C.H. Robinson Worldwide (CHRW)

Source: Company Annual Report (2010)

C.H. Robinson Worldwide (CHRW) 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 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.

Business Model Analysis

The long-term growth trend is 10%. And we could pretty much set our watch to it … with allowances for recessions now and then. (If you squint, you can see a recessionary gulp in 2012. See the blip in the EPS plot for 2012 vs. the trend.)

The price bars are drifting ever closer to the long-term EPS trend, underscoring the potential buying opportunity.

Chronicle

Points of View

There’s a few chinks in the armor for CHRW, but no deal breakers. The “bearish sentiment” and negative price pressure is probably reflective short-term recessionary concerns — but we’re in this for the long haul. (Yes, an economic recession will deliver a dent much like it did in 2008-2009.)

Overall sentiment is a little weak. Note the Motley Fools CAPS all-stars are not all that high on CHRW (34th percentile).

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