153.94 USD
-3.9 (-2.47%)
153.94 USD
0 (0%)
LSTR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 42 industry peers in the Ground Transportation industry. LSTR gets an excellent profitability rating and is at the same time showing great financial health properties. LSTR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year LSTR was profitable.
- 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 Return On Assets of 8.26%. This is amongst the best in the industry. LSTR outperforms 88.10% of its industry peers.
- Looking at the Return On Equity, with a value of 15.44%, LSTR is in the better half of the industry, outperforming 73.81% of the companies in the same industry.
- LSTR has a Return On Invested Capital of 14.72%. This is amongst the best in the industry. LSTR outperforms 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 6.93%.
- 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
- With a decent Profit Margin value of 2.86%, LSTR is doing good in the industry, outperforming 61.90% of the companies in the same industry.
- In the last couple of years the Profit Margin of LSTR has declined.
- With a Operating Margin value of 4.38%, LSTR perfoms like the industry average, outperforming 54.76% of the companies in the same industry.
- LSTR's Operating Margin has declined in the last couple of years.
- LSTR has a Gross Margin of 14.25%. This is in the lower half of the industry: LSTR underperforms 73.81% 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
- 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.
- The number of shares outstanding for LSTR has been reduced compared to 5 years ago.
- Compared to 1 year ago, LSTR has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 10.30 indicates that LSTR is not in any danger for bankruptcy at the moment.
- LSTR has a better Altman-Z score (10.30) than 92.86% 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 has a better Debt to FCF ratio (0.63) than 95.24% 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.
- The Debt to Equity ratio of LSTR (0.11) is better than 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.63 | ||
| Altman-Z | 10.3 |
ROIC/WACC1.36
WACC10.81%
2.3 Liquidity
- A Current Ratio of 2.01 indicates that LSTR has no problem at all paying its short term obligations.
- The Current ratio of LSTR (2.01) is better than 90.48% of its industry peers.
- LSTR has a Quick Ratio of 2.01. This indicates that LSTR is financially healthy and has no problem in meeting its short term obligations.
- With an excellent Quick ratio value of 2.01, LSTR belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 2.01 |
3. Growth
3.1 Past
- LSTR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.44%.
- Measured over the past years, LSTR shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.74% on average per year.
- Looking at the last year, LSTR shows a decrease in Revenue. The Revenue has decreased by -0.74% in the last year.
- The Revenue has been growing slightly by 3.40% on average over the past years.
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
- LSTR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.89% yearly.
- The Revenue is expected to grow by 5.65% on average over the next years.
EPS Next Y-19.65%
EPS Next 2Y0.32%
EPS Next 3Y8.13%
EPS Next 5Y11.89%
Revenue Next Year-1.16%
Revenue Next 2Y2.07%
Revenue Next 3Y4.56%
Revenue Next 5Y5.65%
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
- Based on the Price/Earnings ratio of 33.61, the valuation of LSTR can be described as expensive.
- LSTR's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of LSTR to the average of the S&P500 Index (27.21), we can say LSTR is valued slightly more expensively.
- The Price/Forward Earnings ratio is 27.71, which means the current valuation is very expensive for LSTR.
- Based on the Price/Forward Earnings ratio, LSTR is valued a bit cheaper than the industry average as 61.90% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. LSTR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.61 | ||
| Fwd PE | 27.71 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LSTR is valued a bit more expensive than 61.90% of the companies in the same industry.
- 80.95% 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 | 26.69 | ||
| EV/EBITDA | 18.84 |
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 2Y0.32%
EPS Next 3Y8.13%
5. Dividend
5.1 Amount
- LSTR has a Yearly Dividend Yield of 1.01%. 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 0.69.
- Compared to an average S&P500 Dividend Yield of 1.81, LSTR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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
- 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 2Y0.32%
EPS Next 3Y8.13%
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 for LSTR stock?
ChartMill assigns a valuation rating of 3 / 10 to LANDSTAR SYSTEM INC (LSTR). This can be considered as Overvalued.
What is the profitability of LSTR stock?
LANDSTAR SYSTEM INC (LSTR) has a profitability rating of 7 / 10.
What are the PE and PB ratios of LANDSTAR SYSTEM INC (LSTR) stock?
The Price/Earnings (PE) ratio for LANDSTAR SYSTEM INC (LSTR) is 33.61 and the Price/Book (PB) ratio is 5.95.
Can you provide the expected EPS growth for LSTR stock?
The Earnings per Share (EPS) of LANDSTAR SYSTEM INC (LSTR) is expected to decline by -19.65% in the next year.