LANDSTAR SYSTEM INC (LSTR) Stock Fundamental Analysis
NASDAQ:LSTR - Nasdaq - US5150981018 - Common Stock
LSTR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 38 industry peers in the Ground Transportation industry. LSTR is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. LSTR is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
LSTR had positive earnings in the past year.
LSTR had a positive operating cash flow in the past year.
In the past 5 years LSTR has always been profitable.
LSTR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LSTR has a better Return On Assets (11.82%) than 89.47% of its industry peers.
LSTR has a Return On Equity of 20.45%. This is in the better half of the industry: LSTR outperforms 73.68% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.60%, LSTR belongs to the top of the industry, outperforming 97.37% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LSTR is significantly above the industry average of 7.67%.
The last Return On Invested Capital (16.60%) for LSTR is well below the 3 year average (31.05%), which needs to be investigated, but indicates that LSTR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.82% | ||
| ROE | 20.45% | ||
| ROIC | 16.6% |
ROA(3y)18.54%
ROA(5y)16.64%
ROE(3y)39.9%
ROE(5y)35.81%
ROIC(3y)31.05%
ROIC(5y)28.19%
1.3 Margins
LSTR has a Profit Margin of 4.30%. This is comparable to the rest of the industry: LSTR outperforms 47.37% of its industry peers.
LSTR's Profit Margin has declined in the last couple of years.
LSTR has a Operating Margin of 5.50%. This is comparable to the rest of the industry: LSTR outperforms 47.37% of its industry peers.
In the last couple of years the Operating Margin of LSTR has declined.
LSTR's Gross Margin of 14.64% is on the low side compared to the rest of the industry. LSTR is outperformed by 81.58% 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 | 5.5% | ||
| PM (TTM) | 4.3% | ||
| GM | 14.64% |
OM growth 3Y-1.89%
OM growth 5Y-2.04%
PM growth 3Y2.33%
PM growth 5Y-2.08%
GM growth 3Y0.35%
GM growth 5Y0.27%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LSTR is creating value.
The number of shares outstanding for LSTR has been reduced compared to 1 year ago.
Compared to 5 years ago, LSTR has less shares outstanding
The debt/assets ratio for LSTR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 11.03 indicates that LSTR is not in any danger for bankruptcy at the moment.
LSTR has a Altman-Z score of 11.03. This is amongst the best in the industry. LSTR outperforms 92.11% of its industry peers.
LSTR has a debt to FCF ratio of 0.44. This is a very positive value and a sign of high solvency as it would only need 0.44 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.44, LSTR belongs to the best of the industry, outperforming 97.37% of the companies in the same industry.
LSTR has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
LSTR's Debt to Equity ratio of 0.09 is fine compared to the rest of the industry. LSTR outperforms 76.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.44 | ||
| Altman-Z | 11.03 |
ROIC/WACC1.83
WACC9.06%
2.3 Liquidity
A Current Ratio of 2.21 indicates that LSTR has no problem at all paying its short term obligations.
The Current ratio of LSTR (2.21) is better than 94.74% of its industry peers.
LSTR has a Quick Ratio of 2.21. This indicates that LSTR is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.21, LSTR belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 2.21 |
3. Growth
3.1 Past
The earnings per share for LSTR have decreased strongly by -30.01% in the last year.
The Earnings Per Share has been growing slightly by 3.49% on average over the past years.
The Revenue for LSTR has decreased by -16.48% in the past year. This is quite bad
Measured over the past years, LSTR shows a small growth in Revenue. The Revenue has been growing by 2.84% on average per year.
EPS 1Y (TTM)-30.01%
EPS 3Y11.24%
EPS 5Y3.49%
EPS Q2Q%-17.54%
Revenue 1Y (TTM)-16.48%
Revenue growth 3Y8.71%
Revenue growth 5Y2.84%
Sales Q2Q%-5.85%
3.2 Future
Based on estimates for the next years, LSTR will show a small growth in Earnings Per Share. The EPS will grow by 7.36% on average per year.
The Revenue is expected to grow by 1.52% on average over the next years.
EPS Next Y-22.81%
EPS Next 2Y-3.16%
EPS Next 3Y3.32%
EPS Next 5Y7.36%
Revenue Next Year-9.92%
Revenue Next 2Y-0.96%
Revenue Next 3Y1.52%
Revenue Next 5YN/A
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
LSTR is valuated quite expensively with a Price/Earnings ratio of 30.44.
LSTR's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.29. LSTR is around the same levels.
The Price/Forward Earnings ratio is 25.75, which means the current valuation is very expensive for LSTR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LSTR is on the same level as its industry peers.
LSTR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.44 | ||
| Fwd PE | 25.75 |
4.2 Price Multiples
LSTR's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. LSTR is more expensive than 60.53% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LSTR indicates a rather cheap valuation: LSTR is cheaper than 84.21% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.34 | ||
| EV/EBITDA | 17.42 |
4.3 Compensation for Growth
The decent profitability rating of LSTR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)8.71
EPS Next 2Y-3.16%
EPS Next 3Y3.32%
5. Dividend
5.1 Amount
With a yearly dividend of 0.81%, LSTR is not a good candidate for dividend investing.
LSTR's Dividend Yield is a higher than the industry average which is at 1.27.
With a Dividend Yield of 0.81, LSTR pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
5.2 History
The dividend of LSTR is nicely growing with an annual growth rate of 8.60%!
