C.H. Robinson

Methodology

C.H. Robinson's freight brokerage and logistics business is cyclical with earnings sensitive to truckload demand, pricing spreads, and transportation capacity. The company's asset-light model provides flexibility but creates volatility as margins compress during freight downturns. This calculation works poorly during extreme freight cycles—normalized assumptions about mid-cycle transportation pricing and volumes provide more reliable baselines than peak or trough spot results.

Methodology

C.H. Robinson's PEG ratio swings dramatically across freight cycles, often appearing attractive during downturns when growth rebounds are likely but current earnings are depressed. The company's technology investments and global network provide competitive advantages, but freight brokerage remains highly competitive and cyclical. Compare to other third-party logistics providers to assess whether C.H. Robinson's scale justifies valuations relative to freight cycle positioning.

Methodology

C.H. Robinson's dividend yield (typically 2.0-3.5%) provides some return stability during freight downturns when earnings and growth stall. The company has maintained dividends through cycles, demonstrating commitment to shareholder returns. PEGY is relevant for C.H. Robinson investors seeking total returns from freight logistics, though for cyclical freight businesses, free cash flow generation at various rate environments matters as much as dividend-adjusted multiples.