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CH Robinson (CHRW)
NASDAQ:CHRW
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CH Robinson
(NASDAQ:CHRW)63Neutral
Positive Factors
Financial Performance
Adjusted gross profits increased 10.7% to $684.6m, which was above estimates, driven by higher adjusted gross profit margins.
Technological Advancements
CHRW's ability to utilize AI with its large database of digitized transactions will enable dynamic costing and real-time pricing capabilities to optimize gross margins, even when transportation costs increase.
Negative Factors
Revenue Concerns
There is concern that Global Forwarding will slow sooner than expected as ocean rates normalize from the Red Sea disruption and a pull forward of peak volume.
CH Robinson (CHRW) vs. S&P 500 (SPY)
Market Cap
$11.67B
Dividend Yield2.45%
Average Volume (3M)1.31M
Price to Earnings (P/E)25.5
Beta (1Y)0.36
Revenue Growth0.73%
EPS Growth41.65%
CountryUS
Employees15,246
SectorIndustrials
Sector Strength66
IndustryTransportation
Share Statistics
EPS (TTM)3.85
Shares Outstanding118,705,620
10 Day Avg. Volume1,365,093
30 Day Avg. Volume1,305,046
Financial Highlights & Ratios
PEG Ratio0.61
Price to Book (P/B)N/A
Price to Sales (P/S)0.67
Price to Cash Flow (P/CF)11.10
P/FCF Ratio11.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$116.94Price Target Upside18.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
CH Robinson Business Overview & Revenue Model
Company DescriptionC.H. Robinson Worldwide, Inc. (CHRW) is a leading third-party logistics and supply chain management company headquartered in Eden Prairie, Minnesota. The company operates in the transportation and logistics sector, offering a wide range of services including freight transportation, transportation management, brokerage, and warehousing. C.H. Robinson serves a diverse customer base across various industries, providing innovative solutions to optimize supply chain efficiency and reduce costs.
How the Company Makes MoneyC.H. Robinson generates revenue primarily through its freight transportation and logistics services. The company operates as a third-party logistics provider, acting as an intermediary between shippers and carriers. It makes money by arranging the transportation of goods, using its extensive network of carrier partners. Revenue is earned from the difference between the price C.H. Robinson charges its customers for transportation services and the cost it pays carriers to transport those goods. Additionally, the company offers value-added services like supply chain consulting, logistics management, and warehousing, which contribute to its earnings. Significant partnerships with carriers and technology investments also play a crucial role in enhancing service offerings and driving revenue growth.
CH Robinson Financial Statement Overview
Summary
CH Robinson's financial performance is stable with steady revenue growth and improved profitability. The balance sheet shows manageable leverage, though there are potential risks, while cash flows demonstrate strong cash generation capabilities. The company is well-positioned in its industry but should monitor cash flow trends and leverage levels closely.Income Statement
CH Robinson shows stability in its income statement metrics. The Gross Profit Margin is 7.52% for 2024, indicating effective cost management, although it has decreased compared to 2023. Net Profit Margin improved to 2.63% from 1.85% in 2023, showing improved profitability. Revenue Growth Rate is modest at 0.73% from 2023 to 2024, reflecting a steady, but slow growth trajectory. The EBIT and EBITDA margins indicate consistent operational efficiency.65
Positive
Balance Sheet
The company's balance sheet reveals a moderate Debt-to-Equity Ratio of 1.01 in 2024, which has improved from previous years, suggesting better leverage management. The Return on Equity (ROE) is 27.03%, reflecting strong shareholder returns. The Equity Ratio stands at 32.50%, indicating a moderate reliance on debt for financing. Overall, the balance sheet shows stability but highlights potential leverage risks.60
Neutral
Cash Flow
CH Robinson's cash flow analysis shows a decrease in Operating Cash Flow from 2023 to 2024, but Free Cash Flow remains positive at $486.43 million. The Free Cash Flow to Net Income ratio is robust, indicating efficient cash generation relative to net income. The Free Cash Flow Growth Rate is negative, showing a decline from 2023, which could be a concern if it persists. Overall, cash flow remains a strength, supporting operational flexibility.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 17.72B | 17.60B | 24.70B | 23.10B | 16.21B | Gross Profit |
| 1.31B | 1.14B | 1.87B | 1.61B | 1.17B | EBIT |
| 669.14M | 514.61M | 1.27B | 1.08B | 673.27M | EBITDA |
| 766.30M | 613.59M | 1.36B | 1.17B | 775.00M | Net Income Common Stockholders |
| 465.69M | 325.13M | 940.52M | 844.25M | 506.42M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 145.76M | 145.52M | 217.48M | 257.41M | 243.80M | Total Assets |
| 5.30B | 5.23B | 5.95B | 7.03B | 5.14B | Total Debt |
| 1.74B | 1.95B | 2.36B | 2.23B | 1.43B | Net Debt |
| 1.60B | 1.81B | 2.14B | 1.97B | 1.18B | Total Liabilities |
| 3.58B | 3.81B | 4.60B | 5.01B | 3.26B | Stockholders Equity |
| 1.72B | 1.42B | 1.35B | 2.02B | 1.88B |
| Cash Flow | Free Cash Flow | |||
| 486.43M | 647.84M | 1.52B | 24.03M | 445.18M | Operating Cash Flow |
| 509.08M | 731.95M | 1.65B | 94.95M | 499.19M | Investing Cash Flow |
| -74.29M | -82.79M | -64.92M | -85.67M | -271.71M | Financing Cash Flow |
| -416.10M | -717.83M | -1.62B | 7.57M | -440.67M |
CH Robinson Technical Analysis
Negative
98.35
Price Trends
102.14
Negative
104.92
Negative
98.99
Negative
Market Momentum
-0.78
Negative
43.43
Neutral
48.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHRW, the sentiment is Negative. The current price of 98.35 is below the 20-day moving average (MA) of 99.08, below the 50-day MA of 102.14, and below the 200-day MA of 98.99, indicating a bearish trend. The MACD of -0.78 indicates Negative momentum. The RSI at 43.43 is Neutral, neither overbought nor oversold. The STOCH value of 48.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CHRW.
