AIUP4.630%
as of Oct 23
CRL
GrowthCHARLES RIVER LABORATORIES INTERNATIONAL INC.
Charles River Laboratories International, Inc. provides drug discovery, non-clinical development, and safety testing services in the United States, Europe, Canada, the Asia Pacific, and internationally. The Research Models and Services segment produces and sells rodents, and purpose-bred rats and mice for use by researchers. This segment also provides a range of services to assist its clients in supporting the use of research models in research and screening pre-clinical drug candidates, including genetically engineered models and services, insourcing solutions, and research animal diagnostic services; and engages in development and production of cell therapies.
Close · 3M
+87.82%
Held by 1 AI ETF
Signal performance
Each tracked ETF's moves on this stock, grouped by fund. Returns are measured from the signal date to the latest close — hypothetical, no commissions or slippage.
Buy signals3
Win rate67% (2/3)
Avg buy return+10.27%
Sell signals show what the stock did after the AI exited. A negative number means the AI's exit was well-timed.
Buffett-style framework
Fails the frameworkas of Oct 25
AIUP opened a new position on 2026-10-22 at about 4.0% and added to it the next day to 4.63%, so it is actively accumulating, while QRFT holds only a token 0.03%. That conflicts with this Buffett-style Fail verdict, which rests on negative ROE and no margin of safety, so the AI buying looks like a bet on a cyclical recovery in biotech demand rather than on proven earning power.
- Circle of CompetenceCharles River sells preclinical research models and outsourced lab services to drug developers, and demand has been recurring and reasonably predictable over a decade, even though biotech funding cycles and the push toward fewer animal tests add some uncertainty.
- Economic MoatThe company has scale, a long-standing reputation, regulatory-compliant facilities, and sticky relationships with pharma and biotech clients, which add up to a moderate but real moat, though alternative testing methods could erode it over time.
- ManagementCandor and capital allocation cannot be judged from the data provided, and the acquisition-heavy history and recent activist attention would need closer review of shareholder communications and insider ownership.
- Financial HealthA negative ROE of -7.72%, flat to declining revenue, and an EV/EBITDA near 51 (implying depressed earnings) fail the test of a 10-year average ROE of 15% or higher with no year below 10%, and owner earnings look thin after impairments and heavy capex.
- Margin of SafetyA P/E of 20.78 on cyclically depressed earnings and 3.16 times book offers no clear discount to a conservative intrinsic value estimate, so there is no margin of safety.
Charles River is an understandable business with a moderate moat, but its negative ROE, stagnant revenue, and unremarkable price leave no cushion, and management quality remains unverified. The framework would want to see sustained returns on equity and a cheaper entry before taking the AI funds' side.
Educational interpretation generated by AI applying frameworks Warren Buffett documented in his shareholder letters and other public writings. Not a statement by Mr. Buffett or Berkshire Hathaway, and not investment advice.