LANDSTAR SYSTEM INC (LSTR) Stock Fundamental Analysis
NASDAQ:LSTR - Nasdaq - US5150981018 - Common Stock - Currency: USD
LSTR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 40 industry peers in the Ground Transportation industry. LSTR has an excellent financial health rating, but there are some minor concerns on its profitability. LSTR has a correct valuation and a medium 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.
In the past 5 years LSTR always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 10.41%, LSTR belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
LSTR has a Return On Equity of 19.19%. This is in the better half of the industry: LSTR outperforms 75.00% of its industry peers.
LSTR has a better Return On Invested Capital (15.02%) than 92.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LSTR is significantly above the industry average of 8.58%.
The last Return On Invested Capital (15.02%) 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 | 10.41% | ||
| ROE | 19.19% | ||
| ROIC | 15.02% |
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
Looking at the Profit Margin, with a value of 3.71%, LSTR is in line with its industry, outperforming 55.00% of the companies in the same industry.
In the last couple of years the Profit Margin of LSTR has declined.
LSTR has a Operating Margin of 4.74%. This is comparable to the rest of the industry: LSTR outperforms 52.50% of its industry peers.
In the last couple of years the Operating Margin of LSTR has declined.
LSTR's Gross Margin of 14.31% is on the low side compared to the rest of the industry. LSTR is outperformed by 82.50% 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 | 4.74% | ||
| PM (TTM) | 3.71% | ||
| GM | 14.31% |
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.
The number of shares outstanding for LSTR has been reduced compared to 1 year ago.
LSTR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LSTR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.77 indicates that LSTR is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.77, LSTR belongs to the top of the industry, outperforming 92.50% of the companies in the same industry.
The Debt to FCF ratio of LSTR is 0.68, which is an excellent value as it means it would take LSTR, only 0.68 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.68, LSTR belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
LSTR has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
LSTR has a Debt to Equity ratio of 0.13. This is in the better half of the industry: LSTR outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | 9.77 |
ROIC/WACC1.48
WACC10.16%
2.3 Liquidity
A Current Ratio of 2.03 indicates that LSTR has no problem at all paying its short term obligations.
LSTR has a Current ratio of 2.03. This is amongst the best in the industry. LSTR outperforms 90.00% of its industry peers.
A Quick Ratio of 2.03 indicates that LSTR has no problem at all paying its short term obligations.
LSTR has a better Quick ratio (2.03) than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.03 | ||
| Quick Ratio | 2.03 |
3. Growth
3.1 Past
The earnings per share for LSTR have decreased strongly by -22.31% in the last year.
LSTR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.74% yearly.
The Revenue has decreased by -4.66% in the past year.
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)-22.31%
EPS 3Y-17.91%
EPS 5Y-0.74%
EPS Q2Q%-35.61%
Revenue 1Y (TTM)-4.66%
Revenue growth 3Y-9.59%
Revenue growth 5Y3.4%
Sales Q2Q%-1.58%
3.2 Future
The Earnings Per Share is expected to grow by 12.08% on average over the next years. This is quite good.
LSTR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.00% yearly.
EPS Next Y-10.89%
EPS Next 2Y8.07%
EPS Next 3Y12.47%
EPS Next 5Y12.08%
Revenue Next Year0.98%
Revenue Next 2Y4.65%
Revenue Next 3Y4.68%
Revenue Next 5Y6%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 27.02 indicates a quite expensive valuation of LSTR.
The rest of the industry has a similar Price/Earnings ratio as LSTR.
LSTR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.19.
A Price/Forward Earnings ratio of 21.17 indicates a rather expensive valuation of LSTR.
LSTR's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 35.33. LSTR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.02 | ||
| Fwd PE | 21.17 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LSTR is on the same level as its industry peers.
92.50% of the companies in the same industry are more expensive than LSTR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.25 | ||
| EV/EBITDA | 15.74 |
4.3 Compensation for Growth
LSTR has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as LSTR's earnings are expected to grow with 12.47% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.07%
EPS Next 3Y12.47%
5. Dividend
5.1 Amount
LSTR has a Yearly Dividend Yield of 1.10%. Purely for dividend investing, there may be better candidates out there.
LSTR's Dividend Yield is a higher than the industry average which is at 1.46.
With a Dividend Yield of 1.10, LSTR pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
The dividend of LSTR is nicely growing with an annual growth rate of 37.07%!
