CHRW
C.H.Robinson Worldwide Inc
Industrial/Transportation
11/04/2015
Presented
| Date | 10/29/2015 |
| Price | $69.38 |
| Market Cap | $10.04B |
| Ent Value | $10.70B |
| P/E Ratio | 20.41x |
| Book Value | $7.66 |
| Div Yield | 0% |
| Shares O/S | 144.78M |
| Ave Daily Vol | 1,530,011 |
| Short Int | 6.01% |
Current
| Price | $109.10 |
| Market Cap | $12.80B |
| C.H. Robinson Worldwide, Inc. is a service company, which provides freight transportation services and logistics solutions to companies. It is a multimodal transportation services and logistics solutions, operates through a network of branch offices in North America, Europe, Asia, South America, and the Middle East. C.H. Robinson Worldwide services include supply chain consulting and analysis, freight consolidation, core carrier program management and information reporting. The company's other services include sourcing services, contract Warehousing and fee-based information services. The Sourcing services business is primarily the buying, selling, and marketing of fresh produce. It develops proprietary brands of produce including The Fresh 1 and its world organics. The Information services is comprised of a C.H. Robinson subsidiary, T-Chek Systems, Inc. T-Chek is a business-to-business provider of spend management and payment processing services. The majority of T-Chek's customers are motor carriers and truck stop chains. T-Chek's platform supports open and closed loop networks that facilitate a variety of funds transfer, vendor payments, fuel purchasing, and online expense management. It also provides Transportation and Logistics Services: Truckload, less than Truckload, Intermodal, Ocean, Air and Other Logistics Services. C.H. Robinson Worldwide was founded by Charles Henry Robinson in 1905 and is headquartered in Eden Prairie, MN. |
Publicly traded companies mentioned herein: C.H. Robinson (CHRW), Swift (SWFT) and Knight (KNX).
Highlights
Truck broker C.H. Robinson is a respected company that has long operated an attractive business, but the presenter is short shares on the risk of the so-called “Uberification” of the transport world. The company, which does not own any trucking assets, has long acted as a middleman between big shippers including Wal-Mart and Target and smaller, independent trucking companies. While Wal-Mart and other big shippers typically have contracts with major trucking companies including Swift (SWFT) and Knight (KNX), CHRW has historically played an important role by helping connect shippers with the smaller, independent trucking companies that make up approximately 80% of the truck market in the US (the average fleet size in the US is 3 trucks). Over the past several years, however, the company has faced mounting competitive pressure from companies copying its broker model, and most recently from Uber-like on-demand trucking solutions that have proliferated the market, including start ups Trucker Path and Convoy.
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