C. H. Robinson Worldwide, Inc. (NASDAQ: CHRW)

Sector: Industrials Industry: Integrated Freight & Logistics CIK: 0001043277
Market Cap 21.34 Bn
P/B 11.56
P/E 36.35
P/S 1.31
ROIC (Qtr) 19.54
Div Yield % 1.40
Rev 1y % (Qtr) -6.50
Total Debt (Qtr) 1.43 Bn
Debt/Equity (Qtr) 0.77
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About

C.H. Robinson Worldwide, Inc., or simply C.H. Robinson, is a global logistics company that operates under the ticker symbol CHRW. It is one of the largest companies in its industry, with consolidated total revenues of $17.6 billion in 2023. C.H. Robinson operates in the logistics industry, connecting customers, carriers, and suppliers to help grow supply chains. It does this through the use of technology, information advantage, and expertise, delivering smarter solutions to its customers. C.H. Robinson's main business activities involve providing...

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Investment thesis

Bull case

  • Strong operating cash flow of 914.52M provides robust 0.64x coverage of total debt 1.43B, indicating excellent debt servicing capability and financial flexibility.
  • Operating cash flow of 914.52M provides exceptional 12.61x coverage of interest expenses 72.50M, showing strong debt service capability.
  • Operating cash flow of 914.52M provides strong 17.96x coverage of stock compensation 50.92M, indicating sustainable incentive practices.
  • Robust free cash flow of 843.98M exceeds capital expenditure of 70.54M by 11.96x, indicating strong organic growth funding capability.
  • Strong tangible asset base of 3.58B provides 2.51x coverage of total debt 1.43B, indicating robust asset backing and low credit risk.

Bear case

  • Operating cash flow of 914.52M barely covers its investment activities of (54.67M), with a coverage ratio of -16.73, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 914.52M provides thin coverage of dividend payments of (301.38M) with a -3.03 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 843.98M represents just -2.92x of debt issuance (289M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 914.52M is outpaced by equity issuance of (195.46M) (-4.68 ratio), indicating concerning reliance on equity markets for funding operations.
  • Cash position of 160.87M provides weak coverage of payables of 1.21B, which is 0.13x, indicating potential working capital stress and supplier relationship risks.

Segments Breakdown of Revenue (2025)

Timing of Transfer of Good or Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Integrated Freight & Logistics
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 FDX Fedex Corp 99.67 Bn 20.28 1.11 37.77 Bn
2 UPS United Parcel Service Inc 98.11 Bn 17.61 1.11 28.59 Bn
3 JBHT Hunt J B Transport Services Inc 28.29 Bn 145.14 7.91 1.60 Bn
4 EXPD Expeditors International Of Washington Inc 22.29 Bn 27.40 2.13 0.56 Bn
5 CHRW C. H. Robinson Worldwide, Inc. 21.34 Bn 36.35 1.31 1.43 Bn
6 ZTO ZTO Express (Cayman) Inc. 20.15 Bn 16.23 3.02 1.74 Bn
7 GXO GXO Logistics, Inc. 7.46 Bn 83.79 0.58 5.50 Bn
8 LSTR Landstar System Inc 5.11 Bn 28.60 1.06 0.13 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 4.49 1.04
EV to Cash from Ops. EV/CFO 24.86 -0.78
EV to Debt EV to Debt 15.94 -1.98
EV to EBIT EV/EBIT 28.60 10.54
EV to EBITDA EV/EBITDA 25.32 9.04
EV to Free Cash Flow [EV/FCF] EV/FCF 26.94 -2.76
EV to Market Cap EV to Market Cap 1.07 0.62
EV to Revenue EV/Rev 1.40 -0.31
Price to Book Value [P/B] P/B 11.56 4.96
Price to Earnings [P/E] P/E 36.35 15.82
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.95 0.95
Dividend Payout Ratio % Div Payout % (Qtr) 51.00 14.92
Dividend per Basic Share Div per Share (Qtr) 2.49 0.73
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 35.48 11.81
Interest Coverage Int. cover (Qtr) 10.96 -430.42
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 5.04 -2,938.62
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 10.37 139.78
Dividend Growth (1y) % Div 1y % (Qtr) 1.22 -0.23
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 20.07 -442.31
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 17.16 -224.47
EBIT Growth (1y) % EBIT 1y % (Qtr) 18.80 -367.92
EBT Growth (1y) % EBT 1y % (Qtr) 24.73 -191.62
EPS Growth (1y) % EPS 1y % (Qtr) 25.45 -974.30
FCF Growth (1y) % FCF 1y % (Qtr) 94.11 -67.17
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -1.29 1.66
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 3.21 1.29
Cash Payout Ratio Cash Payout (Qtr) 0.31 0.07
Cash Ratio Cash Ratio (Qtr) 0.09 0.97
Current Ratio Curr Ratio (Qtr) 1.53 3.22
Debt to Equity Ratio Debt/Equity (Qtr) 0.77 1.06
Interest Cover Ratio Int Coverage (Qtr) 10.96 -430.42
Times Interest Earned Times Interest Earned (Qtr) 10.96 -430.42
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 5.50 17.62
EBIT Margin % EBIT Margin % (Qtr) 4.90 24.68
EBT Margin % EBT Margin % (Qtr) 4.45 18.38
Gross Margin % Gross Margin % (Qtr) 16.80 20.25
Net Profit Margin % Net Margin % (Qtr) 3.60 31.04