LANDSTAR SYSTEM INC (LSTR)
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. While LSTR has a great health rating, its profitability is only average at the moment. LSTR has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years LSTR has been profitable.
LSTR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LSTR has a Return On Assets of 11.82%. This is amongst the best in the industry. LSTR outperforms 89.47% of its industry peers.
LSTR's Return On Equity of 20.45% is fine compared to the rest of the industry. LSTR outperforms 76.32% of its industry peers.
LSTR has a Return On Invested Capital of 16.60%. This is amongst the best in the industry. LSTR outperforms 94.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LSTR is significantly above the industry average of 11.60%.
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.
In the last couple of years the Profit Margin of LSTR has declined.
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.
Looking at the Gross Margin, with a value of 14.64%, LSTR is doing worse than 81.58% of the companies in the same industry.
LSTR's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LSTR is creating value.
The number of shares outstanding for LSTR has been reduced compared to 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 an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 11.18 indicates that LSTR is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 11.18, LSTR belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
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.
The Debt to FCF ratio of LSTR (0.44) is better than 97.37% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that LSTR is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.09, LSTR is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.44 | ||
| Altman-Z | 11.18 |
ROIC/WACC1.87
WACC8.86%
2.3 Liquidity
A Current Ratio of 2.21 indicates that LSTR has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.21, LSTR belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
A Quick Ratio of 2.21 indicates that LSTR has no problem at all paying 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
LSTR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -30.01%.
The Earnings Per Share has been growing slightly by 3.49% on average over the past years.
LSTR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.48%.
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 quite strong growth in Earnings Per Share. The EPS will grow by 9.08% on average per year.
The Revenue is expected to grow by 1.65% on average over the next years.
EPS Next Y-22.64%
EPS Next 2Y-2.92%
EPS Next 3Y3.32%
EPS Next 5Y9.08%
Revenue Next Year-9.86%
Revenue Next 2Y-0.95%
Revenue Next 3Y1.65%
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 30.78.
Compared to the rest of the industry, the Price/Earnings ratio of LSTR indicates a somewhat cheap valuation: LSTR is cheaper than 60.53% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, LSTR is valued at the same level.
Based on the Price/Forward Earnings ratio of 25.90, the valuation of LSTR can be described as expensive.
LSTR's Price/Forward Earnings ratio is in line with the industry average.
LSTR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.78 | ||
| Fwd PE | 25.9 |
4.2 Price Multiples
60.53% of the companies in the same industry are cheaper than LSTR, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LSTR indicates a rather cheap valuation: LSTR is cheaper than 94.74% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.58 | ||
| EV/EBITDA | 17.99 |
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)8.81
EPS Next 2Y-2.92%
EPS Next 3Y3.32%
5. Dividend
5.1 Amount
With a yearly dividend of 0.77%, LSTR is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.64, LSTR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.23, LSTR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
5.2 History
On average, the dividend of LSTR grows each year by 8.60%, which is quite nice.
LSTR has been paying a dividend for at least 10 years, so it has a reliable track record.
As LSTR did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)8.6%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
LSTR pays out 57.57% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of LSTR is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP57.57%
EPS Next 2Y-2.92%
EPS Next 3Y3.32%
LANDSTAR SYSTEM INC
NASDAQ:LSTR (11/21/2024, 8:00:01 PM)
After market: 179.45 0 (0%)179.45
+0.07 (+0.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.34B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.78 | ||
| Fwd PE | 25.9 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)8.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.82% | ||
| ROE | 20.45% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.5% | ||
| PM (TTM) | 4.3% | ||
| GM | 14.64% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.21 | ||
| Quick Ratio | 2.21 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-30.01%
EPS 3Y11.24%
EPS 5Y
EPS Q2Q%
EPS Next Y-22.64%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-16.48%
Revenue growth 3Y8.71%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y