C.H. Robinson(US:CHRW)2022-09-03 15:47Company Overview and Market Position - C H Robinson is a global leader in freight and logistics, offering a diversified suite of services and holding market-leading positions in Truckload, Less-Than-Truckload (LTL), Ocean & Air[7] - The company has a significant market share opportunity in large addressable markets, with the 3PL Global Market expected to achieve an 85% CAGR from 2021 to 2028[13] - C H Robinson connects and serves a two-sided marketplace with 100,000 customers across the globe[9] - The company's top 500 customers account for 48% of adjusted gross profit in 2021, with an 86% retention rate for customers with 10+ years of partnership[9] Digital Strategy and Adoption - C H Robinson is focused on delivering scalable digital solutions to fuel future growth and productivity, creating value for the two-sided marketplace through product strategy & innovation[30, 31] - In 2021, $875 million of revenue was generated through digital channels, a 193% increase compared to 2020[33] - Over 12 million fully automated bookings occurred in the NAST truckload business, a 65% increase compared to 2020[33] - Following Navisphere Carrier enhancements, loads booked digitally by carriers increased 142% from January to June and 234% year-over-year in Q2 2022[33] Financial Performance and Capital Allocation - C H Robinson's strategy aims to improve operating performance and deliver premium shareholder returns through increased market share, global growth, digital scaling, process optimization, and strategic spending[25] - In 2021, the company returned $886 million of cash to shareholders, up 119% from the previous year, equating to 105% of the company's 2021 net income[41] - The company maintains a balanced capital allocation strategy, prioritizing high-return investments, opportunistic M&A, and growing dividends in alignment with long-term EBITDA[38, 39]