Charles River Laboratories International In

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CRL : NYSE : Health Care
$83.00 up 0.68 | 0.83%
Today's Range: 82.33 - 82.71
Avg. Daily Volume: 343,000
08/26/16 - 10:20 AM ET

Financial Analysis


CHARLES RIVER LABS INTL INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. CHARLES RIVER LABS INTL INC has average liquidity. Currently, the Quick Ratio is 1.27 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 18.47% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)434.06339.57
EBITDA ($mil)105.184.07
EBIT ($mil)72.7560.92
Net Income ($mil)35.2148.51


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)180.19168.98
Total Assets ($mil)2762.991885.92
Total Debt ($mil)1364.99772.77
Equity ($mil)831.35701.7


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin43.4943.75
EBITDA Margin24.2124.75
Operating Margin16.7617.94
Sales Turnover0.540.7
Return on Assets5.127.38
Return on Equity17.1419.96
Debt Q2 FY16 Q2 FY15
Current Ratio1.72.28
Debt/Capital0.620.52
Interest Expense7.463.64
Interest Coverage9.7516.72


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)47.2846.85
Div / share0.00.0
EPS0.731.02
Book value / share17.5814.98
Institutional Own % n/a n/a
Avg Daily Volume347437.0466554.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 37.86 for the Life Sciences Tools & Services industry and a premium compared to the S&P 500 average of 25.30. To use another comparison, its price-to-book ratio of 4.74 indicates a significant premium versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 7.64. The price-to-sales ratio is well 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 27.88 Peers 37.86   CRL 12.79 Peers 22.03

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 16.39 Peers 26.39   CRL 0.67 Peers 1.26

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 4.74 Peers 7.64   CRL 1.35 Peers 36.19

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 significant 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 2.64 Peers 28.09   CRL 13.29 Peers 6.12

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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