📊 CRL Key Takeaways
Investment Thesis
Charles River Laboratories faces significant operational challenges with net losses of $144.3M despite $4B in revenue, indicating severe profitability deterioration. While strong free cash flow of $518.5M provides a financial cushion, the company's negative net margin of -3.6%, minimal operating margin of 0.6%, and interest coverage below 1.0x suggest operational distress that cash flow alone cannot sustain long-term.
CRL Strengths
- Strong free cash flow generation of $518.5M (12.9% FCF margin) provides runway for operational improvements
- Solid liquidity position with current ratio of 1.29x and $213.8M in cash equivalents
- Substantial asset base of $7.1B and reasonable debt-to-equity ratio of 0.67x provides balance sheet flexibility
CRL Risks
- Net loss of $144.3M with negative net margin of -3.6% indicates fundamental unprofitability despite revenue scale
- Interest coverage of 0.7x below 1.0x threshold suggests inability to cover debt service from operating earnings, creating refinancing risk
- Gross margin compression to 7.5% and operating margin collapse to 0.6% indicate severe cost structure issues or pricing pressure unresolved
- Flat revenue growth (-0.9% YoY) combined with losses suggests market saturation or competitive pressures in core business
Key Metrics to Watch
- Operating income trend and path to profitability - current 0.6% operating margin must improve materially
- Interest coverage ratio - must return above 1.0x to demonstrate sustainable debt servicing capability
- Gross margin stabilization - 7.5% is unsustainably low and suggests urgent need for operational restructuring
CRL Financial Metrics
💡 AI Analyst Insight
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
CRL Profitability Ratios
CRL vs Healthcare Sector
How CHARLES RIVER LABORATORIES INTERNATIONAL, INC. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CRL Balance Sheet & Liquidity
CRL 5-Year Financial Trend
5-Year Trend Summary: CHARLES RIVER LABORATORIES INTERNATIONAL, INC.'s revenue has grown significantly by 17% over the 5-year period, indicating strong business expansion. The most recent EPS of $9.22 reflects profitable operations.
CRL Growth Metrics (YoY)
CRL Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.0B | $54.4M | $1.10 |
| Q2 2025 | $1.0B | $52.3M | $1.06 |
| Q1 2025 | $984.2M | $25.5M | $0.50 |
| Q3 2024 | $1.0B | $69.7M | $1.33 |
| Q2 2024 | $1.0B | $94.1M | $1.74 |
| Q1 2024 | $1.0B | $73.0M | $1.30 |
| Q3 2023 | $989.2M | $87.4M | $1.69 |
| Q2 2023 | $973.1M | $97.0M | $1.89 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CRL Capital Allocation
CRL SEC Filings
Access official SEC EDGAR filings for CHARLES RIVER LABORATORIES INTERNATIONAL, INC. (CIK: 0001100682)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CRL
What is the AI rating for CRL?
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. (CRL) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CRL's key strengths?
Strong free cash flow generation of $518.5M (12.9% FCF margin) provides runway for operational improvements. Solid liquidity position with current ratio of 1.29x and $213.8M in cash equivalents.
What are the risks of investing in CRL?
Net loss of $144.3M with negative net margin of -3.6% indicates fundamental unprofitability despite revenue scale. Interest coverage of 0.7x below 1.0x threshold suggests inability to cover debt service from operating earnings, creating refinancing risk.
What is CRL's revenue and growth?
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. reported revenue of $4.0B.
Does CRL pay dividends?
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. does not currently pay dividends.
Where can I find CRL SEC filings?
Official SEC filings for CHARLES RIVER LABORATORIES INTERNATIONAL, INC. (CIK: 0001100682) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CRL's EPS?
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. has a diluted EPS of $-2.91.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.