NasdaqGS:CHRW

Stock Analysis Report

Executive Summary

C.H. Robinson Worldwide, Inc., a third party logistics company, provides freight transportation services and logistics solutions to companies in various industries worldwide.


Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

How has C.H. Robinson Worldwide's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CHRW's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.6%

CHRW

3.5%

US Logistics

7.2%

US Market


1 Year Return

-26.3%

CHRW

-15.3%

US Logistics

-10.4%

US Market

Return vs Industry: CHRW underperformed the US Logistics industry which returned -15.3% over the past year.

Return vs Market: CHRW underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

CHRWIndustryMarket
7 Day2.6%3.5%7.2%
30 Day-5.4%-0.03%-12.6%
90 Day-16.6%-14.9%-19.4%
1 Year-24.4%-26.3%-13.2%-15.3%-8.5%-10.4%
3 Year-9.0%-15.2%-2.5%-8.9%15.8%8.3%
5 Year2.9%-8.7%6.1%-5.0%35.8%21.0%

Price Volatility Vs. Market

How volatile is C.H. Robinson Worldwide's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is C.H. Robinson Worldwide undervalued compared to its fair value and its price relative to the market?

9.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CHRW ($65.19) is trading below our estimate of fair value ($72.19)

Significantly Below Fair Value: CHRW is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CHRW is good value based on its PE Ratio (15.5x) compared to the Logistics industry average (17.6x).

PE vs Market: CHRW is poor value based on its PE Ratio (15.5x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: CHRW's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CHRW is overvalued based on its PB Ratio (5.3x) compared to the US Logistics industry average (2x).


Next Steps

Future Growth

How is C.H. Robinson Worldwide forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

-1.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHRW's earnings are forecast to decline over the next 3 years (-1.4% per year).

Earnings vs Market: CHRW's earnings are forecast to decline over the next 3 years (-1.4% per year).

High Growth Earnings: CHRW's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CHRW's revenue (3.2% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CHRW's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CHRW's Return on Equity is forecast to be high in 3 years time (30.2%)


Next Steps

Past Performance

How has C.H. Robinson Worldwide performed over the past 5 years?

7.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHRW has high quality earnings.

Growing Profit Margin: CHRW's current net profit margins (3.8%) are lower than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: CHRW's earnings have grown by 7.3% per year over the past 5 years.

Accelerating Growth: CHRW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CHRW had negative earnings growth (-13.2%) over the past year, making it difficult to compare to the Logistics industry average (-5.5%).


Return on Equity

High ROE: CHRW's Return on Equity (34.5%) is considered high.


Next Steps

Financial Health

How is C.H. Robinson Worldwide's financial position?


Financial Position Analysis

Short Term Liabilities: CHRW's short term assets ($2.6B) exceed its short term liabilities ($1.6B).

Long Term Liabilities: CHRW's short term assets ($2.6B) exceed its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: CHRW's debt to equity ratio (73.9%) is considered high.

Reducing Debt: CHRW's debt to equity ratio has reduced from 105.6% to 73.9% over the past 5 years.

Debt Coverage: CHRW's debt is well covered by operating cash flow (67.6%).

Interest Coverage: CHRW's interest payments on its debt are well covered by EBIT (18.2x coverage).


Balance Sheet

Inventory Level: CHRW has a low level of unsold assets or inventory.

Debt Coverage by Assets: CHRW's debt is covered by short term assets (assets are 2.1x debt).


Next Steps

Dividend

What is C.H. Robinson Worldwide's current dividend yield, its reliability and sustainability?

3.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CHRW's dividend (3.13%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: CHRW's dividend (3.13%) is low compared to the top 25% of dividend payers in the US market (5.4%).


Stability and Growth of Payments

Stable Dividend: CHRW's dividends per share have been stable in the past 10 years.

Growing Dividend: CHRW's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.7%), CHRW's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CHRW's dividends in 3 years are forecast to be covered by earnings (50.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Bob Biesterfeld (43yo)

0.83

Tenure

US$5,065,928

Compensation

Mr. Robert C. Biesterfeld, Jr., also known as Bob, has been the Chief Executive Officer of C.H. Robinson Worldwide, Inc. since March 1, 2018 and served as the Chief Operating officer until 2019. Mr. Robert ...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD5.07M) is below average for companies of similar size in the US market ($USD7.28M).

