LANDSTAR SYSTEM INC (LSTR) Stock Fundamental Analysis
NASDAQ:LSTR - Nasdaq - US5150981018 - Common Stock - Currency: USD
LSTR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 39 industry peers in the Ground Transportation industry. LSTR has an excellent financial health rating, but there are some minor concerns on its profitability. LSTR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year LSTR was profitable.
In the past year LSTR had a positive cash flow from operations.
Each year in the past 5 years LSTR has been profitable.
Of the past 5 years LSTR 4 years had a positive operating cash flow.
1.2 Ratios
LSTR has a better Return On Assets (11.82%) than 86.84% 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.
LSTR has a better Return On Invested Capital (16.72%) than 97.37% 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 7.67%.
The 3 year average ROIC (25.37%) for LSTR is well above the current ROIC(16.72%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.82% | ||
| ROE | 20.45% | ||
| ROIC | 16.72% |
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
Looking at the Profit Margin, with a value of 4.30%, LSTR is in line with its industry, outperforming 47.37% of the companies in the same industry.
LSTR's Profit Margin has declined in the last couple of years.
LSTR has a Operating Margin (5.50%) which is in line with its industry peers.
In the last couple of years the Operating Margin of LSTR has declined.
LSTR has a Gross Margin of 14.64%. This is amonst the worse of the industry: LSTR underperforms 81.58% of its industry peers.
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-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.
Compared to 1 year ago, LSTR has less shares outstanding
LSTR has less shares outstanding than it did 5 years ago.
LSTR has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 10.58 indicates that LSTR is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 10.58, LSTR belongs to the best of the industry, outperforming 92.11% of the companies in the same industry.
The Debt to FCF ratio of LSTR is 0.44, which is an excellent value as it means it would take LSTR, only 0.44 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.44, LSTR belongs to the top of the industry, outperforming 97.37% of the companies in the same industry.
A Debt/Equity ratio of 0.09 indicates that LSTR is not too dependend on debt financing.
LSTR has a Debt to Equity ratio of 0.09. This is in the better half 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 | 10.58 |
ROIC/WACC1.8
WACC9.28%
2.3 Liquidity
LSTR has a Current Ratio of 2.21. This indicates that LSTR is financially healthy and has no problem in meeting its short term obligations.
LSTR has a better Current ratio (2.21) than 94.74% of its industry peers.
A Quick Ratio of 2.21 indicates that LSTR has no problem at all paying its short term obligations.
The Quick ratio of LSTR (2.21) is better than 94.74% of its industry peers.
| 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 -24.90%.
The Earnings Per Share has been decreasing by -0.74% on average over the past years.
LSTR shows a decrease in Revenue. In the last year, the revenue decreased by -9.02%.
The Revenue has been growing slightly by 3.40% on average over the past years.
EPS 1Y (TTM)-24.9%
EPS 3Y-17.91%
EPS 5Y-0.74%
EPS Q2Q%-19.14%
Revenue 1Y (TTM)-9.02%
Revenue growth 3Y-9.59%
Revenue growth 5Y3.4%
Sales Q2Q%0.41%
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 17.40% on average per year.
LSTR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.25% yearly.
EPS Next Y10.21%
EPS Next 2Y15.59%
EPS Next 3Y15.51%
EPS Next 5Y17.4%
Revenue Next Year5.39%
Revenue Next 2Y7.16%
Revenue Next 3Y7.25%
Revenue Next 5YN/A
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 28.86, the valuation of LSTR can be described as expensive.
Based on the Price/Earnings ratio, LSTR is valued a bit cheaper than the industry average as 60.53% of the companies are valued more expensively.
LSTR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 26.19 indicates a quite expensive valuation of LSTR.
LSTR's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of LSTR to the average of the S&P500 Index (22.68), we can say LSTR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.86 | ||
| Fwd PE | 26.19 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LSTR indicates a slightly more expensive valuation: LSTR is more expensive than 60.53% of the companies listed 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 86.84% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.04 | ||
| EV/EBITDA | 15.72 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of LSTR may justify a higher PE ratio.
LSTR's earnings are expected to grow with 15.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.83
PEG (5Y)N/A
EPS Next 2Y15.59%
EPS Next 3Y15.51%
5. Dividend
5.1 Amount
LSTR has a yearly dividend return of 0.91%, which is pretty low.
LSTR's Dividend Yield is a higher than the industry average which is at 1.35.
With a Dividend Yield of 0.91, LSTR pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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.
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
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, but earnings are growing more, so the dividend growth is sustainable.
DP57.57%
EPS Next 2Y15.59%
EPS Next 3Y15.51%
159.31
+0.64 (+0.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners100.96%
Inst Owner Change2.66%
Ins Owners0.69%
Ins Owner Change-0.12%
Market Cap5.63B
Analysts54.29
Price Target167.22 (4.97%)
Short Float %2.48%
Short Ratio2.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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)-0.48%
PT rev (3m)-2.77%
EPS NQ rev (1m)-0.6%
EPS NQ rev (3m)-0.6%
EPS NY rev (1m)-11.74%
EPS NY rev (3m)-12.18%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-0.41%
Revenue NY rev (1m)-3.25%
Revenue NY rev (3m)-3.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.86 | ||
| Fwd PE | 26.19 | ||
| P/S | 1.17 | ||
| P/FCF | 20.04 | ||
| P/OCF | 17.85 | ||
| P/B | 5.54 | ||
| P/tB | 5.77 | ||
| EV/EBITDA | 15.72 |
EPS(TTM)5.52
EY3.46%
EPS(NY)6.08
Fwd EY3.82%
FCF(TTM)7.95
FCFY4.99%
OCF(TTM)8.93
OCFY5.6%
SpS136.71
BVpS28.76
TBVpS27.6
PEG (NY)2.83
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.82% | ||
| ROE | 20.45% | ||
| ROCE | 22.81% | ||
| ROIC | 16.72% | ||
| ROICexc | 29.71% | ||
| ROICexgc | 31.61% | ||
| OM | 5.5% | ||
| PM (TTM) | 4.3% | ||
| GM | 14.64% | ||
| FCFM | 5.81% |
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-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 | 10.58 |
F-Score6
WACC9.28%
ROIC/WACC1.8
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-24.9%
EPS 3Y-17.91%
EPS 5Y-0.74%
EPS Q2Q%-19.14%
EPS Next Y10.21%
EPS Next 2Y15.59%
EPS Next 3Y15.51%
EPS Next 5Y17.4%
Revenue 1Y (TTM)-9.02%
Revenue growth 3Y-9.59%
Revenue growth 5Y3.4%
Sales Q2Q%0.41%
Revenue Next Year5.39%
Revenue Next 2Y7.16%
Revenue Next 3Y7.25%
Revenue Next 5YN/A
EBIT growth 1Y-32.55%
EBIT growth 3Y-21.04%
EBIT growth 5Y-3.59%
EBIT Next Year33.3%
EBIT Next 3Y21.53%
EBIT Next 5Y20.14%
FCF growth 1Y-40.24%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-35.67%
OCF growth 3YN/A
OCF growth 5YN/A