Charles River Current Valuation vs. Return On Asset
| CRL Stock | USD 201.30 5.53 2.82% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.42 | 0.3679 |
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| Net Profit Margin | 0.12 | 0.11 |
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| Operating Profit Margin | 0.14 | 0.19 |
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| Pretax Profit Margin | 0.12 | 0.18 |
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| Return On Assets | 0.0604 | 0.0576 |
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For Charles River profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Charles River to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Charles River Laboratories utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Charles River's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Charles River Laboratories over time as well as its relative position and ranking within its peers.
Charles |
Charles River's Revenue Breakdown by Earning Segment
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Is Life Sciences Tools & Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Charles River. If investors know Charles will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Charles River listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.21) | Earnings Share 8.01 | Revenue Per Share 78.97 | Quarterly Revenue Growth (0.02) | Return On Assets 0.0487 |
The market value of Charles River Labora is measured differently than its book value, which is the value of Charles that is recorded on the company's balance sheet. Investors also form their own opinion of Charles River's value that differs from its market value or its book value, called intrinsic value, which is Charles River's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Charles River's market value can be influenced by many factors that don't directly affect Charles River's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Charles River's value and its price as these two are different measures arrived at by different means. Investors typically determine if Charles River is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Charles River's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Charles River Labora Return On Asset vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Charles River's current stock value. Our valuation model uses many indicators to compare Charles River value to that of its competitors to determine the firm's financial worth. Charles River Laboratories is rated below average in current valuation category among its peers. It is rated below average in return on asset category among its peers . The ratio of Current Valuation to Return On Asset for Charles River Laboratories is about 257,910,627,659 . Return On Assets is expected to rise to 0.06 this year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Charles River by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Charles Current Valuation vs. Competition
Charles River Laboratories is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Health Care industry is currently estimated at about 296.21 Billion. Charles River holds roughly 12.56 Billion in current valuation claiming about 4% of equities under Health Care industry.
Charles Return On Asset vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Charles River |
| = | 12.56 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Charles River |
| = | 0.0487 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Charles Return On Asset Comparison
Charles River is currently under evaluation in return on asset category among its peers.
Charles River Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Charles River, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Charles River will eventually generate negative long term returns. The profitability progress is the general direction of Charles River's change in net profit over the period of time. It can combine multiple indicators of Charles River, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -196.4 M | -186.6 M | |
| Operating Income | 617.3 M | 648.1 M | |
| Income Before Tax | 581.3 M | 610.3 M | |
| Total Other Income Expense Net | -36 M | -37.8 M | |
| Net Income | 480.4 M | 504.4 M | |
| Income Tax Expense | 100.9 M | 57.3 M | |
| Net Income Applicable To Common Shares | 559.2 M | 587.1 M | |
| Net Income From Continuing Ops | 480.5 M | 504.6 M | |
| Non Operating Income Net Other | 36 M | 37.8 M | |
| Interest Income | 3.9 M | 3.8 M | |
| Net Interest Income | -134 M | -127.3 M | |
| Change To Netincome | -46 M | -43.7 M | |
| Net Income Per Share | 8.61 | 9.04 | |
| Income Quality | 1.13 | 1.22 | |
| Net Income Per E B T | 0.70 | 0.52 |
Charles Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Charles River. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Charles River position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Charles River's important profitability drivers and their relationship over time.
Use Charles River in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Charles River position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Charles River will appreciate offsetting losses from the drop in the long position's value.Charles River Pair Trading
Charles River Laboratories Pair Trading Analysis
The ability to find closely correlated positions to Charles River could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Charles River when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Charles River - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Charles River Laboratories to buy it.
The correlation of Charles River is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Charles River moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Charles River Labora moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Charles River can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Charles River position
In addition to having Charles River in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Trending Equities. You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
To fully project Charles River's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Charles River Labora at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Charles River's income statement, its balance sheet, and the statement of cash flows.