C.H. Robinson Worldwide, Inc.
C.H. Robinson Worldwide, Inc. Fundamental Analysis
C.H. Robinson Worldwide, Inc. (CHRW) shows weak financial fundamentals with a PE ratio of 36.46, profit margin of 3.62%, and ROE of 32.52%. The company generates $16.1B in annual revenue with weak year-over-year growth of 0.73%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CHRW's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCHRW demonstrates superior asset utilization.
Valuation Score
ModerateCHRW shows balanced valuation metrics.
Growth Score
ModerateCHRW shows steady but slowing expansion.
Financial Health Score
ExcellentCHRW maintains a strong and stable balance sheet.
Profitability Score
ModerateCHRW maintains healthy but balanced margins.
Key Financial Metrics
Is CHRW Expensive or Cheap?
P/E Ratio
CHRW trades at 36.46 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CHRW's PEG of -18.19 indicates potential undervaluation.
Price to Book
The market values C.H. Robinson Worldwide, Inc. at 11.60 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 20.21 times EBITDA. This signals the market has high growth expectations.
How Well Does CHRW Make Money?
Net Profit Margin
For every $100 in sales, C.H. Robinson Worldwide, Inc. keeps $3.62 as profit after all expenses.
Operating Margin
Core operations generate 4.90 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $32.52 in profit for every $100 of shareholder equity.
ROA
C.H. Robinson Worldwide, Inc. generates $11.61 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
C.H. Robinson Worldwide, Inc. generates limited operating cash flow of $904.88M, signaling weaker underlying cash strength.
Free Cash Flow
C.H. Robinson Worldwide, Inc. produces free cash flow of $885.45M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $7.46 in free cash annually.
FCF Yield
CHRW converts 4.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.46
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-18.19
vs 25 benchmark
P/B Ratio
Price to book value ratio
11.60
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.30
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.88
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.53
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.33
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.25
vs 25 benchmark
How CHRW Stacks Against Its Sector Peers
| Metric | CHRW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 36.46 | 26.49 | Worse (Expensive) |
| ROE | 32.52% | 1307.00% | Weak |
| Net Margin | 3.62% | -5131.00% (disorted) | Weak |
| Debt/Equity | 0.88 | 0.81 | Neutral |
| Current Ratio | 1.53 | 10.48 | Neutral |
| ROA | 11.61% | -1549793.00% (disorted) | Strong |
CHRW outperforms its industry in 1 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews C.H. Robinson Worldwide, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
32.35%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-7.73%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-30.34%
Industry Style: Cyclical, Value, Infrastructure
Declining