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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Charles River Laboratories International, Inc. (XNYS:CRL) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
CRL
Name:
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. (XNYS:CRL)
Sector:
22.17M
Industry:
Diagnostics & Research
CEO:
Mr. James Foster
Total Employees:
18,600
Our Technological Advancement Rating
Our Rating:
A
Technological advancement compared to industry is 65.41% higher
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF CHARLES RIVER LABORATORIES INTERNATIONAL, INC.(CRL) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND DIAGNOSTICS & RESEARCH INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
200.24
One Month Price Target:
$201.75
Six Month Price Target :
$209.32
Likely Price in One Year's Time:
Ticker:
$218.39
Likely Trading Range Today Under (Normal Volatility)
$199.51
Price Upper limit ($) :
$201.3
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$189.59
This week:
$176.43
This month :
$152.63
Other Primary facts
Market Cap:
10.18B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
50.86M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
11.76%
-18.82%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$249.62
$226.81
$150.86
$173.67
Medium risk (<10%) entry points
Buy Call
Sell Call
$219.38
Buy Put:
Sell Put:
$214.51
$181.03
$185.97
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
CRL
Sharpe Ratio:
2.73%
Comparison:
CRL, is amongst the top 40% stocks with highest risk-adjusted returns
Sharpe ratio is 8.46% higher than the industry
& ratio is 19.82% higher than the market/S&P 500 average
Average Returns/Yield of
CRL
Daily returns:
0.08%
Weekly returns:
0.40%
Monthly returns:
1.61%
Yearly returns:
27.92%
Comparison of returns:
Average annual returns/yield (last 3 years) is -30.69% below industry average
Classification:
CRL, is amongst the top 40% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.87
Statistical test of Returns:
CRL has not yielded statistically significant higher returns when compared to the market

Volatility (measured by Standard Deviation)
Daily Volatility:
2.63%
Weekly Volatility:
5.88%
Monthly Volatility:
11.75%
Yearly Volatility:
40.72%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
1.04%
Volatility in last five trading days has been -60.33% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-5.32%
Weekly VaR:
-11.89%
Monthly VaR:
-23.78%
How Much Can the price of
CRL
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-20%
Worst case (decline):
-82.37%
This translates to price declining to:
$159.99
This translates to price declining to:
$35.30
Severe Crash Probability
Risk of crash in next 6/12 months: High (50-70%)
What is Value at Risk (VaR)?

