Skip to Content

C.H. Robinson Worldwide Inc CHRW

Morningstar Rating
$73.38 −0.56 (0.76%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Freight Brokerage Backdrop Remains Challenging for C.H. Robinson

C.H. Robinson dominates the $90 billion-plus asset-light truck brokerage market, and its immense network of shippers and asset-based truckers supports a wide economic moat, in our view. Although the company isn't immune to freight pullbacks, its variable-cost model historically helps shield profitability during periods of lackluster volume and pricing, as evidenced by a long history of above-average profitability. The firm's ownership of transportation equipment is minimal, and a large swath of operating expenses are tied to performance-based variable compensation, which moves with net revenue. We think the company remains well positioned to capitalize on gradual truck brokerage industry consolidation (including market share gains) despite intensifying competition.

Price vs Fair Value

CHRW is trading at a 14% discount.
Price
$73.38
Fair Value
$68.00
Uncertainty
Medium
1-Star Price
$584.74
5-Star Price
$54.40
Economic Moat
Mmsq
Capital Allocation
Bvpvlywvv

Bulls Say, Bears Say

Bulls

C.H. Robinson enjoys a history of solid execution throughout the freight cycle, and it has thwarted a host of competitive threats over the years.

Bears

Because of excess truckload market capacity, spot rates will likely remain depressed into the first half of 2024.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if CHRW is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$73.94
Day Range
$73.2274.40
52-Week Range
$69.12106.14
Bid/Ask
$72.66 / $73.50
Market Cap
$8.58 Bil
Volume/Avg
2 / 1.6 Mil

Key Statistics

Price/Earnings (Normalized)
22.79
Price/Sales
0.50
Dividend Yield (Trailing)
3.33%
Dividend Yield (Forward)
3.33%
Total Yield
4.07%

Company Profile

C.H. Robinson is a top-tier non-asset-based third-party logistics provider with a significant focus on domestic freight brokerage (about 60% of 2022 net revenue), which reflects mostly truck brokerage but also rail intermodal. Additionally, the firm operates a large air and ocean forwarding division (30%), which has grown organically and via tuck-in acquisitions over the years. The remainder of revenue consists of the European truck-brokerage division, transportation management services, and a legacy produce-sourcing operation.
Sector
Industrials
Industry
Integrated Freight & Logistics
Stock Style Box
Small Value
Total Number of Employees
15,246

Competitors

Valuation

Metric
CHRW
JBHT
EXPD
Price/Earnings (Normalized)
22.7925.3822.16
Price/Book Value
6.044.817.06
Price/Sales
0.501.561.89
Price/Cash Flow
19.5011.8420.30
Price/Earnings
CHRW
JBHT
EXPD

Financial Strength

Metric
CHRW
JBHT
EXPD
Quick Ratio
1.320.981.79
Current Ratio
1.401.172.02
Interest Coverage
4.8815.06197.79
Quick Ratio
CHRW
JBHT
EXPD

Profitability

Metric
CHRW
JBHT
EXPD
Return on Assets (Normalized)
7.18%9.96%16.17%
Return on Equity (Normalized)
28.44%20.81%29.03%
Return on Invested Capital (Normalized)
13.64%16.19%22.87%
Return on Assets
CHRW
JBHT
EXPD
See how this stock stacks up to its competitors with Morningstar Investor

Integrated Freight & Logistics Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
UPS
United Parcel Service Inc Class BJdc$129.4 Bil
FDX
FedEx CorpNvrwj$63.3 Bil
DPSTF
DHL GroupLsdncn$50.0 Bil
DHLGY
DHL Group ADRNgdqnxc$50.0 Bil
JBHT
JB Hunt Transport Services IncShdxk$19.8 Bil
ZTO
ZTO Express (Cayman) Inc ADRCbffwml$18.0 Bil
EXPD
Expeditors International of Washington IncBkpz$16.9 Bil
LSTR
Landstar System IncPvhl$6.4 Bil
HUBG
Hub Group Inc Class AFdsvzdh$2.6 Bil

Sponsor Center