LANDSTAR SYSTEM INC (LSTR) Stock Fundamental Analysis
USA - NASDAQ:LSTR - US5150981018 - Common Stock
128.43 USD
+3.08 (+2.46%)
128.43 USD
0 (0%)
Overall LSTR gets a fundamental rating of 6 out of 10. We evaluated LSTR against 43 industry peers in the Ground Transportation industry. LSTR scores excellent points on both the profitability and health parts. This is a solid base for a good stock. LSTR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
LSTR had positive earnings in the past year.
In the past year LSTR had a positive cash flow from operations.
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's Return On Assets of 9.88% is amongst the best of the industry. LSTR outperforms 90.48% of its industry peers.
LSTR has a better Return On Equity (18.22%) than 80.95% of its industry peers.
LSTR has a better Return On Invested Capital (14.55%) than 95.24% of its industry peers.
LSTR had an Average Return On Invested Capital over the past 3 years of 25.37%. This is significantly above the industry average of 7.72%.
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
LSTR has a Profit Margin (3.50%) which is comparable to the rest of the industry.
LSTR's Profit Margin has declined in the last couple of years.
The Operating Margin of LSTR (4.51%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of LSTR has declined.
The Gross Margin of LSTR (14.26%) is worse than 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 | 4.51% | ||
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LSTR is creating value.
Compared to 1 year ago, LSTR has less shares outstanding
Compared to 5 years ago, LSTR has less shares outstanding
Compared to 1 year ago, LSTR has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 9.51 indicates that LSTR is not in any danger for bankruptcy at the moment.
The Altman-Z score of LSTR (9.51) is better than 92.86% 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.
LSTR has a better Debt to FCF ratio (0.76) than 95.24% of its industry peers.
LSTR has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
LSTR has a Debt to Equity ratio of 0.12. This is amongst the best in the industry. LSTR outperforms 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | 9.51 |
ROIC/WACC1.46
WACC9.98%
2.3 Liquidity
A Current Ratio of 2.00 indicates that LSTR should not have too much problems paying its short term obligations.
LSTR has a Current ratio of 2.00. This is amongst the best in the industry. LSTR outperforms 92.86% of its industry peers.
A Quick Ratio of 2.00 indicates that LSTR should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 2.00, LSTR belongs to the top of the industry, outperforming 92.86% 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 -21.44% 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.
LSTR shows a decrease in Revenue. In the last year, the revenue decreased by -9.02%.
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)-21.44%
EPS 3Y-17.91%
EPS 5Y-0.74%
EPS Q2Q%-13.48%
Revenue 1Y (TTM)-9.02%
Revenue growth 3Y-9.59%
Revenue growth 5Y3.4%
Sales Q2Q%-0.43%
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 5.74% on average over the next years.
EPS Next Y-15.17%
EPS Next 2Y4.51%
EPS Next 3Y9.9%
EPS Next 5Y11.89%
Revenue Next Year-0.26%
Revenue Next 2Y3.68%
Revenue Next 3Y4.02%
Revenue Next 5Y5.74%
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
A Price/Earnings ratio of 28.04 indicates a quite expensive valuation of LSTR.
Compared to the rest of the industry, the Price/Earnings ratio of LSTR indicates a somewhat cheap valuation: LSTR is cheaper than 66.67% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.10. LSTR is around the same levels.
A Price/Forward Earnings ratio of 21.30 indicates a rather expensive valuation of LSTR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LSTR indicates a somewhat cheap valuation: LSTR is cheaper than 61.90% of the companies listed in the same industry.
LSTR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.04 | ||
| Fwd PE | 21.3 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LSTR.
Based on the Price/Free Cash Flow ratio, LSTR is valued cheaper than 88.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.61 | ||
| EV/EBITDA | 15.02 |
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 2Y4.51%
EPS Next 3Y9.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.28%, LSTR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.70, LSTR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, LSTR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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 2Y4.51%
EPS Next 3Y9.9%
128.43
+3.08 (+2.46%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners107.29%
Inst Owner Change0.66%
Ins Owners0.73%
Ins Owner Change1.27%
Market Cap4.45B
Revenue(TTM)4.83B
Net Income(TTM)167.93M
Analysts56.36
Price Target136.86 (6.56%)
Short Float %5.07%
Short Ratio4.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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)-4%
PT rev (3m)-4.85%
EPS NQ rev (1m)-4.9%
EPS NQ rev (3m)-6.88%
EPS NY rev (1m)-2.02%
EPS NY rev (3m)-4.8%
Revenue NQ rev (1m)-0.73%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.04 | ||
| Fwd PE | 21.3 | ||
| P/S | 0.93 | ||
| P/FCF | 23.61 | ||
| P/OCF | 21.49 | ||
| P/B | 4.83 | ||
| P/tB | 5.05 | ||
| EV/EBITDA | 15.02 |
EPS(TTM)4.58
EY3.57%
EPS(NY)6.03
Fwd EY4.69%
FCF(TTM)5.44
FCFY4.23%
OCF(TTM)5.98
OCFY4.65%
SpS138.59
BVpS26.6
TBVpS25.41
PEG (NY)N/A
PEG (5Y)N/A
Graham Number52.36
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%
ROICexgc growth 3Y-10.66%
ROICexgc 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 | 9.51 |
F-Score5
WACC9.98%
ROIC/WACC1.46
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)-21.44%
EPS 3Y-17.91%
EPS 5Y-0.74%
EPS Q2Q%-13.48%
EPS Next Y-15.17%
EPS Next 2Y4.51%
EPS Next 3Y9.9%
EPS Next 5Y11.89%
Revenue 1Y (TTM)-9.02%
Revenue growth 3Y-9.59%
Revenue growth 5Y3.4%
Sales Q2Q%-0.43%
Revenue Next Year-0.26%
Revenue Next 2Y3.68%
Revenue Next 3Y4.02%
Revenue Next 5Y5.74%
EBIT growth 1Y-23.44%
EBIT growth 3Y-21.04%
EBIT growth 5Y-3.59%
EBIT Next Year5.22%
EBIT Next 3Y14.82%
EBIT Next 5Y12.72%
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%
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 of LANDSTAR SYSTEM INC (LSTR) stock?
ChartMill assigns a valuation rating of 4 / 10 to LANDSTAR SYSTEM INC (LSTR). This can be considered as Fairly Valued.
What is the profitability of LSTR stock?
LANDSTAR SYSTEM INC (LSTR) has a profitability rating of 7 / 10.
What is the earnings growth outlook for LANDSTAR SYSTEM INC?
The Earnings per Share (EPS) of LANDSTAR SYSTEM INC (LSTR) is expected to decline by -15.17% in the next year.
Is the dividend of LANDSTAR SYSTEM INC sustainable?
The dividend rating of LANDSTAR SYSTEM INC (LSTR) is 5 / 10 and the dividend payout ratio is 73.07%.