LSTR has been paying a dividend for at least 10 years, so it has 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
LSTR pays out 67.48% 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.
DP67.48%
EPS Next 2Y8.07%
EPS Next 3Y12.47%
136.47
-3.53 (-2.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners104.32%
Inst Owner Change-0.02%
Ins Owners0.72%
Ins Owner Change3.04%
Market Cap4.77B
Analysts56.52
Price Target145.98 (6.97%)
Short Float %4.2%
Short Ratio3.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Yearly Dividend3.39
Dividend Growth(5Y)37.07%
DP67.48%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9.83%
Min EPS beat(2)-15.14%
Max EPS beat(2)-4.51%
EPS beat(4)1
Avg EPS beat(4)-6.02%
Min EPS beat(4)-15.14%
Max EPS beat(4)0.23%
EPS beat(8)2
Avg EPS beat(8)-3.42%
EPS beat(12)3
Avg EPS beat(12)-3.05%
EPS beat(16)7
Avg EPS beat(16)-1.45%
Revenue beat(2)0
Avg Revenue beat(2)-0.63%
Min Revenue beat(2)-0.96%
Max Revenue beat(2)-0.3%
Revenue beat(4)0
Avg Revenue beat(4)-1.94%
Min Revenue beat(4)-3.77%
Max Revenue beat(4)-0.3%
Revenue beat(8)1
Avg Revenue beat(8)-1.78%
Revenue beat(12)1
Avg Revenue beat(12)-2.18%
Revenue beat(16)5
Avg Revenue beat(16)-0.56%
PT rev (1m)0.12%
PT rev (3m)-12.53%
EPS NQ rev (1m)-1.33%
EPS NQ rev (3m)-14.24%
EPS NY rev (1m)-4.61%
EPS NY rev (3m)-18.55%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-2.3%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-2.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.02 | ||
| Fwd PE | 21.17 | ||
| P/S | 0.99 | ||
| P/FCF | 21.25 | ||
| P/OCF | 19.23 | ||
| P/B | 5.12 | ||
| P/tB | 5.36 | ||
| EV/EBITDA | 15.74 |
EPS(TTM)5.05
EY3.7%
EPS(NY)6.45
Fwd EY4.72%
FCF(TTM)6.42
FCFY4.71%
OCF(TTM)7.1
OCFY5.2%
SpS137.79
BVpS26.63
TBVpS25.46
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.41% | ||
| ROE | 19.19% | ||
| ROCE | 20.69% | ||
| ROIC | 15.02% | ||
| ROICexc | 25.33% | ||
| ROICexgc | 26.92% | ||
| OM | 4.74% | ||
| PM (TTM) | 3.71% | ||
| GM | 14.31% | ||
| FCFM | 4.66% |
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%
ROICexcg growth 3Y-10.66%
ROICexcg 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-Score4
Asset Turnover2.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.68 | ||
| Debt/EBITDA | 0.43 | ||
| Cap/Depr | 43.08% | ||
| Cap/Sales | 0.49% | ||
| Interest Coverage | 4.75 | ||
| Cash Conversion | 87.59% | ||
| Profit Quality | 125.62% | ||
| Current Ratio | 2.03 | ||
| Quick Ratio | 2.03 | ||
| Altman-Z | 9.77 |
F-Score4
WACC10.16%
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)-22.31%
EPS 3Y-17.91%
EPS 5Y-0.74%
EPS Q2Q%-35.61%
EPS Next Y-10.89%
EPS Next 2Y8.07%
EPS Next 3Y12.47%
EPS Next 5Y12.08%
Revenue 1Y (TTM)-4.66%
Revenue growth 3Y-9.59%
Revenue growth 5Y3.4%
Sales Q2Q%-1.58%
Revenue Next Year0.98%
Revenue Next 2Y4.65%
Revenue Next 3Y4.68%
Revenue Next 5Y6%
EBIT growth 1Y-24.59%
EBIT growth 3Y-21.04%
EBIT growth 5Y-3.59%
EBIT Next Year7.45%
EBIT Next 3Y17.46%
EBIT Next 5Y13.51%
FCF growth 1Y-64.83%
FCF growth 3Y0.28%
FCF growth 5Y-2.39%
OCF growth 1Y-62.79%
OCF growth 3Y1.17%
OCF growth 5Y-1.42%