CRL Stock Fair Value Calculation – Charles River Laboratories International Achieves Growth Despite Margin Woes Through Improved Volume.
June 16, 2023
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Charles River Laboratories ($NYSE:CRL) International, Inc. (NYSE: CRL) is a leading provider of essential products and services to the pharmaceutical, biotechnology, medical device and academic research industries. The company has experienced consistent growth over the years, even despite margin challenges. Charles River’s amplified research model volume, in addition to their services and Cell Solutions business, have provided a boost to the company. Furthermore, the company has invested in automation and digital solutions to streamline processes, providing a further boost to their bottom line. Charles River has also taken advantage of strategic acquisitions and collaborations to grow their business.
These collaborations have included the acquisition of KBI Biopharma, a biopharmaceutical development and manufacturing services provider, as well as a collaboration with Integrated Project Services (IPS) for the development of its Cell Solutions business. These investments have helped to further expand the company’s capabilities and offerings. In conclusion, Charles River Laboratories International, Inc. has managed to achieve consistent growth despite margin woes by leveraging its amplified research model volume, services and Cell Solutions business, as well as strategic acquisitions and collaborations.
Share Price
Charles River Laboratories International (CRLI) experienced growth on Wednesday despite margin woes, resulting from improved volume. Despite this, their stock opened at $208.8 and closed at $207.4, representing a 0.3% decrease from their previous closing of 208.0. CRLI has been able to increase their volume significantly, allowing them to surpass their margin expectations and ultimately grow their overall business. This shows that the company is still able to remain profitable even in difficult economic times. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for CRL. More…
| Total Revenues | Net Income | Net Margin |
| 4.09k | 496.33 | 12.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CRL. More…
| Operations | Investing | Financing |
| 626.39 | -678.53 | -3.87 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for CRL. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.7k | 4.54k | 60.74 |
Key Ratios Snapshot
Some of the financial key ratios for CRL are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.5% | 21.3% | 17.8% |
| FCF Margin | ROE | ROA |
| 6.7% | 14.9% | 5.9% |
Analysis – CRL Stock Fair Value Calculation
At GoodWhale, we have conducted a thorough analysis of CHARLES RIVER LABORATORIES INTERNATIONAL’s financials. After completing our review, our proprietary Valuation Line determined that the fair value of CHARLES RIVER LABORATORIES INTERNATIONAL’s shares is approximately $319.7. However, the current market price of their stock is $207.4, which represents a 35.1% undervaluation. As such, this could be an opportune time for investors to consider purchasing CHARLES RIVER LABORATORIES INTERNATIONAL’s stock. More…
Peers
The global market for contract research services is growing rapidly as more and more companies are outsourcing their research and development needs. This growth is being driven by the increasing costs of R&D, the need for faster timelines, and the desire to tap into the expertise of experienced professionals. As the market expands, so does the competition, and Charles River Laboratories International Inc is up against some stiff competition from the likes of Microba Life Sciences Ltd, IDenta Corp, and Eurofins Scientific SE.
– Microba Life Sciences Ltd ($ASX:MAP)
Denta Corp is a publicly traded company that provides dental products and services. The company has a market capitalization of 1.5 million as of 2022 and a return on equity of -10.42%. The company’s products and services include dental implants, dentures, and other dental prosthetics. Denta Corp also provides dental education and training services. The company was founded in 2006 and is headquartered in New York, New York.
– IDenta Corp ($OTCPK:IDTA)
Eurofins Scientific SE is a global leader in the provision of analytical testing and scientific services. The company has a market capitalization of 13.54 billion as of 2022 and a return on equity of 12.32%. The company provides a range of services including food testing, environmental testing, pharmaceutical testing, and forensics. Eurofins Scientific SE has a network of over 800 laboratories across 47 countries.
Summary
Charles River Laboratories International Inc. is a leading provider of laboratory animal models and services used in drug discovery, medical research and medical device development. In terms of investing analysis, Charles River has reported positive results in the latest quarter, with improvements in small research models, research model services, and the Cell Solutions business aiding overall volume growth. The company’s gross profit margin also increased while operating expenses were kept under control.
Additionally, Charles River reported a year-over-year increase in cash from operations and a higher return on average equity. Overall, these financial results suggest that Charles River is in a good position to weather current market conditions.
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