CH Robinson (CHRW) AI Stock Analysis

• Market Cap: $10.74B
• Dividend Yield: 2.72%
• Average Volume (3M): 1.65M
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.46
• Revenue Growth: -0.22%
• EPS Growth: 65.52%
• Country: US
• Employees: 12,912
• Sector: Industrials
• Sector Strength: 79
• Industry: Integrated Freight & Logistics
• EPS (TTM): 4.19
• Shares Outstanding: 118,227,020
• 10 Day Avg. Volume: 1,523,203
• 30 Day Avg. Volume: 1,649,571
• PEG Ratio: 0.36
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 10.87
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $110.40
• Price Target Upside: 21.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

C.H. Robinson's overall stock score of 62 reflects a stable financial performance with improved profitability and strong cash generation. The company's strategic initiatives, including market share growth and operational efficiency, are positives. However, the technical analysis indicates bearish trends, and the valuation suggests a potential overvaluation. The earnings call highlights strategic achievements but also notes challenges from tariffs and a prolonged freight recession, which impact the outlook.

Positive Factors

Financial Performance

CHRW beat forecast and consensus estimates, driven by disciplined pricing and productivity efforts.

Market Position

CHRW’s NAST segment won share in truckload and less-than-truckload (LTL), while expanding gross margins and improving productivity.

Operational Efficiency

Productivity momentum remains robust at CHRW, with technology integration driving efficiency and growth in shipments per person per day.

Negative Factors

Profit Impact

Ocean rates are down 65% since July, impacting profit per shipment.

Revenue and Margin

Global Forwarding revenue missed estimates materially with a significant drop in EBIT margin.

Volume Visibility

Near-term volume visibility is impaired due to trade uncertainty, with a significant drop in ocean bookings likely bringing pressure.

CH Robinson Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

C.H. Robinson generates revenue primarily through its freight transportation and logistics services. The company operates as a third-party logistics provider, acting as an intermediary between shippers and carriers. It makes money by arranging the transportation of goods, using its extensive network of carrier partners. Revenue is earned from the difference between the price C.H. Robinson charges its customers for transportation services and the cost it pays carriers to transport those goods. Additionally, the company offers value-added services like supply chain consulting, logistics management, and warehousing, which contribute to its earnings. Significant partnerships with carriers and technology investments also play a crucial role in enhancing service offerings and driving revenue growth.

CH Robinson Financial Statement Overview

Summary

CH Robinson shows stability in its income statement metrics. The Gross Profit Margin is 7.52% for 2024, indicating effective cost management, although it has decreased compared to 2023. Net Profit Margin improved to 2.63% from 1.85% in 2023, showing improved profitability. Revenue Growth Rate is modest at 0.73% from 2023 to 2024, reflecting a steady, but slow growth trajectory. The EBIT and EBITDA margins indicate consistent operational efficiency. The balance sheet reveals a moderate Debt-to-Equity Ratio of 1.01 in 2024, which has improved from previous years, suggesting better leverage management. The Return on Equity (ROE) is 27.03%, reflecting strong shareholder returns. The Equity Ratio stands at 32.50%, indicating a moderate reliance on debt for financing. Overall, the balance sheet shows stability but highlights potential leverage risks. Cash flow analysis shows a decrease in Operating Cash Flow from 2023 to 2024, but Free Cash Flow remains positive at $486.43 million. The Free Cash Flow to Net Income ratio is robust, indicating efficient cash generation relative to net income. The Free Cash Flow Growth Rate is negative, showing a decline from 2023, which could be a concern if it persists. Overall, cash flow remains a strength, supporting operational flexibility.

Income Statement

CH Robinson shows stability in its income statement metrics. The Gross Profit Margin is 7.52% for 2024, indicating effective cost management, although it has decreased compared to 2023. Net Profit Margin improved to 2.63% from 1.85% in 2023, showing improved profitability. Revenue Growth Rate is modest at 0.73% from 2023 to 2024, reflecting a steady, but slow growth trajectory. The EBIT and EBITDA margins indicate consistent operational efficiency.

