investorscraft@gmail.com

Intrinsic Value of C.H. Robinson Worldwide, Inc. (CHRW)

Previous Close$98.02
Intrinsic Value
Upside potential
Previous Close
$98.02

VALUATION INPUT DATA

This valuation is based on fiscal year data as of 2024 and quarterly data as of .

Data is not available at this time.

Stock Valuation Context

Business Model And Market Position

C.H. Robinson Worldwide, Inc. operates as a leading third-party logistics (3PL) provider, specializing in freight transportation and supply chain solutions. The company generates revenue primarily through brokerage services, leveraging its extensive network of carriers and shippers to facilitate truckload, less-than-truckload (LTL), intermodal, and ocean and air freight services. Its asset-light model allows for scalability and flexibility, positioning it as a key intermediary in the fragmented logistics industry. CHRW’s technology-driven platform, Navisphere, enhances operational efficiency and customer engagement, providing real-time visibility and data analytics. The company competes in a highly competitive market, differentiated by its global reach, deep industry expertise, and ability to optimize freight costs for clients. While facing pressure from digital disruptors, CHRW maintains a strong market position due to its established relationships and integrated service offerings.

Revenue Profitability And Efficiency

In FY 2024, CHRW reported revenue of $17.7 billion, with net income of $465.7 million, reflecting a net margin of approximately 2.6%. Diluted EPS stood at $3.86, indicating modest profitability in a competitive logistics landscape. Operating cash flow was $509.1 million, supported by efficient working capital management, while capital expenditures were minimal at $22.7 million, consistent with its asset-light model.

Earnings Power And Capital Efficiency

The company’s earnings power is driven by its ability to scale brokerage volumes without significant fixed costs. However, operating leverage is tempered by variable expenses tied to freight rates and carrier capacity. CHRW’s capital efficiency is evident in its low capex requirements, allowing free cash flow to support dividends and debt management. The diluted EPS of $3.86 underscores steady but cyclical earnings performance.

Balance Sheet And Financial Health

CHRW’s balance sheet shows $145.8 million in cash and equivalents against total debt of $1.74 billion, indicating moderate leverage. The company’s liquidity position is adequate, with operating cash flow covering interest obligations. While debt levels are manageable, the logistics sector’s cyclicality necessitates prudent financial management to maintain flexibility during downturns.

Growth Trends And Dividend Policy

Revenue growth has been tempered by freight market normalization post-pandemic, though CHRW’s diversified services provide stability. The company maintains a shareholder-friendly dividend policy, with a dividend per share of $2.46, offering a yield competitive within the logistics sector. Future growth may hinge on technology investments and expansion into higher-margin supply chain solutions.

Valuation And Market Expectations

CHRW’s valuation reflects its position as a mature player in a cyclical industry. Market expectations are balanced between its steady cash flows and challenges from digital competitors. The stock’s performance will likely correlate with freight demand trends and the company’s ability to sustain margins amid pricing pressures.

Strategic Advantages And Outlook

CHRW’s strategic advantages include its extensive carrier network, technology platform, and scale in freight brokerage. The outlook remains cautious due to industry volatility, but its asset-light model and focus on efficiency provide resilience. Long-term success will depend on adapting to digital transformation and expanding value-added services.

Sources

10-K filing, company investor relations

show cash flow forecast

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year2025202620272028202920302031203220332034203520362037203820392040204120422043204420452046204720482049

INCOME STATEMENT

Revenue growth rate, %NaN
Revenue, $NaN
Variable operating expenses, $mNaN
Fixed operating expenses, $mNaN
Total operating expenses, $mNaN
Operating income, $mNaN
EBITDA, $mNaN
Interest expense (income), $mNaN
Earnings before tax, $mNaN
Tax expense, $mNaN
Net income, $mNaN

BALANCE SHEET

Cash and short-term investments, $mNaN
Total assets, $mNaN
Adjusted assets (=assets-cash), $mNaN
Average production assets, $mNaN
Working capital, $mNaN
Total debt, $mNaN
Total liabilities, $mNaN
Total equity, $mNaN
Debt-to-equity ratioNaN
Adjusted equity ratioNaN

CASH FLOW

Net income, $mNaN
Depreciation, amort., depletion, $mNaN
Funds from operations, $mNaN
Change in working capital, $mNaN
Cash from operations, $mNaN
Maintenance CAPEX, $mNaN
New CAPEX, $mNaN
Total CAPEX, $mNaN
Free cash flow, $mNaN
Issuance/(repurchase) of shares, $mNaN
Retained Cash Flow, $mNaN
Pot'l extraordinary dividend, $mNaN
Cash available for distribution, $mNaN
Discount rate, %NaN
PV of cash for distribution, $mNaN
Current shareholders' claim on cash, %NaN
HomeMenuAccount