Charles River Laboratories International In

Find Ratings Reports
CRL : NYSE : Health Care
$74.15 | %
Today's Range: 73.6 - 75.14
Avg. Daily Volume: 475200.0
12/09/16 - 4:02 PM ET

Financial Analysis


CHARLES RIVER LABS INTL INC's gross profit margin for the third quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. CHARLES RIVER LABS INTL INC has average liquidity. Currently, the Quick Ratio is 1.15 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 23.22% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)425.72349.47
EBITDA ($mil)100.182.93
EBIT ($mil)65.9959.11
Net Income ($mil)37.7437.38


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)114.0393.23
Total Assets ($mil)2690.192032.84
Total Debt ($mil)1259.16852.4
Equity ($mil)867.97704.36


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin41.4743.96
EBITDA Margin23.5123.72
Operating Margin15.516.92
Sales Turnover0.580.66
Return on Assets5.277.11
Return on Equity16.4220.65
Debt Q3 FY16 Q3 FY15
Current Ratio1.591.84
Debt/Capital0.590.55
Interest Expense7.543.86
Interest Coverage8.7515.3


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)47.3246.62
Div / share0.00.0
EPS0.780.79
Book value / share18.3415.11
Institutional Own % n/a n/a
Avg Daily Volume486658.0336087.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 34.98 for the Life Sciences Tools & Services industry and a value on par with the S&P 500 average of 25.22. To use another comparison, its price-to-book ratio of 3.92 indicates a premium versus the S&P 500 average of 2.79 and a discount versus the industry average of 5.05. The price-to-sales ratio is above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, CHARLES RIVER LABS INTL INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CRL 24.12 Peers 34.98   CRL 11.83 Peers 20.29

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

CRL is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

CRL is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CRL 14.23 Peers 24.26   CRL 0.58 Peers 1.39

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

CRL is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

CRL trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CRL 3.92 Peers 5.05   CRL -2.62 Peers 48.28

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

CRL is trading at a discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, CRL is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CRL 2.17 Peers 35.48   CRL 17.13 Peers 13.22

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

CRL is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

CRL has a sales growth rate that significantly exceeds its peers.

 

 

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