LANDSTAR SYSTEM INC (LSTR) Stock Fundamental Analysis
NASDAQ:LSTR - Nasdaq - US5150981018 - Common Stock - Currency: USD
LSTR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 41 industry peers in the Ground Transportation industry. LSTR has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. LSTR is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years LSTR has been profitable.
In the past 5 years LSTR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.81%, LSTR belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
Looking at the Return On Equity, with a value of 20.15%, LSTR is in the better half of the industry, outperforming 78.05% of the companies in the same industry.
LSTR has a better Return On Invested Capital (15.85%) than 95.12% 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 8.12%.
The 3 year average ROIC (25.37%) for LSTR is well above the current ROIC(15.85%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.81% | ||
| ROE | 20.15% | ||
| ROIC | 15.85% |
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's Profit Margin of 4.05% is fine compared to the rest of the industry. LSTR outperforms 60.98% of its industry peers.
LSTR's Profit Margin has declined in the last couple of years.
LSTR's Operating Margin of 5.15% is in line compared to the rest of the industry. LSTR outperforms 56.10% of its industry peers.
LSTR's Operating Margin has declined in the last couple of years.
LSTR's Gross Margin of 14.40% is on the low side compared to the rest of the industry. LSTR is outperformed by 80.49% of its industry peers.
LSTR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.15% | ||
| PM (TTM) | 4.05% | ||
| GM | 14.4% |
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
LSTR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, LSTR has a worse debt to assets ratio.
2.2 Solvency
LSTR has an Altman-Z score of 9.05. This indicates that LSTR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LSTR (9.05) is better than 92.68% of its industry peers.
The Debt to FCF ratio of LSTR is 0.64, which is an excellent value as it means it would take LSTR, only 0.64 years of fcf income to pay off all of its debts.
LSTR's Debt to FCF ratio of 0.64 is amongst the best of the industry. LSTR outperforms 92.68% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that LSTR is not too dependend on debt financing.
LSTR has a Debt to Equity ratio of 0.13. This is amongst the best in the industry. LSTR outperforms 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.64 | ||
| Altman-Z | 9.05 |
ROIC/WACC1.62
WACC9.77%
2.3 Liquidity
LSTR has a Current Ratio of 1.96. 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 Current ratio value of 1.96, LSTR belongs to the best of the industry, outperforming 90.24% of the companies in the same industry.
LSTR has a Quick Ratio of 1.96. This is a normal value and indicates that LSTR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.96, LSTR belongs to the top of the industry, outperforming 90.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.96 |
3. Growth
3.1 Past
LSTR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.90%.
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 -9.02%.
LSTR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.40% yearly.
EPS 1Y (TTM)-24.9%
EPS 3Y-17.91%
EPS 5Y-0.74%
EPS Q2Q%-19.14%
Revenue 1Y (TTM)-9.02%
Revenue growth 3Y-9.59%
Revenue growth 5Y3.4%
Sales Q2Q%0.41%
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 14.13% yearly.
Based on estimates for the next years, LSTR will show a small growth in Revenue. The Revenue will grow by 6.15% on average per year.
EPS Next Y2.56%
EPS Next 2Y13.4%
EPS Next 3Y14.96%
EPS Next 5Y14.13%
Revenue Next Year3.34%
Revenue Next 2Y6.23%
Revenue Next 3Y6.15%
Revenue Next 5YN/A
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.97, the valuation of LSTR can be described as rather expensive.
Based on the Price/Earnings ratio, LSTR is valued a bit cheaper than 65.85% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 23.99, LSTR is valued at the same level.
With a Price/Forward Earnings ratio of 23.37, LSTR is valued on the expensive side.
LSTR's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.35. LSTR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.97 | ||
| Fwd PE | 23.37 |
4.2 Price Multiples
LSTR's Enterprise Value to EBITDA ratio is in line with the industry average.
LSTR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LSTR is cheaper than 87.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.1 | ||
| EV/EBITDA | 13.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of LSTR may justify a higher PE ratio.
A more expensive valuation may be justified as LSTR's earnings are expected to grow with 14.96% in the coming years.
PEG (NY)9.37
PEG (5Y)N/A
EPS Next 2Y13.4%
EPS Next 3Y14.96%
5. Dividend
5.1 Amount
LSTR has a Yearly Dividend Yield of 1.09%. Purely for dividend investing, there may be better candidates out there.
