Light Blue Value Investing

C.H. Robinson Worldwide: Accumulate On Dips

As undervalued securities have become increasingly difficult to find, I have turned to looking at companies that either are "special situations" or have strong managements that can compound value per share in all macro environments (à la Teledyne). One company that fits the second criteria is C.H. Robinson Worldwide (NASDAQ:CHRW). This report will explore the merits of a long-term investment thesis by examining CHRW's competitive moat and advantages, growth prospects, and valuation (absolute and relative).

Company Description

CHRW is the largest third-party logistics (3PL) company in North America and fifth largest global 3PL. It operates within two related divisions:

  1. Freight Transportation and Logistics (92% of 2012 net revenue12)
  2. Fresh Produce Sourcing (8% of 2012 net
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