LANDSTAR SYSTEM INC (LSTR) Stock Fundamental Analysis
USA - NASDAQ:LSTR - US5150981018 - Common Stock
122.63 USD
+1.4 (+1.15%)
122.63 USD
0 (0%)
LSTR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 42 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
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.
Each year in the past 5 years LSTR had a positive operating cash flow.
1.2 Ratios
LSTR has a better Return On Assets (9.88%) than 88.10% of its industry peers.
The Return On Equity of LSTR (18.22%) is better than 78.57% 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 7.92%.
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
With a Profit Margin value of 3.50%, LSTR perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
In the last couple of years the Profit Margin of LSTR has declined.
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 has a Gross Margin of 14.26%. This is in the lower half of the industry: LSTR underperforms 76.19% 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
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 9.32 indicates that LSTR is not in any danger for bankruptcy at the moment.
LSTR has a Altman-Z score of 9.32. This is amongst the best in the industry. LSTR outperforms 90.48% 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 95.24% 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 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | 9.32 |
ROIC/WACC1.45
WACC10.03%
2.3 Liquidity
LSTR has a Current 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.
The Current ratio of LSTR (2.00) is better than 90.48% of its industry peers.
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.
LSTR has a better Quick ratio (2.00) than 90.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
LSTR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.19%.
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 -2.06%.
LSTR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.40% yearly.
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.
LSTR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.00% yearly.
EPS Next Y-13.42%
EPS Next 2Y6.04%
EPS Next 3Y11.03%
EPS Next 5Y12.08%
Revenue Next Year-0.1%
Revenue Next 2Y4.06%
Revenue Next 3Y4.56%
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 25.71, which means the current valuation is very expensive for LSTR.
Based on the Price/Earnings ratio, LSTR is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
LSTR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.86.
Based on the Price/Forward Earnings ratio of 19.76, the valuation of LSTR can be described as rather expensive.
61.90% of the companies in the same industry are more expensive than LSTR, based on the Price/Forward Earnings ratio.
LSTR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.71 | ||
| Fwd PE | 19.76 |
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 cheaply inside the industry as 88.10% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.55 | ||
| EV/EBITDA | 14.1 |
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 2Y6.04%
EPS Next 3Y11.03%
5. Dividend
5.1 Amount
LSTR has a Yearly Dividend Yield of 1.32%.
Compared to an average industry Dividend Yield of 1.66, LSTR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, LSTR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
5.2 History
The dividend of LSTR is nicely growing with an annual growth rate of 37.07%!
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.
The dividend of LSTR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP73.07%
EPS Next 2Y6.04%
EPS Next 3Y11.03%
122.63
+1.4 (+1.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners107.29%
Inst Owner Change0.59%
Ins Owners0.73%
Ins Owner Change1.27%
Market Cap4.25B
Analysts56.36
Price Target142.56 (16.25%)
Short Float %4.97%
Short Ratio4.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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)0.21%
PT rev (3m)-2.34%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)-7.26%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)-2.95%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)-2.37%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.71 | ||
| Fwd PE | 19.76 | ||
| P/S | 0.88 | ||
| P/FCF | 22.55 | ||
| P/OCF | 20.52 | ||
| P/B | 4.61 | ||
| P/tB | 4.83 | ||
| EV/EBITDA | 14.1 |
EPS(TTM)4.77
EY3.89%
EPS(NY)6.21
Fwd EY5.06%
FCF(TTM)5.44
FCFY4.44%
OCF(TTM)5.98
OCFY4.87%
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 | 9.32 |
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-13.42%
EPS Next 2Y6.04%
EPS Next 3Y11.03%
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-0.1%
Revenue Next 2Y4.06%
Revenue Next 3Y4.56%
Revenue Next 5Y6%
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 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%