Unveiling the Investment Potential of Charles River Laboratories International Inc (CRL): A ...
Charles River Laboratories International Inc (NYSE:CRL) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at 193.8, Charles River Laboratories International Inc has witnessed a daily loss of 0.33%, marked against a three-month change of -5.06%. 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.
Decoding 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.
Charles River Laboratories International Inc has been assigned the following ranks:
Financial strength rank: 5/10
Profitability rank: 9/10
Growth rank: 10/10
GF Value rank: 10/10
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 high ranks in profitability, growth, and GF value, and decent ranks in financial strength and momentum, GuruFocus assigned Charles River Laboratories International Inc the GF Score of 95 out of 100, which signals the highest outperformance potential.
Understanding Charles River Laboratories International Inc's Business
Charles River Laboratories International Inc, with a market cap of $9.94 billion and sales of $4.18 billion, was founded in 1947 and 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. The company's operating margin stands at 15.5%.
Profitability Rank Breakdown
The Profitability Rank shows Charles River Laboratories International Inc's impressive standing among its peers in generating profit. The company's Operating Margin has increased (11.96%) over the past five years, as shown by the following data: 2018: 14.62; 2019: 13.40; 2020: 14.80; 2021: 16.66; 2022: 16.37. Charles River Laboratories International Inc's strong Predictability Rank of 5.0 stars out of five underscores its consistent operational performance, providing investors with increased confidence.
Growth Rank Breakdown
Ranked highly in Growth, Charles River Laboratories International Inc demonstrates a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate is 13.7%, which outperforms better than 58.82% of 204 companies in the Medical Diagnostics & Research industry. Moreover, Charles River Laboratories International Inc has seen a robust increase in its earnings before interest, taxes, depreciation, and amortization (EBITDA) over the past few years. Specifically, the three-year growth rate stands at 19.3, and the rate over the past five years is 15.9. This trend accentuates the company's continued capability to drive growth.
Conclusion
Given the company's strong financial strength, profitability, and growth metrics, the GF Score highlights Charles River Laboratories International Inc's unparalleled position for potential outperformance. This comprehensive analysis underscores the company's robust financial health and growth potential, making it a compelling investment opportunity for value investors.
GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
This article first appeared on GuruFocus.
