LANDSTAR SYSTEM INC (LSTR) Stock Fundamental Analysis
NASDAQ:LSTR - US5150981018 - Common Stock
135.76 USD
+5.88 (+4.53%)
135.76 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to LSTR. LSTR was compared to 40 industry peers in the Ground Transportation industry. LSTR is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. 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.
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
Looking at the Return On Assets, with a value of 9.88%, LSTR belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
With a decent Return On Equity value of 18.22%, LSTR is doing good in the industry, outperforming 75.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.55%, LSTR belongs to the top of the industry, outperforming 92.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LSTR is significantly above the industry average of 8.43%.
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
Looking at the Profit Margin, with a value of 3.50%, LSTR is in line with its industry, outperforming 52.50% of the companies in the same 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.
LSTR's Operating Margin has declined in the last couple of years.
LSTR's Gross Margin of 14.26% is on the low side compared to the rest of the industry. LSTR is outperformed by 82.50% 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 | 4.51% | ||
| 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.
Compared to 1 year ago, LSTR has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 9.55 indicates that LSTR is not in any danger for bankruptcy at the moment.
LSTR has a Altman-Z score of 9.55. This is amongst the best in the industry. LSTR outperforms 92.50% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 0.76, LSTR belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
A Debt/Equity ratio of 0.12 indicates that LSTR is not too dependend on debt financing.
The Debt to Equity ratio of LSTR (0.12) is better than 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | 9.55 |
ROIC/WACC1.44
WACC10.11%
2.3 Liquidity
A Current Ratio of 2.00 indicates that LSTR should not have too much problems paying its short term obligations.
The Current ratio of LSTR (2.00) is better than 92.50% 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's Quick ratio of 2.00 is amongst the best of the industry. LSTR outperforms 92.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
The earnings per share for LSTR have decreased strongly by -22.19% in the last year.
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 -2.06% in the last 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
LSTR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.08% yearly.
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-10.89%
EPS Next 2Y8.07%
EPS Next 3Y12.47%
EPS Next 5Y12.08%
Revenue Next Year0.57%
Revenue Next 2Y4.34%
Revenue Next 3Y4.81%
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
A Price/Earnings ratio of 28.46 indicates a quite expensive valuation of LSTR.
LSTR's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.24. LSTR is around the same levels.
LSTR is valuated rather expensively with a Price/Forward Earnings ratio of 21.06.
LSTR's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.82, LSTR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.46 | ||
| Fwd PE | 21.06 |
4.2 Price Multiples
LSTR's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, LSTR is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.96 | ||
| EV/EBITDA | 15.21 |
4.3 Compensation for Growth
The decent profitability rating of LSTR may justify a higher PE ratio.
LSTR's earnings are expected to grow with 12.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.07%
EPS Next 3Y12.47%
5. Dividend
5.1 Amount
LSTR has a Yearly Dividend Yield of 1.23%.
LSTR's Dividend Yield is a higher than the industry average which is at 1.60.
With a Dividend Yield of 1.23, LSTR pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
5.2 History
On average, the dividend of LSTR grows each year by 37.07%, 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 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
73.07% 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.
DP73.07%
EPS Next 2Y8.07%
EPS Next 3Y12.47%
135.76
+5.88 (+4.53%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners105.91%
Inst Owner Change0.59%
Ins Owners0.73%
Ins Owner Change1.24%
Market Cap4.70B
Analysts56.52
Price Target142.27 (4.8%)
Short Float %4.3%
Short Ratio3.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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)-2.27%
PT rev (3m)-7.57%
EPS NQ rev (1m)-6.61%
EPS NQ rev (3m)-21.1%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.61%
Revenue NQ rev (1m)-2.29%
Revenue NQ rev (3m)-6.07%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.46 | ||
| Fwd PE | 21.06 | ||
| P/S | 0.98 | ||
| P/FCF | 24.96 | ||
| P/OCF | 22.72 | ||
| P/B | 5.1 | ||
| P/tB | 5.34 | ||
| EV/EBITDA | 15.21 |
EPS(TTM)4.77
EY3.51%
EPS(NY)6.45
Fwd EY4.75%
FCF(TTM)5.44
FCFY4.01%
OCF(TTM)5.98
OCFY4.4%
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 | 9.55 |
F-Score5
WACC10.11%
ROIC/WACC1.44
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-10.89%
EPS Next 2Y8.07%
EPS Next 3Y12.47%
EPS Next 5Y12.08%
Revenue 1Y (TTM)-2.06%
Revenue growth 3Y-9.59%
Revenue growth 5Y3.4%
Sales Q2Q%-1.11%
Revenue Next Year0.57%
Revenue Next 2Y4.34%
Revenue Next 3Y4.81%
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%