C.H. ROBINSON WORLDWIDE INC (CHRW) Stock Fundamental Analysis
NASDAQ:CHRW - Nasdaq - US12541W2098 - Common Stock - Currency: USD
Overall CHRW gets a fundamental rating of 6 out of 10. We evaluated CHRW against 23 industry peers in the Air Freight & Logistics industry. CHRW scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CHRW has a decent growth rate and is not valued too expensively. With these ratings, CHRW could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year CHRW was profitable.
In the past year CHRW had a positive cash flow from operations.
CHRW had positive earnings in each of the past 5 years.
Each year in the past 5 years CHRW had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 8.79%, CHRW belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
Looking at the Return On Equity, with a value of 27.04%, CHRW belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 20.19%, CHRW belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CHRW is significantly above the industry average of 12.40%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.79% | ||
| ROE | 27.04% | ||
| ROIC | 20.19% |
ROA(3y)10.27%
ROA(5y)10.53%
ROE(3y)39.83%
ROE(5y)37.63%
ROIC(3y)23.45%
ROIC(5y)21.78%
1.3 Margins
The Profit Margin of CHRW (2.63%) is better than 69.57% of its industry peers.
In the last couple of years the Profit Margin of CHRW has declined.
The Operating Margin of CHRW (4.28%) is better than 69.57% of its industry peers.
In the last couple of years the Operating Margin of CHRW has declined.
CHRW has a Gross Margin of 15.60%. This is comparable to the rest of the industry: CHRW outperforms 43.48% of its industry peers.
CHRW's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.28% | ||
| PM (TTM) | 2.63% | ||
| GM | 15.6% |
OM growth 3Y-2.93%
OM growth 5Y-3.65%
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.
Compared to 1 year ago, CHRW has more shares outstanding
Compared to 5 years ago, CHRW has less shares outstanding
Compared to 1 year ago, CHRW has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.30 indicates that CHRW is not in any danger for bankruptcy at the moment.
CHRW's Altman-Z score of 7.30 is amongst the best of the industry. CHRW outperforms 91.30% of its industry peers.
The Debt to FCF ratio of CHRW is 3.33, which is a good value as it means it would take CHRW, 3.33 years of fcf income to pay off all of its debts.
CHRW has a Debt to FCF ratio of 3.33. This is amongst the best in the industry. CHRW outperforms 82.61% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that CHRW is somewhat dependend on debt financing.
CHRW has a Debt to Equity ratio of 0.55. This is comparable to the rest of the industry: CHRW outperforms 52.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 3.33 | ||
| Altman-Z | 7.3 |
ROIC/WACC2.4
WACC8.42%
2.3 Liquidity
CHRW has a Current 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.
Looking at the Current ratio, with a value of 1.28, CHRW is in line with its industry, outperforming 56.52% 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.
The Quick ratio of CHRW (1.28) is better than 60.87% 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.
CHRW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.49% yearly.
CHRW shows a small growth in Revenue. In the last year, the Revenue has grown by 0.73%.
Measured over the past years, CHRW shows a small growth in Revenue. The Revenue has been growing by 2.97% on average per year.
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
Based on estimates for the next years, CHRW will show a small growth in Earnings Per Share. The EPS will grow by 7.11% on average per year.
CHRW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.87% yearly.
EPS Next Y10.82%
EPS Next 2Y13.92%
EPS Next 3Y10.07%
EPS Next 5Y7.11%
Revenue Next Year-1.22%
Revenue Next 2Y1.66%
Revenue Next 3Y2.34%
Revenue Next 5Y3.87%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.25, CHRW is valued on the expensive side.
CHRW's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.29, CHRW is valued a bit cheaper.
A Price/Forward Earnings ratio of 18.28 indicates a rather expensive valuation of CHRW.
