C.H. Robinson Worldwide (NasdaqGS:CHRW) - Share price, News & Analysis

Q: What is the Fair Price of CHRW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

CHRW ($117.55) is trading below our estimate of [[fair value]] ($137.7)

CHRW fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	1/6
Past Performance	3/6
Financial Health	3/6
Dividends	4/6

CHRW Stock Overview

C.H. Robinson Worldwide, Inc., together with its subsidiaries, provides freight transportation services and logistics solutions to companies in various industries worldwide.

Rewards

Trading at 14.6% below our estimate of its fair value

Earnings have grown 10.7% per year over the past 5 years

Risk Analysis

Earnings are forecast to decline by an average of 12.2% per year for the next 3 years

Debt is not well covered by operating cash flow

High level of non-cash earnings

Dividend of 1.87% is not well covered by earnings

+ 1 more risk

C.H. Robinson Worldwide Competitors

ZTO Express (Cayman)

NYSE:ZTO

US$21.7b

Expeditors International of Washington

NasdaqGS:EXPD

US$17.7b

GXO Logistics

NYSE:GXO

US$5.9b

FedEx

NYSE:FDX

US$61.9b

Price History & Performance

Summary of all time highs, changes and price drops for C.H. Robinson Worldwide
Historical stock prices
Current Share Price	US$117.55
52 Week High	US$118.99
52 Week Low	US$85.80
Beta	0.76
1 Month Change	19.36%
3 Month Change	13.94%
1 Year Change	28.53%
3 Year Change	39.66%
5 Year Change	75.19%
Change since IPO	1,989.78%

Recent News & Updates

Aug 12

C.H. Robinson ticks up on report that DSV interested in U.S. acquisitions

C.H. Robinson (NASDAQ:CHRW) ticked up 0.2% on a report that said Denmark's DSV A/S (OTCPK:DSDVF) is interested in making acquisitions in the U.S. While DSV CEO Jens Bjorn Andersen declined to comment on Reuters report about potential interest for the CHRW global forwarding unit, he told the WSJ that the company is interested in making purchases in the U.S. Andersen made the comments to WSJ in an interview this month. DSV is said to have met with a small group of investors in June and explained it's interested in acquiring the C.H. Robinson (CHRW) forwarding business, according to the Reuters report from mid June. The unit may be worth as much as $9 billion in a sale. DSV isn't interest in acquiring all of CHRW or its freight brokerage business. Recall June, Potential DSV, C.H. Robinson deal viewed as ‘logical’, but risky by Morgan Stanley.

Shareholder Returns

	CHRW	US Logistics	US Market
7D	5.0%	5.0%	4.5%
1Y	28.5%	-0.9%	-8.9%

Return vs Industry: CHRW exceeded the US Logistics industry which returned -1.8% over the past year.

Return vs Market: CHRW exceeded the US Market which returned -9.6% over the past year.

Price Volatility

Is CHRW's price volatile compared to industry and market?
CHRW volatility
CHRW Average Weekly Movement	4.8%
Logistics Industry Average Movement	6.6%
Market Average Movement	7.6%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.1%

Stable Share Price: CHRW is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CHRW's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1905	17,258	Bob Biesterfeld	https://www.chrobinson.com

C.H. Robinson Worldwide, Inc., together with its subsidiaries, provides freight transportation services and logistics solutions to companies in various industries worldwide. The company operates in two segments, North American Surface Transportation and Global Forwarding. It offers transportation and logistics services, such as truckload; less than truckload transportation brokerage services, which include the shipment of single or multiple pallets of freight; intermodal transportation that comprise the shipment service of freight in containers or trailers by a combination of truck and rail; and non-vessel ocean common carrier and freight forwarding services, as well as organizes air shipments and provides door-to-door services.

C.H. Robinson Worldwide Fundamentals Summary

How do C.H. Robinson Worldwide's earnings and revenue compare to its market cap?
CHRW fundamental statistics
Market Cap	US$14.56b
Earnings (TTM)	US$1.10b
Revenue (TTM)	US$26.38b

13.3x

P/E Ratio

0.6x

P/S Ratio

Is CHRW overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CHRW income statement (TTM)
Revenue	US$26.38b
Cost of Revenue	US$24.42b
Gross Profit	US$1.96b
Other Expenses	US$864.66m
Earnings	US$1.10b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	8.84
Gross Margin	7.43%
Net Profit Margin	4.15%
Debt/Equity Ratio	110.5%

How did CHRW perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

26%

Payout Ratio

Does CHRW pay a reliable dividends?

See CHRW dividend history and benchmarks

When do you need to buy CHRW by to receive an upcoming dividend?
C.H. Robinson Worldwide dividend dates
Ex Dividend Date	Sep 01 2022
Dividend Pay Date	Oct 03 2022
Days until Ex dividend	14 days
Days until Dividend pay date	46 days

Does CHRW pay a reliable dividends?

