CHRW

C.H. Robinson Worldwide Inc.

Industrial/Transportation


Presented:03/21/2014
Price:$50.63
Cap:$7.52B
Current Price:$109.10
Cap:$12.80B

Presented

Date03/21/2014
Price$50.63
Market Cap$7.52B
Ent Value$8.23B
P/E Ratio24.23x
Book Value$7.15
Div Yield2.1%
Shares O/S148.50M
Ave Daily Vol1,980,000
Short Int11.83%

Current

Price$109.10
Market Cap$12.80B
C.H. Robinson Worldwide, Inc., a third party logistics company, provides freight transportation services and logistics solutions to companies in various industries worldwide. It offers transportation and logistics services, such as truckload comprising time-definite and expedited truck transportation services; less than truckload services; intermodal transportation, which is shipment service of freight in trailers or containers by combination of truck and rail; and non-vessel ocean common carrier or freight forwarding services, as well as organizes air shipments and provides door-to-door services. The company also provides custom broker services; and other logistics services, including fee-based transportation management services, warehousing services, and other services. It has contractual relationships with approximately 63,000 transportation companies, including motor carriers, railroads, air freight, and ocean carriers. In addition, the company is involved in buying, selling, and marketing fresh produce. The company offers its fresh produce to grocery retailers, restaurants, produce wholesalers, and foodservice distributors through a network of independent produce growers and suppliers. It operates through a network of 285 branch offices. The company was founded in 1905 and is headquartered in Eden Prairie, Minnesota.

​Highlights

The group discussed CH Robinson’s (CHRW) recent issues and earnings misses, and a participant who characterized his position as “perma-short” said he plans on staying short as the company a) can’t seem to deal with more pricing transparency in the industry, and b) hasn’t found its new net revenue margin. They face increasing competition and greater transparency, so even the presenter is unsure of what the right spread is. His best guess (and the group generally agreed) is that truckload spreads settle at around 5% (they used to be 12-13%, which was down from 18% not too long ago).

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