Risk Fundamentals
CRL is a 67.83% riskier investment compared to the market/S&P 500 & is 43.78% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -31.93% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
CRL
Beta in relation to market/S&P 500--1.35
Expected beta in 1 year's time:
-
Expected beta in 3 year's time:
-
Unlevered (debt free) Beta:
0.702
Beta in relation to Nasdaq (XNAS):
1.009
Beta in relation to all global stocks::
0.893
Beta Comparison & Analysis
Beta of competitors/peers::
0.933
Beta is 44.56% higher than peers
Average Industry Beta:
1.181
Beta is 14.19% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
17.54%
Sustainable growth rate is -66.79% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.070
Alpha is -58.26% below industry average alpha yield
Alpha is 443% higher than market/& is unsustainably high
Analysis of Cost of Capital of
CRL
Equity cost of capital:
0.124
Equity cost of capital is 10.21% above industry mean WACC
Unlevered (without debt) cost of capital:
6.44%
Before-tax cost of debt:
1.80%
After-tax cost of debt:
1.42%
Overall debt rating:
Highest AAA investment grade
Weighted average cost of capital (WACC):
1.42%
WACC is -10.35% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$71.36
Revenue growth rate per share of (3Y):
3.81
Annual revenue growth rate is -58.79% below industry average
EPS:
$8.21
Expected Annual growth rate of EPS (3Y):
13.70%
Expected future EPS growth rate is -48.95% lower than the Diagnostics & Research industry
Free cash flow (FCF) per share:
$7.96
-
-
Debt per share
$57.81
EBITDA per share
$16.72
Valuation Analysis Today of
CRL
P/E Ratio:
23.24
P/E Ratio of Competitors/Peers:
16.93
P/E ratio is 37.27% higher than main peers & is -37.48% lower than the industry
Stock price/value with industry average P/E ratio: $305.22
CRL is -34.39% undervalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
2.81
Price to sales ratio is -70.47% below the industry mean
P/B (Price to book value ratio):
3.81
Price to free cash flow: 25.17
Price to free cash flow ratio is -25.83% lower than the industry
Net income growth rate (3Y):
64.66%
Net income growth rate is -128.29% lower than the industry average net income growth rate
Dividend Analysis
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
112.66%
Net debt to equity ratio:
104.94%
Debt to assets ratio:
41.56%
Net debt to assets ratio:
38.71%
Debt-to-asset ratio is -14.47% below industry average
Ability to repay debt:
Interest coverage ratio:
15.86
Interest coverage ratio is -156.55% less than industry average
Looking forward:
Debt growth rate:
36.69%
Annual debt growth is -65% lower than industry average debt growth rate
Debt repayment rate in last quarter: 24.38%
Analysis of Key Statistics
Correlation of price movement with the market:
0.701
Statistical significance of correlation:
CRL has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.488
Stock price is 43.73% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.488
Correlation of price movement with Nasdaq (^IXIC):
-0.034
Covariance of price movement with the market:
-0.052
Kurtosis
6.259
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
-0.505
Returns are left (negative) skewed; mean returns are lower than median and mode returns
Fundamental Analysis & Dupont Analysis of
CRL
Gross Profit Margin Ratio:
150%
Operating Profit Margin Ratio:
16.94%
Operating profit margin is -115.06% lower than the industry
Net Profit Margin Ratio:
150%
Effective Tax Rate:
18.11%
Effective tax rate is -5.62% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
16.19%
Return on equity (ROE) is -22.96% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
5.97%
Return on assets (ROA) is -102.21% lower than the industry
Financial Leverage:
1.7x
Current Ratio:
1.34
Current ratio is -73.01% below industry average
Cash Conversion Cycle (days):
23.9
Cash conversion cycle is -51.89% below industry average
The remaining useful life of property plant & equipment is: 6.0 years
Stock based compensation to net income ratio:
3.46%
In-depth Efficiency Analysis
Revenue generated per employee:
195.1K
Each employee generates -48% less revenue than industry average revenue per employee
EBITDA generated per employee:
45.7K
Each employee generates 52% more EBITDA than industry average revenue per employee
Profit generated per employee:
22.7K
Each employee generates 42% more net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
1.2K
Each employee generates -155% less free cash flow than industry average revenue per employee
Assets/Capital per employee
308.7K
Each employee generates -155% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
CRL
MOLINA HEALTHCARE, INC. (XNYS:MOH)
SMITH & NEPHEW PLC (XNYS:SNN)
CARDINAL HEALTH, INC. (XNYS:CAH)
Fresenius Medical Care AG & Co KGaA (XNYS:FMS)
QUEST DIAGNOSTICS INCORPORATED (XNYS:DGX)
Catalent, Inc. (XNYS:CTLT)
BIO-RAD LABORATORIES, INC. (XNYS:BIO)
BIO-B
Teladoc Health, Inc. (XNYS:TDOC)
Current Analyst Ratings
Strong buy�21%
Buy�13%
Hold�33%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Hold
Income Statement
Period:
TTM
Date:
3/26/22
Revenue:
3.63B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
2.27B
1.36B
-
-
614.22M
-
134.02M
748.24M
744.00K
53.63M
279.33M
850.56M
614.94M
422.47M
525.25M
95.13M
422.47M
Statement of Cash Flow
Date:
Period:
75.30M
Differed Income Tax :
- 7563.00K
Stock Based Compensation :
14.62M
Change in Working Capital :
- 91643.00K
Accounts Receivables:
-
Other Working Capital:
- 51469.00K
Other Non-Cash Items:
16.69M
Net Cash Provided by Operating Activities:
102.63M
Investments in PP&E:
-
Net Acquisitions:
-
Purchases of Investments:
- 13296.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/26/22
2022
Q1
241.87M
1.07M
242.93M
706.80M
221.18M
162.18M
1.33B
1.63B
2.70B
1.02B
198.27M
43.40M
158.39M
5.74B
-
7.08B
225.98M
40.40M
29.84M
292.25M
435.22M
993.84M
2.94B
216.09M
3.41B
-
4.40B
509.00K
1.07B
- 174933.0K
1.71B
March 26, 2022 at 6:00:00 AM
3.01B
2.61B
7.01B
199.33M
2.98B
2.7B
205.00K
- 84914.00K
- 98005.00K
- 948267.00K
-
- 33994.00K
-
968.98M
- 13283.00K
5.74M
- 2918.00K
243.40M
246.31M
102.63M
- 80464.00K
22.17M
Our Proprietary Portfolio Rating
Our Rating:
B



Price Forecast/Expected Price in Next 5 Years of
CRL
2023
2024
2025
2026
2027
$230.25
$251.12
$273.89
$298.71
$325.79