C.H. ROBINSON WORLDWIDE INC (CHRW) Stock Fundamental Analysis
NASDAQ:CHRW - Nasdaq - US12541W2098 - Common Stock
Overall CHRW gets a fundamental rating of 6 out of 10. We evaluated CHRW against 21 industry peers in the Air Freight & Logistics industry. While CHRW has a great profitability rating, there are some minor concerns on its financial health. CHRW has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CHRW was profitable.
CHRW had a positive operating cash flow in the past year.
Each year in the past 5 years CHRW has been profitable.
CHRW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CHRW's Return On Assets of 6.19% is fine compared to the rest of the industry. CHRW outperforms 78.95% of its industry peers.
CHRW has a better Return On Equity (21.18%) than 84.21% of its industry peers.
CHRW has a Return On Invested Capital of 14.63%. This is amongst the best in the industry. CHRW outperforms 89.47% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CHRW is significantly above the industry average of 10.93%.
The 3 year average ROIC (24.32%) for CHRW is well above the current ROIC(14.63%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.19% | ||
| ROE | 21.18% | ||
| ROIC | 14.63% |
ROA(3y)11.34%
ROA(5y)11.26%
ROE(3y)44.73%
ROE(5y)39.13%
ROIC(3y)24.32%
ROIC(5y)21.77%
1.3 Margins
CHRW's Profit Margin of 1.96% is fine compared to the rest of the industry. CHRW outperforms 63.16% of its industry peers.
In the last couple of years the Profit Margin of CHRW has declined.
The Operating Margin of CHRW (3.52%) is better than 63.16% of its industry peers.
CHRW's Operating Margin has declined in the last couple of years.
CHRW has a Gross Margin (15.20%) which is in line with its industry peers.
In the last couple of years the Gross Margin of CHRW has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.52% | ||
| PM (TTM) | 1.96% | ||
| GM | 15.2% |
OM growth 3Y-10.03%
OM growth 5Y-11.22%
PM growth 3Y-16.04%
PM growth 5Y-14.31%
GM growth 3Y-0.18%
GM growth 5Y-1.87%
2. Health
2.1 Basic Checks
CHRW has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
CHRW has more shares outstanding than it did 1 year ago.
CHRW has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CHRW has an improved debt to assets ratio.
2.2 Solvency
CHRW has an Altman-Z score of 7.07. This indicates that CHRW is financially healthy and has little risk of bankruptcy at the moment.
CHRW has a Altman-Z score of 7.07. This is amongst the best in the industry. CHRW outperforms 89.47% of its industry peers.
The Debt to FCF ratio of CHRW is 7.85, which is on the high side as it means it would take CHRW, 7.85 years of fcf income to pay off all of its debts.
CHRW has a better Debt to FCF ratio (7.85) than 63.16% of its industry peers.
A Debt/Equity ratio of 0.89 indicates that CHRW is somewhat dependend on debt financing.
The Debt to Equity ratio of CHRW (0.89) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 7.85 | ||
| Altman-Z | 7.07 |
ROIC/WACC1.67
WACC8.76%
2.3 Liquidity
CHRW has a Current Ratio of 1.49. This is a normal value and indicates that CHRW is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CHRW (1.49) is better than 73.68% of its industry peers.
A Quick Ratio of 1.49 indicates that CHRW should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.49, CHRW is doing good in the industry, outperforming 78.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
CHRW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.07%.
Measured over the past years, CHRW shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.40% on average per year.
Looking at the last year, CHRW shows a decrease in Revenue. The Revenue has decreased by -3.68% in the last year.
The Revenue has been growing slightly by 1.13% on average over the past years.
EPS 1Y (TTM)1.07%
EPS 3Y-4.61%
EPS 5Y-7.4%
EPS Q2Q%52.38%
Revenue 1Y (TTM)-3.68%
Revenue growth 3Y2.78%
Revenue growth 5Y1.13%
Sales Q2Q%6.99%
3.2 Future
Based on estimates for the next years, CHRW will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.59% on average per year.
Based on estimates for the next years, CHRW will show a small growth in Revenue. The Revenue will grow by 2.47% on average per year.
EPS Next Y39.49%
EPS Next 2Y24.62%
EPS Next 3Y20.73%
EPS Next 5Y14.59%
Revenue Next Year1.34%
Revenue Next 2Y1.75%
Revenue Next 3Y2.68%
Revenue Next 5Y2.47%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 27.81, which means the current valuation is very expensive for CHRW.
Compared to the rest of the industry, the Price/Earnings ratio of CHRW is on the same level as its industry peers.
CHRW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 21.07, which indicates a rather expensive current valuation of CHRW.
The rest of the industry has a similar Price/Forward Earnings ratio as CHRW.
When comparing the Price/Forward Earnings ratio of CHRW to the average of the S&P500 Index (24.44), we can say CHRW is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.81 | ||
| Fwd PE | 21.07 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CHRW.
CHRW's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.83 | ||
| EV/EBITDA | 19.26 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of CHRW may justify a higher PE ratio.
A more expensive valuation may be justified as CHRW's earnings are expected to grow with 20.73% in the coming years.
PEG (NY)0.7
PEG (5Y)N/A
EPS Next 2Y24.62%
EPS Next 3Y20.73%
5. Dividend
5.1 Amount
CHRW has a Yearly Dividend Yield of 2.42%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.64, CHRW pays a better dividend. On top of this CHRW pays more dividend than 89.47% of the companies listed in the same industry.