Balance Sheet

The company's balance sheet reveals a moderate Debt-to-Equity Ratio of 1.01 in 2024, which has improved from previous years, suggesting better leverage management. The Return on Equity (ROE) is 27.03%, reflecting strong shareholder returns. The Equity Ratio stands at 32.50%, indicating a moderate reliance on debt for financing. Overall, the balance sheet shows stability but highlights potential leverage risks.

Cash Flow

CH Robinson's cash flow analysis shows a decrease in Operating Cash Flow from 2023 to 2024, but Free Cash Flow remains positive at $486.43 million. The Free Cash Flow to Net Income ratio is robust, indicating efficient cash generation relative to net income. The Free Cash Flow Growth Rate is negative, showing a decline from 2023, which could be a concern if it persists. Overall, cash flow remains a strength, supporting operational flexibility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
17.72B	17.60B	24.70B	23.10B	16.21B
	Gross Profit
1.31B	1.14B	1.87B	1.61B	1.17B
	EBIT
669.14M	514.61M	1.27B	1.08B	673.27M
	EBITDA
762.26M	613.59M	1.36B	1.17B	775.00M
	Net Income Common Stockholders
465.69M	325.13M	940.52M	844.25M	506.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
145.76M	145.52M	217.48M	257.41M	243.80M
	Total Assets
5.30B	5.23B	5.95B	7.03B	5.14B
	Total Debt
1.74B	1.95B	2.36B	2.23B	1.43B
	Net Debt
1.60B	1.81B	2.14B	1.97B	1.18B
	Total Liabilities
3.58B	3.81B	4.60B	5.01B	3.26B
	Stockholders Equity
1.72B	1.42B	1.35B	2.02B	1.88B
Cash Flow		Free Cash Flow
486.43M	647.84M	1.52B	24.03M	445.18M
	Operating Cash Flow
509.08M	731.95M	1.65B	94.95M	499.19M
	Investing Cash Flow
-74.29M	-82.79M	-64.92M	-85.67M	-271.71M
	Financing Cash Flow
-416.10M	-717.83M	-1.62B	7.57M	-440.67M

CH Robinson Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 90.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHRW, the sentiment is Neutral. The current price of 90.83 is above the 20-day moving average (MA) of 90.26, below the 50-day MA of 95.87, and below the 200-day MA of 100.66, indicating a neutral trend. The MACD of -1.86 indicates Negative momentum. The RSI at 45.47 is Neutral, neither overbought nor oversold. The STOCH value of 52.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CHRW.

CH Robinson Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXPD	71 Outperform	$15.51B	19.70	35.12%	1.30%	13.98%	14.29%
CHRW	70 Outperform	$10.74B	23.54	32.11%	2.72%	-0.22%	65.52%
JBHT	64 Neutral	$13.29B	23.92	13.97%	1.29%	-3.82%	-12.80%
Sector *	64 Neutral	$4.28B	11.80	5.33%	250.46%	4.10%	-9.26%
HUBG	63 Neutral	$2.01B	19.32	6.34%	1.52%	-6.10%	-34.78%
LSTR	63 Neutral	$4.77B	24.75	20.03%	1.03%	-9.13%	-25.11%
XPO	61 Neutral	$12.93B	33.77	26.24%	―	1.94%	60.91%

CH Robinson Corporate Events

CH Robinson Sells European Surface Transportation Business

On February 3, 2025, C.H. Robinson completed the sale of its European Surface Transportation business to sennder Technologies GmbH, effective February 1, 2025, after receiving all regulatory clearances. This transaction allows C.H. Robinson to focus on delivering value through its European Global Forwarding and Managed Solutions teams, while continuing to invest in key trade lanes, products, and technology within the region.