CH Robinson Worldwide (CHRW) 2013 Review

C.H. Robinson Worldwide is one of the largest third party logistics companies in North America, providing non asset based multimodal, logistic solutions and fresh produce sourcing.  CHRW has grown profits and earnings at a 20%+ pace over the last ten years earning a 28%+ return on equity.  The company experienced only a slight slowdown in the rate of profit expansion during the 2008-2009 recession and has returned to an above average rate of growth as a result of:

(1) improved pricing,

(2) acquisitions (latest, Phoenix),

(3) improved operating efficiencies,

Negatives:

(1) intense competition,

(2) since it does not own or control the assets that deliver to customers, it is vulnerable to carrier problems,

(3) recently, it has been unable to pass along rising carrier costs to its customers.

CHRW is rated A by Value Line, has no debt and its stock yields 2.3%.

   Statistical Summary

                  Stock       Dividend       Payout      # Increases  

                  Yield      Growth Rate     Ratio       Since 2003

CHRW       2.3%            8%             41%              10

Ind Ave*

                Debt/                        EPS Down       Net        Value Line

               Equity         ROE      Since 2003      Margin       Rating

CHRW       0%            27%           0                 4%            A

Ind Ave*

*comparable industry data is not available

     Chart

Note:  CHRW stock made good initial progress off its March 2009 low, quickly surpassing the downtrend off the May 2008 high (straight red line) and the November 2008 trading high (green line).  Long term, the stock is in a trading range (blue lines); intermediate term, it is a trading range (purple lines).  The wiggly red line is the 50 day moving average.  The aggressive Growth Portfolio owns a full position in CHRW.  The upper boundary of its Buy Value Range is $39; the lower boundary of its Sell Half Range is $108.

http://finance.yahoo.com/q?s=CHRW

7/13