Wednesday, July 27, 2011

Company Highlights C.H. Robinson Worldwide


C.H. Robinson Worldwide (CHRW) is one of the largest third party logistics companies in North America, providing non asset based multimodal, logistic solutions and fresh produce sourcing.

By Steve Cook
All American Investor

CHRW has grown profits and earnings at a 25%+ pace over the last five years earning a 30%+ return on equity.


Company Highlights

C.H. Robinson Worldwide (CHRW) is one of the largest third party logistics companies in North America, providing non asset based multimodal, logistic solutions and fresh produce sourcing. CHRW has grown profits and earnings at a 25%+ pace over the last five years earning a 30%+ return on equity.

The company experienced only a slight slowdown in the rate of profit expansion during the 2008-2009 recession and is now returning to an above average rate of growth as a result of:

(1) gains in market share resulting from its non asset based model [i.e. it doesn’t own its own trucks, etc.; it rents space on other carriers],
(2) the intermodal market is growing at an above average pace,
(2) geographic expansion,
(3) the introduction of new products,
(4) improved operating efficiencies,
(5) acquisitions.
Negatives:
intense competition,

(2) since it does not own or control the assets that deliver to customers, it is vulnerable to carrier problems,

(3) recently, it has been unable to pass along rising carrier costs to its customers.

CHRW is rated A by Value Line, has no debt, its stock yields 1.5% and it has an ongoing stock buy back program.

Statistical Summary
Stock Dividend Payout # Increases
Yield Growth Rate Ratio Since 2001
CHRW 15% 8% 38% 10

Ind Ave*
Debt/ EPS Down Net Value Line
Equity ROE Since 2001 Margin Rating

CHRW 0% 38% 0 4% A

Ind Ave*
*comparable industry data is not available
Chart

Note: CHRW stock made great progress off its March 2009 low, quickly surpassing the down trend off its May 2008 high (straight red line) and the November 2008 trading high (green line). CHRW is in a long term up trend (blue lines) as well as an intermediate term up trend (purple lines). The wiggly red line is the 30 day moving average. The Aggressive Growth Portfolio owns a 75% position in CHRW. Shares would be Added at $68; the lower boundary of its Sell Half Range is $110.
http://finance.yahoo.com/q?s=CHRW


Subscribe to All American Investor
Enter Your Email Address


Original content Steve Cook, All American Investor