C.H. ROBINSON WORLDWIDE INC (CHRW)
US12541W2098 - Common Stock
We assign a fundamental rating of 6 out of 10 to CHRW. CHRW was compared to 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
CHRW had positive earnings in the past year.
CHRW had a positive operating cash flow in the past year.
CHRW had positive earnings in each of the past 5 years.
In the past 5 years CHRW always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CHRW (6.19%) is better than 73.68% of its industry peers.
Looking at the Return On Equity, with a value of 21.18%, CHRW belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
CHRW has a Return On Invested Capital of 14.63%. This is amongst the best in the industry. CHRW outperforms 84.21% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CHRW is significantly above the industry average of 13.88%.
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 has a Profit Margin of 1.96%. This is in the better half of the industry: CHRW outperforms 63.16% of its industry peers.
CHRW's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 3.52%, CHRW is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
In the last couple of years the Operating Margin of CHRW has declined.
CHRW has a Gross Margin (15.20%) 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 | 3.52% | ||
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CHRW is creating value.
CHRW has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CHRW has less shares outstanding
The debt/assets ratio for CHRW has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.13 indicates that CHRW is not in any danger for bankruptcy at the moment.
The Altman-Z score of CHRW (7.13) is better than 84.21% 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.
With a decent Debt to FCF ratio value of 7.85, CHRW is doing good in the industry, outperforming 63.16% of the companies in the same industry.
A Debt/Equity ratio of 0.89 indicates that CHRW is somewhat dependend on debt financing.
CHRW has a Debt to Equity ratio (0.89) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 7.85 | ||
| Altman-Z | 7.13 |
ROIC/WACC1.68
WACC8.73%
2.3 Liquidity
A Current Ratio of 1.49 indicates that CHRW should not have too much problems paying 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.
CHRW has a Quick 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 has a Quick ratio of 1.49. This is in the better half of the industry: CHRW outperforms 78.95% of its industry peers.
| 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.
The Earnings Per Share has been decreasing by -7.40% on average over the past years.
Looking at the last year, CHRW shows a decrease in Revenue. The Revenue has decreased by -3.68% in the last year.
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 12.66% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.06% on average over the next years.
EPS Next Y38.75%
EPS Next 2Y22.81%
EPS Next 3Y18.83%
EPS Next 5Y12.66%
Revenue Next Year1.49%
Revenue Next 2Y1.81%
Revenue Next 3Y2.48%
Revenue Next 5Y3.06%
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
Based on the Price/Earnings ratio of 28.64, the valuation of CHRW can be described as expensive.
CHRW's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.96, CHRW is valued at the same level.
Based on the Price/Forward Earnings ratio of 22.35, the valuation of CHRW can be described as rather expensive.
CHRW's Price/Forward Earnings ratio is in line with the industry average.
CHRW is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.64 | ||
| Fwd PE | 22.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CHRW is valued a bit more expensive than 63.16% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CHRW is valued a bit cheaper than 63.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.65 | ||
| EV/EBITDA | 19.78 |
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.
CHRW has a very decent profitability rating, which may justify a higher PE ratio.
CHRW's earnings are expected to grow with 18.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.74
PEG (5Y)N/A
EPS Next 2Y22.81%
EPS Next 3Y18.83%
5. Dividend
5.1 Amount
CHRW has a Yearly Dividend Yield of 2.22%.
CHRW's Dividend Yield is rather good when compared to the industry average which is at 2.65. CHRW pays more dividend than 84.21% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, CHRW has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
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 recently.
Dividend Growth(5Y)5.48%
Div Incr Years1
Div Non Decr Years1
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 2Y22.81%
EPS Next 3Y18.83%
C.H. ROBINSON WORLDWIDE INC
NASDAQ:CHRW (11/21/2024, 8:19:30 PM)
After market: 108.54 0 (0%)108.54
-0.49 (-0.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.83B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.64 | ||
| Fwd PE | 22.35 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.74
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.19% | ||
| ROE | 21.18% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.52% | ||
| PM (TTM) | 1.96% | ||
| GM | 15.2% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover3.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)1.07%
EPS 3Y-4.61%
EPS 5Y
EPS Q2Q%
EPS Next Y38.75%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.68%
Revenue growth 3Y2.78%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y