LANDSTAR SYSTEM INC (LSTR) Stock Fundamental Analysis
USA - NASDAQ:LSTR - US5150981018 - Common Stock
123.67 USD
-1.2 (-0.96%)
We assign a fundamental rating of 6 out of 10 to LSTR. LSTR was compared to 43 industry peers in the Ground Transportation industry. LSTR has an excellent financial health rating, but there are some minor concerns on its profitability. LSTR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
LSTR had positive earnings in the past year.
In the past year LSTR had a positive cash flow from operations.
Each year in the past 5 years LSTR has been profitable.
In the past 5 years LSTR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.26%, LSTR belongs to the top of the industry, outperforming 88.37% of the companies in the same industry.
The Return On Equity of LSTR (15.44%) is better than 74.42% of its industry peers.
LSTR's Return On Invested Capital of 14.72% is amongst the best of the industry. LSTR outperforms 95.35% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LSTR is significantly above the industry average of 7.13%.
The last Return On Invested Capital (14.72%) for LSTR is well below the 3 year average (25.37%), which needs to be investigated, but indicates that LSTR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.26% | ||
| ROE | 15.44% | ||
| ROIC | 14.72% |
ROA(3y)15.93%
ROA(5y)15.61%
ROE(3y)31.86%
ROE(5y)33.52%
ROIC(3y)25.37%
ROIC(5y)26.64%
1.3 Margins
LSTR has a Profit Margin of 2.86%. This is comparable to the rest of the industry: LSTR outperforms 55.81% of its industry peers.
LSTR's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 4.38%, LSTR perfoms like the industry average, outperforming 53.49% of the companies in the same industry.
LSTR's Operating Margin has declined in the last couple of years.
LSTR has a Gross Margin of 14.25%. This is in the lower half of the industry: LSTR underperforms 72.09% of its industry peers.
In the last couple of years the Gross Margin of LSTR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.38% | ||
| PM (TTM) | 2.86% | ||
| GM | 14.25% |
OM growth 3Y-12.67%
OM growth 5Y-6.77%
PM growth 3Y-11.42%
PM growth 5Y-6.15%
GM growth 3Y0.84%
GM growth 5Y-1.02%
2. Health
2.1 Basic Checks
LSTR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
LSTR has less shares outstanding than it did 1 year ago.
The number of shares outstanding for LSTR has been reduced compared to 5 years ago.
Compared to 1 year ago, LSTR has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 9.56 indicates that LSTR is not in any danger for bankruptcy at the moment.
The Altman-Z score of LSTR (9.56) is better than 90.70% of its industry peers.
The Debt to FCF ratio of LSTR is 0.63, which is an excellent value as it means it would take LSTR, only 0.63 years of fcf income to pay off all of its debts.
LSTR's Debt to FCF ratio of 0.63 is amongst the best of the industry. LSTR outperforms 97.67% of its industry peers.
LSTR has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.11, LSTR is in the better half of the industry, outperforming 79.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.63 | ||
| Altman-Z | 9.56 |
ROIC/WACC1.23
WACC11.95%
2.3 Liquidity
LSTR has a Current Ratio of 2.01. This indicates that LSTR is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of LSTR (2.01) is better than 90.70% of its industry peers.
LSTR has a Quick Ratio of 2.01. This indicates that LSTR is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.01, LSTR belongs to the top of the industry, outperforming 93.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 2.01 |
3. Growth
3.1 Past
LSTR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.44%.
LSTR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.74% yearly.
LSTR shows a decrease in Revenue. In the last year, the revenue decreased by -0.74%.
LSTR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.40% yearly.
EPS 1Y (TTM)-21.44%
EPS 3Y-17.91%
EPS 5Y-0.74%
EPS Q2Q%-13.48%
Revenue 1Y (TTM)-0.74%
Revenue growth 3Y-9.59%
Revenue growth 5Y3.4%
Sales Q2Q%-0.7%
3.2 Future
LSTR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.89% yearly.
Based on estimates for the next years, LSTR will show a small growth in Revenue. The Revenue will grow by 5.73% on average per year.