LSTR has paid a dividend for at least 10 years, which is a reliable track record.
LSTR has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.6%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
57.57% of the earnings are spent on dividend by LSTR. This is a bit on the high side, but may be sustainable.
LSTR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP57.57%
EPS Next 2Y-3.16%
EPS Next 3Y3.32%
LANDSTAR SYSTEM INC
NASDAQ:LSTR (1/21/2025, 5:20:00 PM)
After market: 177.49 0 (0%)177.49
+3.26 (+1.87%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners100.44%
Inst Owner Change-0.03%
Ins Owners0.68%
Ins Owner Change-1.97%
Market Cap6.27B
Analysts54.29
Price Target173.42 (-2.29%)
Short Float %1.69%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
Yearly Dividend3.27
Dividend Growth(5Y)8.6%
DP57.57%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.2%
Min EPS beat(2)-4.64%
Max EPS beat(2)0.23%
EPS beat(4)2
Avg EPS beat(4)-1.26%
Min EPS beat(4)-4.64%
Max EPS beat(4)1.35%
EPS beat(8)3
Avg EPS beat(8)-0.95%
EPS beat(12)5
Avg EPS beat(12)-0.55%
EPS beat(16)9
Avg EPS beat(16)2%
Revenue beat(2)0
Avg Revenue beat(2)-3.25%
Min Revenue beat(2)-3.77%
Max Revenue beat(2)-2.74%
Revenue beat(4)1
Avg Revenue beat(4)-2.29%
Min Revenue beat(4)-5.01%
Max Revenue beat(4)2.36%
Revenue beat(8)1
Avg Revenue beat(8)-2.62%
Revenue beat(12)3
Avg Revenue beat(12)-1.29%
Revenue beat(16)7
Avg Revenue beat(16)0.52%
PT rev (1m)-0.2%
PT rev (3m)-2.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-25.69%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.42%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.44 | ||
| Fwd PE | 25.75 | ||
| P/S | 1.3 | ||
| P/FCF | 22.34 | ||
| P/OCF | 19.89 | ||
| P/B | 6.17 | ||
| P/tB | 6.43 | ||
| EV/EBITDA | 17.42 |
EPS(TTM)5.83
EY3.28%
EPS(NY)6.89
Fwd EY3.88%
FCF(TTM)7.95
FCFY4.48%
OCF(TTM)8.92
OCFY5.03%
SpS136.67
BVpS28.76
TBVpS27.59
PEG (NY)N/A
PEG (5Y)8.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.82% | ||
| ROE | 20.45% | ||
| ROCE | 22.81% | ||
| ROIC | 16.6% | ||
| ROICexc | 29.5% | ||
| ROICexgc | 31.39% | ||
| OM | 5.5% | ||
| PM (TTM) | 4.3% | ||
| GM | 14.64% | ||
| FCFM | 5.81% |
ROA(3y)18.54%
ROA(5y)16.64%
ROE(3y)39.9%
ROE(5y)35.81%
ROIC(3y)31.05%
ROIC(5y)28.19%
ROICexc(3y)46.87%
ROICexc(5y)42.82%
ROICexgc(3y)49.59%
ROICexgc(5y)45.49%
ROCE(3y)44.53%
ROCE(5y)40.24%
ROICexcg growth 3Y5.79%
ROICexcg growth 5Y1.3%
ROICexc growth 3Y5.77%
ROICexc growth 5Y1.14%
OM growth 3Y-1.89%
OM growth 5Y-2.04%
PM growth 3Y2.33%
PM growth 5Y-2.08%
GM growth 3Y0.35%
GM growth 5Y0.27%
F-Score6
Asset Turnover2.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.44 | ||
| Debt/EBITDA | 0.3 | ||
| Cap/Depr | 59.92% | ||
| Cap/Sales | 0.72% | ||
| Interest Coverage | 77.13 | ||
| Cash Conversion | 97.5% | ||
| Profit Quality | 135.14% | ||
| Current Ratio | 2.21 | ||
| Quick Ratio | 2.21 | ||
| Altman-Z | 11.03 |
F-Score6
WACC9.06%
ROIC/WACC1.83
Cap/Depr(3y)45.46%
Cap/Depr(5y)49.33%
Cap/Sales(3y)0.4%
Cap/Sales(5y)0.48%
Profit Quality(3y)114.69%
Profit Quality(5y)112.9%
High Growth Momentum
Growth
EPS 1Y (TTM)-30.01%
EPS 3Y11.24%
EPS 5Y3.49%
EPS Q2Q%-17.54%
EPS Next Y-22.81%
EPS Next 2Y-3.16%
EPS Next 3Y3.32%
EPS Next 5Y7.36%
Revenue 1Y (TTM)-16.48%
Revenue growth 3Y8.71%
Revenue growth 5Y2.84%
Sales Q2Q%-5.85%
Revenue Next Year-9.92%
Revenue Next 2Y-0.96%
Revenue Next 3Y1.52%
Revenue Next 5YN/A
EBIT growth 1Y-32.55%
EBIT growth 3Y6.65%
EBIT growth 5Y0.74%
EBIT Next Year-10.05%
EBIT Next 3Y6.41%
EBIT Next 5Y8.67%
FCF growth 1Y-40.31%
FCF growth 3Y26.89%
FCF growth 5Y5.01%
OCF growth 1Y-36.45%
OCF growth 3Y23.16%
OCF growth 5Y5.73%