Introduction to C.H. Robinson (CHRW)
C.H. Robinson (CHRW) is a leading third-party logistics (3PL) company that provides transportation and logistics services to a wide range of customers across various industries. The company operates in North America, Europe, and Asia, and offers services such as truckload, less-than-truckload, intermodal, ocean, and air freight transportation. C.H. Robinson Worldwide, Inc. (CHRW) is a recent addition to the Dividend Aristocrats Index. The company recently announced its 25th consecutive annual dividend increase and currently offers a yield of 2.5%.
Financials
One of the key strengths of C.H. Robinson is its extensive network of carriers and suppliers, which enables the company to provide its customers with efficient and cost-effective transportation solutions. The company also invests heavily in technology and data analytics to improve its operations and better serve its customers.
C.H. Robinson’s financial performance has been impressive over the years, with steady revenue growth and profitability. The company’s revenue for the fiscal year 2021 was $21.6 billion, up 25% from the previous year. Net income for the same period was $1.1 billion, an increase of 31% from the previous year.
C.H. Robinson is also a dividend aristocrat, having increased its dividend payout for 25 consecutive years. The company’s current dividend yield is 2.5%, which is above the industry average of 1.5%. C.H. Robinson’s dividend payout ratio is also reasonable at 46.9%, which indicates that the company has the financial flexibility to continue paying and increasing its dividend over the years.
C.H. Robinson has a strong balance sheet, with a debt-to-equity ratio of 0.82 and a current ratio of 1.75. This indicates that the company has a healthy financial position and is able to meet its short-term obligations. C.H. Robinson also has a solid cash position, with $973 million in cash and equivalents as of the end of fiscal year 2021.
In terms of valuation, C.H. Robinson’s price-to-earnings (P/E) ratio of 20.4 is below the industry average of 25.4. This indicates that the company is currently undervalued compared to its peers, which may present an opportunity for investors.
Final Thoughts
In conclusion, C.H. Robinson is a solid investment choice for investors looking for exposure to the logistics industry. The company’s extensive network, technological capabilities, and financial strength make it a reliable provider of transportation and logistics services. Furthermore, C.H. Robinson’s status as a dividend aristocrat, strong balance sheet, and reasonable valuation make it an attractive choice for long-term investors. However, it’s always important to do your own research and consult with a financial advisor before making any investment decisions.
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