FY2025 10-K confirms thesis largely intact. Revenue declining but decelerating; Q4 DSA net bookings improved substantially — the most important forward signal (bookings lead revenue 6-9 months, setting up H2 2026 recovery). Non-GAAP margins held nearly flat (19.8% vs 19.9%). FCF strong at ~$518M vs $2.1B debt — leverage comfortable. 2026 guidance for +4-9% non-GAAP EPS growth is credible given booking trends. Key upgrade driver: strategic review + planned 7% revenue divestitures could crystallize value, especially if CDMO/Biologics Solutions exits. Downgrade risk: CDMO has been a serial value destroyer ($489M impairments in 2 years); strategic review uncertainty; potential government R&D funding cuts (DOGE) as an unquantified headwind. Was 6, raising to 7 on booking improvement confirmation and strategic optionality.
Fair Value Distribution — percentile bands
0.0% of simulations place fair value above current price
WHAT IS PRICED IN
Revenue-Based Reverse DCF
14.8%/yr
±5.7% · revenue growth to justify current price
FCF-Based Reverse DCF
19.6%/yr
±3.0% · FCF growth to justify current price
THE GAP
Market pricing margin compression or rising capex
KEY VALUE DRIVERS
Spearman correlation — what moves this valuation most
Eagle will generate this view by the next trading session (~7h).
Eagle will generate this view by the next trading session (~7h).
FY2025 revenue $4.02B (-1.6% organic), non-GAAP EPS $10.28 (flat). Core DSA/RMS margins held; CDMO/Biologics Solutions destroyed $376M value via impairments Q4 alone ($380M goodwill over 2 yrs). FCF s...
FY2025 revenue $4.02B (-1.6% organic). Non-GAAP EPS $10.28 (flat). CDMO+Cell Solutions divested to GI Partners for contingent payments (~zero upfront), European Discovery assets sold to IQVIA for $145...
CRL reported FY2025 revenue of .0B with earnings-neutral demand environment. DSA segment dominates (59.8% revenue) facing pricing pressure and elevated competition. RMS remains stable with 21.1% contr...