See CHRW dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is CHRW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CHRW?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for CHRW. This is calculated by dividing CHRW's market cap by their current preferred multiple.
What is CHRW's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$14.56b

CHRW key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.6x
Enterprise Value/EBITDA	11.5x
PEG Ratio	-1.1x

Price to Earnings Ratio vs Peers

How does CHRW's PE Ratio compare to its peers?

CHRW PE Ratio vs Peers

The above table shows the PE ratio for CHRW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	20.9x
ZTO ZTO Express (Cayman)	28.8x	23.2%	US$21.7b
EXPD Expeditors International of Washington	11.5x	-11.4%	US$17.7b
GXO GXO Logistics	27.1x	23.1%	US$5.9b
FDX FedEx	16.2x	15.8%	US$61.9b
CHRW C.H. Robinson Worldwide	13.3x	-12.2%	US$14.6b

Price-To-Earnings vs Peers: CHRW is good value based on its Price-To-Earnings Ratio (13.3x) compared to the peer average (20.9x).

Price to Earnings Ratio vs Industry

How does CHRW's PE Ratio compare vs other companies in the Global Logistics Industry?

Price-To-Earnings vs Industry: CHRW is expensive based on its Price-To-Earnings Ratio (13.3x) compared to the US Logistics industry average (12.4x)

Price to Earnings Ratio vs Fair Ratio

What is CHRW's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CHRW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	13.3x
Fair PE Ratio	10x

Price-To-Earnings vs Fair Ratio: CHRW is expensive based on its Price-To-Earnings Ratio (13.3x) compared to the estimated Fair Price-To-Earnings Ratio (10x).

Share Price vs Fair Value

What is the Fair Price of CHRW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CHRW ($117.55) is trading below our estimate of fair value ($137.7)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is lower than the current share price.

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Future Growth

How is C.H. Robinson Worldwide forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-12.2%

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 (-12.2% per year).

Earnings vs Market: CHRW's earnings are forecast to decline over the next 3 years (-12.2% per year).

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

Revenue vs Market: CHRW's revenue is expected to decline over the next 3 years (-3.9% per year).

High Growth Revenue: CHRW's revenue is forecast to decline over the next 3 years (-3.9% 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 (28.9%)

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Past Performance

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

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

10.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CHRW has a high level of non-cash earnings.

Growing Profit Margin: CHRW's current net profit margins (4.2%) are higher than last year (3.4%).

Past Earnings Growth Analysis

Earnings Trend: CHRW's earnings have grown by 10.7% per year over the past 5 years.

Accelerating Growth: CHRW's earnings growth over the past year (68.2%) exceeds its 5-year average (10.7% per year).

Earnings vs Industry: CHRW earnings growth over the past year (68.2%) underperformed the Logistics industry 77.7%.

Return on Equity

High ROE: Whilst CHRW's Return on Equity (53.39%) is outstanding, this metric is skewed due to their high level of debt.

Discover strong past performing companies

Financial Health

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

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CHRW's short term assets ($5.2B) exceed its short term liabilities ($3.5B).

Long Term Liabilities: CHRW's short term assets ($5.2B) exceed its long term liabilities ($1.9B).

Debt to Equity History and Analysis

Debt Level: CHRW's net debt to equity ratio (98.9%) is considered high.

Reducing Debt: CHRW's debt to equity ratio has increased from 100.4% to 110.5% over the past 5 years.

Debt Coverage: CHRW's debt is not well covered by operating cash flow (11.2%).

Interest Coverage: CHRW's interest payments on its debt are well covered by EBIT (22.8x coverage).

Balance Sheet

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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

1.87%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: CHRW's dividend (1.87%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: CHRW's dividend (1.87%) is low compared to the top 25% of dividend payers in the US market (3.96%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (25.7%), CHRW's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (190.3%), CHRW's dividend payments are not well covered by cash flows.

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Management

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

4.2yrs

Average management tenure

CEO

Bob Biesterfeld (46 yo)

3.25yrs

Tenure

US$10,233,276

Compensation

Mr. Robert C. Biesterfeld, Jr., also known as Bob, has been the Chief Executive Officer and Director of C.H. Robinson Worldwide, Inc. since May 9, 2019 and serves as its President and served as its Chief O...

CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD10.23M) is about average for companies of similar size in the US market ($USD12.87M).

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

Leadership Team

Experienced Management: CHRW's management team is considered experienced (4.2 years average tenure).

Board Members

Experienced Board: CHRW's board of directors are considered experienced (3.8 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/16 00:00
End of Day Share Price	2022/08/16 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31