The Company in a Nutshell
- CHRW provides freight transportation and logistics, outsource solutions, produce sourcing, and information services.
- CHRW has a network providing access to 73,000 transportation providers worldwide.
- CHRW is the largest North America freight broker by estimated net revenues.
- We do not cover C.H. Robinson Worldwide at the moment.
Date Reviewed | N/A |
Company Name | CH Robinson Worldwide Inc |
Symbol | CHRW |
Sector | Industrials |
Industry | Integrated Freight & Logistics |
Beta | 0.825 |
PRO Rating | 3 |
Dividend Safety | 2 |
Business Model
C.H. Robinson Worldwide, Inc. is a global logistics company. The Company operates through two segments: North American Surface Transportation (NAST) and Global Forwarding. NAST provides transportation and logistics services across North America through a network of offices in the United States, Canada, and Mexico. The primary services provided by NAST include truckload and less than truckload (LTL) transportation brokerage services. Its Global Forwarding segment provides transportation and logistics services through an international network of offices in North America, Europe, Asia, Oceania, and South America and also contracts with independent agents worldwide. The primary services provided by Global Forwarding include ocean freight services, air freight services, and customs brokerage. The Company through, Robinson Fresh, provides sourcing services that primarily include the buying, selling, and/or marketing of fresh fruits, vegetables, and other value-added perishable items.
Current price | 106.46 |
ROE | 23.45 % |
ROIC | 15.55 % |
Shareholder Yield | 0.10 % |
5-Yr Total Return | 40.35 % |
1-Yr Total Return | 24.80 % |
Next Earnings Date | 10-30-24 |
Latest Quarter Information
What the CEO said:
Our second quarter results reflect a higher quality of execution and performance, as we continue to implement the new Robinson operating model. And although we continue to fight through an elongated freight recession, we are winning and executing better at this point in the cycle. Our truckload business grew market share for the fourth consecutive quarter, and we took share the right way, with margin improvement in mind. And our adjusted income from operations increased 32 percent year-over-year for the full enterprise. I also want to commend our people for continuing to embrace the changes that we’re making to deliver a higher and more consistent level of performance.
What we say:
08-29-2024, Q2 was marked by higher execution and performance and growing market share in truckload business. Its adjusted income from operations increased 32% YoY. CHRW's revenue grew by 1.4% driven by higher pricing in ocean services and operating expenses decreased by 4.4%. NAST's revenue decreased by 2.9% YoY to $2.98B while the Global Forwarding revenues grew 18% to ~$921M. Cash from operations and Capex totaled ~$166.4M and $19.3M, respectively, and CHRW returned $76.4M to shareholders. The effective tax rate for Q2 was higher at 19.4% (vs. 14.9% in 2Q'23) driven by lower foreign tax credits benefits and higher foreign taxes, and it expects the FY24 tax rate to be 17%-19%.
Investment Thesis
Dividend Triangle
5-Yr Rev. Growth | 1.15 % |
5-Yr EPS Growth | -10.50 % |
5-Yr Div Growth | 5.35 % |
Potential Risks
Debt/Equity | 1.15 |
Financial Debt to EBITDA (TTM) | 2.55 |
Current Ratio (Quarterly) | 1.40 |
Credit Score | 40 |
Dividend Growth Perspective
Dividend ($) | 2.48 |
Dividend Yield Fwd | 2.40 % |
Dividend Frequency | Quarterly |
Average 5-Yr Yield | 2.45 % |
Payout Ratio (%) | 90.65 |
Cash Payout Ratio (%) | 94.10 |
DGR 1-Yr | 0.00 |
DGR 3-Yr | 6.15 |
DGR 5-Yr | 5.35 |
DGR Streak | 25 |
Chowder Score | 7.75 |
Next DVD PMT | 10-01-24 |
Valuation
(Data for `ddm_recent_annual_dividend` field are missing to build DDM tables)
Video Tutorial: How to Read the Stock Cards DDM Valuation
Market Cap | 12 B |
PE Ratio | 37.55 |
Fwd PE | 22.95 |
Price to Book Ratio | 8.10 |
DDM Valuation | N/A |
Average 5-Yr PE | 20.68 |
Value Score | 43 |
- All financial metrics are updated weekly.
- The DSR PRO rating and Dividend Safety Score are updated quarterly.
- The analysis (investment thesis, risk potential, dividend growth perspective and DDM calculation) is reviewed every 6 months.
- The PDF format includes only comments (no metrics) and is reviewed every 6 months.