LANDSTAR SYSTEM INC (LSTR) Stock Fundamental Analysis
USA - NASDAQ:LSTR - US5150981018 - Common Stock
129.73 USD
+0.69 (+0.53%)
Taking everything into account, LSTR scores 6 out of 10 in our fundamental rating. LSTR was compared to 42 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 correct valuation and a medium growth rate.
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.
LSTR had positive earnings in each of the past 5 years.
Each year in the past 5 years LSTR had a positive operating cash flow.
1.2 Ratios
LSTR's Return On Assets of 9.88% is amongst the best of the industry. LSTR outperforms 88.10% of its industry peers.
LSTR has a Return On Equity of 18.22%. This is in the better half of the industry: LSTR outperforms 78.57% of its industry peers.
The Return On Invested Capital of LSTR (14.55%) is better than 95.24% 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 7.92%.
The last Return On Invested Capital (14.55%) 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 | 9.88% | ||
| ROE | 18.22% | ||
| ROIC | 14.55% |
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 (3.50%) 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 (4.51%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of LSTR has declined.
Looking at the Gross Margin, with a value of 14.26%, LSTR is doing worse than 76.19% 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 | 4.51% | ||
| PM (TTM) | 3.5% | ||
| GM | 14.26% |
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.
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.
The debt/assets ratio for LSTR is higher compared to a year ago.
2.2 Solvency
LSTR has an Altman-Z score of 9.52. This indicates that LSTR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.52, LSTR belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
The Debt to FCF ratio of LSTR is 0.76, which is an excellent value as it means it would take LSTR, only 0.76 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LSTR (0.76) is better than 95.24% of its industry peers.
LSTR has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
LSTR's Debt to Equity ratio of 0.12 is amongst the best of the industry. LSTR outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | 9.52 |
ROIC/WACC1.46
WACC10%
2.3 Liquidity
A Current Ratio of 2.00 indicates that LSTR should not have too much problems paying its short term obligations.
LSTR has a better Current ratio (2.00) than 90.48% of its industry peers.
A Quick Ratio of 2.00 indicates that LSTR should not have too much problems paying its short term obligations.
LSTR has a Quick ratio of 2.00. This is amongst the best in the industry. LSTR outperforms 90.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
LSTR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.19%.
The Earnings Per Share has been decreasing by -0.74% on average over the past years.
The Revenue has decreased by -2.06% 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)-22.19%
EPS 3Y-17.91%
EPS 5Y-0.74%
EPS Q2Q%-18.92%
Revenue 1Y (TTM)-2.06%
Revenue growth 3Y-9.59%
Revenue growth 5Y3.4%
Sales Q2Q%-1.11%
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 12.08% on average per year.
Based on estimates for the next years, LSTR will show a small growth in Revenue. The Revenue will grow by 6.00% on average per year.
EPS Next Y-13.1%
EPS Next 2Y5.69%
EPS Next 3Y11.34%
EPS Next 5Y12.08%
Revenue Next Year-0.1%
Revenue Next 2Y4.06%
Revenue Next 3Y4.56%
Revenue Next 5Y6%
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
LSTR is valuated quite expensively with a Price/Earnings ratio of 27.20.
Based on the Price/Earnings ratio, LSTR is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of LSTR to the average of the S&P500 Index (27.27), we can say LSTR is valued inline with the index average.
A Price/Forward Earnings ratio of 21.04 indicates a rather expensive valuation of LSTR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LSTR is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of LSTR to the average of the S&P500 Index (22.77), we can say LSTR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.2 | ||
| Fwd PE | 21.04 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LSTR indicates a rather cheap valuation: LSTR is cheaper than 88.10% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.85 | ||
| EV/EBITDA | 15.1 |
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 2Y5.69%
EPS Next 3Y11.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.21%, LSTR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.59, LSTR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, LSTR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
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
LSTR pays out 73.07% of its income as dividend. 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.
