CHRW - Embedded Expectations Analysis - 2020 03 16
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, and management may be concerned about revenue declines, their investments in technology, and margin compressionSpecifically, management may be concerned about declines in their Surface Transportation and Customs net revenues, as well as a record collapse in truckload revenue per shipment. Furthermore, they may lack confidence in their ability to sustain share repurchases, expand their network of consolidation warehouses, and improve their drug and alcohol clearinghouse capacity. Moreover, they may also be concerned about their investments in Information Technology and the progress of their NAST business reorganization and growth projects. Finally, they may be exaggerating the potential of their Freightquote product launch, and they may be downplaying concerns about margin compression in their truckload service line
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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