Should you consider LANDSTAR SYSTEM INC (NASDAQ:LSTR) for quality investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if LANDSTAR SYSTEM INC (NASDAQ:LSTR) is suited for quality investing. Investors should of course do their own research, but we spotted LANDSTAR SYSTEM INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Highlighting Notable Quality Metrics of NASDAQ:LSTR.

• LANDSTAR SYSTEM INC has achieved substantial revenue growth over the past 5 years, with a 15.31% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• LANDSTAR SYSTEM INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 43.27% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• The Debt/Free Cash Flow Ratio of LANDSTAR SYSTEM INC stands at 0.26, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• With a robust Profit Quality (5-year) ratio of 108.0%, LANDSTAR SYSTEM INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• LANDSTAR SYSTEM INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 18.54%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• LANDSTAR SYSTEM INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

What else is there to say on the fundamentals of NASDAQ:LSTR?

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

We assign a fundamental rating of 6 out of 10 to LSTR. LSTR was compared to 36 industry peers in the Ground Transportation industry. Both the health and profitability get an excellent rating, making LSTR a very profitable company, without any liquidiy or solvency issues. LSTR is valued expensive and it does not seem to be growing.

Check the latest full fundamental report of LSTR for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.