DP73.07%
EPS Next 2Y5.69%
EPS Next 3Y11.34%
NASDAQ:LSTR (9/16/2025, 1:13:05 PM)
129.73
+0.69 (+0.53%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners105.91%
Inst Owner Change0.6%
Ins Owners0.73%
Ins Owner Change1.24%
Market Cap4.50B
Analysts56.52
Price Target142.56 (9.89%)
Short Float %4.8%
Short Ratio4.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Yearly Dividend3.39
Dividend Growth(5Y)37.07%
DP73.07%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.35%
Min EPS beat(2)-15.14%
Max EPS beat(2)-1.56%
EPS beat(4)0
Avg EPS beat(4)-6.46%
Min EPS beat(4)-15.14%
Max EPS beat(4)-1.56%
EPS beat(8)2
Avg EPS beat(8)-3.5%
EPS beat(12)3
Avg EPS beat(12)-2.57%
EPS beat(16)6
Avg EPS beat(16)-1.64%
Revenue beat(2)0
Avg Revenue beat(2)-0.87%
Min Revenue beat(2)-1.43%
Max Revenue beat(2)-0.3%
Revenue beat(4)0
Avg Revenue beat(4)-1.36%
Min Revenue beat(4)-2.74%
Max Revenue beat(4)-0.3%
Revenue beat(8)1
Avg Revenue beat(8)-1.88%
Revenue beat(12)1
Avg Revenue beat(12)-2.05%
Revenue beat(16)4
Avg Revenue beat(16)-0.98%
PT rev (1m)-0.07%
PT rev (3m)-2.22%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)-7.26%
EPS NY rev (1m)-2.48%
EPS NY rev (3m)-6.98%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-2.37%
Revenue NY rev (1m)-0.67%
Revenue NY rev (3m)-1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.2 | ||
| Fwd PE | 21.04 | ||
| P/S | 0.94 | ||
| P/FCF | 23.85 | ||
| P/OCF | 21.71 | ||
| P/B | 4.88 | ||
| P/tB | 5.11 | ||
| EV/EBITDA | 15.1 |
EPS(TTM)4.77
EY3.68%
EPS(NY)6.17
Fwd EY4.75%
FCF(TTM)5.44
FCFY4.19%
OCF(TTM)5.98
OCFY4.61%
SpS138.59
BVpS26.6
TBVpS25.41
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.88% | ||
| ROE | 18.22% | ||
| ROCE | 20.04% | ||
| ROIC | 14.55% | ||
| ROICexc | 23.26% | ||
| ROICexgc | 24.69% | ||
| OM | 4.51% | ||
| PM (TTM) | 3.5% | ||
| GM | 14.26% | ||
| FCFM | 3.92% |
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-Score5
Asset Turnover2.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.76 | ||
| Debt/EBITDA | 0.42 | ||
| Cap/Depr | 35.45% | ||
| Cap/Sales | 0.39% | ||
| Interest Coverage | 4.45 | ||
| Cash Conversion | 76.95% | ||
| Profit Quality | 112.22% | ||
| Current Ratio | 2 | ||
| Quick Ratio | 2 | ||
| Altman-Z | 9.52 |
F-Score5
WACC10%
ROIC/WACC1.46
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)-22.19%
EPS 3Y-17.91%
EPS 5Y-0.74%
EPS Q2Q%-18.92%
EPS Next Y-13.1%
EPS Next 2Y5.69%
EPS Next 3Y11.34%
EPS Next 5Y12.08%
Revenue 1Y (TTM)-2.06%
Revenue growth 3Y-9.59%
Revenue growth 5Y3.4%
Sales Q2Q%-1.11%
Revenue Next Year-0.1%
Revenue Next 2Y4.06%
Revenue Next 3Y4.56%
Revenue Next 5Y6%
EBIT growth 1Y-23.44%
EBIT growth 3Y-21.04%
EBIT growth 5Y-3.59%
EBIT Next Year6.72%
EBIT Next 3Y15.9%
EBIT Next 5Y13.48%
FCF growth 1Y-67.15%
FCF growth 3Y0.28%
FCF growth 5Y-2.39%
OCF growth 1Y-65.76%
OCF growth 3Y1.17%
OCF growth 5Y-1.42%