CHRW

C.H. Robinson Worldwide, Inc.

Industrial/Transportation


Presented:02/02/2022
Price:$92.54
Cap:$12.03B
Current Price:$109.10
Cap:$12.80B

Presented

Date02/02/2022
Price$92.54
Market Cap$12.03B
Ent Value$16.24B
P/E Ratio14.68x
Book ValueN/A
Div Yield2.25%
Shares O/S129.99M
Ave Daily Vol1,141,400
Short Int11.46%

Current

Price$109.10
Market Cap$12.80B
C.H. Robinson Worldwide, Inc. engages in the provision of freight transportation services and logistics solutions. It operates through the following three segments: North American Surface Transportation and Global Forwarding. The North American Surface Transportation segment provides freight transportation services across North America through a network of offices in the United States, Canada, and Mexico. The Global Forwarding segment provides global logistics services through an international network of offices in North America, Europe, Asia, Australia, New Zealand, and South America. The company was founded by Charles Henry Robinson in 1905 and is headquartered in Eden Prairie, MN.

Publicly Traded Companies Mentioned Herein: CH Robinson Worldwide Inc (CHRW)

Highlights

The presenter is short shares of CH Robinson Worldwide Inc (CHRW), a battleground stock in industrial shipping, on the grounds that the space has become increasingly crowded in the past decade with new entrants like Loadsmart, which flaunt robust tech stacks and slimmer cost structures. There are also structural challenges in the industry with regard to contracts, as historically CHRW held 12-month contracts with clients but contract durations have decreased, which can impact the company’s earnings power over the long term. The final leg to the presenter’s bear case is that CHRW experienced negative spread growth QoQ in Q4 (i.e., the price over cost of the company transporting goods shrank instead of widening). These near- and long-term catalysts could pressure share prices through 2022.

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Idea Discussion

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