LANDSTAR SYSTEM INC (LSTR) Stock Fundamental Analysis
USA - NASDAQ:LSTR - US5150981018 - Common Stock
125.9 USD
-2.1 (-1.64%)
125.9 USD
0 (0%)
Overall LSTR gets a fundamental rating of 6 out of 10. We evaluated LSTR against 43 industry peers in the Ground Transportation industry. While LSTR has a great health rating, its profitability is only average at the moment. LSTR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year LSTR was profitable.
In the past year LSTR had a positive cash flow from operations.
LSTR had positive earnings in each of the past 5 years.
LSTR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 8.26%, LSTR belongs to the best of the industry, outperforming 88.37% of the companies in the same industry.
LSTR has a Return On Equity of 15.44%. This is in the better half of the industry: LSTR outperforms 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.
Measured over the past 3 years, the Average Return On Invested Capital 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 (2.86%) which is comparable to the rest of the industry.
LSTR's Profit Margin has declined in the last couple of years.
LSTR has a Operating Margin (4.38%) which is comparable to the rest of the industry.
LSTR's Operating Margin has declined in the last couple of years.
The Gross Margin of LSTR (14.25%) is worse than 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.
Compared to 1 year ago, LSTR has less shares outstanding
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 9.59 indicates that LSTR is not in any danger for bankruptcy at the moment.
LSTR has a better Altman-Z score (9.59) than 90.70% of its industry peers.
LSTR has a debt to FCF ratio of 0.63. This is a very positive value and a sign of high solvency as it would only need 0.63 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.63, LSTR belongs to the top of the industry, outperforming 97.67% of the companies in the same industry.
A Debt/Equity ratio of 0.11 indicates that LSTR is not too dependend on debt financing.
LSTR has a better Debt to Equity ratio (0.11) than 79.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.63 | ||
| Altman-Z | 9.59 |
ROIC/WACC1.48
WACC9.97%
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.
A Quick Ratio of 2.01 indicates that LSTR has no problem at all paying its short term obligations.
The Quick ratio of LSTR (2.01) is better than 93.02% of its industry peers.
| 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%.
Measured over the past years, LSTR shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.74% on average per year.
LSTR shows a decrease in Revenue. In the last year, the revenue decreased by -0.74%.
Measured over the past years, LSTR shows a small growth in Revenue. The Revenue has been growing by 3.40% on average per year.
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
Based on estimates for the next years, LSTR will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.89% on average per year.
The Revenue is expected to grow by 5.73% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 27.49, LSTR can be considered very expensive at the moment.
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 25.89.
With a Price/Forward Earnings ratio of 22.09, LSTR is valued on the expensive side.
Based on the Price/Forward Earnings ratio, LSTR is valued a bit cheaper than 60.47% of the companies in the same industry.
LSTR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.49 | ||
| Fwd PE | 22.09 |
4.2 Price Multiples
LSTR's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LSTR indicates a rather cheap valuation: LSTR is cheaper than 88.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.02 | ||
| EV/EBITDA | 15.26 |
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
LSTR has a Yearly Dividend Yield of 1.25%.
Compared to an average industry Dividend Yield of 1.74, LSTR pays a bit more dividend than its industry peers.
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
The dividend of LSTR is nicely growing with an annual growth rate of 37.07%!
LSTR has paid a dividend for at least 10 years, which is a reliable track record.
LSTR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)37.07%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
90.21% of the earnings are spent on dividend by LSTR. This is not a sustainable payout ratio.
The dividend of LSTR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP90.21%
EPS Next 2Y1.62%
EPS Next 3Y8.15%
125.9
-2.1 (-1.64%)
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 Cap4.36B
Revenue(TTM)4.79B
Net Income(TTM)137.26M
Analysts56.52
Price Target136.86 (8.71%)
Short Float %5.07%
Short Ratio4.19
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 | 27.49 | ||
| Fwd PE | 22.09 | ||
| P/S | 0.91 | ||
| P/FCF | 22.02 | ||
| P/OCF | 20.53 | ||
| P/B | 4.91 | ||
| P/tB | 5.1 | ||
| EV/EBITDA | 15.26 |
EPS(TTM)4.58
EY3.64%
EPS(NY)5.7
Fwd EY4.53%
FCF(TTM)5.72
FCFY4.54%
OCF(TTM)6.13
OCFY4.87%
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 | 9.59 |
F-Score5
WACC9.97%
ROIC/WACC1.48
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%.