Analysts raised targets on C.H. Robinson(CHRW:NSD) after earnings release

STA Research
by: STA Research

C.H. Robinson revealed its financial results for the first quarter of 2022. Robinson reported diluted earnings per share of $2.05, compared to the Street’s consensus expectation of $1.53, representing a 60.2 percent year-over-year increase. The company’s first-quarter net income was $270.3 million, up 56 percent over the previous year.

Total revenue climbed by 41.9 percent to $6.8 billion from the previous year. The company’s adjusted gross profit climbed by 29% to $906.2 million year over year. Across most of its business segments, Robinson noted better adjusted gross profit per transaction and higher volumes.

Analysts Update Ratings:

 

Based on the C.H. Robinson Worldwide Inc stock forecasts from 16 analysts, the average analyst target price for C.H. Robinson Worldwide Inc is USD 112.05 over the next 12 months. C.H. Robinson Worldwide Inc’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of C.H. Robinson Worldwide Inc is Neutral, which is based on 8 positive signals and 8 negative signals. At the last closing, C.H. Robinson Worldwide Inc’s stock price was USD 102.83C.H. Robinson Worldwide Inc’s stock price has changed by -0.36% over the past week, -6.10% over the past month and +6.46% over the last year.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

What we don’t like:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.

 

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