C.H. ROBINSON WORLDWIDE INC (CHRW) Stock Fundamental Analysis
NASDAQ:CHRW - Nasdaq - US12541W2098 - Common Stock - Currency: USD
Overall CHRW gets a fundamental rating of 5 out of 10. We evaluated CHRW against 23 industry peers in the Air Freight & Logistics industry. CHRW scores excellent on profitability, but there are some minor concerns on its financial health. CHRW is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
CHRW had positive earnings in the past year.
In the past year CHRW had a positive cash flow from operations.
In the past 5 years CHRW has always been profitable.
CHRW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 8.79%, CHRW belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
CHRW's Return On Equity of 27.04% is amongst the best of the industry. CHRW outperforms 84.21% of its industry peers.
CHRW's Return On Invested Capital of 18.86% is amongst the best of 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 11.36%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.79% | ||
| ROE | 27.04% | ||
| ROIC | 18.86% |
ROA(3y)10.27%
ROA(5y)10.53%
ROE(3y)39.83%
ROE(5y)37.63%
ROIC(3y)22.71%
ROIC(5y)21.34%
1.3 Margins
CHRW has a better Profit Margin (2.63%) than 68.42% of its industry peers.
In the last couple of years the Profit Margin of CHRW has declined.
CHRW has a better Operating Margin (3.96%) than 63.16% of its industry peers.
In the last couple of years the Operating Margin of CHRW has declined.
CHRW has a Gross Margin (15.60%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CHRW has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.96% | ||
| PM (TTM) | 2.63% | ||
| GM | 15.6% |
OM growth 3Y-6.94%
OM growth 5Y-6.06%
PM growth 3Y-10.41%
PM growth 5Y-6.96%
GM growth 3Y4.57%
GM growth 5Y-1.58%
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.
Compared to 5 years ago, CHRW has less shares outstanding
CHRW has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of CHRW is 3.25, which is a good value as it means it would take CHRW, 3.25 years of fcf income to pay off all of its debts.
CHRW has a better Debt to FCF ratio (3.25) than 73.68% of its industry peers.
CHRW has a Debt/Equity ratio of 0.54. This is a neutral value indicating CHRW is somewhat dependend on debt financing.
CHRW has a Debt to Equity ratio (0.54) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.25 | ||
| Altman-Z | N/A |
ROIC/WACC2.22
WACC8.49%
2.3 Liquidity
A Current Ratio of 1.28 indicates that CHRW should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.28, CHRW is doing good in the industry, outperforming 63.16% of the companies in the same industry.
CHRW has a Quick Ratio of 1.28. This is a normal value and indicates that CHRW is financially healthy and should not expect problems in meeting its short term obligations.
CHRW's Quick ratio of 1.28 is fine compared to the rest of the industry. CHRW outperforms 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 39.75% over the past year.
The Earnings Per Share has been growing slightly by 1.49% on average over the past years.
The Revenue has been growing slightly by 0.73% in the past year.
CHRW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.97% yearly.
EPS 1Y (TTM)39.75%
EPS 3Y-10.66%
EPS 5Y1.49%
EPS Q2Q%142%
Revenue 1Y (TTM)0.73%
Revenue growth 3Y-8.45%
Revenue growth 5Y2.97%
Sales Q2Q%-0.88%
3.2 Future
The Earnings Per Share is expected to grow by 9.04% on average over the next years. This is quite good.
Based on estimates for the next years, CHRW will show a small growth in Revenue. The Revenue will grow by 2.76% on average per year.
EPS Next Y9.92%
EPS Next 2Y14.06%
EPS Next 3Y9.7%
EPS Next 5Y9.04%
Revenue Next Year-1.04%
Revenue Next 2Y1.77%
Revenue Next 3Y2.17%
Revenue Next 5Y2.76%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
CHRW is valuated rather expensively with a Price/Earnings ratio of 22.42.
CHRW's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of CHRW to the average of the S&P500 Index (29.63), we can say CHRW is valued slightly cheaper.
With a Price/Forward Earnings ratio of 20.40, CHRW is valued on the expensive side.
68.42% of the companies in the same industry are more expensive than CHRW, based on the Price/Forward Earnings ratio.
CHRW is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.42 | ||
| Fwd PE | 20.4 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CHRW is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CHRW is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.09 | ||
| EV/EBITDA | 16.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CHRW has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.26
PEG (5Y)15.08
EPS Next 2Y14.06%
EPS Next 3Y9.7%
5. Dividend
5.1 Amount
CHRW has a Yearly Dividend Yield of 2.51%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.82, 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 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
5.2 History
The dividend of CHRW has a limited annual growth rate of 4.21%.
CHRW has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of CHRW decreased in the last 3 years.
Dividend Growth(5Y)4.21%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
CHRW pays out 63.30% of its income as dividend. This is not a sustainable payout ratio.
