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 $262.12, Charles River Laboratories International Inc has witnessed a daily loss of 0.86%, marked against a three-month change of 31.09%. 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: 9/10
- Growth rank: 10/10
- GF Value rank: 6/10
- Momentum rank: 8/10
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 and growth rank, and a moderate financial strength and GF Value rank, GuruFocus assigned Charles River Laboratories International Inc the GF Score of 94 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 $13.46 billion and sales of $4.13 billion, has established itself as a leading provider of drug discovery and development services since its inception in 1947. The company's research model & services segment is renowned for supplying animal research models with specific genetic characteristics for preclinical studies globally. Its discovery & safety assessment segment encompasses services essential for the early drug development process, including discovery services. Additionally, the manufacturing support segment offers microbial solutions, biologics testing services, and avian vaccine services, highlighting its comprehensive approach to supporting the pharmaceutical industry.
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 shown a steady increase over the past five years, with figures rising from 13.40% in 2019 to 14.95% in 2023. This consistent improvement in operating efficiency underscores the company's adept management and operational excellence.
Further reinforcing investor confidence is Charles River Laboratories International Inc's Predictability Rank of 5.0 stars out of five, which signifies its stable and predictable financial performance over time.
Growth Rank Breakdown
Charles River Laboratories International Inc's high Growth Rank is a testament to its commitment to business expansion. The company's 3-Year Revenue Growth Rate of 11.6% surpasses 55.84% of the companies in the Medical Diagnostics & Research industry. Additionally, the company's EBITDA has seen a significant increase, with a three-year growth rate of 9.7 and a five-year rate of 15.2, highlighting its ability to sustain growth and profitability.
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. The company's strategic initiatives, competitive position, and management team further solidify its prospects for future success. Investors seeking to capitalize on such promising opportunities can explore more companies with strong GF Scores using the GF Score Screen provided by GuruFocus.
As Charles River Laboratories International Inc continues to navigate the complexities of the pharmaceutical services industry, its robust financial health and growth trajectory position it as a compelling choice for value investors. Will this trend of outperformance continue, and how will the company leverage its strengths in the face of industry challenges? These are critical questions for investors to ponder as they consider the investment case for Charles River Laboratories International Inc.
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.