CHRW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CHRW is cheaper than 73.91% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CHRW to the average of the S&P500 Index (21.08), we can say CHRW is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.25 | ||
| Fwd PE | 18.28 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CHRW.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CHRW indicates a somewhat cheap valuation: CHRW is cheaper than 69.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.38 | ||
| EV/EBITDA | 14.02 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of CHRW may justify a higher PE ratio.
PEG (NY)1.87
PEG (5Y)13.63
EPS Next 2Y13.92%
EPS Next 3Y10.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.75%, CHRW has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.11, CHRW pays a better dividend. On top of this CHRW pays more dividend than 86.96% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.57, CHRW has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
5.2 History
The dividend of CHRW has a limited annual growth rate of 4.17%.
CHRW has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of CHRW decreased in the last 3 years.
Dividend Growth(5Y)4.17%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
63.30% 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.
DP63.3%
EPS Next 2Y13.92%
EPS Next 3Y10.07%
91.14
+1.28 (+1.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners95.97%
Inst Owner Change0%
Ins Owners0.89%
Ins Owner Change0.92%
Market Cap10.78B
Analysts72.73
Price Target116.73 (28.08%)
Short Float %4.77%
Short Ratio4.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
Yearly Dividend2.5
Dividend Growth(5Y)4.17%
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)-0.11%
PT rev (3m)-0.43%
EPS NQ rev (1m)-1.5%
EPS NQ rev (3m)0.69%
EPS NY rev (1m)0.82%
EPS NY rev (3m)-0.28%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-3.77%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-3.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.25 | ||
| Fwd PE | 18.28 | ||
| P/S | 0.61 | ||
| P/FCF | 25.38 | ||
| P/OCF | 21.6 | ||
| P/B | 6.26 | ||
| P/tB | 40.68 | ||
| EV/EBITDA | 14.02 |
EPS(TTM)4.5
EY4.94%
EPS(NY)4.99
Fwd EY5.47%
FCF(TTM)3.59
FCFY3.94%
OCF(TTM)4.22
OCFY4.63%
SpS149.92
BVpS14.57
TBVpS2.24
PEG (NY)1.87
PEG (5Y)13.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.79% | ||
| ROE | 27.04% | ||
| ROCE | 25.54% | ||
| ROIC | 20.19% | ||
| ROICexc | 21.21% | ||
| ROICexgc | 43.23% | ||
| OM | 4.28% | ||
| 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)23.45%
ROIC(5y)21.78%
ROICexc(3y)25.06%
ROICexc(5y)23.32%
ROICexgc(3y)62.88%
ROICexgc(5y)54.03%
ROCE(3y)30.15%
ROCE(5y)28.01%
ROICexcg growth 3Y0.83%
ROICexcg growth 5Y-1.15%
ROICexc growth 3Y-4.51%
ROICexc growth 5Y-1.82%
OM growth 3Y-2.93%
OM growth 5Y-3.65%
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 | 0.55 | ||
| Debt/FCF | 3.33 | ||
| Debt/EBITDA | 1.12 | ||
| Cap/Depr | 76.46% | ||
| Cap/Sales | 0.42% | ||
| Interest Coverage | 8.82 | ||
| Cash Conversion | 58.23% | ||
| Profit Quality | 91.15% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 7.3 |
F-Score6
WACC8.42%
ROIC/WACC2.4
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 Y10.82%
EPS Next 2Y13.92%
EPS Next 3Y10.07%
EPS Next 5Y7.11%
Revenue 1Y (TTM)0.73%
Revenue growth 3Y-8.45%
Revenue growth 5Y2.97%
Sales Q2Q%-0.88%
Revenue Next Year-1.22%
Revenue Next 2Y1.66%
Revenue Next 3Y2.34%
Revenue Next 5Y3.87%
EBIT growth 1Y42.74%
EBIT growth 3Y-11.13%
EBIT growth 5Y-0.79%
EBIT Next Year17.6%
EBIT Next 3Y10.88%
EBIT Next 5Y6.8%
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%