Compensation vs Earnings: Bob's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Wiehoff
Executive Chairman of the Board13.17yrsUS$773.80k0.088% $7.5m
Robert Biesterfeld
CEO & Director0.83yrUS$5.07m0.0030% $253.4k
Michael Zechmeister
Chief Financial Officer0.58yrUS$2.99m0.0093% $794.6k
Christopher O'Brien
Chief Commercial Officer7.83yrsUS$643.78k0.0071% $604.5k
Mac Pinkerton
President of North American Surface Transportation Division1.17yrsUS$805.02k0.0056% $480.3k
Michael Short
President of Global Freight Forwarding4.83yrsUS$730.03k0.00021% $18.0k
Scott Hagen
Corporate Controller12.17yrsUS$435.94k0.0050% $424.7k
Robert Houghton
VP of Corporate Financeno datano datano data
Michael Neill
Chief Technology Officer1.67yrsno data0.0014% $123.3k
Ben Campbell
Chief Legal Officer & Secretary5.17yrsno data0.0078% $668.7k

3.3yrs

Average Tenure

49yo

Average Age

Experienced Management: CHRW's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Wiehoff
Executive Chairman of the Board13.17yrsUS$773.80k0.088% $7.5m
Robert Biesterfeld
CEO & Director0.83yrUS$5.07m0.0030% $253.4k
Wayne Fortun
Independent Director18.67yrsUS$267.50k0.030% $2.6m
Mary J. Guilfoile
Independent Director7.42yrsUS$255.00k0.010% $869.9k
Brian Short
Independent Director17.25yrsUS$260.00k0.046% $3.9m
James Stake
Independent Director11.17yrsUS$277.50k0.016% $1.4m
Timothy Gokey
Independent Director2.42yrsUS$260.00k0.0049% $423.0k
Scott Anderson
Lead Independent Director0.83yrUS$288.56k0.014% $1.2m
Jodeen Kozlak
Independent Director7yrsUS$255.00k0.011% $929.8k
Paula Tolliver
Independent Director1.42yrsUS$260.00k0.0029% $246.6k

7.2yrs

Average Tenure

57.5yo

Average Age

Experienced Board: CHRW's board of directors are considered experienced (7.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CHRW insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

C.H. Robinson Worldwide, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: C.H. Robinson Worldwide, Inc.
  • Ticker: CHRW
  • Exchange: NasdaqGS
  • Founded: 1905
  • Industry: Air Freight and Logistics
  • Sector: Transportation
  • Market Cap: US$8.562b
  • Shares outstanding: 131.34m
  • Website: https://www.chrobinson.com

Number of Employees


Location

  • C.H. Robinson Worldwide, Inc.
  • 14701 Charlson Road
  • Eden Prairie
  • Minnesota
  • 55347
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHRWNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 1997
CH1ADB (Deutsche Boerse AG)YesCommon StockDEEUROct 1997
0HQWLSE (London Stock Exchange)YesCommon StockGBUSDOct 1997
C1HR34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

Biography

C.H. Robinson Worldwide, Inc., a third party logistics company, provides freight transportation services and logistics solutions to companies in various industries worldwide. The company operates through North American Surface Transportation and Global Forwarding segments. It offers transportation and logistics services, such as truckload; less than truckload transportation, which include the shipment of single or multiple pallets of freight; intermodal transportation that include the shipment service of freight in trailers or containers by a combination of truck and rail; and non-vessel ocean common carrier or freight forwarding services, as well as organizes air shipments and offers door-to-door services. The company also provides custom broker services; and other logistics services, including fee-based managed, warehousing, small parcel, and other services. It has contractual relationships with approximately 78,000 transportation companies, including motor carriers, railroads, and air and ocean carriers. In addition, the company is involved in buying, selling, and marketing fresh produce, including fresh fruits, vegetables, and other perishable items under the Robinson Fresh name. Further, it provides transportation management services or managed TMS; and other surface transportation services across Europe. The company offers its fresh produce to grocery retailers, restaurants, produce wholesalers, and foodservice distributors through a network of independent produce growers and suppliers. C.H. Robinson Worldwide, Inc. was founded in 1905 and is headquartered in Eden Prairie, Minnesota. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 00:53
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.