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Here's Why Investors Should Hold C.H. Robinson (CHRW) Now
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C.H. Robinson Worldwide, Inc. (CHRW - Free Report) is benefiting from shareholder-friendly measures and strong liquidity.
Factors Favoring CHRW
C.H. Robinson’s measures to reward shareholders through dividends and share buybacks are encouraging. In November 2022, the company hiked its dividend to 61 cents per share from 55 cents. CHRW is also active on the buyback front. During 2021, the company returned approximately $886 million to shareholders through a combination of dividends ($277 million) and share buybacks ($609 million).
Continuing with its shareholder-friendly approach, C.H. Robinson rewarded its shareholders in 2022 through a combination of cash dividends ($285.32 million) and share repurchases ($1,488.28 million). In the first nine months of 2023, CHRW repurchased shares worth $63.88 million and paid $218.94 million in cash dividends.
C.H. Robinson's current ratio (a measure of liquidity) at the end of third-quarter 2023 was 1.12, higher than 1.11 at the end of second-quarter 2023. An increasing current ratio is desirable as it indicates that the company may not have problems meeting its short-term debt obligations. A current ratio of more than 1 often indicates that the company will be easily paying off its short-term obligations.
Key Risk
Adjusted gross profits fell 29.7% year over year to $2.0 billion in the first nine months of 2023. Lower adjusted gross profit per transaction in truckload and ocean resulted in this downside. Adjusted operating margin of 20.5% decreased 1,850 basis points.
Air Canada currently sports a Zacks Rank #1 (Strong Buy). An uptick in passenger traffic is aiding ACDVF. Recently, management announced plans to launch a new year-round route between Montreal and Madrid. You can see the complete list of today’s Zacks #1 Rank stocks here.
The service will commence in May of the following year as part of its expanded international summer 2024 flying schedule to cater to increased demand.
SkyWest currently carries a Zacks Rank #2 (Buy). SKYW's fleet-modernization efforts are commendable. Initiatives to reward its shareholders also bode well. The Zacks Consensus Estimate for current-quarter earnings has surged 83.3% in the past 60 days.
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Here's Why Investors Should Hold C.H. Robinson (CHRW) Now
C.H. Robinson Worldwide, Inc. (CHRW - Free Report) is benefiting from shareholder-friendly measures and strong liquidity.
Factors Favoring CHRW
C.H. Robinson’s measures to reward shareholders through dividends and share buybacks are encouraging. In November 2022, the company hiked its dividend to 61 cents per share from 55 cents. CHRW is also active on the buyback front. During 2021, the company returned approximately $886 million to shareholders through a combination of dividends ($277 million) and share buybacks ($609 million).
Continuing with its shareholder-friendly approach, C.H. Robinson rewarded its shareholders in 2022 through a combination of cash dividends ($285.32 million) and share repurchases ($1,488.28 million). In the first nine months of 2023, CHRW repurchased shares worth $63.88 million and paid $218.94 million in cash dividends.
C.H. Robinson's current ratio (a measure of liquidity) at the end of third-quarter 2023 was 1.12, higher than 1.11 at the end of second-quarter 2023. An increasing current ratio is desirable as it indicates that the company may not have problems meeting its short-term debt obligations. A current ratio of more than 1 often indicates that the company will be easily paying off its short-term obligations.
Key Risk
Adjusted gross profits fell 29.7% year over year to $2.0 billion in the first nine months of 2023. Lower adjusted gross profit per transaction in truckload and ocean resulted in this downside. Adjusted operating margin of 20.5% decreased 1,850 basis points.
Zacks Rank
CHRW currently carries Zacks Rank #3 (Hold).
Key Picks
Some better-ranked stocks for investors interested in the Zacks Transportation sector are Air Canada (ACDVF - Free Report) and SkyWest (SKYW - Free Report) .
Air Canada currently sports a Zacks Rank #1 (Strong Buy). An uptick in passenger traffic is aiding ACDVF. Recently, management announced plans to launch a new year-round route between Montreal and Madrid. You can see the complete list of today’s Zacks #1 Rank stocks here.
The service will commence in May of the following year as part of its expanded international summer 2024 flying schedule to cater to increased demand.
SkyWest currently carries a Zacks Rank #2 (Buy). SKYW's fleet-modernization efforts are commendable. Initiatives to reward its shareholders also bode well. The Zacks Consensus Estimate for current-quarter earnings has surged 83.3% in the past 60 days.