C.H. Robinson Worldwide (NASDAQ:CHRW) Could Be At Risk Of Shrinking As A Company

Simply Wall St.12-19

When researching a stock for investment, what can tell us that the company is in decline? Typically, we'll see the trend of both return on capital employed (ROCE) declining and this usually coincides ...

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Robinson Worldwide (NASDAQ:CHRW) Could Be At Risk Of Shrinking As A Company\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-19 01:26 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/c-h-robinson-worldwide-nasdaq-172616492.html><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>When researching a stock for investment, what can tell us that the company is in decline? Typically, we'll see the trend of both return on capital employed (ROCE) declining and this usually coincides ...</p>\n\n<a href=\"https://finance.yahoo.com/news/c-h-robinson-worldwide-nasdaq-172616492.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"FT_SY_MNQ","symbol_name":"微型NQ100指数","start_time":0,"source_url":"https://finance.yahoo.com/news/c-h-robinson-worldwide-nasdaq-172616492.html","article_id":"2492513169","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/Zp2ICoOvWRYM7kbgcJnIyQ--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/ae8872ebc1c143362ada976ee9b011cc"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2492513169","pubTimestamp":1734542776,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"When researching a stock for investment, what can tell us that the company is in decline?Typically, we'll see the trend of both return on capital employed  declining and this usually coincides with a decreasing amount of capital employed. This combination can tell you that not only is the company investing less, it's earning less on what it does invest. On that note, looking into C.H. Robinson Worldwide , we weren't too upbeat about how things were going.Return On Capital Employed : What Is It?Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income  a company earns on the capital invested in its business. The formula for this calculation on C.H. Robinson Worldwide is:. Return on Capital Employed = Earnings Before Interest and Tax  ÷ . Thus, C.H. Robinson Worldwide has an ROCE of 19%.  In absolute terms, that's a satisfactory return, but compared to the Logistics industry average of 13% it's much better.Check out our latest analysis for C.H. Robinson Wo","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0068578508.USD":"First Eagle Amundi International Cl AU-C USD","QID":"纳指两倍做空ETF","BK4567":"ESG概念","BK4585":"ETF&股票定投概念","LU2095319765.USD":"Natixis Thematics Subscription Economy R/A USD","CHRW":"罗宾逊物流","LU2210150020.SGD":"Natixis Thematics Subscription Economy R/A SGD","LU2210149790.SGD":"Natixis Thematics Subscription Economy R/A SGD-H","TSYW.SI":"TESLA 3xLongSG261006","PSQ":"纳指反向ETF","EBIT":"Harbor AlphaEdge Small Cap Earners ETF","QLD":"纳指两倍做多ETF","USAW.SI":"AMZN 3xLongSG261006","LU1489326972.SGD":"First Eagle Amundi International AHS-MD SGD-H","BK4588":"碎股","IE00B64PRP62.GBP":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (GBP) ACC","BK4131":"航空货运与物流","IE00B3QW5Z07.USD":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (USD) ACC","NVIW.SI":"NVDA 3xLongSG261006",".IXIC":"NASDAQ Composite","IE00BGHQF748.EUR":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (EUR) ACC","SQQQ":"纳指三倍做空ETF","LU0985489474.SGD":"First Eagle Amundi International AHS-C SGD-H","LU0878866978.SGD":"First Eagle Amundi International AHS-QD SGD-H","NDAQ":"纳斯达克OMX交易所","USJW.SI":"ALPHAB 3xLongSG261006","BK4112":"金融交易所和数据","LU1571399168.USD":"ALLSPRING GLOBAL LONG/SHORT EQUITY \"IP\" (USD) ACC","TQQQ":"纳指三倍做多ETF","LU1303367103.USD":"摩根大通多经理另类基金 A (acc)","LU0433182093.SGD":"First Eagle Amundi International AS-C SGD","IE00BKPKM429.USD":"NEUBERGER BERMAN GLOBAL SUSTAINABLE EQUITY \"A\" (USD) ACC","LU2098885051.SGD":"JPMorgan Funds - Multi-Manager Alternatives A (acc) SGD","BK4597":"股息贵族"},"translate_title":"C.H.Robinson Worldwide（纳斯达克：CHRW）公司可能面临萎缩的风险","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{".IXIC":1,"CHRW":1,"EBIT":1,"NDAQ":1,"PSQ":0.6,"NVIW.SI":0.6,"QID":0.6,"QLD":0.6,"SQQQ":0.6,"TQQQ":0.6,"TSYW.SI":0.6,"USAW.SI":0.6,"USJW.SI":0.6,"NQmain":0.6,"MNQmain":0.6},"content_text":"When researching a stock for investment, what can tell us that the company is in decline? Typically, we'll see the trend of both return on capital employed (ROCE) declining and this usually coincides with a decreasing amount of capital employed. This combination can tell you that not only is the company investing less, it's earning less on what it does invest. On that note, looking into C.H. Robinson Worldwide (NASDAQ:CHRW), we weren't too upbeat about how things were going. \n Return On Capital Employed (ROCE): What Is It? \n Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. The formula for this calculation on C.H. Robinson Worldwide is: \n Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) \n0.19 = US$625m ÷ (US$5.6b - US$2.2b) (Based on the trailing twelve months to September 2024).\n Thus, C.H. Robinson Worldwide has an ROCE of 19%.  In absolute terms, that's a satisfactory return, but compared to the Logistics industry average of 13% it's much better. \n Check out our latest analysis for C.H. Robinson Worldwide \n\n\n\n  NasdaqGS:CHRW Return on Capital Employed December 18th 2024\n \n\n In the above chart we have measured C.H. Robinson Worldwide's prior ROCE against its prior performance, but the future is arguably more important. If you'd like, you can check out the forecasts from the analysts covering C.H. Robinson Worldwide  for free. \n How Are Returns Trending? \n There is reason to be cautious about C.H. Robinson Worldwide, given the returns are trending downwards. Unfortunately the returns on capital have diminished from the 28% that they were earning five years ago. Meanwhile, capital employed in the business has stayed roughly the flat over the period. Since returns are falling and the business has the same amount of assets employed, this can suggest it's a mature business that hasn't had much growth in the last five years. If these trends continue, we wouldn't expect C.H. Robinson Worldwide to turn into a multi-bagger. \n The Key Takeaway \n In summary, it's unfortunate that C.H. Robinson Worldwide is generating lower returns from the same amount of capital. However the stock has delivered a 58% return to shareholders over the last five years, so investors might be expecting the trends to turn around. Regardless, we don't feel too comfortable with the fundamentals so we'd be steering clear of this stock for now. \n One more thing: We've identified   2 warning signs  with C.H. Robinson Worldwide (at least 1 which is concerning)  , and understanding these would certainly be useful. \n While C.H. Robinson Worldwide may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here. \nHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2492513169"}