Thursday, July 10, 2014

CH Robinson (CHRW) 2014 Review

C.H. Robinson Worldwide 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 an 18-22 pace over the last ten years earning a 28%+ return on equity.  The company should continue its above average rate of growth as a result of:

(1)   advanced technological and service capabilities,

(2) increased market penetration,

(3) geographic expansion,

Negatives:

(1) 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 a 34% debt to equity ratio and its stock yields 2.4%.

   Statistical Summary

                  Stock       Dividend       Payout      # Increases  
                  Yield      Growth Rate     Ratio       Since 2004

CHRW       2.4%            7%             48%              10
Ind Ave*

                Debt/                        EPS Down       Net        Value Line
               Equity         ROE      Since 2004      Margin       Rating

CHRW       34%          34%           1                  3%             A
Ind Ave*

*comparable industry data is not available

     Chart

            Note: CHRW stock made good progress off the March 2009 lows, surpassing the downtrend off its May 2008 high (straight red line) and the November trading high (green line).  Long term the stock is in a trading range (blue lines).  Intermediate term it is in a trading range (purple lines).  The wiggly red line is the 50 day moving average.  The Aggressive Growth Portfolio owns a 50% position in CHRW.  The upper boundary of its Buy Value Range is $38; the lower boundary of its Sell Half Range is $109.
   



7/14  

No comments:

Post a Comment