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1. Company Snapshot

1.a. Company Description

Charles River Laboratories International, Inc., a non-clinical contract research organization, provides drug discovery, non-clinical development, and safety testing services in the United States, Europe, Canada, the Asia Pacific, and internationally.It operates through three segments: Research Models and Services (RMS), Discovery and Safety Assessment (DSA), and Manufacturing Solutions (Manufacturing).The RMS segment produces and sells rodent research model strains and purpose-bred rats and mice for use by researchers.


This segment also provides a range of services to assist its clients in supporting the use of research models in research and screening non-clinical drug candidates, including research models, genetically engineered models and services, insourcing solutions, and research animal diagnostic services.The DSA segment offers early and in vivo discovery services for the identification and validation of novel targets, chemical compounds, and antibodies through delivery of non-clinical drug and therapeutic candidates ready for safety assessment; and safety assessment services, such as toxicology, pathology, safety pharmacology, bioanalysis, drug metabolism, and pharmacokinetics services.The Manufacturing segment provides in vitro methods for conventional and rapid quality control testing of sterile and non-sterile pharmaceuticals and consumer products.


This segment also offers specialized testing of biologics that are outsourced by pharmaceutical and biotechnology companies; and avian vaccine services that provide specific-pathogen-free (SPF) fertile chicken eggs, SPF chickens, and diagnostic products used to manufacture vaccines.The company also provides contract vivarium operation services to biopharmaceutical clients.Charles River Laboratories International, Inc.


was founded in 1947 and is headquartered in Wilmington, Massachusetts.

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1.b. Last Insights on CRL

Breaking News: Charles River Laboratories International Inc reported no recent earnings release however the company presented at the Evercore 8th Annual Healthcare Conference. There is no direct impact on Charles River Laboratories from a lawsuit against Telix Pharmaceuticals related to regulatory issues. Analysts at Hagens Berman are scrutinizing Telix Pharmaceuticals alleged misstatements. No recent recommendations on Charles River Laboratories stock have been found from analysts.

1.c. Company Highlights

2. Charles River Laboratories' Q3 2025 Earnings: A Deeper Dive

Charles River Laboratories reported revenue of $1 billion for the third quarter of 2025, a 0.5% decrease year-over-year. On an organic basis, revenue declined 1.6% as declines in both the DSA and Manufacturing segments were partially offset by an increase in the RMS segment. The company's non-GAAP earnings per share came in at $2.43, beating estimates of $2.32. The operating margin is expected to be flat to a 30 basis point decline, unchanged from the prior outlook.

Publication Date: Nov -09

📋 Highlights
  • Revenue Decline:: Q3 revenue fell 0.5% YoY to $1 billion, with organic revenue down 1.6% due to declines in DSA (-3.1%) and Manufacturing (-5.1%) segments, partially offset by RMS (+6.5%).
  • 2025 Revenue Guidance:: Updated 2025 revenue guidance of $2.85B–$2.97B reflects a 0.5%–1.5% YoY decline in reported revenue and 1.5%–2.5% in organic revenue, driven by DSA contraction (-2.5% to -3.5%).
  • Non-GAAP EPS Growth:: 2025 non-GAAP EPS guidance raised to $10.10–$10.30, a $0.10 increase from prior estimates, with operating margin expected to remain flat to a 30-basis-point decline.
  • Divestiture Impact:: Assets representing 7% of 2025 revenue will be divested, generating $0.30 annualized accretion, supporting capital discipline and focus on core growth areas.

Segment Performance

The DSA segment reported revenue of $600.7 million, a 3.1% year-over-year decrease on an organic basis, driven by lower revenue for both Discovery and Safety Assessment Services. The RMS revenue was $213.5 million, an increase of 6.5% on an organic basis compared to the third quarter of 2024. The Manufacturing segment reported revenue of $190.7 million, a 5.1% decrease on an organic basis from the third quarter of last year.

Outlook and Guidance

The company expects to report non-GAAP earnings per share of $10.10 to $10.30 for the year, reflecting a $0.10 increase from the midpoint of the prior guidance range. The updated revenue guidance for 2025 is $2.85 billion to $2.97 billion, with a decline of 0.5% to 1.5% in reported revenue and a decline of 1.5% to 2.5% in organic revenue. Analysts estimate next year's revenue growth at 2.2%.

Valuation Metrics

With a P/E Ratio of -119.31, it's clear that the market is not relying on current earnings to drive the stock price. However, the P/S Ratio of 2.05 and EV/EBITDA of 20.58 suggest that investors are willing to pay a premium for the company's revenue and EBITDA. The company's ROE is -2.01%, indicating that it is not generating profits from shareholders' equity. The Net Debt / EBITDA ratio of 4.93 indicates a significant amount of debt relative to EBITDA.

Operational Highlights

The company is seeing a shift in behavior regarding Non-Animal Models (NAMs) among its clients, with investments being made in NAM technologies. The company has identified $225 million of annualized cost savings, with an additional $70 million in savings expected in the next year. Capacity utilization is below maximum efficiency, but having incremental capacity allows for faster study starts and meeting client demand.

Strategic Initiatives

The company is focusing on areas like bioanalysis, geographic expansions, and in vitro technologies. They're comfortable leveraging up to the mid-2s in terms of debt-to-equity ratio and aim to keep it under 3 turns. Spot pricing has been stable for the second straight quarter, and the company is using selective discounting thoughtfully and strategically to maintain or take share.

