Ch Robinson Worldwide Stock Beneish M Score

CHRW Stock  USD 69.01  1.47  2.09%   
This module uses fundamental data of CH Robinson to approximate the value of its Beneish M Score. CH Robinson M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out CH Robinson Piotroski F Score and CH Robinson Altman Z Score analysis.
  
At this time, CH Robinson's Net Debt is fairly stable compared to the past year. Short and Long Term Debt Total is likely to climb to about 2.1 B in 2024, whereas Short Term Debt is likely to drop slightly above 222.7 M in 2024. At this time, CH Robinson's ROE is fairly stable compared to the past year. EV To Operating Cash Flow is likely to climb to 23.11 in 2024, whereas PTB Ratio is likely to drop 6.25 in 2024.
At this time, it appears that CH Robinson Worldwide is an unlikely manipulator. The earnings manipulation may begin if CH Robinson's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by CH Robinson executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of CH Robinson's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.92
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.91

Focus
Asset Quality

0.79

Focus
Expense Coverage

1.23

Focus
Gross Margin Strengs

0.95

Focus
Accruals Factor

1.23

Focus
Depreciation Resistance

1.42

Focus
Net Sales Growth

0.61

Focus
Financial Leverage Condition

1.51

Focus

CH Robinson Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if CH Robinson's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables1.4 B2.6 B
Way Down
Slightly volatile
Total Revenue10.7 B17.6 B
Way Down
Slightly volatile
Total Assets2.8 B5.2 B
Way Down
Slightly volatile
Total Current Assets1.8 B2.9 B
Way Down
Slightly volatile
Non Current Assets Total2.5 B2.3 B
Sufficiently Up
Slightly volatile
Property Plant Equipment152.8 M183.3 M
Fairly Down
Slightly volatile
Depreciation And Amortization49.9 M99 M
Way Down
Slightly volatile
Selling General Administrative490 M651.7 M
Way Down
Slightly volatile
Total Current Liabilities1.2 B2.1 B
Way Down
Slightly volatile
Non Current Liabilities Total1.8 B1.8 B
Sufficiently Up
Slightly volatile
Short Term Debt222.7 M234.5 M
Notably Down
Pretty Stable
Operating Income574.7 M552.6 M
Sufficiently Up
Slightly volatile
Total Cash From Operating Activities424 M731.9 M
Way Down
Slightly volatile
Gross Profit Margin0.06250.0658
Notably Down
Slightly volatile

CH Robinson Worldwide Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between CH Robinson's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards CH Robinson in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find CH Robinson's degree of accounting gimmicks and manipulations.

About CH Robinson Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Accumulated Depreciation

(274.42 Million)

CH Robinson reported Accumulated Depreciation of (261.36 Million) in 2023

CH Robinson Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as CH Robinson. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables2.1B2.6B4.4B3.2B2.6B1.4B
Total Revenue15.3B16.2B23.1B24.7B17.6B10.7B
Total Assets4.6B5.1B7.0B6.0B5.2B2.8B
Total Current Assets2.6B2.9B4.8B3.6B2.9B1.8B
Net Debt1.1B1.2B2.0B2.1B1.8B1.9B
Short Term Debt204.2M66.2M591.3M1.1B234.5M222.7M
Long Term Debt1.1B1.1B1.4B920.0M1.4B734.2M
Operating Income790.0M673.3M1.1B1.3B552.6M574.7M
Investments(113.0M)(271.7M)(85.7M)(64.9M)(94.1M)(98.8M)
Gross Profit Margin0.08410.07220.06960.07570.06580.0625

CH Robinson ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, CH Robinson's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to CH Robinson's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About CH Robinson Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze CH Robinson Worldwide's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of CH Robinson using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of CH Robinson Worldwide based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

CH Robinson Investors Sentiment

The influence of CH Robinson's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in CHRW. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to CH Robinson's public news can be used to forecast risks associated with an investment in CHRW. The trend in average sentiment can be used to explain how an investor holding CHRW can time the market purely based on public headlines and social activities around CH Robinson Worldwide. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
CH Robinson's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for CH Robinson's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average CH Robinson's news discussions. The higher the estimated score, the more favorable is the investor's outlook on CH Robinson.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards CH Robinson in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, CH Robinson's short interest history, or implied volatility extrapolated from CH Robinson options trading.

Pair Trading with CH Robinson

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if CH Robinson position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CH Robinson will appreciate offsetting losses from the drop in the long position's value.

Moving together with CHRW Stock

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Moving against CHRW Stock

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The ability to find closely correlated positions to CH Robinson could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CH Robinson when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back CH Robinson - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling CH Robinson Worldwide to buy it.
The correlation of CH Robinson is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as CH Robinson moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CH Robinson Worldwide moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for CH Robinson can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
When determining whether CH Robinson Worldwide is a strong investment it is important to analyze CH Robinson's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact CH Robinson's future performance. For an informed investment choice regarding CHRW Stock, refer to the following important reports:
Check out CH Robinson Piotroski F Score and CH Robinson Altman Z Score analysis.
You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.

Complementary Tools for CHRW Stock analysis

When running CH Robinson's price analysis, check to measure CH Robinson's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy CH Robinson is operating at the current time. Most of CH Robinson's value examination focuses on studying past and present price action to predict the probability of CH Robinson's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CH Robinson's price. Additionally, you may evaluate how the addition of CH Robinson to your portfolios can decrease your overall portfolio volatility.
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Is CH Robinson's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of CH Robinson. If investors know CHRW will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about CH Robinson listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.68)
Earnings Share
2.72
Revenue Per Share
148.429
Quarterly Revenue Growth
(0.17)
Return On Assets
0.0595
The market value of CH Robinson Worldwide is measured differently than its book value, which is the value of CHRW that is recorded on the company's balance sheet. Investors also form their own opinion of CH Robinson's value that differs from its market value or its book value, called intrinsic value, which is CH Robinson's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because CH Robinson's market value can be influenced by many factors that don't directly affect CH Robinson's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between CH Robinson's value and its price as these two are different measures arrived at by different means. Investors typically determine if CH Robinson is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CH Robinson's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.