C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW)

CAPS Rating: 5 out of 5

A provider of multimodal transportation services and logistics solutions, operating through a network of branch offices in North America, Europe, Asia, and South America.

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Member Avatar OKwarrior (37.58) Submitted: 4/23/2014 6:52:48 PM : Outperform Start Price: $57.98 CHRW Score: +18.45

ROE averages 40% the last 3 years. EV/EBIT is 10.7.

This is a transportation logistics comp..... zzzzz zzzz zzzz

Hey, what do I care, they make money!!

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Member Avatar grankh (81.23) Submitted: 10/18/2013 6:44:42 PM : Outperform Start Price: $39.14 CHRW Score: -65.37

I do NOT own this stock in real life, but it has potential, so I am holding it here in this portfolio despite its current loss. We'll have to see how it goes.

The sales have recently been growing at about 12% per year, and the EPS has been growing about 13% per year for a few years, so it has mediocre growth. The profit margin grew last year, and the earned-on-equity grew the past two years, so that is promising. Also, the company has NO DEBT. (One of my favorite things.) The stock is selling below its historic P/E average, but the PEG ratio is pretty high, so it could be considered near fair value. The stock does pay a small dividend, which has been increased in each of the past 5 years, so that is promising.

With the small dividend, and considering that it is trading near the bottom of its 52 week range, and other positive factors, I am hoping that this stock will return me about 23% over the next year, and thus eat some into the negative balance it shows against the market on CAPS. So for now I will hold on and see if it can turn around for me, or at least show less of a loss against the market. Keeping my fingers crossed.

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Member Avatar HVSTmoon (< 20) Submitted: 8/9/2013 1:55:16 PM : Outperform Start Price: $54.99 CHRW Score: +13.48

It's return on invested capital is insane.
Ultimately, it will protect it's profits through it's huge scale and cost efficiency.
Maybe even acquiring some smaller companies on it's way too, gaining more market share in the process.

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Member Avatar Teacherman333 (66.07) Submitted: 5/26/2013 1:35:27 PM : Outperform Start Price: $54.46 CHRW Score: +10.29

For reference point and to allow for comments by others. As of the end of March, 2013.

ROE 43.15%
Trailing PE 16.02
PB 6.41
Div yield 2.40%

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Member Avatar surabayajhonny (48.29) Submitted: 5/7/2013 1:00:19 PM : Outperform Start Price: $58.93 CHRW Score: -0.20

Low multiple vs historical levels. I'm assuming they'll be able to maintain their current roe.

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Member Avatar ROEoutshinesGOLD (99.03) Submitted: 5/6/2013 7:27:38 PM : Outperform Start Price: $57.00 CHRW Score: -1.68

"Wide Economic Moat" type of a business. CHRW has the "Networking Effect" keeping its competitors at a disadvantage.
Here's a video from Morningstar.com briefly discussing the above stated (CHRW is the last item discussed in the video):

morningstar.com/cover/videocenter.aspx?id=588695

If you are interested in finding out more about the different economic moats - either read or listen to an audiobook version of Pat Dorsey's book: "The Little Book That Builds Wealth."
Here are some reviews from GoodReads.com and Amazon.com , respecively:

goodreads.com/book/show/2389174.The_Little_Book_That_Builds_Wealth

amazon.com/Little-Book-That-Builds-Wealth/product-reviews/047022651X

If you want a concise overview of the ideas which are expanded in the aforementioned book - here's Pat Dorsey himself in a 2010 (5 min.) video talking about the 4 different sources of a moat:

morningstar.com/cover/videocenter.aspx?id=349487

Here's a more recent (2012), and a longer (20 min.) video discussing the 4 sources of a moat. In addition, this video includes a newly identified, fifth, source of a moat - the "Efficient Scale." :

http://www.morningstar.com/cover/videocenter.aspx?id=542541

For good measure, see this old, 2003, article about the 4 moat sources:

news.morningstar.com/articlenet/article.aspx?id=91441

With the moats explained and a decent understanding of the "Networking Effect" out of the way - here's what the S&P Capital IQ currently writes about CHRW:

S&P Star Ranking = 3
(1=lowest, 5=highest)

S&P Fair Value Rank = 4+
(1=most overvalued, 5=most undervalued)

S&P Quality Ranking = A+ (highest possible)
(Growth and stability of earnings and dividends are deemed key elements in establishing S&P's Quality Rankings for common stocks, which are designed to capsulize the nature of this record in a single symbol. It should be noted, however, that the process also takes into consideration certain adjustments and modifications deemed desirable in establishing such rankings...)