LSTR's Dividend Yield is a higher than the industry average which is at 1.70.
Compared to an average S&P500 Dividend Yield of 2.44, LSTR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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 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
61.48% 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.
DP61.48%
EPS Next 2Y13.4%
EPS Next 3Y14.96%
132.33
+0.62 (+0.47%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners100.96%
Inst Owner Change0.76%
Ins Owners0.69%
Ins Owner Change1.61%
Market Cap4.62B
Analysts54.29
Price Target154.34 (16.63%)
Short Float %2.87%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
Yearly Dividend3.39
Dividend Growth(5Y)37.07%
DP61.48%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.57%
Min EPS beat(2)-4.64%
Max EPS beat(2)-4.51%
EPS beat(4)2
Avg EPS beat(4)-1.89%
Min EPS beat(4)-4.64%
Max EPS beat(4)1.35%
EPS beat(8)3
Avg EPS beat(8)-1.17%
EPS beat(12)4
Avg EPS beat(12)-1.19%
EPS beat(16)8
Avg EPS beat(16)0.82%
Revenue beat(2)0
Avg Revenue beat(2)-1.85%
Min Revenue beat(2)-2.74%
Max Revenue beat(2)-0.96%
Revenue beat(4)1
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-3.77%
Max Revenue beat(4)2.36%
Revenue beat(8)1
Avg Revenue beat(8)-1.86%
Revenue beat(12)2
Avg Revenue beat(12)-1.7%
Revenue beat(16)6
Avg Revenue beat(16)0.07%
PT rev (1m)-7.52%
PT rev (3m)-10.57%
EPS NQ rev (1m)-13.73%
EPS NQ rev (3m)-26.47%
EPS NY rev (1m)-6.26%
EPS NY rev (3m)-15.74%
Revenue NQ rev (1m)0.52%
Revenue NQ rev (3m)-6.09%
Revenue NY rev (1m)-1.05%
Revenue NY rev (3m)-4.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.97 | ||
| Fwd PE | 23.37 | ||
| P/S | 0.96 | ||
| P/FCF | 18.1 | ||
| P/OCF | 16.14 | ||
| P/B | 4.76 | ||
| P/tB | 4.97 | ||
| EV/EBITDA | 13.44 |
EPS(TTM)5.52
EY4.17%
EPS(NY)5.66
Fwd EY4.28%
FCF(TTM)7.31
FCFY5.53%
OCF(TTM)8.2
OCFY6.2%
SpS138.31
BVpS27.82
TBVpS26.65
PEG (NY)9.37
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.81% | ||
| ROE | 20.15% | ||
| ROCE | 21.83% | ||
| ROIC | 15.85% | ||
| ROICexc | 30.01% | ||
| ROICexgc | 32.08% | ||
| OM | 5.15% | ||
| PM (TTM) | 4.05% | ||
| GM | 14.4% | ||
| FCFM | 5.29% |
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-Score4
Asset Turnover2.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.64 | ||
| Debt/EBITDA | 0.43 | ||
| Cap/Depr | 54.63% | ||
| Cap/Sales | 0.64% | ||
| Interest Coverage | 5.24 | ||
| Cash Conversion | 93.76% | ||
| Profit Quality | 130.43% | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.96 | ||
| Altman-Z | 9.05 |
F-Score4
WACC9.77%
ROIC/WACC1.62
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)-24.9%
EPS 3Y-17.91%
EPS 5Y-0.74%
EPS Q2Q%-19.14%
EPS Next Y2.56%
EPS Next 2Y13.4%
EPS Next 3Y14.96%
EPS Next 5Y14.13%
Revenue 1Y (TTM)-9.02%
Revenue growth 3Y-9.59%
Revenue growth 5Y3.4%
Sales Q2Q%0.41%
Revenue Next Year3.34%
Revenue Next 2Y6.23%
Revenue Next 3Y6.15%
Revenue Next 5YN/A
EBIT growth 1Y-27.68%
EBIT growth 3Y-21.04%
EBIT growth 5Y-3.59%
EBIT Next Year24.79%
EBIT Next 3Y19.19%
EBIT Next 5Y15.52%
FCF growth 1Y-30.55%
FCF growth 3Y0.28%
FCF growth 5Y-2.39%
OCF growth 1Y-27.2%
OCF growth 3Y1.17%
OCF growth 5Y-1.42%