LANDSTAR SYSTEM INC (LSTR) Stock Fundamental Analysis
USA - NASDAQ:LSTR - US5150981018 - Common Stock
130.13 USD
+2.19 (+1.71%)
130.13 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
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.
Each year in the past 5 years LSTR had a positive operating cash flow.
1.2 Ratios
The Return On Assets of LSTR (8.26%) is better than 88.37% of its industry peers.
With a decent Return On Equity value of 15.44%, LSTR is doing good in the industry, outperforming 76.74% of the companies in the same industry.
The Return On Invested Capital of LSTR (14.72%) is better than 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 7.65%.
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.
In the last couple of years the Profit Margin of LSTR has declined.
LSTR's Operating Margin of 4.38% is in line compared to the rest of the industry. LSTR outperforms 58.14% of its industry peers.
LSTR's Operating Margin has declined in the last couple of years.
LSTR has a worse Gross Margin (14.25%) 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LSTR is creating value.
Compared to 1 year ago, LSTR has less shares outstanding
LSTR has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LSTR has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 9.70 indicates that LSTR is not in any danger for bankruptcy at the moment.
LSTR has a Altman-Z score of 9.70. This is amongst the best in the industry. LSTR outperforms 93.02% 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.
LSTR's Debt to Equity ratio of 0.11 is fine compared to the rest of the industry. LSTR outperforms 79.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.63 | ||
| Altman-Z | 9.7 |
ROIC/WACC1.48
WACC9.95%
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.
LSTR has a Current ratio of 2.01. This is amongst the best in the industry. LSTR outperforms 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.
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
The earnings per share for LSTR have decreased strongly by -21.44% 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.
Looking at the last year, LSTR shows a decrease in Revenue. The Revenue has decreased by -0.74% in the last year.
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
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.
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
With a Price/Earnings ratio of 28.41, LSTR can be considered very expensive at the moment.
Based on the Price/Earnings ratio, LSTR is valued a bit cheaper than the industry average as 62.79% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.06. LSTR is around the same levels.
A Price/Forward Earnings ratio of 22.83 indicates a rather expensive 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.
LSTR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 32.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.41 | ||
| Fwd PE | 22.83 |
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.
LSTR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LSTR is cheaper than 86.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.76 | ||
| EV/EBITDA | 15.83 |
4.3 Compensation for Growth
LSTR has a very decent profitability rating, which 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%. 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 1.71.
With a Dividend Yield of 1.25, LSTR pays less dividend than the S&P500 average, which is at 2.37.
| 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 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
90.21% of the earnings are spent on dividend by LSTR. 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%
130.13
+2.19 (+1.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners107.29%
Inst Owner Change-0.75%
Ins Owners0.73%
Ins Owner Change1.27%
Market Cap4.51B
Revenue(TTM)4.79B
Net Income(TTM)137.26M
Analysts56.52
Price Target136.86 (5.17%)
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)-10.09%
EPS NQ rev (3m)-12%
EPS NY rev (1m)-4.01%
EPS NY rev (3m)-6.74%
Revenue NQ rev (1m)-3.74%
Revenue NQ rev (3m)-4.27%
Revenue NY rev (1m)-0.77%
Revenue NY rev (3m)-1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.41 | ||
| Fwd PE | 22.83 | ||
| P/S | 0.94 | ||
| P/FCF | 22.76 | ||
| P/OCF | 21.22 | ||
| P/B | 5.07 | ||
| P/tB | 5.28 | ||
| EV/EBITDA | 15.83 |
EPS(TTM)4.58
EY3.52%
EPS(NY)5.7
Fwd EY4.38%
FCF(TTM)5.72
FCFY4.39%
OCF(TTM)6.13
OCFY4.71%
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 | 9.7 |
F-Score5
WACC9.95%
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%.