Fair Value Calculation = $64.30
(Analysis of the stock's current worth, based on S&P's proprietary quantitative model suggests that CHRW is slightly undervalued by $3.83 or 6.3%.)

12-Mo. Target Price = $70.00
(Our 12-month target price of $70 values the stock at 23.3X our 2013 EPS estimate of $3.00. Our valuation is above peer levels, but toward the lower end of CHRW's historical P/E range for the past five years of 18X to 36X earnings.)

"We still have a positive view of CHRW's history of strong returns on assets and equity relative to most other transportation companies. However, we think the company's shift in strategy to lever up the balance sheet for recent acquisitions warrants a lower valuation multiple than CHRW has been rewarded with in the past. Also, these acquisitions are leading to higher costs for the company. We also think the forwarding business, where CHRW has targeted its acquisitions, is more competitive and likely to have lower returns than CHRW's traditional transport business.
On the positive side, CHRW has been a generator of cash over the past few years and the company does not have a defined benefit pension plan."

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Member Avatar jimndena (33.69) Submitted: 4/11/2013 11:50:01 AM : Underperform Start Price: $58.46 CHRW Score: +1.57

TDA - SMA Crossover (Bearish)

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Member Avatar huddaman (98.55) Submitted: 3/30/2013 10:30:49 AM : Outperform Start Price: $57.38 CHRW Score: -1.45

Morningstar wide moat focus index recently added this to the index.

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Member Avatar BigFatBEAR (29.23) Submitted: 5/1/2012 2:04:23 AM : Outperform Start Price: $56.27 CHRW Score: -14.08

An Ultralong freighter pick with no debt and increasing divs.

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Member Avatar NoonanR (72.50) Submitted: 2/29/2012 12:33:21 PM : Outperform Start Price: $62.45 CHRW Score: -28.98

I believe this stock is fairly valued at $70s.

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Member Avatar stationfool (36.34) Submitted: 1/26/2012 12:03:48 PM : Outperform Start Price: $64.91 CHRW Score: -38.91

no debt

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Member Avatar campwt00global (34.35) Submitted: 10/20/2011 1:35:31 PM : Outperform Start Price: $68.28 CHRW Score: -58.04

GS thinks top 10 10/17/2011

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Member Avatar btthus (21.48) Submitted: 6/6/2011 3:01:32 AM : Outperform Start Price: $71.92 CHRW Score: -52.06

'The New Buffettology' Screen

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Member Avatar 5mackDab (47.67) Submitted: 3/14/2011 8:34:13 PM : Underperform Start Price: $65.33 CHRW Score: +46.26

I've dealt with C.H. Robinson personally within the load brokerage department. Their knowledge about truck freight is unconvincing as is there general knowledge as it pertains to freight rates. When they phone it sounds like a call center which again means they don't have a clue about anything which is backed up the minute they speak.

I just can't see this thing producing the growth one would like to see long term.

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Member Avatar adamritt (< 20) Submitted: 2/5/2010 9:30:42 AM : Outperform Start Price: $48.24 CHRW Score: -37.66

CHRW has excellent growth prospects for the next five years and is (a rarity for this stock) currently priced reasonably.

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Member Avatar chalsky (< 20) Submitted: 10/21/2009 4:24:11 PM : Outperform Start Price: $52.96 CHRW Score: -47.20

CH Robinson is the best third party freight provider there is. Capatalizing on the spread between the cost to the supplier and it's price to the customer is ch robinson's specialty. CH Robinson knows it's market better than anyone, and will take full advantage of the spread when pricing to the customer strengthens along with the economy. This flexible business model along with shrewd management, who continues to invest and buy strong niche companies complementing its core businesses, will make investors money indefinitely.

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Member Avatar Wheretheflavoris (34.64) Submitted: 5/23/2009 8:19:55 AM : Outperform Start Price: $42.87 CHRW Score: -58.69

These guys have been around a long time. They're tech-savvy, maintain a phenomenal balance sheet, and seem to like splitting the stock around $65.

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Member Avatar sethsimon (68.78) Submitted: 1/15/2009 10:37:11 AM : Outperform Start Price: $41.53 CHRW Score: -71.65

TMF article highlighted history of dividends.

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Member Avatar biojimkent (22.64) Submitted: 7/12/2008 2:06:12 PM : Outperform Start Price: $48.96 CHRW Score: -16.31

A Soros pick that makes sense to me

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Member Avatar morfstar (< 20) Submitted: 6/10/2008 11:38:27 PM : Outperform Start Price: $53.91 CHRW Score: -17.30

They just print money, thats all CH Robinson does and they do it better than any other Transportation / Logistics company out there.

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