The dividend of CHRW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP63.3%
EPS Next 2Y14.06%
EPS Next 3Y9.7%
100.88
+0.46 (+0.46%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners96.08%
Inst Owner Change2.42%
Ins Owners0.84%
Ins Owner Change2.4%
Market Cap11.93B
Analysts72.26
Price Target118.66 (17.62%)
Short Float %4.55%
Short Ratio4.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
Yearly Dividend2.51
Dividend Growth(5Y)4.21%
DP63.3%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.09%
Min EPS beat(2)6.62%
Max EPS beat(2)9.57%
EPS beat(4)4
Avg EPS beat(4)17.26%
Min EPS beat(4)6.62%
Max EPS beat(4)35.25%
EPS beat(8)5
Avg EPS beat(8)2.98%
EPS beat(12)7
Avg EPS beat(12)3.3%
EPS beat(16)10
Avg EPS beat(16)5.81%
Revenue beat(2)1
Avg Revenue beat(2)-3.39%
Min Revenue beat(2)-7.38%
Max Revenue beat(2)0.6%
Revenue beat(4)2
Avg Revenue beat(4)-2.12%
Min Revenue beat(4)-7.38%
Max Revenue beat(4)1.34%
Revenue beat(8)2
Avg Revenue beat(8)-3.59%
Revenue beat(12)3
Avg Revenue beat(12)-3.14%
Revenue beat(16)7
Avg Revenue beat(16)-0.27%
PT rev (1m)1.21%
PT rev (3m)11.53%
EPS NQ rev (1m)2.5%
EPS NQ rev (3m)34.09%
EPS NY rev (1m)-1.09%
EPS NY rev (3m)1.85%
Revenue NQ rev (1m)-3.51%
Revenue NQ rev (3m)-4.22%
Revenue NY rev (1m)-3.14%
Revenue NY rev (3m)-3.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.42 | ||
| Fwd PE | 20.4 | ||
| P/S | 0.67 | ||
| P/FCF | 28.09 | ||
| P/OCF | 23.91 | ||
| P/B | 6.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.4 |
EPS(TTM)4.5
EY4.46%
EPS(NY)4.95
Fwd EY4.9%
FCF(TTM)3.59
FCFY3.56%
OCF(TTM)4.22
OCFY4.18%
SpS149.94
BVpS14.57
TBVpS-1.22
PEG (NY)2.26
PEG (5Y)15.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.79% | ||
| ROE | 27.04% | ||
| ROCE | 23.6% | ||
| ROIC | 18.86% | ||
| ROICexc | 19.84% | ||
| ROICexgc | 58.37% | ||
| OM | 3.96% | ||
| PM (TTM) | 2.63% | ||
| GM | 15.6% | ||
| FCFM | 2.39% |
ROA(3y)10.27%
ROA(5y)10.53%
ROE(3y)39.83%
ROE(5y)37.63%
ROIC(3y)22.71%
ROIC(5y)21.34%
ROICexc(3y)24.29%
ROICexc(5y)22.87%
ROICexgc(3y)65.92%
ROICexgc(5y)55.86%
ROCE(3y)29.14%
ROCE(5y)27.4%
ROICexcg growth 3Y7.04%
ROICexcg growth 5Y2.46%
ROICexc growth 3Y-8.08%
ROICexc growth 5Y-4.04%
OM growth 3Y-6.94%
OM growth 5Y-6.06%
PM growth 3Y-10.41%
PM growth 5Y-6.96%
GM growth 3Y4.57%
GM growth 5Y-1.58%
F-Score6
Asset Turnover3.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.25 | ||
| Debt/EBITDA | 1.15 | ||
| Cap/Depr | 76.46% | ||
| Cap/Sales | 0.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.44% | ||
| Profit Quality | 91.15% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | N/A |
F-Score6
WACC8.49%
ROIC/WACC2.22
Cap/Depr(3y)99.97%
Cap/Depr(5y)86.13%
Cap/Sales(3y)0.47%
Cap/Sales(5y)0.41%
Profit Quality(3y)150.71%
Profit Quality(5y)108.59%
High Growth Momentum
Growth
EPS 1Y (TTM)39.75%
EPS 3Y-10.66%
EPS 5Y1.49%
EPS Q2Q%142%
EPS Next Y9.92%
EPS Next 2Y14.06%
EPS Next 3Y9.7%
EPS Next 5Y9.04%
Revenue 1Y (TTM)0.73%
Revenue growth 3Y-8.45%
Revenue growth 5Y2.97%
Sales Q2Q%-0.88%
Revenue Next Year-1.04%
Revenue Next 2Y1.77%
Revenue Next 3Y2.17%
Revenue Next 5Y2.76%
EBIT growth 1Y31.9%
EBIT growth 3Y-14.8%
EBIT growth 5Y-3.27%
EBIT Next Year18.86%
EBIT Next 3Y10.78%
EBIT Next 5Y8.56%
FCF growth 1Y-34.48%
FCF growth 3Y160.19%
FCF growth 5Y-11.11%
OCF growth 1Y-31.86%
OCF growth 3Y73.8%
OCF growth 5Y-9.8%