# Charles River Laboratories (CRL.US)

Canonical: https://gigainvestors.com/s/CRL

Analysis as of: 2026-10-16T07:27:44.773Z. Financial observations: FY1998–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $306.24 per share; close as of 2026-10-15.

Estimated value: low $106.63 per share, central $121.01 per share, high $140.15 per share. Buy at or below the central value $121.01 per share. Valuation as of 2026-10-16T07:27:44.773Z; scenarios are not confidence intervals.

Expected annual return: 5.7% at the stated quote. About 5.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 1

- Operating margin variation: 0.22×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.14×

- FY2017: 0.16×

- FY2018: 0.15×

- FY2019: 0.13×

- FY2020: 0.15×

- FY2021: 0.17×

- FY2022: 0.16×

- FY2023: 0.15×

- FY2024: 0.06×

- FY2025: 0.13×

### moat: fail

- Recent gross margin fell 6.2pp below the typical margin (limit 4pp)

- ROIC, median of available years: 15.6%

- ROIC, second-lowest year: 12.3%

- Typical minus recent gross margin: 6.2 pp

- Typical gross margin (annual median): 36.8%

- Recent gross margin (lower of latest and 3-year median): 30.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.7%

- ROIC including acquisitions, ten-year median: 8.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 14.3%

- FY2017: 15.3%

- FY2018: 17.0%

- FY2019: 15.6%

- FY2020: 15.8%

- FY2021: 17.6%

- FY2022: 17.2%

- FY2023: 15.5%

- FY2024: 4.7%

- FY2025: 12.3%

### economics: pass

- Owner earnings / net income, 5-yr: 1.29×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.6B

- Net income, five-year total: $1.2B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.3 pp

- Working capital / revenue, change between three-year averages: -1.8 pp

- Working capital / revenue, final three-year average: 22.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.09×

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 13.51×

- FY2025: -0.28×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 15.3% vs 12.3%

- Per-share earnings: 3.13 to 0.20 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.4%

- Ordinary dilution, 5-year annual growth: -0.4%

- Market cap gain: $6.2B

- Cumulative retained earnings: $1.2B

- Diluted shares, 10-year annual growth: 0.4%

- Diluted shares, 5-year annual growth: -0.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -29.1%

- Per-share value change: -$2.94

- Per-share value, starting three-year median: $3.13

- Per-share value, ending three-year median: $0.20

- Buybacks concentrated in cheaper years (correlation): -0.30

- Average buyback yield: 0.9%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $3.2B

- Cumulative net income, 10 years: $2.3B

- ROIC, first three-year median: 15.3%

- ROIC, last three-year median: 12.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: $3.23

- FY2017: $2.54

- FY2018: $4.62

- FY2019: $5.07

- FY2020: $7.20

- FY2021: $7.60

- FY2022: $9.48

- FY2023: $9.22

- FY2024: $0.20

- FY2025: -$2.91

### accounting: pass

- Sloan accruals: -12.4%

- Receivables to sales index (DSRI): 0.99×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 9.6%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.98×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.3%

- FY2017: -6.6%

- FY2018: -5.6%

- FY2019: -4.9%

- FY2020: -3.3%

- FY2021: -5.3%

- FY2022: -1.8%

- FY2023: -2.6%

- FY2024: -9.6%

- FY2025: -12.4%

## Holders

- [John Rogers](https://gigainvestors.com/AI): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Bill Nygren](https://gigainvestors.com/HA): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 32% since Oct 2021 · "CRL Q4 Deep Dive: Flat Sales and Margin Pressures as Biotech Demand Recovers" (finance.yahoo.com, Feb 2026) · sales -0.9%

Story as of 2026-10-16T09:58:34.416Z; price observation 2026-10-15.

