C.H. ROBINSON WORLDWIDE INC (CHRW)
US12541W2098 - Common Stock
Overall CHRW gets a fundamental rating of 6 out of 10. We evaluated CHRW against 20 industry peers in the Air Freight & Logistics industry. While CHRW belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CHRW has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CHRW was profitable.
CHRW had a positive operating cash flow in the past year.
In the past 5 years CHRW has always been profitable.
Each year in the past 5 years CHRW had a positive operating cash flow.
1.2 Ratios
CHRW has a better Return On Assets (6.19%) than 78.95% of its industry peers.
The Return On Equity of CHRW (21.18%) is better than 84.21% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.63%, CHRW belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
CHRW had an Average Return On Invested Capital over the past 3 years of 24.32%. This is significantly above the industry average of 10.92%.
The last Return On Invested Capital (14.63%) for CHRW is well below the 3 year average (24.32%), which needs to be investigated, but indicates that CHRW had better years and this may not be a problem.
| 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 has a Profit Margin of 1.96%. This is in the better half of the industry: CHRW outperforms 63.16% of its industry peers.
In the last couple of years the Profit Margin of CHRW has declined.
CHRW has a Operating Margin of 3.52%. This is in the better half of the industry: CHRW outperforms 63.16% of its industry peers.
In the last couple of years the Operating Margin of CHRW has declined.
CHRW has a Gross Margin of 15.20%. This is comparable to the rest of the industry: CHRW outperforms 42.11% of 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.
The number of shares outstanding for CHRW has been reduced compared to 5 years ago.
The debt/assets ratio for CHRW has been reduced compared to a year ago.
2.2 Solvency
CHRW has an Altman-Z score of 7.05. This indicates that CHRW is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CHRW (7.05) is better than 89.47% of its industry peers.
CHRW has a debt to FCF ratio of 7.85. This is a slightly negative value and a sign of low solvency as CHRW would need 7.85 years to pay back of all of its debts.
CHRW has a Debt to FCF ratio of 7.85. This is in the better half of the industry: CHRW outperforms 63.16% of its industry peers.
CHRW has a Debt/Equity ratio of 0.89. This is a neutral value indicating CHRW is somewhat dependend on debt financing.
CHRW's Debt to Equity ratio of 0.89 is in line compared to the rest of the industry. CHRW outperforms 42.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 7.85 | ||
| Altman-Z | 7.05 |
ROIC/WACC1.69
WACC8.67%
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.
CHRW's Current ratio of 1.49 is fine compared to the rest of the industry. CHRW outperforms 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
The Earnings Per Share has been growing slightly by 1.07% over the past year.
CHRW shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.40% yearly.
CHRW shows a decrease in Revenue. In the last year, the revenue decreased by -3.68%.
CHRW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.13% yearly.
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
The Earnings Per Share is expected to grow by 10.92% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.98% on average over the next years.
EPS Next Y39.49%
EPS Next 2Y24.62%
EPS Next 3Y20.73%
EPS Next 5Y10.92%
Revenue Next Year1.5%
Revenue Next 2Y1.75%
Revenue Next 3Y2.57%
Revenue Next 5Y3.98%
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
CHRW is valuated quite expensively with a Price/Earnings ratio of 27.53.
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 (27.20), we can say CHRW is valued inline with the index average.
The Price/Forward Earnings ratio is 20.86, which indicates a rather expensive current valuation of CHRW.
CHRW's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.73, CHRW is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.53 | ||
| Fwd PE | 20.86 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.22 | ||
| EV/EBITDA | 19.09 |
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.
CHRW's earnings are expected to grow with 20.73% in the coming years. This may justify a more expensive valuation.
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 2.36%.
Compared to an average industry Dividend Yield of 2.83, CHRW pays a better dividend. On top of this CHRW pays more dividend than 89.47% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, CHRW has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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
CHRW pays out 84.33% of its income as dividend. This is not a sustainable payout ratio.
CHRW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP84.33%
EPS Next 2Y24.62%
EPS Next 3Y20.73%
C.H. ROBINSON WORLDWIDE INC
NASDAQ:CHRW (12/20/2024, 8:02:20 PM)
After market: 104.34 0 (0%)104.34
-0.66 (-0.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners96.08%
Inst Owner Change-0.14%
Ins Owners0.84%
Ins Owner Change-2.06%
Market Cap12.33B
Analysts68.75
Price Target112.37 (7.7%)
Short Float %4.04%
Short Ratio3.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
Dividend Growth(5Y)5.48%
DP84.33%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)5.62%
PT rev (3m)14%
EPS NQ rev (1m)0.78%
EPS NQ rev (3m)21.5%
EPS NY rev (1m)0.53%
EPS NY rev (3m)5.8%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.53 | ||
| Fwd PE | 20.86 | ||
| P/S | 0.69 | ||
| P/FCF | 60.22 | ||
| P/OCF | 44.05 | ||
| P/B | 7.52 | ||
| P/tB | 75.96 | ||
| EV/EBITDA | 19.09 |
EPS(TTM)3.79
EY3.63%
EPS(NY)5
Fwd EY4.79%
FCF(TTM)1.73
FCFY1.66%
OCF(TTM)2.37
OCFY2.27%
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 | 7.05 |
F-Score4
WACC8.67%
ROIC/WACC1.69
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 5Y10.92%
Revenue 1Y (TTM)-3.68%
Revenue growth 3Y2.78%
Revenue growth 5Y1.13%
Sales Q2Q%6.99%
Revenue Next Year1.5%
Revenue Next 2Y1.75%
Revenue Next 3Y2.57%
Revenue Next 5Y3.98%
EBIT growth 1Y6.16%
EBIT growth 3Y-7.53%
EBIT growth 5Y-10.22%
EBIT Next Year44.35%
EBIT Next 3Y17.58%
EBIT Next 5Y10.42%
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%