LANDSTAR SYSTEM INC (LSTR) Stock Fundamental Analysis
NASDAQ:LSTR - Nasdaq - US5150981018 - Common Stock - Currency: USD
Taking everything into account, LSTR scores 6 out of 10 in our fundamental rating. 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.
In the past year LSTR had a positive cash flow from operations.
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
The Return On Assets of LSTR (10.41%) is better than 87.50% of its industry peers.
LSTR's Return On Equity of 19.19% is fine compared to the rest of the industry. LSTR outperforms 75.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.02%, 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 8.58%.
The 3 year average ROIC (25.37%) for LSTR is well above the current ROIC(15.02%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.41% | ||
| ROE | 19.19% | ||
| ROIC | 15.02% |
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 3.71% is in line compared to the rest of the industry. LSTR outperforms 55.00% of its industry peers.
LSTR's Profit Margin has declined in the last couple of years.
LSTR has a Operating Margin of 4.74%. This is comparable to the rest of the industry: LSTR outperforms 52.50% of its industry peers.
In the last couple of years the Operating Margin of LSTR has declined.
With a Gross Margin value of 14.31%, LSTR is not doing good in the industry: 82.50% of the companies in the same industry are doing better.
LSTR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.74% | ||
| PM (TTM) | 3.71% | ||
| GM | 14.31% |
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.
LSTR has less shares outstanding than it did 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
LSTR has an Altman-Z score of 9.70. This indicates that LSTR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LSTR (9.70) is better than 92.50% of its industry peers.
The Debt to FCF ratio of LSTR is 0.68, which is an excellent value as it means it would take LSTR, only 0.68 years of fcf income to pay off all of its debts.
LSTR has a Debt to FCF ratio of 0.68. This is amongst the best in the industry. LSTR outperforms 95.00% of its industry peers.
LSTR has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.13, LSTR is doing good in the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | 9.7 |
ROIC/WACC1.51
WACC9.95%
2.3 Liquidity
A Current Ratio of 2.03 indicates that LSTR has no problem at all paying its short term obligations.
LSTR's Current ratio of 2.03 is amongst the best of the industry. LSTR outperforms 90.00% of its industry peers.
A Quick Ratio of 2.03 indicates that LSTR has no problem at all paying its short term obligations.
LSTR's Quick ratio of 2.03 is amongst the best of the industry. LSTR outperforms 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.03 | ||
| Quick Ratio | 2.03 |
3. Growth
3.1 Past
LSTR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.31%.
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 -4.66%.
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)-22.31%
EPS 3Y-17.91%
EPS 5Y-0.74%
EPS Q2Q%-35.61%
Revenue 1Y (TTM)-4.66%
Revenue growth 3Y-9.59%
Revenue growth 5Y3.4%
Sales Q2Q%-1.58%
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.
The Revenue is expected to grow by 6.00% on average over the next years.
EPS Next Y-10.79%
EPS Next 2Y8.41%
EPS Next 3Y12.7%
EPS Next 5Y12.08%
Revenue Next Year1.04%
Revenue Next 2Y4.64%
Revenue Next 3Y4.7%
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.
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 27.21, the valuation of LSTR can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of LSTR is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.86. LSTR is around the same levels.
Based on the Price/Forward Earnings ratio of 21.18, the valuation of LSTR can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as LSTR.
When comparing the Price/Forward Earnings ratio of LSTR to the average of the S&P500 Index (21.43), we can say LSTR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.21 | ||
| Fwd PE | 21.18 |
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 92.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.4 | ||
| EV/EBITDA | 15.42 |
4.3 Compensation for Growth
LSTR has a very decent profitability rating, which may justify a higher PE ratio.
LSTR's earnings are expected to grow with 12.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.41%
EPS Next 3Y12.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.17%, LSTR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.57, LSTR pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.17, LSTR pays less dividend than the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
5.2 History
On average, the dividend of LSTR grows each year by 37.07%, which is quite nice.
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
LSTR pays out 67.48% 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.