Price needs cash profits to grow 12.8% a year for ten years

- 2025-05-07: Charles River raises 2025 profit forecast, reaches deal with activist investor ([finance.yahoo.com](https://finance.yahoo.com/news/exclusive-charles-river-agrees-elliott-100819766.html))

- 2025-11-05: CRL's Q3 Earnings Top Estimates, Revenues Decline Y/Y, Stock Falls ([finance.yahoo.com](https://finance.yahoo.com/news/crls-q3-earnings-top-estimates-142200260.html))

- 2026-02-18: Charles River Q4 Adjusted Earnings, Revenue Decline; New CFO Named ([finance.yahoo.com](https://finance.yahoo.com/news/charles-river-q4-adjusted-earnings-123935389.html))

- 2026-05-11: CRL Q1 Deep Dive: Portfolio Restructuring and Cost Initiatives Set Stage for Margin Expansion ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/crl-q1-deep-dive-portfolio-225255738.html))

- 2026-08-05: CRL Q2 Earnings and Revenues Top, '26 View Up, Stock Up in Pre-Market ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/crl-q2-earnings-revenues-top-145400164.html))

### Sales · FY2024–2025

sales -0.9%; source https://www.sec.gov/Archives/edgar/data/1100682/000110068226000022/crl-20251227.htm; observed 2026-02-18.

- FY2016: $1.7B 

- FY2017: $1.9B 

- FY2018: $2.3B 

- FY2019: $2.6B 

- FY2020: $2.9B 

- FY2021: $3.5B 

- FY2022: $4.0B 

- FY2023: $4.1B 

- FY2024: $4.0B 

- FY2025: $4.0B 

### Gross margin · FY2025

gross margin 30.5%; source https://www.sec.gov/Archives/edgar/data/1100682/000110068226000022/crl-20251227.htm; observed 2026-02-18.

- FY2016: 38.3% 

- FY2017: 37.7% 

- FY2018: 37.1% 

- FY2019: 36.6% 

- FY2020: 36.7% 

- FY2021: 37.7% 

- FY2022: 36.8% 

- FY2023: 36.4% 

- FY2024: 32.9% 

- FY2025: 30.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in diagnostics & research; annual sales are USD 4 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1100682/000110068226000022/crl-20251227.htm (filed 2026-02-18); FY2025: revenue 4015382000; grossProfit 1225573000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CRL.US: Charles River Laboratories International, Inc. provides drug discovery, non-clinical development, and safety testing services in the United States, Europe, Canada, the Asia Pacific, and internationally. The Research Models and Services segment produces and sells rodents, 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 pre-clinical drug candidates, including genetically engineered models and services, insourcing solutions, and research animal diagnostic services; and engages in development and production of cell therapies. The Discovery and Safety Assessment segment offers in vitro and in vivo discovery services for the discovery, development, and safety testing of novel drugs, molecule compounds, oligonucleotides, and biotherapeutics, and antibodies through delivery of preclinical drug and therapeutic candidates ready for safety assessment; safety assessment services, such as toxicology, pathology, safety pharmacology, bioanalysis, drug metabolism, and pharmacokinetics services; and vivarium space services. The Manufacturing Solutions segment provides in vitro methods for conventional and rapid quality control testing of sterile and non-sterile pharmaceuticals and consumer products; offers specialized testing of biologics that are outsourced by pharmaceutical and biotechnology companies; and contract development and manufacturing products and services. The company has strategic collaborations with Parker Institute for Cancer Immunotherapy and Children's Hospital Los Angeles across its contract development and manufacturing organization; and Medigen Vaccine Biologics Corp for developing next-generation multivalent enterovirus vaccine, enhance global regulatory readiness, and support IND-enabling non-clinical studies. Additionally, it has a strategic alliance with Francis Crick Institute (Crick), Inc. for the development of Antibody-Drug Conjugate (ADC) drug discovery and de

### Why customers stay

Margins ranged from 30.5% to 36.4% during 2023–25; it earns 15.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2023: grossProfit / revenue = 36.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2024: grossProfit / revenue = 32.9%.