CH Robinson Risk Analysis
CH Robinson disclosed 24 risk factors in its most recent earnings report. CH Robinson reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CH Robinson Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $16.31B | 20.67 | 36.44% | 1.23% | 13.98% | 14.29% | |
70 Outperform | $6.46B | 13.88 | 15.69% | 1.98% | 7.25% | 25.82% | |
66 Neutral | $13.69B | 36.12 | 24.17% | ― | 4.22% | 105.29% | |
65 Neutral | $15.76B | 28.37 | 14.22% | 1.10% | -5.79% | -20.32% | |
63 Neutral | $11.67B | 25.49 | 27.04% | 2.45% | 0.73% | 41.65% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% | |
57 Neutral | $4.45B | 38.20 | 3.94% | 1.50% | -3.79% | -50.29% |
* Industrials Sector Average
Performance Comparison
CHRW
CH Robinson
97.91
27.30
38.66%
EXPD
Expeditors International
118.09
-1.47
-1.23%
XPO
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112.73
-12.58
-10.04%
JBHT
JB Hunt
160.04
-37.79
-19.10%
R
Ryder System
155.82
44.41
39.86%
SNDR
Schneider National
25.33
2.99
13.38%
CH Robinson Earnings Call Summary
Earnings Call Date: Jan 29, 2025 | % Change Since: -8.88% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted notable improvements in financial performance and operational efficiency, driven by strategic innovations and disciplined execution. However, challenges persist in the freight market, with volume declines due to a prolonged recession and potential headwinds from ocean rate normalization. Overall, the positive achievements are slightly offset by the ongoing market challenges.Highlights
Significant Year-Over-Year Improvement in Q4 Financial Results
C.H. Robinson reported a 79% year-over-year increase in Q4 adjusted income from operations, driven by an increase in adjusted gross profit (AGP) and reduced costs through productivity initiatives.
Global Forwarding Business Performance
Global Forwarding AGP increased by 25.6% year-over-year, with ocean and air shipments each growing by more than 5% for the full year. Productivity improved by more than 15% for the year, with a two-year compounded productivity growth of 30%.
North American Surface Transportation (NAST) Gross Margin Improvement
NAST gross margin improved by 170 basis points year-over-year, and adjusted operating income increased by 40% year-over-year.
Innovation and Automation Achievements
C.H. Robinson scaled process innovations and use of Gen AI, automating more than 10,000 transactions per day, and increasing order tender automation by 1,150 basis points year-over-year.
Lowlights
Prolonged Freight Recession Impacting Volume
The freight market continues to experience a historically prolonged freight recession, with the Cass Freight Shipment Index down 3.2% year-over-year in Q4, leading to a 1% decline in total NAST volume.
Challenges in Truckload Volume
Truckload volume decreased by 6.5% year-over-year, highlighting ongoing challenges in balancing volume and profitability in a competitive market environment.
Potential Headwinds from Rate Normalization
Expected normalization of ocean freight rates to 2023 levels poses a headwind, impacting the Global Forwarding segment's AGP growth potential.
Company Guidance
During the C.H. Robinson Fourth Quarter 2024 Conference Call, the company highlighted several key metrics and achievements. Despite operating in a historically prolonged freight recession, C.H. Robinson achieved a 79% year-over-year increase in adjusted income from operations for Q4. The company observed a 10.7% rise in adjusted gross profit (AGP) driven by a 25.6% increase in Global Forwarding and a 6.2% increase in North American Surface Transportation (NAST). Ocean and air shipments grew over 5% year-over-year, while productivity in Global Forwarding improved by more than 15%, and headcount was reduced by over 10%. The NAST division experienced a 40% year-over-year increase in adjusted operating income, despite a 1% decline in total volume. The firm also achieved a significant 170 basis point improvement in NAST gross margin. The company remains focused on leveraging its new operating model, dynamic costing and pricing tools, and Generative AI innovations to drive future growth and maintain operational efficiency.CH Robinson Corporate Events
M&A TransactionsBusiness Operations and Strategy
CH Robinson Sells European Surface Transportation Business
Neutral
Feb 3, 2025
On February 3, 2025, C.H. Robinson completed the sale of its European Surface Transportation business to sennder Technologies GmbH, effective February 1, 2025, after receiving all regulatory clearances. This transaction allows C.H. Robinson to focus on delivering value through its European Global Forwarding and Managed Solutions teams, while continuing to invest in key trade lanes, products, and technology within the region.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.