CHRW's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
5.2 History
The dividend of CHRW has a limited annual growth rate of 5.48%.
CHRW has paid a dividend for at least 10 years, which is a reliable track record.
CHRW has decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.48%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
84.33% of the earnings are spent on dividend by CHRW. This is not a sustainable payout ratio.
The dividend of CHRW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP84.33%
EPS Next 2Y24.62%
EPS Next 3Y20.73%
C.H. ROBINSON WORLDWIDE INC
NASDAQ:CHRW (1/21/2025, 8:00:00 PM)
After market: 105.39 0 (0%)105.39
+1.81 (+1.75%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners96.08%
Inst Owner Change0.06%
Ins Owners0.84%
Ins Owner Change-1.95%
Market Cap12.46B
Analysts69.38
Price Target117.24 (11.24%)
Short Float %4.14%
Short Ratio4.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
Yearly Dividend2.5
Dividend Growth(5Y)5.48%
DP84.33%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.58%
Min EPS beat(2)9.57%
Max EPS beat(2)17.6%
EPS beat(4)3
Avg EPS beat(4)5.75%
Min EPS beat(4)-39.41%
Max EPS beat(4)35.25%
EPS beat(8)4
Avg EPS beat(8)-1.18%
EPS beat(12)6
Avg EPS beat(12)2.09%
EPS beat(16)10
Avg EPS beat(16)5.96%
Revenue beat(2)1
Avg Revenue beat(2)-1.21%
Min Revenue beat(2)-3.02%
Max Revenue beat(2)0.6%
Revenue beat(4)2
Avg Revenue beat(4)-1.44%
Min Revenue beat(4)-4.68%
Max Revenue beat(4)1.34%
Revenue beat(8)2
Avg Revenue beat(8)-4.24%
Revenue beat(12)4
Avg Revenue beat(12)-2.32%
Revenue beat(16)8
Avg Revenue beat(16)0.59%
PT rev (1m)4.33%
PT rev (3m)17.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)21.5%
EPS NY rev (1m)0%
EPS NY rev (3m)5.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.81 | ||
| Fwd PE | 21.07 | ||
| P/S | 0.7 | ||
| P/FCF | 60.83 | ||
| P/OCF | 44.49 | ||
| P/B | 7.6 | ||
| P/tB | 76.72 | ||
| EV/EBITDA | 19.26 |
EPS(TTM)3.79
EY3.6%
EPS(NY)5
Fwd EY4.75%
FCF(TTM)1.73
FCFY1.64%
OCF(TTM)2.37
OCFY2.25%
SpS150.26
BVpS13.87
TBVpS1.37
PEG (NY)0.7
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.19% | ||
| ROE | 21.18% | ||
| ROCE | 18.53% | ||
| ROIC | 14.63% | ||
| ROICexc | 15.22% | ||
| ROICexgc | 27.64% | ||
| OM | 3.52% | ||
| PM (TTM) | 1.96% | ||
| GM | 15.2% | ||
| FCFM | 1.15% |
ROA(3y)11.34%
ROA(5y)11.26%
ROE(3y)44.73%
ROE(5y)39.13%
ROIC(3y)24.32%
ROIC(5y)21.77%
ROICexc(3y)26.15%
ROICexc(5y)23.77%
ROICexgc(3y)62.58%
ROICexgc(5y)54.66%
ROCE(3y)31.38%
ROCE(5y)28.02%
ROICexcg growth 3Y-7.24%
ROICexcg growth 5Y-12.38%
ROICexc growth 3Y-6.99%
ROICexc growth 5Y-12.58%
OM growth 3Y-10.03%
OM growth 5Y-11.22%
PM growth 3Y-16.04%
PM growth 5Y-14.31%
GM growth 3Y-0.18%
GM growth 5Y-1.87%
F-Score4
Asset Turnover3.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 7.85 | ||
| Debt/EBITDA | 2.02 | ||
| Cap/Depr | 78.37% | ||
| Cap/Sales | 0.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 38.84% | ||
| Profit Quality | 58.96% | ||
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z | 7.07 |
F-Score4
WACC8.76%
ROIC/WACC1.67
Cap/Depr(3y)100.37%
Cap/Depr(5y)84.88%
Cap/Sales(3y)0.44%
Cap/Sales(5y)0.42%
Profit Quality(3y)121.27%
Profit Quality(5y)116.87%
High Growth Momentum
Growth
EPS 1Y (TTM)1.07%
EPS 3Y-4.61%
EPS 5Y-7.4%
EPS Q2Q%52.38%
EPS Next Y39.49%
EPS Next 2Y24.62%
EPS Next 3Y20.73%
EPS Next 5Y14.59%
Revenue 1Y (TTM)-3.68%
Revenue growth 3Y2.78%
Revenue growth 5Y1.13%
Sales Q2Q%6.99%
Revenue Next Year1.34%
Revenue Next 2Y1.75%
Revenue Next 3Y2.68%
Revenue Next 5Y2.47%
EBIT growth 1Y6.16%
EBIT growth 3Y-7.53%
EBIT growth 5Y-10.22%
EBIT Next Year44.42%
EBIT Next 3Y20%
EBIT Next 5Y12.56%
FCF growth 1Y-75.43%
FCF growth 3Y13.32%
FCF growth 5Y-2.33%
OCF growth 1Y-70.61%
OCF growth 3Y13.61%
OCF growth 5Y-1.59%