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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW), it is a financially-robust , dividend-paying company with a a strong track record of performance. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my broad commentary, read the full report on C.H. Robinson Worldwide here.
Excellent balance sheet established dividend payer
CHRW delivered a bottom-line expansion of 32% in the prior year, with its most recent earnings level surpassing its average level over the last five years. This illustrates a strong track record, leading to a satisfying return on equity of 42%. which is what investors like to see! CHRW’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. CHRW’s has produced operating cash levels of 0.59x total debt over the past year, which implies that CHRW’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For those seeking income streams from their portfolio, CHRW is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.2%.
For C.H. Robinson Worldwide, I’ve put together three fundamental factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for CHRW’s future growth? Take a look at our free research report of analyst consensus for CHRW’s outlook.
- Valuation: What is CHRW worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether CHRW is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CHRW? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.