Charles River Valuation Analysis
| CRL Stock | USD 159.87 -2.98 -1.83% |
Above Model Estimate
Today
The intrinsic value estimate for Charles River is based on a 3 months horizon. Negative profit margins (-4.59%) signal ongoing profitability risk influencing market valuation. Extending the time horizon generally improves valuation stability.
Valuing Charles River requires testing whether market multiples are consistent with the underlying earnings and balance-sheet profile. Using DCF, EV/EBITDA, P/E multiples, and dividend discount models reduces the risk of anchoring to one estimate. Valuing Charles River is part art and part science, combining quantitative models with qualitative assessment. A triangulated view using multiple methods anchors the decision to a more robust estimate of Charles River's value.
Main Profitability Drivers
Charles River's net margin stands at 12.00%, with operating margin at 14.00%. The 2.00 percentage-point gap between operating and net margins points to non-operating costs such as interest expense or taxes reducing bottom-line profitability. From $4.02 billion in revenue, Charles River retained $1.39 billion after cost of goods and reported -$142.16 million in net income. With ROE at 14.00% and ROA at 6.08%, these return measures help contextualize Charles River's profitability relative to its balance sheet. Charles River's profitability picture is mixed, with some metrics improving while others show pressure. The full picture is available through Charles River's complete profitability review to assess how these metrics compare over time.
Price Book 2.91 | Gross Profit | Price Sales 2.02 | Profit Margin | Enterprise Value Revenue 2.84 |
Charles River Cash | $176.18 million |
Cash stood at $213.77 million as of December 31, 2025.
Revenue by Product
Charles River reported segment data includes 3 product-level revenue streams. Charles River's disclosed segment data is anchored by Discovery and Safety Assessment (596.92 million), followed by Research Models and Services (208.37 million). These disclosed segment amounts highlight relative scale across reported product lines without implying a complete reconciliation to total company revenue.Charles River is a biotechnology company where value is driven by research pipelines, clinical outcomes, and regulatory approvals, which directly shapes its valuation profile and margin structure. Trading as a growth-oriented stock in Life Sciences Tools & Services, its valuation multiples reflect expectations for forward earnings expansion. The analysis below connects enterprise value. profitability, and capital structure to explain what the market is pricing today.
Total Value Analysis
The market-value snapshot for Charles River Laboratories reflects enterprise value of 10.76 billion, market capitalization of 7.84 billion, debt of 3.07 billion, and cash and equivalents of 231.39 million as of latest reporting. In practice, enterprise value isolates the operating business from capital-structure noise, but only holds if the underlying debt and cash figures are stable.| Takeover Price | Market Cap | Debt Obligations | Cash & Equivalents |
10.76 billion | 7.84 billion | 3.07 billion | 231.39 million |
Investor Information
About 99.0% of CRL shares are held by institutions such as insurance companies. The book value of CRL was currently reported as 64.3. CRL has Price/Earnings To Growth (PEG) ratio of 0.13. Charles River reported a loss per share of 3.71. CRL had not issued any dividends in recent years. Earnings generation and capital deployment remain aligned with Charles River showing mixed financial positioning. Return on assets remains positive, but negative return on equity suggests the equity base is reduced enough to distort headline capital-return measures.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 14.00% | 14.95% |
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| Total Cash From Operating Activities | $774.53 million | $737.65 million |
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| Operating Income | $533.23 million | $507.84 million |
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Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Charles River has an asset utilization ratio of 56.27 percent. This suggests that the Company is making $0.56 for each dollar of assets. An increasing asset utilization means that Charles River Laboratories is more efficient with each dollar of assets it utilizes for everyday operations.Macro event markers
Discounted Cash Flow Analysis
Charles River's custom levered DCF lands near 85.97 per share compared with market pricing around 162.85, leaving the stock above the modeled value. That leaves the shares trading about 47.2% above this model output. The model discounts levered cash flows at 8.73% and assumes terminal growth of 3.0%, while forward free cash flow is near 465.27 Million. Even with about 1.77 Billion of discounted forecast cash flow in the model, nearly 75.1% of enterprise value comes from the terminal value.Model Value / Share
85.97
Equity value per share from the current custom levered DCF summary row.
Market Price
162.85
Current market price used by the same scenario.
Model Premium
47.2%
Market price sits above the model output.
WACC / LT Growth
8.73% / 3.0%
Forecast horizon: 2021 to 2030Terminal value share of EV: 75.1%
Charles River Market Price vs. Intrinsic Value
This chart compares observed market pricing with the model-derived equity value per share across forecast periods. It also illustrates the relative premium or discount, expressed as a percentage difference between market valuation and modeled intrinsic value.
