There are no safe havens in the stock market. Every stock carries risk. But some less than others. This column features stocks that have shown one or more of the following characteristics: less volatility, better earnings, larger market caps, safe and increasing dividends. In these times of turmoil, our goal is to show readers better opportunities for investing with fewer risks.

March 16, 2010 - C. H. Robinson Worldwide Inc. (CHRW-NASDAQ) operates as a third party logistics company. It provides freight transportation services and logistics solutions to companies in various industries. The company through its contractual relationships with approximately 47,000 transportation companies, including motor carriers, railroads, air freight, and ocean carriers selects and hires the transportation to meet its customers' freight needs.

It offers Fee-based information service through its subsidiary, T-Chek Systems, Inc., a business-to-business provider of spend management and payment processing services for motor carriers and truck stop chains. This service also includes funds transfer, vendor payments, fuel purchasing, online expense management, and permit procurement services.

In addition, the company offers multimodal transportation and logistics services, such as truckload, less than truckload, intermodal, ocean, air, fee-based transportation management services, customs brokerage, warehousing, and other services. As of February 15, 2010, it operated through a network of 235 offices in North America, South America, Europe, Asia, Australia, and the Middle East. C.H. Robinson was founded in 1905 and is headquartered in Eden Prairie, Minnesota.

Conservative investors will note two things right away: there is no debt on the books, and there is $386 million sitting in the bank. All investors should find comfort in those numbers.

Even with those negative factors, earnings for the fourth quarter came in equal to the 2008 fourth quarter at 52 cents a share. Altogether, earnings for the year were higher by 2.5%, going to $2.13 from $2.08. Consensus from 23 analysts is for 2010 to finish at $2.26 a share, then increase to $2.62 in 2011.

The company reported an increase in demand for shipping recently, reflecting higher transportation activity as well as overall shipment volumes. Furthermore, the company lowered its provision for doubtful payments by more than 25% for 2010. Even with this uptick in activity, the company is keeping trim. There are fewer employees now than last year at this time, and management will reduce new hires. Administrative costs are being clipped, and trucking routes and payloads are being adjusted for periods of low volume.

Management went on a shopping trip and brought back two companies. One was in London, Walker, which expands the company's global forwarding network across Europe. The other purchase was ITC Holdings in Texas which expands its U.S.-Mexico cross border services. Another, earlier buy, Rosemont Farms, along with the two recent acquisitions, will help in the fresh produce business.

More numbers: Trailing P/E is 25.13; Forward P/E is 20.5. Price to sales ratio is 1.18 while Price to Book is 8.34. Book value is $6.46. Operating margin was 7.72% in the last 12 months while Profit margin was 4.76%. Return on Equity was a remarkable 33% while Return on Assets was 20.03%. Cash per share is $2.32. Current ratio is 1.79. The annual dividend is $1.00, up from 96 cents in 2009. Value Line gives the stock an A for Financial Strength.

There's a lot to like about CHRW, and investors have shown the stock some love. Valuations are high. But then so are the important numbers like Return on Equity and Return on Assets. Those demonstrate management's ability to deploy capital wisely. When the global economy is humming again, expect this company to increase its market share and earnings noticeably.

- Company Web site: www.chrobinson.com

- Ted Allrich