Momentum Stock Watch: C.H. Robinson Worldwide, Inc. (CHRW)

Company Profile:

C.H. Robinson Worldwide, Inc., together with its subsidiaries, provides freight transportation services and logistics solutions to companies in various industries 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 comprise the shipment service of freight in containers or trailers by a combination of truck and rail; and non-vessel ocean common carrier and freight forwarding services, as well as organizes air shipments and provides door-to-door services. The company also offers customs broker services; and other logistics services, such as fee-based managed, warehousing, small parcel, and other services. It has contractual relationships with approximately 85,000 transportation companies, including motor carriers, railroads, and air and ocean carriers. In addition, the company is involved in buying, selling, and/or marketing of fresh produce, including fresh fruits, vegetables, and other value-added perishable items under the Robinson Fresh name. Further, it provides transportation management services or managed TMS; and other surface transportation services. The company offers 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.

Recent News:

On December 16, 2022, the company’s Board of Directors has appointed Jim Barber as a new director. Mr. Barber retired as the Chief Operating Officer for United Parcel Service (“UPS”) in January 2020. In this role, he was responsible for international operations, U.S. operations, freight forwarding, distribution and logistics, freight brokerage, customs brokerage and more.

On November 17, 2022, the company’s Board of Directors declared an increase to its regular quarterly cash dividend to 61 cents ($0.61) per share from 55 cents ($0.55) per share, payable on January 3, 2023, to shareholders of record on December 2, 2022.

For the third quarter results compared to the third quarter of 2021, the company reported total revenues decreased 4.0% to $6.0 billion, driven primarily by lower ocean and air pricing. Gross profits increased 5.0% to $880.7 million.

 

Fundamental Analysis:

Ninestocks analyzes several different financial aspects:

Price to Book Value – P/BV, a ratio used to compare book value to its current market price, to gauge whether a stock is valued properly.

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Price to Earnings – PE, the ratio for valuing a company that measures its current share price relative to its earnings per share (EPS).

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Discounted cash flow – DCF, a valuation method used to estimate the value of an investment based on its expected future cash flows.

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Return on Assets – ROA, indicates how profitable a company is in relation to its total assets, how efficiently uses assets to generate a profit.

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Return on Equity – ROE, a measure of financial performance calculated by dividing net income by equity. a gauge of profitability and efficiency.

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Debt to Equity – evaluate financial leverage, reflects the ability of equity to cover outstanding debts in the event of a business downturn.

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Conclusion:

CHRW receives outperform rating in price to book value, price to earnings, discounted cash flow, return on equity and debt to equity. Technical indicators signal the bullish signs, as there is a bullish crossover in the Stochastic oscillator, the MACD is trying to cross back up and the RSI(14) stands at 49.3 with positive bias. We rate C.H. Robinson Worldwide, Inc. (CHRW) a STRONG BUY.

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