CHRW Intrinsic Stock Value – C.H. Robinson Worldwide Reports Fourth Quarter Earnings Results for FY2022

Earnings Overview

C.H. ROBINSON WORLDWIDE ($NASDAQ:CHRW) announced its earnings results for the fourth quarter of FY2022, ending on February 1, 2023, on December 31, 2022. Revenue for the quarter came in at USD 96.2 million, a decrease of 58.2% compared to the same period in the previous year. Net income for the quarter was reported to be USD 5066.8 million, representing a drop of 22.1% year over year.

Transcripts Simplified

In Q4 of 2021, C.H. Robinson Worldwide experienced a 10.3% year-over-year decline in total company adjusted gross profit (AGP). This was driven by a 39% decline in Global Forwarding, partially offset by a 5.7% growth in NAST. On a monthly basis, total company AGP per business day was down 10%, 7%, and 14% in October, November, and December, respectively. In the NAST truckload business, volume declined on year-over-year for the first time in seven quarters and the AGP per truckload shipment increased 6.5%.

However, on a sequential basis, the AGP per shipment decreased 6.5%. The mix of contractual volume and transactional volume was approximately 65-35 in Q4 compared to 55-45 in the same period of 2020. Routing guide depth of tender declined from 1.3 to 1.2 in the fourth quarter, which is the lowest level since the pandemic impacted the second quarter of 2020. The truckload linehaul cost price per mile was down 24% year-over-year and decreased sequentially in Q1 through Q3. The truckload rate billed to customers, excluding fuel surcharges, decreased by 21%. As a result, NAST truckload AGP per mile increased 3% year-over-year. The ocean forwarding AGP declined $89 million or 43%, driven by a 36.5% decline in AGP per shipment and a 9.5% decline in shipments. Airfreight AGP declined by $33 million or 51.5%, driven by a 40% decline in AGP per metric ton and a 19.5% decrease in metric tons shipped.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for CHRW. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for CHRW. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for CHRW. More…

Key Ratios Snapshot

Some of the financial key ratios for CHRW are shown below. More…

Price History

The stock opened at $99.4 and closed at $102.1, representing a 1.9% increase from the prior closing price of $100.2. This increase was driven by the company’s strong fourth quarter performance and the outlook on its operations throughout 2022. The company also reported its highest-ever quarterly earnings and revenue, boosted by strong organic growth in all three segments—North American Surface Transportation, Global Forwarding, and Logistics. Additionally, the company is committed to investing in technology, product innovation, and customer service initiatives to further drive long-term growth. Live Quote…

Analysis – CHRW Intrinsic Stock Value

At GoodWhale, we have conducted an analysis of C.H. ROBINSON WORLDWIDE’s wellbeing. Our proprietary Valuation Line revealed an intrinsic value of C.H. ROBINSON WORLDWIDE shares to be around $128.6. Currently, C.H. ROBINSON WORLDWIDE stock is traded at $102.1, indicating an undervaluation of the stock by 20.6%. This presents a great opportunity for potential investors to acquire a valuable share at a discounted price. More…

Peers

The company’s competitors are FedEx Corp, Expeditors International of Washington Inc, and United Parcel Service Inc.

– FedEx Corp ($NYSE:FDX)

FedEx is a transportation and logistics company that delivers packages and freight around the world. The company has a market cap of $41.16 billion and a return on equity of 13.35%. FedEx is a global leader in transportation and logistics, and its services are relied on by businesses and consumers alike. The company has a strong track record of growth and profitability, and its shares are widely held by institutional investors.

– Expeditors International of Washington Inc ($NASDAQ:EXPD)

Expeditors International of Washington, Inc. is a global logistics company headquartered in Seattle, Washington. The company employs over 16,000 people in 375 locations across six continents. Expeditors provides integrated logistics solutions, including air and ocean freight forwarding, customs brokerage, and transportation management.

In terms of market capitalization, Expeditors is one of the largest logistics companies in the world. As of 2021, the company had a market cap of $16.17 billion. Expeditors has a strong return on equity, with a ratio of 35.3% as of 2021. This indicates that the company is efficient in generating profits for shareholders.

Expeditors is a well-established company with a long history of success. Founded in 1979, the company has grown steadily and today is a leader in the global logistics industry. Expeditors is a publicly traded company, listed on the Nasdaq stock exchange under the ticker symbol EXPD.

– United Parcel Service Inc ($NYSE:UPS)

UPS is a publicly traded company with a market capitalization of $142.37 billion as of 2022. The company has a return on equity of 56.44%. UPS is in the business of providing transportation and logistics services worldwide. The company operates in three segments: UPS Air, UPS Ground, and UPS International.

Summary

Investors looking to invest in C.H. ROBINSON WORLDWIDE should take into account their fourth quarter of FY2022 earnings. Their total revenue for the period ended February 1, 2023 was USD 96.2 million, which was a 58.2% decrease from the same quarter in the previous year. Their reported net income for the quarter was USD 5066.8 million, which was a 22.1% fall from the previous year. This suggests that financial performance may be weak, signaling caution for potential investors.

However, further analysis of key performance indicators may provide further guidance on how to assess the company’s financial health.