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As C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) announced its earnings release on 31 December 2018, the consensus outlook from analysts appear somewhat bearish, with earnings expected to grow by 5.3% in the upcoming year relative to the higher past 5-year average growth rate of 7.2%. Currently with trailing-twelve-month earnings of US$665m, we can expect this to reach US$700m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. For those interested in more of an analysis of the company, you can research its fundamentals here.
Exciting times ahead?
Over the next three years, it seems the consensus view of the 18 analysts covering CHRW is skewed towards the positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To reduce the year-on-year volatility of analyst earnings forecast, I’ve inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
By 2022, CHRW’s earnings should reach US$769m, from current levels of US$665m, resulting in an annual growth rate of 4.9%. EPS reaches $5.82 in the final year of forecast compared to the current $4.78 EPS today. In 2022, CHRW’s profit margin will have expanded from 4.0% to 4.2%.
Future outlook is only one aspect when you’re building an investment case for a stock. For C.H. Robinson Worldwide, I’ve put together three essential factors you should further examine:
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Valuation: What is C.H. Robinson Worldwide worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether C.H. Robinson Worldwide is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of C.H. Robinson Worldwide? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. On rare occasion, data errors may occur. Thank you for reading.