declining revenue trend (-0.9% YoY) paired with negative net income suggests deteriorating operational performance and potential margin compression
- Severely compressed profitability with negative net income and only 0.6% operating margin
- Weak interest coverage at 0.7x indicates limited earnings support for debt servicing
- Slight revenue decline combined with poor margins raises concern about growth quality and cost structure
Key Metrics to Watch
- Free cash flow trend and path to positive FCF generation
- Operating cash flow sustainability relative to capital expenditure requirements
- Revenue stabilization and return to growth trajectory
- Operating margin and interest coverage
- Free cash flow conversion versus net income
Charles River Laboratories International, Inc.. (CRL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Charles River Laboratories International, Inc.. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
CRL Profit Margin, ROE & Profitability Analysis
CRL vs Healthcare Sector: How Charles River Laboratories International, Inc.. Compares
How Charles River Laboratories International, Inc.. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Charles River Laboratories International, Inc.. Stock Overvalued? CRL Valuation Analysis 2026
Based on fundamental analysis, Charles River Laboratories International, Inc.. shows some fundamental concerns relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Charles River Laboratories International, Inc.. Balance Sheet: CRL Debt, Cash & Liquidity
CRL Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Charles River Laboratories International, Inc..'s revenue has grown significantly by 17% over the 5-year period, indicating strong business expansion. The most recent EPS of $9.22 reflects profitable operations.
CRL Revenue Growth, EPS Growth & YoY Performance
CRL Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $984.2M | -$14.8M | $-0.30 |
| Q3 2025 | $1.0B | $54.4M | $1.10 |
| Q2 2025 | $1.0B | $52.3M | $1.06 |
| Q1 2025 | $984.2M | $25.5M | $0.50 |
| Q3 2024 | $1.0B | $69.7M | $1.33 |
| Q2 2024 | $1.0B | $94.1M | $1.74 |
| Q1 2024 | $1.0B | $73.0M | $1.30 |
| Q3 2023 | $989.2M | $87.4M | $1.69 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Charles River Laboratories International, Inc.. Dividends, Buybacks & Capital Allocation
CRL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Charles River Laboratories International, Inc.. (CIK: 0001100682)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CRL
What is the AI rating for CRL?
Charles River Laboratories International, Inc.. (CRL) has a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CRL's key strengths?
Claude: Positive operating income of $119.9M demonstrates core business profitability. Reasonable gross margin of 30.1% indicates pricing power and competitive positioning. ChatGPT: Strong operating cash flow and free cash flow generation relative to revenue. Adequate near-term liquidity with current and quick ratios above 1.0x.
What are the risks of investing in CRL?
Claude: Negative free cash flow of -$14.8M combined with capex exceeding operating cash flow signals unsustainable cash position. Minimal liquidity with Quick Ratio of 1.03x and only $191.8M cash against $2.7B debt creates financial vulnerability. ChatGPT: Severely compressed profitability with negative net income and only 0.6% operating margin. Weak interest coverage at 0.7x indicates limited earnings support for debt servicing.
What is CRL's revenue and growth?
Charles River Laboratories International, Inc.. reported revenue of $995.8M.
Does CRL pay dividends?
Charles River Laboratories International, Inc.. does not currently pay dividends.
Where can I find CRL SEC filings?
Official SEC filings for Charles River Laboratories International, Inc.. (CIK: 0001100682) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CRL's EPS?
Charles River Laboratories International, Inc.. has a diluted EPS of $-0.30.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is CRL's fundamental grade?
Based on our AI fundamental analysis in June 2026, Charles River Laboratories International, Inc.. has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is CRL stock overvalued or undervalued?
Valuation metrics for CRL: ROE of -0.5% (sector avg: 15%), net margin of -1.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is CRL's AI grade for 2026?
Our dual AI analysis gives Charles River Laboratories International, Inc.. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CRL's free cash flow?
Charles River Laboratories International, Inc..'s operating cash flow is $41.1M, with capital expenditures of $55.9M. FCF margin is -1.5%.
How does CRL compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -1.5% (avg: 12%), ROE -0.5% (avg: 15%), current ratio 1.36 (avg: 2).