CHRW Stock Fair Value – C.H. Robinson Worldwide Reports Earnings Results for Q2 of FY2023
August 15, 2023
🌥️Earnings Overview
On June 30, 2023, C.H. ROBINSON WORLDWIDE ($NASDAQ:CHRW) announced their financial results for the second quarter of FY2023. Total revenue was reported at USD 4421.9 million, representing a decrease of 35.0% when compared to the same period the year before. Net income for Q2 of this year was USD 97.3 million, a decrease of 72.0% compared to the second quarter of FY2022.
Stock Price
On Wednesday, C.H. Robinson Worldwide (CHRW) reported their financial results for the second quarter of fiscal year 2023. The company’s stock opened at $98.6 and closed at $97.4, representing a 2.0% decrease from the previous closing price of 99.4. The company’s shares are currently trading at $97.32.
The earnings announcement was met with mixed reactions on Wall Street, with analysts noting that the company’s revenues were impacted by the current global pandemic situation. In light of these results, the company’s management team assured investors that CHRW is well-positioned to weather the current economic climate and continue to be a leader in the global logistics industry. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for CHRW. More…
| Total Revenues | Net Income | Net Margin |
| 20.12k | 534.2 | 2.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CHRW. More…
| Operations | Investing | Financing |
| 1.88k | -110.02 | -1.79k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for CHRW. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.41k | 4.02k | 11.86 |
Key Ratios Snapshot
Some of the financial key ratios for CHRW are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.1% | 5.4% | 3.7% |
| FCF Margin | ROE | ROA |
| 8.8% | 33.7% | 8.6% |
Analysis – CHRW Stock Fair Value
At GoodWhale, we analyze C.H. ROBINSON WORLDWIDE’s financials to construct our proprietary Valuation Line. The fair value of C.H. ROBINSON WORLDWIDE share is around $107.7, which is favorable for the long-term investors. However, currently, the stock is traded at a price of $97.4, which is undervalued by 9.6%. We advise investors to take advantage of this undervalued situation and invest in the long-term to gain maximum returns from their investments. More…
Peers
The company’s competitors are FedEx Corp, Expeditors International of Washington Inc, and United Parcel Service Inc.
– FedEx Corp ($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 may be cautious when considering investing in C.H. ROBINSON WORLDWIDE due to the large decline in revenue reported for its second quarter financial results. The company posted total revenue of USD 4421.9 million, a decrease of 35.0% year over year, and net income of USD 97.3 million, down 72.0%. While the company’s performance in the second quarter was weak, investors should consider other financial metrics before making any investment decisions.
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