EPS Next Y-16.89%
EPS Next 2Y1.62%
EPS Next 3Y8.15%
EPS Next 5Y11.89%
Revenue Next Year-0.81%
Revenue Next 2Y2.64%
Revenue Next 3Y4.46%
Revenue Next 5Y5.73%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 27.00 indicates a quite expensive valuation of LSTR.
LSTR's Price/Earnings ratio is a bit cheaper when compared to the industry. LSTR is cheaper than 62.79% of the companies in the same industry.
LSTR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.51.
The Price/Forward Earnings ratio is 21.69, which indicates a rather expensive current valuation of LSTR.
Based on the Price/Forward Earnings ratio, LSTR is valued a bit cheaper than 60.47% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.98, LSTR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27 | ||
| Fwd PE | 21.69 |
4.2 Price Multiples
LSTR's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, LSTR is valued cheaper than 88.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.63 | ||
| EV/EBITDA | 15.13 |
4.3 Compensation for Growth
The decent profitability rating of LSTR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.62%
EPS Next 3Y8.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.25%, LSTR has a reasonable but not impressive dividend return.
LSTR's Dividend Yield is a higher than the industry average which is at 1.74.
Compared to an average S&P500 Dividend Yield of 2.44, LSTR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
5.2 History
On average, the dividend of LSTR grows each year by 37.07%, which is quite nice.
LSTR has been paying a dividend for at least 10 years, so it has a reliable track record.
LSTR has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)37.07%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
LSTR pays out 90.21% of its income as dividend. This is not a sustainable payout ratio.
LSTR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP90.21%
EPS Next 2Y1.62%
EPS Next 3Y8.15%
NASDAQ:LSTR (11/19/2025, 11:08:09 AM)
123.67
-1.2 (-0.96%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners107.29%
Inst Owner Change-1.32%
Ins Owners0.73%
Ins Owner Change2.3%
Market Cap4.29B
Revenue(TTM)4.79B
Net Income(TTM)137.26M
Analysts56.52
Price Target136.86 (10.67%)
Short Float %4.45%
Short Ratio3.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Yearly Dividend3.39
Dividend Growth(5Y)37.07%
DP90.21%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.02%
Min EPS beat(2)-1.56%
Max EPS beat(2)-0.48%
EPS beat(4)0
Avg EPS beat(4)-5.42%
Min EPS beat(4)-15.14%
Max EPS beat(4)-0.48%
EPS beat(8)2
Avg EPS beat(8)-3.34%
EPS beat(12)3
Avg EPS beat(12)-2.44%
EPS beat(16)5
Avg EPS beat(16)-1.77%
Revenue beat(2)0
Avg Revenue beat(2)-1.68%
Min Revenue beat(2)-1.92%
Max Revenue beat(2)-1.43%
Revenue beat(4)0
Avg Revenue beat(4)-1.15%
Min Revenue beat(4)-1.92%
Max Revenue beat(4)-0.3%
Revenue beat(8)1
Avg Revenue beat(8)-1.72%
Revenue beat(12)1
Avg Revenue beat(12)-2.13%
Revenue beat(16)3
Avg Revenue beat(16)-1.25%
PT rev (1m)-4%
PT rev (3m)-4.06%
EPS NQ rev (1m)-7.62%