- Source: https://www.sec.gov/Archives/edgar/data/1100682/000110068226000022/crl-20251227.htm (filed 2026-02-18); FY2025: grossProfit / revenue = 30.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); 10-year return on capital observations [[2016,0.14257291545396264],[2017,0.15340639206603776],[2018,0.1700434170417135],[2019,0.1560656378513915],[2020,0.15811569069329456],[2021,0.17590288081605152],[2022,0.17216756253260596],[2023,0.1549777958090868],[2024,0.04699817096616303],[2025,0.12336347059764093]]; median 0.15552171683023913. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 37% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1100682/000110068226000022/crl-20251227.htm (filed 2026-02-18); Gross margin observations: [[2021,0.37699934466238816],[2022,0.3678644185449918],[2023,0.3638670812215501]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 4 of 10 years; bought back USD 360.7 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2016: growth capex 0; upkeep 55288000; owner earnings 226135000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2017: growth capex 0; upkeep 82431000; owner earnings 172083000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2018: growth capex 0; upkeep 140054000; owner earnings 248098000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2019: growth capex 0; upkeep 140514000; owner earnings 309600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2020: growth capex 0; upkeep 166560000; owner earnings 432668000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2021: growth capex 0; upkeep 228772000; owner earnings 427750000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2022: growth capex 20863000; upkeep 303870000; owner earnings 486226000. Growth capex / owner earnings = 0.0429080304220671.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2023: growth capex 4404000; upkeep 314124000; owner earnings 474624000. Growth capex / owner earnings = 0.009278923948220065.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2024: growth capex 0; upkeep 232967000; owner earnings 139071000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1100682/000110068226000022/crl-20251227.htm (filed 2026-02-18); FY2025: growth capex 0; upkeep 219152000; owner earnings 39822000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,34546000],[2020,46586000],[2021,45652000],[2022,0],[2023,25597000],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1100682/000110068226000022/crl-20251227.htm (filed 2026-02-18); FY2025: cash repurchases 360673000 USD.

### Are managers owners

Insiders own 0.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CRL.US SharesStats.PercentInsiders = 0.47400000000000003 percentage points; cache date 2026-10-16.

### What could break it

"Demand volatility and risk of credit losses from clients may adversely affect our business." (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1100682/000110068226000022/crl-20251227.htm (filed 2026-02-18); Demand volatility and risk of credit losses from clients may adversely affect our business.

### What the price says

The price assumes cash profits grow 12.8% yearly over ten years; actual decline was 14.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); Ten-year compound average after fade. Initial solved rate 0.17114426201028532. Price 306.24; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 3.798589242977705 → FY2025 0.8034460495520943. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $75.88 per share