3. NewsRoom

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TLX LAWSUIT DEADLINE: Hagens Berman Urges Telix Investors to Act by Jan. 9 Over Alleged Dual Regulatory Failures: SEC Subpoena & FDA CRL on CMC/Supply Chain

Dec -04

Source: globenewswire.com

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T. Rowe Price Transitions to Charles River's Enterprise Multi-Asset Investment Management Platform

Dec -04

Source: businesswire.com

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Charles River Laboratories International, Inc. (NYSE:CRL) Receives Average Recommendation of “Moderate Buy” from Brokerages

Dec -04

Source: defenseworld.net

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TLX LAWSUIT DEADLINE: Hagens Berman Urges Telix Investors to Act by Jan. 9 Over Alleged Dual Regulatory Failures: SEC Subpoena & FDA CRL on CMC/Supply Chain

Dec -03

Source: prnewswire.com

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Charles River Laboratories International, Inc. (CRL) Presents at Evercore 8th Annual Healthcare Conference Transcript

Dec -03

Source: seekingalpha.com

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HALPER SADEH LLC ENCOURAGES CHARLES RIVER LABORATORIES INTERNATIONAL, INC. SHAREHOLDERS TO CONTACT THE FIRM TO DISCUSS THEIR RIGHTS

Dec -01

Source: prnewswire.com

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Charles River Laboratories to Present at Evercore Healthcare Conference

Dec -01

Source: businesswire.com

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Creative Planning Boosts Holdings in Charles River Laboratories International, Inc. $CRL

Nov -29

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.68%)

6. Segments

Discovery and Safety Assessment

Expected Growth: 4.5%

Discovery and Safety Assessment growth driven by increasing demand for outsourced R&D services, rising adoption of novel therapeutic modalities, and growing need for regulatory compliance. Additionally, Charles River's strategic acquisitions and investments in emerging technologies, such as gene editing and gene therapy, contribute to its 4.5% growth.

Research Models and Services

Expected Growth: 4.8%

Charles River Laboratories' Research Models and Services segment growth is driven by increasing demand for outsourced research, advancements in gene editing and gene therapy, and rising adoption of humanized models. Additionally, the company's strategic acquisitions, expansion into emerging markets, and investments in digitalization and automation are contributing to its 4.8% growth.

Manufacturing Solutions

Expected Growth: 5.2%

The 5.2% growth in Manufacturing Solutions from Charles River Laboratories International, Inc. is driven by increasing demand for outsourced pharmaceutical manufacturing, growing adoption of biologics and cell therapies, and expansion into emerging markets. Additionally, the company's investments in capacity expansion, technology advancements, and strategic acquisitions are contributing to its growth momentum.

7. Detailed Products

Research Models and Services

Provides a wide range of research models, including genetically engineered models, and services such as model creation, breeding, and quarantine services

Discovery and Safety Assessment

Offers a range of services, including in vitro and in vivo testing, bioanalysis, and pharmacokinetic analysis

Regulatory Testing and Compliance

Provides testing and compliance services, including GLP-compliant studies, to support regulatory submissions

Manufacturing Support

Offers services, including analytical testing, method development, and validation, to support the manufacturing of pharmaceuticals and biologics

Consulting and Outsourcing

Provides strategic consulting and outsourcing services, including program management, project management, and functional outsourcing

8. Charles River Laboratories International, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Charles River Laboratories International, Inc. is medium due to the presence of alternative contract research organizations and in-house research capabilities of pharmaceutical companies.

Bargaining Power Of Customers

The bargaining power of customers is low due to the specialized nature of Charles River's services and the lack of alternative providers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple suppliers of research models and services, but the company's dependence on a few key suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry, including the need for specialized facilities, equipment, and expertise.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the contract research organization industry, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 49.37%
Debt Cost 5.39%
Equity Weight 50.63%
Equity Cost 11.15%
WACC 8.31%
Leverage 97.51%

11. Quality Control: Charles River Laboratories International, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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LabCorp

A-Score: 5.5/10

Value: 3.7

Growth: 4.3

Quality: 5.1

Yield: 2.0

Momentum: 8.5

Volatility: 9.3

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Medpace

A-Score: 4.8/10

Value: 1.3

Growth: 9.2

Quality: 8.1

Yield: 0.0

Momentum: 8.5

Volatility: 2.0

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Natera

A-Score: 4.5/10

Value: 4.0

Growth: 7.1

Quality: 3.3

Yield: 0.0

Momentum: 7.5

Volatility: 5.0

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Waters

A-Score: 3.9/10

Value: 1.5

Growth: 5.2

Quality: 7.5

Yield: 0.0

Momentum: 3.0

Volatility: 6.3

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Twist Bioscience

A-Score: 3.6/10

Value: 6.8

Growth: 6.1

Quality: 4.8

Yield: 0.0

Momentum: 2.0

Volatility: 2.0

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Charles River Laboratories

A-Score: 3.3/10

Value: 4.7

Growth: 4.1

Quality: 3.1

Yield: 0.0

Momentum: 3.5

Volatility: 4.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

184.31$

Current Price

184.31$

Potential

-0.00%

Expected Cash-Flows