CRL
Charles River Laboratories International, Inc.$181.32
Sell
Target $108.56
Report: Mar 08, 2026Healthcare • Medical - Diagnostics & Research • Turnaround CandidateSnapshot
Decision-first overview with recommendation, valuation anchor, and current setup.
Company Overview
Research Snapshot
Price History
Pelican View
Current$181.32-40.1%
Rec: SellConviction: Low
Entry Target
N/A
N/A
Fair Value
$108.56
(40% below current)
Stop Loss
N/A
N/A
Position Size
None
Time Horizon
N/A
Key Metrics
Live Snapshot
Market Data
52 Week High$228.88
52 Week Low$91.86
Avg. 3 Month Volume963K
Efficiency
LTM Gross Margin33.0%
LTM EBITDA Margin10.2%
LTM EBIT Margin0.1%
LTM Operating Margin0.6%
LTM ROA-1.9%
LTM ROE-4.4%
LTM ROIC0.1%
LTM ROCE0.1%
Capital Structure
Market Cap (MM)$8.5B
Enterprise Value (MM)$10.8B
Shares Outstanding49.22M
Total Debt (MM)$2.57B
Cash & Equivalents (MM)$213.77M
LTM Net Debt (MM)$2.36B
LTM Net Debt/EBITDA5.8x
Growth
TTM Rev. Growth-0.9%
Last 3-Yr Rev. CAGR0.3%
Last 3-Yr EBITDA CAGR-25.3%
Last 3-Yr EPS CAGRN/A
Valuation
Street Target Price$202.17
LTM EV/Revenue2.7x
LTM EV/Gross Profit8.2x
LTM EV/EBIT2027.4x
LTM EV/EBITDA26.5x
LTM P/E-58.8x
LTM EV/FCF20.9x
LTM P/FCF16.4x
LTM P/TB2.1x
LTM P/B2.7x
Dividend Yield0.0%
Payout Ratio0.0%
Executive SummarySituation: Current price is $181.32 versus fair value $108.56 (-40.1% expected return), and valuation confidence is stable. Debate: Bull case depends on Completion of non-core asset divestitures (~7% of revenue). Bear case centers on Existential liquidity and solvency risk. Conclusion: Recommendation is Sell with no position, pending a materially better risk/reward setup.
Bull Case
Restructuring delivers $225M in annualized savings by 2026; KF Cambodia acquisition secures the NHP supply chain and restores DSA margins; Elliott-led strategic review leads to a high-multiple divestiture of non-core assets.
Bear Case
Net leverage of 5.8x and interest coverage of 0.05x lead to a covenant breach; NHP sourcing costs continue to rise faster than pricing power; BIOSECURE Act causes a permanent shift in biotech R&D spending away from CRL's core segments.
Key Catalysts
Near-Term (0-6 months)Impact: Moderate
Completion of non-core asset divestitures (~7% of revenue). This is intended to sharpen focus on core DSA services and provide cash for debt...
Near-Term (0-6 months)Impact: High
CEO Succession (Birgit Girshick taking over from James Foster). This marks the end of a 34-year era and is the primary mechanism for cultura...
Long-Term (18+ months)Impact: Moderate
Charles River is at a critical juncture as it navigates a CEO transition and a high-stakes strategic review under activist pressure, all whi...
Primary Risks
Concern: High
Existential liquidity and solvency risk. The company is in a race against time to execute its $225M cost-saving plan before it breaches debt...
Concern: High
NHP supply chain disruption. Continued regulatory pressure or sourcing cost spikes could permanently impair the DSA segment's profitability.
Concern: Medium
The governance outcome tree is currently dominated by the Elliott cooperation agreement. 1. Status Quo: The current $225M cost-saving plan e...
Recent Activity
2026-02-11SEC Filing (SC 13G/A)
-8.42%Wellington Management Group LLP files Schedule 13G/A reporting 3.55% beneficial ownership of Charles River Laboratories International Inc common stock.
2025-12-03SEC Filing (8-K)
+5.67%Charles River Laboratories provides Q4 2025 demand trends update at Evercore Healthcare Conference.
2025-11-05SEC Filing (8-K)
-5.71%Charles River Laboratories reports Q3 2025 revenue of $1.00 billion, down 0.5% YoY, with non-GAAP EPS of $2.43, down 6.2% YoY.
2025-08-06SEC Filing (8-K)
-10.25%Charles River Laboratories reported Q2 2025 results with revenue of $1.03 billion and updated 2025 guidance.
2025-05-07SEC Filing (8-K)
+18.68%Charles River Laboratories announces board changes, strategic review, and cooperation agreement with Elliott Investment Management.
Valuation Table
8.0/10Decision Grade
Scenario Range
$0
Bear
$4
Base
$26
Bull
$181