- 2016-11: $71.10 per share

- 2016-12: $76.19 per share

- 2017-01: $80.80 per share

- 2017-02: $86.97 per share

- 2017-03: $89.95 per share

- 2017-04: $89.70 per share

- 2017-05: $92.05 per share

- 2017-06: $101.15 per share

- 2017-07: $98.20 per share

- 2017-08: $108.80 per share

- 2017-09: $108.02 per share

- 2017-10: $116.29 per share

- 2017-11: $104.20 per share

- 2017-12: $109.45 per share

- 2018-01: $105.44 per share

- 2018-02: $106.61 per share

- 2018-03: $106.74 per share

- 2018-04: $104.19 per share

- 2018-05: $107.52 per share

- 2018-06: $112.26 per share

- 2018-07: $124.30 per share

- 2018-08: $123.51 per share

- 2018-09: $134.54 per share

- 2018-10: $121.82 per share

- 2018-11: $134.85 per share

- 2018-12: $113.18 per share

- 2019-01: $123.19 per share

- 2019-02: $142.17 per share

- 2019-03: $145.25 per share

- 2019-04: $140.47 per share

- 2019-05: $125.45 per share

- 2019-06: $141.90 per share

- 2019-07: $134.54 per share

- 2019-08: $131.20 per share

- 2019-09: $132.37 per share

- 2019-10: $129.98 per share

- 2019-11: $145.25 per share

- 2019-12: $152.76 per share

- 2020-01: $154.58 per share

- 2020-02: $155.57 per share

- 2020-03: $126.21 per share

- 2020-04: $144.67 per share

- 2020-05: $179.66 per share

- 2020-06: $174.35 per share

- 2020-07: $198.99 per share

- 2020-08: $218.95 per share

- 2020-09: $226.45 per share

- 2020-10: $227.70 per share

- 2020-11: $234.52 per share

- 2020-12: $249.86 per share

- 2021-01: $259.05 per share

- 2021-02: $286.14 per share

- 2021-03: $289.83 per share

- 2021-04: $332.45 per share

- 2021-05: $337.99 per share

- 2021-06: $369.92 per share

- 2021-07: $406.92 per share

- 2021-08: $443.86 per share

- 2021-09: $412.67 per share

- 2021-10: $448.68 per share

- 2021-11: $365.87 per share

- 2021-12: $376.78 per share

- 2022-01: $329.76 per share

- 2022-02: $291.16 per share

- 2022-03: $283.97 per share

- 2022-04: $241.51 per share

- 2022-05: $234.08 per share

- 2022-06: $213.97 per share

- 2022-07: $250.54 per share

- 2022-08: $205.25 per share

- 2022-09: $196.80 per share

- 2022-10: $212.25 per share

- 2022-11: $228.57 per share

- 2022-12: $217.90 per share

- 2023-01: $243.25 per share

- 2023-02: $219.34 per share

- 2023-03: $201.82 per share

- 2023-04: $190.12 per share

- 2023-05: $193.38 per share

- 2023-06: $210.25 per share

- 2023-07: $209.54 per share

- 2023-08: $206.82 per share

- 2023-09: $195.98 per share

- 2023-10: $168.36 per share

- 2023-11: $197.08 per share

- 2023-12: $236.40 per share

- 2024-01: $216.28 per share

- 2024-02: $254.19 per share

- 2024-03: $270.95 per share

- 2024-04: $229.00 per share

- 2024-05: $208.44 per share

- 2024-06: $206.58 per share

- 2024-07: $244.10 per share

- 2024-08: $197.75 per share

- 2024-09: $196.97 per share

- 2024-10: $178.58 per share

- 2024-11: $199.06 per share

- 2024-12: $184.60 per share

- 2025-01: $164.76 per share

- 2025-02: $165.31 per share

- 2025-03: $150.52 per share

- 2025-04: $118.62 per share

- 2025-05: $135.63 per share

- 2025-06: $151.73 per share

- 2025-07: $169.64 per share

- 2025-08: $163.31 per share

- 2025-09: $156.46 per share

- 2025-10: $180.07 per share

- 2025-11: $178.14 per share

- 2025-12: $199.48 per share

- 2026-01: $210.48 per share

- 2026-02: $178.49 per share

- 2026-03: $172.50 per share

- 2026-04: $166.97 per share

- 2026-05: $180.71 per share

- 2026-06: $226.79 per share

- 2026-07: $232.51 per share

- 2026-08: $288.24 per share

- 2026-09: $295.01 per share

- 2026-10: $306.24 per share

## Annual estimated value (USD per share)

- FY2016: low $56.63 per share, central $69.39 per share, high $80.64 per share

- FY2017: low $58.10 per share, central $65.75 per share, high $75.93 per share

- FY2018: low $67.79 per share, central $76.71 per share, high $88.59 per share

- FY2019: low $71.85 per share, central $81.24 per share, high $93.74 per share

- FY2020: low $77.96 per share, central $88.25 per share, high $101.94 per share

- FY2021: low $92.29 per share, central $104.54 per share, high $120.85 per share

- FY2022: low $121.29 per share, central $159.59 per share, high $186.29 per share

- FY2023: low $127.52 per share, central $169.35 per share, high $197.68 per share

- FY2024: low $105.80 per share, central $120.09 per share, high $139.10 per share

- FY2025: low $104.47 per share, central $118.50 per share, high $137.18 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1100682/000110068226000022/crl-20251227.htm); period 2025-12-27, filed 2026-02-18.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.