CHRW - Embedded Expectations Analysis - 2019 10 09
C.H. Robinson Worldwide, Inc. (CHRW:USA) currently trades below historical averages relative to UAFRS-based (Uniform) Earnings, with a 15.9x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is confident about their cash flow, growth runway, and acquisition pipeline.Specifically, management is confident they have increased cash flow from operations and cash return to shareholders, and they are confident their pricing adjustments have improved their bid rate. Furthermore, they are confident their growth is from industry conversion rather than new entrants and that their routing guide depth is the lowest they have seen in the last decade. Moreover, they are confident they have growth runway in several geographies and that their peak seasons are more pronounced due to e-commerce. Finally, they are confident they will spend more on technology to better leverage their data and they will continue to look at acquisitions that fill geographic space.
Robinson (C.H.) Worldwide is a third party logistics company. The company provides freight transportation services and logistics solutions to companies. The company's segments are: North American Surface Transportation, which provides freight transportation services across North America through a network of offices; and Global Forwarding, which provides global logistics services through an international network of offices and also contracts with independent agents; and All Other and Corporate, which includes Robinson Fresh? that provides sourcing services including the buying, selling, and marketing of fresh fruits, vegetables, and other perishable items, and managed services that provides Managed TMS?.
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