Charles River Laboratories International Inc (CRL, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $188.01, Charles River Laboratories International Inc has witnessed a daily loss of 0.54%, marked against a three-month change of -5.42%. A thorough analysis, underlined by the GF Score, suggests that Charles River Laboratories International Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 5/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 10/10
- Momentum rank: 7/10
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With a high profitability, growth, and GF Value rank, and a slightly lower financial strength and momentum rank, GuruFocus assigned Charles River Laboratories International Inc the GF Score of 97 out of 100, which signals the highest outperformance potential.
Understanding Charles River Laboratories International Inc Business
Charles River Laboratories International Inc, with a market cap of $9.64 billion and sales of $4.22 billion, operates at an operating margin of 15.37%. Founded in 1947, it is a leading provider of drug discovery and development services. The company's research model & services segment is the leading provider of animal models for laboratory testing, which breeds and delivers animal research models with specific genetic characteristics for preclinical studies around the world. The discovery & safety assessment segment includes services required to take a drug through the early development process, including discovery services. The manufacturing support segment includes microbial solutions, which provides in vitro (non-animal) testing products, biologics testing services, and avian vaccine services.
Profitability Rank Breakdown
The Profitability Rank of Charles River Laboratories International Inc reflects its superior ability to generate profits compared to its peers. The company's Operating Margin has seen a steady increase over the past five years, with figures rising from 14.62% in 2018 to 16.37% in 2022. This trend indicates a consistent improvement in profitability.
The Piotroski F-Score further confirms Charles River Laboratories International Inc's solid financial situation, scoring high on Joseph Piotroski's nine-point scale, which measures a company's profitability, funding, and operating efficiency.
Additionally, the company's Predictability Rank of 5.0 stars out of five underscores its consistent operational performance, providing investors with increased confidence in its financial stability.
Growth Rank Breakdown
Charles River Laboratories International Inc's high Growth Rank underscores its commitment to expanding its business. The company's 3-Year Revenue Growth Rate of 13.7% outperforms 58.42% of companies in the Medical Diagnostics & Research industry.
The company has also experienced a robust increase in its EBITDA over the past few years, with a three-year growth rate of 19.3 and a five-year rate of 15.9. This consistent growth in earnings before interest, taxes, depreciation, and amortization highlights Charles River Laboratories International Inc's ability to drive growth and enhance shareholder value.
Next Steps
Considering Charles River Laboratories International Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors seeking to capitalize on this momentum can explore more companies with strong GF Scores using the GF Score Screen provided by GuruFocus. With a GF Score of 97, Charles River Laboratories International Inc stands as a compelling investment opportunity for those looking to invest in a company with a proven track record and a promising future.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
