With Charles River Laboratories International Stock Sliding, Have You Assessed The Risk?
Charles River Laboratories International (CRL) stock is down 17.7% in 5 trading days. The recent slide reflects renewed concerns around sector-wide project cancellations and the shift from animal testing, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Charles River Laboratories International stands today.
- Size: Charles River Laboratories International is a $8.2 Bil company with $4.0 Bil in revenue currently trading at $165.98.
- Fundamentals: Last 12 month revenue growth of -0.9% and operating margin of 8.8%.
- Liquidity: Has Debt to Equity ratio of 0.32 and Cash to Assets ratio of 0.03
- Valuation: Charles River Laboratories International stock is currently trading at P/E multiple of -97.8 and P/EBIT multiple of 91.5
- Has returned (median) 128% within a year following sharp dips since 2010. See CRL Dip Buy Analysis.
These metrics point to a Weak operational performance, alongside Moderate valuation – making the stock Unattractive. For details, see Buy or Sell CRL Stock
That brings us to the key consideration for investors worried about this fall: how resilient is CRL stock if markets turn south? This is where our downturn resilience framework comes in. Suppose CRL stock falls another 20-30% to $116 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
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2022 Inflation Shock
- CRL stock fell 64.1% from a high of $458.30 on 24 September 2021 to $164.52 on 30 October 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $273.43 on 21 March 2024 , and currently trades at $165.98
| CRL | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -64.1% | -25.4% |
| Time to Full Recovery | Not Fully Recovered | 464 days |
2020 Covid Pandemic
- CRL stock fell 44.5% from a high of $178.34 on 19 February 2020 to $98.90 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 29 May 2020
| CRL | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -44.5% | -33.9% |
| Time to Full Recovery | 72 days | 148 days |
2018 Correction
- CRL stock fell 23.6% from a high of $137.23 on 3 December 2018 to $104.82 on 3 January 2019 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 13 February 2019
| CRL | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -23.6% | -19.8% |
| Time to Full Recovery | 41 days | 120 days |
2008 Global Financial Crisis
- CRL stock fell 69.8% from a high of $68.82 on 19 August 2008 to $20.78 on 20 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 13 January 2015
| CRL | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -69.8% | -56.8% |
| Time to Full Recovery | 2,245 days | 1,480 days |
Feeling jittery about CRL stock? Consider portfolio approach.
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