DP67.48%
EPS Next 2Y8.41%
EPS Next 3Y12.7%
137.39
-0.61 (-0.44%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners104.32%
Inst Owner Change1.81%
Ins Owners0.72%
Ins Owner Change3.04%
Market Cap4.80B
Analysts54.29
Price Target145.98 (6.25%)
Short Float %3.79%
Short Ratio3.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
Yearly Dividend3.39
Dividend Growth(5Y)37.07%
DP67.48%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9.83%
Min EPS beat(2)-15.14%
Max EPS beat(2)-4.51%
EPS beat(4)1
Avg EPS beat(4)-6.02%
Min EPS beat(4)-15.14%
Max EPS beat(4)0.23%
EPS beat(8)2
Avg EPS beat(8)-3.42%
EPS beat(12)3
Avg EPS beat(12)-3.05%
EPS beat(16)7
Avg EPS beat(16)-1.45%
Revenue beat(2)0
Avg Revenue beat(2)-0.63%
Min Revenue beat(2)-0.96%
Max Revenue beat(2)-0.3%
Revenue beat(4)0
Avg Revenue beat(4)-1.94%
Min Revenue beat(4)-3.77%
Max Revenue beat(4)-0.3%
Revenue beat(8)1
Avg Revenue beat(8)-1.78%
Revenue beat(12)1
Avg Revenue beat(12)-2.18%
Revenue beat(16)5
Avg Revenue beat(16)-0.56%
PT rev (1m)-5.41%
PT rev (3m)-12.7%
EPS NQ rev (1m)-3.14%
EPS NQ rev (3m)-16.8%
EPS NY rev (1m)-4.51%
EPS NY rev (3m)-19.06%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-2.99%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-3.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.21 | ||
| Fwd PE | 21.18 | ||
| P/S | 1 | ||
| P/FCF | 21.4 | ||
| P/OCF | 19.36 | ||
| P/B | 5.16 | ||
| P/tB | 5.4 | ||
| EV/EBITDA | 15.42 |
EPS(TTM)5.05
EY3.68%
EPS(NY)6.49
Fwd EY4.72%
FCF(TTM)6.42
FCFY4.67%
OCF(TTM)7.1
OCFY5.17%
SpS137.79
BVpS26.63
TBVpS25.46
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.41% | ||
| ROE | 19.19% | ||
| ROCE | 20.69% | ||
| ROIC | 15.02% | ||
| ROICexc | 25.33% | ||
| ROICexgc | 26.92% | ||
| OM | 4.74% | ||
| PM (TTM) | 3.71% | ||
| GM | 14.31% | ||
| FCFM | 4.66% |
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 Turnover2.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.68 | ||
| Debt/EBITDA | 0.43 | ||
| Cap/Depr | 43.08% | ||
| Cap/Sales | 0.49% | ||
| Interest Coverage | 4.75 | ||
| Cash Conversion | 87.59% | ||
| Profit Quality | 125.62% | ||
| Current Ratio | 2.03 | ||
| Quick Ratio | 2.03 | ||
| Altman-Z | 9.7 |
F-Score4
WACC9.95%
ROIC/WACC1.51
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)-22.31%
EPS 3Y-17.91%
EPS 5Y-0.74%
EPS Q2Q%-35.61%
EPS Next Y-10.79%
EPS Next 2Y8.41%
EPS Next 3Y12.7%
EPS Next 5Y12.08%
Revenue 1Y (TTM)-4.66%
Revenue growth 3Y-9.59%
Revenue growth 5Y3.4%
Sales Q2Q%-1.58%
Revenue Next Year1.04%
Revenue Next 2Y4.64%
Revenue Next 3Y4.7%
Revenue Next 5Y6%
EBIT growth 1Y-24.59%
EBIT growth 3Y-21.04%
EBIT growth 5Y-3.59%
EBIT Next Year7.45%
EBIT Next 3Y17.46%
EBIT Next 5Y13.51%
FCF growth 1Y-64.83%
FCF growth 3Y0.28%
FCF growth 5Y-2.39%
OCF growth 1Y-62.79%
OCF growth 3Y1.17%
OCF growth 5Y-1.42%