July 18, 2025 a 12:46 pm
CHRW: Dividend Analysis - C.H. Robinson Worldwide, Inc.
C.H. Robinson Worldwide, Inc., a stalwart in the logistics sector, showcases a dividend yield of 3.22%, a testament to its investor-centric approach. With 29 years of unbroken dividend history, the company reflects not only resilience but also a commitment to shareholder returns. The absence of recent dividend cuts further enhances its appeal to long-term income investors.
📊 Overview
With a strong foothold in the logistics sector, C.H. Robinson Worldwide, Inc. commands a market position underscored by a commendable dividend yield of 3.22%. Boasting a current dividend per share of USD 2.46, the company has maintained a consistent dividend history for 29 years without any recent cuts or suspensions, reinforcing investor confidence.
| Attribute | Details |
|---|---|
| Sector | Logistics |
| Dividend yield | 3.22 % |
| Current dividend per share | 2.46 USD |
| Dividend history | 29 years |
| Last cut or suspension | None |
📉 Dividend History
The dividend history is a crucial indicator of a company's profitability and stability. With 29 years of uninterrupted dividend payments, C.H. Robinson showcases its commitment to shareholder returns and financial durability. Such a record is essential for long-term income-focused investors.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 1.24 |
| 2024 | 2.46 |
| 2023 | 2.44 |
| 2022 | 2.26 |
| 2021 | 2.08 |
📈 Dividend Growth
Dividend growth rates provide clarity on a company's future payout potentials and profit growth. Over the past 3 years, C.H. Robinson's dividend increased by a modest 5.75%, while the 5-year growth rate stands at 4.12%. The consistency in growth, albeit moderate, provides assurance of the company's ongoing financial health.
| Time | Growth |
|---|---|
| 3 years | 5.75 % |
| 5 years | 4.12 % |
The average dividend growth is 4.12% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Payout ratios provide an outlook on the sustainability of dividend payouts. For C.H. Robinson, the EPS-based payout is 58.58%, while the free cash flow-based payout stands at 48.18%. These numbers suggest a balanced approach, reflecting both profitability and sustainability of dividend payments.
| Key figure | Ratio |
|---|---|
| EPS-based | 58.58 % |
| Free cash flow-based | 48.18 % |
With an EPS payout ratio of 58.58% and an FCF payout ratio of 48.18%, the dividend payments are well-covered and leave room for potential reinvestments or increased future dividend payouts.
🔍 Cashflow & Capital Efficiency
Cashflow and capital efficiency metrics serve as vital indicators of a company's financial health and operational effectiveness. C.H. Robinson's free cash flow yield stands at 5.18%, exhibiting robust cash generation capabilities.
| Year | Free Cash Flow Yield | Earnings Yield | CAPEX to Operating Cash Flow | Stock-based Compensation to Revenue | Free Cash Flow / Operating Cash Flow Ratio |
|---|---|---|---|---|---|
| 2024 | 3.93% | 3.76% | 6.57% | 0.48% | 95.55% |
| 2023 | 6.33% | 3.17% | 11.49% | 0.33% | 88.51% |
| 2022 | 13.22% | 8.17% | 7.79% | 0.37% | 92.21% |
Consistent free cash flow yields and efficient use of capital expenditures underline strong capital efficiency, indicative of strategic operational management and sustainable growth.
💼 Balance Sheet & Leverage Analysis
Analysis of balance sheet and leverage ratios is crucial to understanding a company's financial structure and its ability to handle obligations. C.H. Robinson maintains a balanced approach with a debt-to-equity ratio of 1.01, indicating prudent financial management.
| Year | Debt-to-Equity | Debt-to-Assets | Debt-to-Capital | Net Debt to EBITDA | Current Ratio | Quick Ratio | Financial Leverage |
|---|---|---|---|---|---|---|---|
| 2024 | 1.01 | 0.33 | 0.50 | 2.09 | 1.28 | 1.28 | 3.08 |
| 2023 | 1.38 | 0.37 | 0.58 | 2.94 | 1.40 | 1.40 | 3.68 |
| 2022 | 1.74 | 0.40 | 0.64 | 1.58 | 1.08 | 1.08 | 4.40 |
Despite a significant leverage, robust interest coverage and stabilized liquidity ratios enhance the company's position to meet financial obligations.
🎯 Fundamental Strength & Profitability
Comprehending fundamental metrics such as ROE and profit margins gives insights into operational efficiency and profitability. C.H. Robinson's ROE of 30.76% signals strong equity utilization.
| Year | ROE | ROA | Net Margin | EBIT Margin | EBITDA Margin | Gross Margin | R&D to Revenue |
|---|---|---|---|---|---|---|---|
| 2024 | 27.04% | 8.79% | 2.63% | 3.78% | 4.30% | 7.38% | 0% |
| 2023 | 22.92% | 6.22% | 1.85% | 2.92% | 3.49% | 6.47% | 0% |
| 2022 | 69.49% | 15.80% | 3.81% | 5.13% | 5.51% | 7.57% | 0.10% |
Robust margins and excellent returns on equity enhance investor's trust in the company's operational effectiveness and profitability strategies.
📈 Price Development
🔍 Dividend Scoring System
The dividend scoring system evaluates key parameters critical in assessing dividend viability and stability. Each category is scored with a maximum of 5 points.
| Category | Score | |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 5 | |
| Dividend growth | 3 | |
| Payout ratio | 4 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 33/40
🧐 Rating
Overall, C.H. Robinson Worldwide, Inc. presents itself as a robust dividend-paying stock with a strong track record of consistency and growth. Despite certain leverage concerns, the company's operational strength, commitment to dividends, and financial performance bode well for long-term investors. A desirable choice for dividend-seeking portfolios.