CRL Stock Fair Value Calculation – Investors Cautioned to Consider Price Before Investing in Charles River Laboratories International Despite Attractive Growth Prospects.
February 7, 2023
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CRL Stock Fair Value Calculation – Charles River Laboratories ($NYSE:CRL) International is a leading global provider of drug discovery, non-clinical development, and safety assessment services. Charles River Laboratories International’s growth prospects are attractive, but investors should be cautious when considering investing in this company. The stock price is currently above the industry average and is considered to be expensive relative to its peers. While the potential return could be great, it is important to remember that the stock market is unpredictable and there is no guarantee of success. It is also important to consider the company’s financial performance when considering an investment. Charles River Laboratories International has seen strong growth over the past few years, but investors should be aware of any potential risks that could lead to a decline in performance.
Additionally, the company has a large debt load that could cause it to become overleveraged, which could lead to losses for investors. Finally, investors should consider the management team when investing. Charles River Laboratories International has a strong team that has been responsible for its success, but it is important to make sure that the team is well-equipped to manage the company in a changing market. The stock price is high and the company has a large debt load, so investors should assess the potential risks of investing in this company before making a decision. Additionally, investors should ensure that the management team is well-equipped to handle any changes to the market.
Stock Price
This comes after news sentiment has mostly been positive regarding the stock. On Monday, CRL opened at $246.7 and closed at $246.9, a drop of 1.4% from the prior closing price of $250.4. This isn’t the first time that investors have been warned to look before they leap when it comes to CRL. CRL is a biopharmaceutical company that provides services to pharmaceutical and biotechnology companies, including drug discovery and development services, preclinical services, and contract research. The company has seen strong growth over the past few years, as demand for its services has grown.
Despite this, investors should be aware that CRL’s share price is currently trading at an all-time high, and is more than double its five-year average. Despite this cautionary note, CRL’s strong financials and attractive growth prospects make it an attractive option for investors looking for long-term stock appreciation. CRL has managed to consistently increase its revenues over the past few years, and has also been able to reduce its debt levels significantly over the same period. In conclusion, while CRL may be an attractive option for investors looking for long-term stock appreciation, they should be aware of the current high price of the stock, and take into account the potential risks associated with investing in a high-priced stock. 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 |
| 3.78k | 436.39 | 11.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CRL. More…
| Operations | Investing | Financing |
| 614.14 | -643 | -12.41 |
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 |
| 7.38k | 4.71k | 51.63 |
Key Ratios Snapshot
Some of the financial key ratios for CRL are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.3% | 24.2% | 15.3% |
| FCF Margin | ROE | ROA |
| 7.4% | 13.7% | 4.9% |
Analysis – CRL Stock Fair Value Calculation
GoodWhale’s analysis of CHARLES RIVER LABORATORIES INTERNATIONAL’s financials indicates that the fair value of the company’s shares is around $299.7. This was calculated through GoodWhale’s proprietary Valuation Line. Currently, CHARLES RIVER LABORATORIES INTERNATIONAL’s stock is traded at $246.9, which is significantly lower than the fair value, undervalued by 17.6%. GoodWhale’s analysis provides investors with a reliable and independent assessment of the fair value of the company’s shares. The analysis takes into account various factors, such as the company’s financial performance, future prospects, and industry dynamics. GoodWhale also provides investors with a comprehensive report outlining the various factors that have been taken into consideration in arriving at the fair value. Overall, GoodWhale’s analysis of CHARLES RIVER LABORATORIES INTERNATIONAL’s financials indicates that the company’s stock is currently undervalued by 17.6%. Investors should consider taking advantage of this discrepancy and investing in the company’s stock for potential returns. More…
Peers
The global market for contract research services is growing rapidly as more and more companies are outsourcing their research and development needs. This growth is being driven by the increasing costs of R&D, the need for faster timelines, and the desire to tap into the expertise of experienced professionals. As the market expands, so does the competition, and Charles River Laboratories International Inc is up against some stiff competition from the likes of Microba Life Sciences Ltd, IDenta Corp, and Eurofins Scientific SE.
– Microba Life Sciences Ltd ($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 (CRL) is an attractive investment opportunity for those seeking to capitalize on its impressive growth prospects.
However, investors should be aware that the stock price of CRL has recently increased significantly, making it important to consider potential entry points carefully. Analysts note that CRL has a strong balance sheet, robust financials and experienced management team which could help to drive further success. Other advantages include a diversified product and service portfolio and the potential to capitalize on lucrative partnerships and collaborations. While CRL is a good long-term investment, investors should evaluate the company’s prospects and price before investing.
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