C. H. Robinson Worldwide, Inc.

CHRW

Arrangement of Transportation of Freight & Cargo

Mkt Cap

$10.07B

PE

33.20

Debt

$1.981B

Cash

$121.8M

EV

$11.92B

FCF

$416.8M

Market Cap

$10.07B

P/E Ratio

33.20

Debt

$1.981B

Cash

$121.8M

EV

$11.92B

FCF

$416.8M

Charts data: {"Earnings":[{"time":"2014-12-30","value":449711000},{"time":"2015-12-30","value":509699000},{"time":"2016-12-30","value":513384000},{"time":"2017-12-30","value":504893000},{"time":"2018-12-30","value":664505000},{"time":"2019-12-30","value":576968000},{"time":"2020-12-30","value":506421000},{"time":"2021-12-30","value":844245000},{"time":"2022-12-30","value":940524000},{"time":"2023-12-30","value":325129000}],"Sales":[{"time":"2014-12-30","value":13470067000},{"time":"2015-12-30","value":13476084000},{"time":"2016-12-30","value":13144413000},{"time":"2017-12-30","value":14869380000},{"time":"2018-12-30","value":16631172000},{"time":"2019-12-30","value":15309508000},{"time":"2020-12-30","value":16207106000},{"time":"2021-12-30","value":23102138000},{"time":"2022-12-30","value":24696625000},{"time":"2023-12-30","value":17596443000}],"Net Margins":[{"time":"2014-12-30","value":0.033385951235431865},{"time":"2015-12-30","value":0.037822486116886773},{"time":"2016-12-30","value":0.039057202478345744},{"time":"2017-12-30","value":0.03395521534858884},{"time":"2018-12-30","value":0.039955392199659774},{"time":"2019-12-30","value":0.03768690672489279},{"time":"2020-12-30","value":0.03124684937582317},{"time":"2021-12-30","value":0.03654402029803475},{"time":"2022-12-30","value":0.03808309839907275},{"time":"2023-12-30","value":0.01847697287457471}],"Assets":[{"time":"2014-12-30","value":3214338000},{"time":"2015-12-30","value":3184358000},{"time":"2016-12-30","value":3687758000},{"time":"2017-12-30","value":4235834000},{"time":"2018-12-30","value":4427412000},{"time":"2019-12-30","value":4641060000},{"time":"2020-12-30","value":5144258000},{"time":"2021-12-30","value":7028112000},{"time":"2022-12-30","value":5954564000},{"time":"2023-12-30","value":5225280000}],"Stockholders Equity":[{"time":"2014-12-30","value":1047015000},{"time":"2015-12-30","value":1150450000},{"time":"2016-12-30","value":1257847000},{"time":"2017-12-30","value":1425745000},{"time":"2018-12-30","value":1595087000},{"time":"2019-12-30","value":1670730000},{"time":"2020-12-30","value":1879933000},{"time":"2021-12-30","value":2021934000},{"time":"2022-12-30","value":1353422000},{"time":"2023-12-30","value":1418697000}],"ROE":[{"time":"2014-12-30","value":0.42951724664880636},{"time":"2015-12-30","value":0.4430431570255118},{"time":"2016-12-30","value":0.4081450287674097},{"time":"2017-12-30","value":0.35412573777218226},{"time":"2018-12-30","value":0.41659483150448845},{"time":"2019-12-30","value":0.34533886384993384},{"time":"2020-12-30","value":0.26938247267322823},{"time":"2021-12-30","value":0.41754330260038164},{"time":"2022-12-30","value":0.6949229434721764},{"time":"2023-12-30","value":0.2291743762057719}],"ROA":[{"time":"2014-12-30","value":0.23283736806770167},{"time":"2015-12-30","value":0.2695394173645049},{"time":"2016-12-30","value":0.2271111607648875},{"time":"2017-12-30","value":0.1829908820789483},{"time":"2018-12-30","value":0.20600816007184333},{"time":"2019-12-30","value":0.17021456305240612},{"time":"2020-12-30","value":0.13087757262563426},{"time":"2021-12-30","value":0.15396851956827096},{"time":"2022-12-30","value":0.21274135268342065},{"time":"2023-12-30","value":0.0984841003735685}]}

C.H. Robinson Worldwide, Inc., together with its subsidiaries, provides freight transportation services, and related logistics and supply chain services worldwide. The company operates in two segments, North American Surface Transportation and Global Forwarding. It offers transportation and logistics services, such as truckload; less than truckload transportation brokerage services, which include the shipment of single or multiple pallets of freight; intermodal transportation that comprises the shipment service of freight in containers or trailers by a combination of truck and rail; and non-vessel operating common carrier and freight forwarding services, as well as organizes air shipments and provides door-to-door services. The company also provides customs brokerage services; and other logistics services, such as fee-based managed, warehousing, small parcel, and other services. It has contractual relationships with approximately 96,000 transportation companies, including motor carriers, railroads, and ocean and air carriers. In addition, the company is involved in the buying, selling, and/or marketing of fresh fruits, vegetables, and other value-added perishable items under the Robinson Fresh name. Further, it offers transportation management services or managed TMS; and other surface transportation services. The company provides its fresh produce to grocery retailers, restaurants, produce wholesalers, and foodservice distributors through a network of independent produce growers and suppliers. C.H. Robinson Worldwide, Inc. was founded in 1905 and is headquartered in Eden Prairie, Minnesota.

Sector

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6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of C. H. Robinson Worldwide, Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$416.8M	$414.7M	$412.5M	$410.3M	$408.2M	$406M	$403.9M	$401.8M	$399.7M	$397.6M	$395.5M	$3.955B
DCF		$360.6M	$311.9M	$269.8M	$233.4M	$201.9M	$174.6M	$151M	$130.7M	$113M	$97.76M	$977.6M
Value	$3.022B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 2.3%

Earnings Stability 4.4%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	3.8%	3.9%	3.4%	4%	3.8%	3.1%	3.7%	3.8%	1.8%	1.7%
ROA	27%	23%	18%	21%	17%	13%	15%	21%	9.8%	8.8%
ROE	44%	41%	35%	42%	35%	27%	42%	69%	23%	21%

What is the average Net Margin?

The average Net Margin over the past 5 years is +3.37%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -0.29%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +16.2%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -1.11%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +39.55%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +0.74%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	1.38	2.72	4.26	1.81	1.72	2.30	40.22	1.91	2.48	4.75
Debt Equity	0.83	0.99	1.03	0.85	0.82	0.58	1.21	2.24	1.23	1.39
MIN
Graham Stability	-	-	100%	100%	100%	87%	100%	100%	43%	43%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 4.75.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 1.20.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.43.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	4.3%	1.1%	2.8%	-29%	-0.57%
Net Income	-6.3%	-13%	-14%	-65%	-3.2%
Stockholders Equity	1.7%	-2.3%	-9%	4.8%	-2.6%
FCF	6.4%	-1.3%	14%	-56%	120%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +1.13%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -0.57%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -13.32%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -3.17%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -2.32%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -2.64%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -1.26%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +116.26%.