EPS NQ rev (3m)-10.68%
EPS NY rev (1m)-4.01%
EPS NY rev (3m)-6.74%
Revenue NQ rev (1m)-3.12%
Revenue NQ rev (3m)-4.27%
Revenue NY rev (1m)-0.77%
Revenue NY rev (3m)-1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27 | ||
| Fwd PE | 21.69 | ||
| P/S | 0.89 | ||
| P/FCF | 21.63 | ||
| P/OCF | 20.17 | ||
| P/B | 4.82 | ||
| P/tB | 5.01 | ||
| EV/EBITDA | 15.13 |
EPS(TTM)4.58
EY3.7%
EPS(NY)5.7
Fwd EY4.61%
FCF(TTM)5.72
FCFY4.62%
OCF(TTM)6.13
OCFY4.96%
SpS138.33
BVpS25.65
TBVpS24.67
PEG (NY)N/A
PEG (5Y)N/A
Graham Number51.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.26% | ||
| ROE | 15.44% | ||
| ROCE | 20.12% | ||
| ROIC | 14.72% | ||
| ROICexc | 24.45% | ||
| ROICexgc | 25.79% | ||
| OM | 4.38% | ||
| PM (TTM) | 2.86% | ||
| GM | 14.25% | ||
| FCFM | 4.13% |
ROA(3y)15.93%
ROA(5y)15.61%
ROE(3y)31.86%
ROE(5y)33.52%
ROIC(3y)25.37%
ROIC(5y)26.64%
ROICexc(3y)42.89%
ROICexc(5y)41.2%
ROICexgc(3y)45.65%
ROICexgc(5y)43.73%
ROCE(3y)35.52%
ROCE(5y)37.78%
ROICexgc growth 3Y-10.66%
ROICexgc growth 5Y-5.48%
ROICexc growth 3Y-11.27%
ROICexc growth 5Y-5.43%
OM growth 3Y-12.67%
OM growth 5Y-6.77%
PM growth 3Y-11.42%
PM growth 5Y-6.15%
GM growth 3Y0.84%
GM growth 5Y-1.02%
F-Score5
Asset Turnover2.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.63 | ||
| Debt/EBITDA | 0.37 | ||
| Cap/Depr | 29.65% | ||
| Cap/Sales | 0.3% | ||
| Interest Coverage | 4.28 | ||
| Cash Conversion | 82.2% | ||
| Profit Quality | 144.31% | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 2.01 | ||
| Altman-Z | 9.56 |
F-Score5
WACC11.95%
ROIC/WACC1.23
Cap/Depr(3y)48.01%
Cap/Depr(5y)51.53%
Cap/Sales(3y)0.49%
Cap/Sales(5y)0.51%
Profit Quality(3y)136.03%
Profit Quality(5y)113.65%
High Growth Momentum
Growth
EPS 1Y (TTM)-21.44%
EPS 3Y-17.91%
EPS 5Y-0.74%
EPS Q2Q%-13.48%
EPS Next Y-16.89%
EPS Next 2Y1.62%
EPS Next 3Y8.15%
EPS Next 5Y11.89%
Revenue 1Y (TTM)-0.74%
Revenue growth 3Y-9.59%
Revenue growth 5Y3.4%
Sales Q2Q%-0.7%
Revenue Next Year-0.81%
Revenue Next 2Y2.64%
Revenue Next 3Y4.46%
Revenue Next 5Y5.73%
EBIT growth 1Y-21%
EBIT growth 3Y-21.04%
EBIT growth 5Y-3.59%
EBIT Next Year5.22%
EBIT Next 3Y14.82%
EBIT Next 5Y12.71%
FCF growth 1Y-57.84%
FCF growth 3Y0.28%
FCF growth 5Y-2.39%
OCF growth 1Y-56.64%
OCF growth 3Y1.17%
OCF growth 5Y-1.42%
LANDSTAR SYSTEM INC / LSTR FAQ
What is the fundamental rating for LSTR stock?
ChartMill assigns a fundamental rating of 6 / 10 to LSTR.
What is the valuation status of LANDSTAR SYSTEM INC (LSTR) stock?
ChartMill assigns a valuation rating of 4 / 10 to LANDSTAR SYSTEM INC (LSTR). This can be considered as Fairly Valued.
What is the profitability of LSTR stock?
LANDSTAR SYSTEM INC (LSTR) has a profitability rating of 6 / 10.
What is the earnings growth outlook for LANDSTAR SYSTEM INC?
The Earnings per Share (EPS) of LANDSTAR SYSTEM INC (LSTR) is expected to decline by -16.89% in the next year.
Is the dividend of LANDSTAR SYSTEM INC sustainable?
The dividend rating of LANDSTAR SYSTEM INC (LSTR) is 5 / 10 and the dividend payout ratio is 90.21%.