Projected Revenue and Levered Free Cash Flow
Revenue and levered free cash flow projections are presented in billions, outlining the expected financial trajectory over the modeled horizon.
Key Model Assumptions
The inputs below reflect the core assumptions applied in the valuation model, including growth expectations, discount rates, and capital structure considerations.
| Input | Current Value |
|---|---|
| Weighted Average Cost of Capital | 8.73% |
| Long-Term Growth Rate | 3.0% |
| Cost of Equity | 10.95% |
| After-Tax Cost of Debt | 4.12% |
| Debt Weighting | 27.53% |
| Equity Weighting | 72.47% |
| Net Debt | 2.85 billion |
| Enterprise Value | 7.11 billion |
| Present Terminal Value | 5.34 billion |
| Terminal Value Share of EV | 75.1% |
Forecast Detail and Valuation Progression
This table presents the underlying forecast data used in the valuation, including revenue, cash flow generation, discounting effects, and the resulting per-share value across each projected period.
| Year | Revenue | Revenue Growth | Free Cash Flow | PV of LFCF | Equity Value / Share |
|---|---|---|---|---|---|
| 2021 | 3.54 billion | 0.00% | 532.03 million | 0 | 85.36 |
| 2022 | 3.98 billion | 12.31% | 294.91 million | 0 | 85.55 |
| 2023 | 4.13 billion | 3.86% | 365.37 million | 0 | 85.34 |
| 2024 | 4.05 billion | -1.92% | 501.61 million | 0 | 89.37 |
| 2025 | 4.02 billion | -0.85% | 518.49 million | 0 | 84.33 |
| 2026 | 4 billion | -0.36% | 452.85 million | 416.48 million | 85.97 |
| 2027 | 4 billion | -0.15% | 452.17 million | 382.47 million | 85.97 |
| 2028 | 3.99 billion | -0.06% | 451.88 million | 351.53 million | 85.97 |
| 2029 | 3.99 billion | -0.03% | 451.76 million | 323.22 million | 85.97 |
| 2030 | 3.99 billion | -0.01% | 451.71 million | 297.23 million | 85.97 |
Profitability Analysis
Reviewing Charles River's reported profitability metrics, Charles River Laboratories is generating positive operating income but reporting a net loss of -142.16 million, indicating that non-operating charges are eroding bottom-line results. The operating margin stands at 14.0% while the net profit margin is 12.0%, with return on equity at 14.0%. Profitability trends are mixed, with some indicators improving while others continue to contract.Net Loss | First Reported 2000-03-31 | Previous Quarter -276.56 million | Current Value -14.84 million | Quarterly Volatility 95.38 million |
Macro event markers
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 41.00% | 36.39% |
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| Operating Profit Margin | 14.00% | 14.95% |
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The profitability picture for Charles River Laboratories starts with how effectively revenue converts to earnings. Net margin of 12.0% is adequate, though not at levels that typically signal strong pricing power. What follows tests whether current margins and returns are sustainable under prevailing business conditions. Charles River reports return on equity of 14.0%, positive but not at levels that signal strong capital efficiency.
Earnings per Share Projection vs Actual
EPS projections for Charles River aggregate analyst models into a benchmark against which actual results are measured. Return on equity of -5.87% measures how efficiently Charles River generates earnings from shareholder capital. The gap between Charles River's EPS and free cash flow per share signals how much of reported earnings converts to cash. Charles River's EPS estimates are updated as new analyst reports and company disclosures become available. Consensus EPS estimates for Charles River Laboratories represent the market's baseline earnings expectation. Deviations from this consensus on report day typically drive the sharpest price reactions. Charles River reported estimated earnings of 2.7313 in earnings per share on 30th of June 2026. Comparing this projection against historical actuals shows whether the consensus is trending toward or away from the company's recent earnings trajectory.Macro event markers
Earnings Estimation Breakdown
17 analysts contribute to the current consensus. The last reported EPS was 2.06 as of 31st of March 2026.
Last Reported EPS
2.68
Lowest
2.73
Expected EPS
2.91
Highest
Analyst estimate range around the current expected EPS projection.
