CHRW

We rate C. H. ROBINSON WORLDWIDE, INC. (CHRW) as a Hold with a composite score of 62.7/100 at a current price of $177.35. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling for existing holders. Our factors are split, and the overall profile suggests patience is warranted.

The rating is primarily driven by strength in momentum (87th percentile) and quality (66th percentile), which together account for the majority of the composite score. Offsetting weakness in investment (34th percentile) and value (42th percentile) tempers our overall conviction. We assign a Narrow Moat rating (60/100), Medium uncertainty, and Exemplary capital allocation.

Key items to watch: whether strong momentum is fundamentally supported by revenue trends. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.

C. H. ROBINSON WORLDWIDE, INC. holds a top-quartile position (#0 of 50) within the Transportation, Communications, Electric, Gas, And Sanitary Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 62.7/100 places it at rank #450 in our full 7,333-stock universe. With a $15.6B market capitalization, C. H. ROBINSON WORLDWIDE, INC. operates at meaningful scale within the Transportation, Communications, Electric, Gas, And Sanitary Services sector, providing competitive advantages in distribution, procurement, and customer reach.

Despite positive momentum (87th percentile), revenue contraction of -8% creates a divergence between price action and fundamental trajectory. This divergence suggests either that the market is looking through near-term weakness or that technical factors are temporarily inflating the stock. Investors should assess whether the revenue decline reflects cyclical weakness or structural challenges.

The margin cascade tells an important story: gross margins of 8% (-47.1pp vs sector) narrow to operating margins of 5% (-12.8pp vs sector) and net margins of 3.3%, yielding a gross-to-net conversion rate of 41%. This efficient conversion suggests well-controlled operating costs and limited margin leakage between the gross and net levels.

At a current price of $177.35, C. H. ROBINSON WORLDWIDE, INC. is trading near fair value based on current fundamentals. Our value factor score of 42/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.

The stock currently trades at a P/E of 41.1x (a 143% premium to the sector median of 16.9x), EV/EBITDA of 26.4x (at a premium), P/B of 12.2x, P/S of 1.3x. The above-sector P/E multiple suggests the market is pricing in superior growth or quality, which our analysis partially supports given strong quality metrics.

We assign a Medium uncertainty rating to C. H. ROBINSON WORLDWIDE, INC.. The stock presents a balanced risk profile: elevated valuation multiple (P/E 41.1x) that leaves limited margin for error and the combination of leverage (59% D/E) and thin margins (3.3% net) amplifies downside risk. While not risk-free, the core business fundamentals are adequate to withstand moderate economic stress, and the range of potential outcomes around our fair value estimate is manageable.

Specific risk factors that inform our assessment include: elevated valuation multiple (P/E 41.1x) that leaves limited margin for error; the combination of leverage (59% D/E) and thin margins (3.3% net) amplifies downside risk. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 47th percentile and quality factor at the 66th percentile provide a quantitative summary of the overall risk landscape.

We identify limited risk mitigants at this time, which contributes to our medium uncertainty assessment. Investors should monitor for improvement in balance sheet metrics, margin stability, and business predictability that could warrant a downgrade in our risk assessment over time.

We rate C. H. ROBINSON WORLDWIDE, INC.'s capital allocation as Exemplary. Management demonstrates a strong track record of balancing reinvestment with shareholder returns, evidenced by returns on equity of 29.7%, a 1.87% dividend yield. Exemplary allocators typically generate returns on equity above 20% while maintaining debt-to-equity below 50% — C. H. ROBINSON WORLDWIDE, INC. meets this high bar.

The balance sheet remains conservatively managed, providing financial flexibility for opportunistic investments while maintaining a margin of safety for shareholders. The company returns capital via a 1.87% dividend yield, and the combination of 10.8% return on assets and controlled leverage suggests management is deploying capital at rates well above the cost of capital — the hallmark of exemplary stewardship.

In summary, C. H. ROBINSON WORLDWIDE, INC. receives a Hold rating with a composite score of 62.7/100 (rank #450 of 7,333). Our quantitative framework assigns a Narrow Moat (60/100, trend: stable), Medium uncertainty, and Exemplary capital allocation. The average factor score across quality, value, momentum, stability, and investment is 55/100.

Our analysis supports a neutral stance on C. H. ROBINSON WORLDWIDE, INC.. While the quantitative profile is not weak enough to warrant selling, it lacks the multi-factor strength required for a buy recommendation. Existing holders should maintain positions and monitor for catalysts — either fundamental improvement or valuation compression — that would shift the risk-reward balance.