LANDSTAR SYSTEM INC (LSTR) Stock Fundamental Analysis
USA - NASDAQ:LSTR - US5150981018 - Common Stock
128.66 USD
-3.77 (-2.85%)
128.66 USD
0 (0%)
Taking everything into account, LSTR scores 6 out of 10 in our fundamental rating. LSTR was compared to 41 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 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.
In the past 5 years LSTR always reported a positive cash flow from operatings.
1.2 Ratios
LSTR has a Return On Assets of 9.88%. This is amongst the best in the industry. LSTR outperforms 87.80% of its industry peers.
LSTR's Return On Equity of 18.22% is fine compared to the rest of the industry. LSTR outperforms 78.05% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.55%, LSTR belongs to the top of the industry, outperforming 95.12% 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 7.92%.
The 3 year average ROIC (25.37%) for LSTR is well above the current ROIC(14.55%). The reason for the recent decline needs to be investigated.
| 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
The Profit Margin of LSTR (3.50%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of LSTR has declined.
With a Operating Margin value of 4.51%, LSTR perfoms like the industry average, outperforming 56.10% of the companies in the same industry.
In the last couple of years the Operating Margin of LSTR has declined.
LSTR has a Gross Margin of 14.26%. This is in the lower half of the industry: LSTR underperforms 78.05% 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.
LSTR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LSTR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.61 indicates that LSTR is not in any danger for bankruptcy at the moment.
The Altman-Z score of LSTR (9.61) is better than 90.24% of its industry peers.
LSTR has a debt to FCF ratio of 0.76. This is a very positive value and a sign of high solvency as it would only need 0.76 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.76, LSTR belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
A Debt/Equity ratio of 0.12 indicates that LSTR is not too dependend on debt financing.
LSTR has a Debt to Equity ratio of 0.12. This is amongst the best in the industry. LSTR outperforms 85.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | 9.61 |
ROIC/WACC1.45
WACC10.03%
2.3 Liquidity
A Current Ratio of 2.00 indicates that LSTR should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 2.00, LSTR belongs to the best of the industry, outperforming 90.24% of the companies in the same industry.
LSTR has a Quick Ratio of 2.00. This is a normal value and indicates that LSTR is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 2.00, LSTR belongs to the best of the industry, outperforming 90.24% of the companies in the same industry.
| 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.
LSTR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.74% yearly.
Looking at the last year, LSTR shows a decrease in Revenue. The Revenue has decreased by -2.06% in the last year.
The Revenue has been growing slightly by 3.40% on average over the past years.
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-0.24%
Revenue Next 2Y3.84%
Revenue Next 3Y4.54%
Revenue Next 5Y6%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 26.97, which means the current valuation is very expensive for LSTR.
Based on the Price/Earnings ratio, LSTR is valued a bit cheaper than 63.41% of the companies in the same industry.
When comparing the Price/Earnings ratio of LSTR to the average of the S&P500 Index (27.30), we can say LSTR is valued inline with the index average.
LSTR is valuated rather expensively with a Price/Forward Earnings ratio of 20.87.
LSTR's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.73. LSTR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.97 | ||
| Fwd PE | 20.87 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LSTR.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LSTR indicates a rather cheap valuation: LSTR is cheaper than 85.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.66 | ||
| EV/EBITDA | 15.54 |
4.3 Compensation for Growth
LSTR has a very decent profitability rating, which 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 1.58, LSTR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, 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 their dividend for at least 10 years, which is a reliable track record.
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.
LSTR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP73.07%
EPS Next 2Y5.69%
EPS Next 3Y11.34%
128.66
-3.77 (-2.85%)
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 Cap4.46B
Analysts56.52
Price Target142.56 (10.8%)
Short Float %4.82%
Short Ratio4.1
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)-0.27%
PT rev (3m)-2.43%
EPS NQ rev (1m)-1.23%
EPS NQ rev (3m)-21.57%
EPS NY rev (1m)-2.48%
EPS NY rev (3m)-6.98%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-6.15%
Revenue NY rev (1m)-0.81%
Revenue NY rev (3m)-1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.97 | ||
| Fwd PE | 20.87 | ||
| P/S | 0.93 | ||
| P/FCF | 23.66 | ||
| P/OCF | 21.53 | ||
| P/B | 4.84 | ||
| P/tB | 5.06 | ||
| EV/EBITDA | 15.54 |
EPS(TTM)4.77
EY3.71%
EPS(NY)6.17
Fwd EY4.79%
FCF(TTM)5.44
FCFY4.23%
OCF(TTM)5.98
OCFY4.64%
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 | 9.61 |
F-Score5
WACC10.03%
ROIC/WACC1.45
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-0.24%
Revenue Next 2Y3.84%
Revenue Next 3Y4.54%
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%