Earnings Projection Consensus
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 30th of June 2026 | Current EPS (TTM) | |
| 17 | 92.87% | 2.06 | 2.73 | -3.71 |
Ownership Allocation
The majority of Charles River's outstanding shares are owned by institutional holders. Large asset managers, pension funds, and sovereign wealth funds that invest on behalf of clients or beneficiaries are typically subject to stricter disclosure rules than retail investors - including mandatory 13F filings that reveal quarterly position changes. Tracking these filings can highlight shifts in institutional conviction around Charles River.Revenue and Profit Overview
CRL reported last year's revenue of $4.02 billion. Reported Net Loss for the year was -$142.16 million with profit before taxes, overhead, and interest of $1.39 billion.Interpreting Recent Signals
At 33.74 times earnings, the market views Charles River's trajectory as broadly consistent with peers in Life Sciences Tools & Services. Charles River earns 12.0% on revenue, a moderate level that depends on sustained volume to translate into meaningful bottom-line results. Leverage is moderate at 1.27, broadly consistent with norms in Life Sciences Tools & Services and manageable under current conditions. The 14.0% ROE places Charles River in a range where the business covers its cost of capital but has room to improve how effectively equity translates into earnings. Charles River trades with growth-oriented dynamics, where expectations for future earnings expansion drive larger price swings than value-oriented names typically experience. The current valuation prices in steady earnings performance roughly in line with historical trends, meaning future performance depends more on meeting those expectations than exceeding them. Longer-term, forward earnings expectations and sector dynamics will shape whether the market reassesses this positioning.
Valuation Synthesis
Charles River Laboratories operates as a business with a diversified operating profile within the Life Sciences Tools & Services space. The earnings and capital-return profile places the company within the mid-range of its peer group, with performance that supports but does not clearly exceed current valuation levels. Across the key dimensions, Charles River earns its valuation - the forward catalyst for re-rating in either direction is forward earnings expectations and sector dynamics.
For Charles River Laboratories, the valuation signals above are most useful when compared against future developments as new data becomes available. At current multiples, the valuation is priced for continued growth, making earnings trajectory the key variable to watch.
Valuation Framework, Methodology & Assumptions
Charles River is a mid-cap equity in Life Sciences Tools & Services, Pharmaceuticals, Biotechnology & Life Sciences, Health Care categories. Market multiples reflect competitive positioning. Valuation context for Charles River is currently framed by P/B of 2.91, P/S of 2.02.
Charles River Laboratories figures are aggregated from periodic company reporting and market reference feeds and normalized across reporting formats. Where analyst coverage exists, consensus estimates are factored in. Valuation outputs are model-derived and depend on published assumptions and reference inputs.
The analysis above is generated by quantitative models and is provided for informational and educational purposes only. It does not constitute financial advice, investment recommendations, or an endorsement to buy or sell any security. All investing involves risk, including the possible loss of principal. Consult a qualified financial advisor before making investment decisions. See our Terms of Use for full details.
Financial data referenced in this analysis is derived from publicly available SEC filings, audited financial statements, and third-party market data providers. The intrinsic value estimate is generated by Macroaxis quantitative models that incorporate fundamental analysis, technical indicators, and risk metrics.
The methodology combines multiple analytical inputs:
- Fundamental analysis - financial statements, profitability ratios, debt structure, and cash flow metrics sourced from SEC filings and public financial reports
- Technical indicators - historical price patterns, momentum signals, and volatility measures
- Risk assessment - probability of bankruptcy models, market risk metrics, and downside scenario analysis
- Peer comparison - relative valuation against industry peers using standardized multiples
Model outputs are refreshed periodically as new financial data becomes available. Past model performance is not indicative of future results. The intrinsic value estimate reflects a point-in-time calculation and should be considered alongside other research and professional advice.
Data sourced from SEC filings (EDGAR), public financial statements, and market data providers.
Editorial review and methodology oversight provided by: Gabriel Shpitalnik, Member of Macroaxis Editorial Board
Growth Indicators
Growth analysis for Charles River Laboratories matters because the current setup looks more like an earnings-recovery story than a premium-multiple growth case. A disciplined review here compares growth rates with margin repair, leverage, and execution quality before treating the setup as a durable expansion story.
| Common Stock Shares Outstanding | 49.56 million | |
| Quarterly Earnings Growth Y O Y | -17.30% | |
| Forward Price Earnings | 15.9744 |
Charles River Valuation Indicators
A net-worth review of Charles River Laboratories links market cap to balance-sheet health, cash flow, and implied growth expectations. Quantitative valuation narrows the range of reasonable outcomes by cross-referencing multiple model-based signals. Reported values are derived from company filings, audited financial statements, and market data, and are standardized within Macroaxis quantitative models for consistency. Model outputs reflect a point-in-time estimate based on available data and assumptions and should be interpreted alongside changes in operating performance, market conditions, and forward expectations.