CHRW Financial Analysis

Analysis Date: 1/30/2025

Business Model

C.H. Robinson generates revenue primarily through transportation and logistics services across multiple modes

Revenue Sources

• Transportation Services (91.8% of revenue) - Including truckload, LTL, ocean, air and customs services
• Sourcing Services (8.2% of revenue) - Including produce sourcing and logistics

Revenue Distribution by Channel

• Truckload: 66.9% of total revenue
• LTL and Other Transport: 21.1% of total revenue

Income Statement Analysis

• Gross profits increased 10.4% YoY to $672.9M driven by higher margins
• Operating expenses decreased 2.0% YoY due to cost optimization and productivity improvements
• Operating income increased 71.1% YoY to $183.8M on higher gross profits and lower expenses

Balance Sheet Analysis

• Strong balance sheet maintained with $145.8M in cash
• Total liabilities decreased 6.1% YoY on lower debt levels

Cash Flow Analysis

• Operating cash flow increased $220.6M YoY to $267.9M on higher net income and improved working capital

Capital Allocation

Q4 2024 capital returned to shareholders totaled $82.8M including $74.5M in dividends and $8.3M in share repurchases. More than 25 years of annually increasing dividends. Maintained investment grade credit rating.

Management Commentary

Benefits of new Robinson operating model and disciplined execution evident in Q4 results

Significant productivity improvements achieved across segments

Continued challenging freight market with growth below expectations

Overall Sentiment: Cautiously optimistic, focused on operational improvements and cost discipline

Recommendation

Rating: Buy

Reason for Rating: Strong execution and operational improvements despite market headwinds

Disclaimer: This analysis is based on company filings and public information. It is for informational purposes only and not financial advice. Past performance does not guarantee future results.

Generated on: 1/30/2025, 8:35:17 AM