company background image
LSTR

Landstar System NasdaqGS:LSTR Stock Report

Last Price

US$145.75

Market Cap

US$5.3b

7D

2.2%

1Y

-7.6%

Updated

29 Sep, 2022

Data

Company Financials +
LSTR fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance5/6
Financial Health5/6
Dividends0/6

LSTR Stock Overview

Landstar System, Inc. provides integrated transportation management solutions in the United States, Canada, Mexico, and internationally.

Landstar System Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Landstar System
Historical stock prices
Current Share PriceUS$145.75
52 Week HighUS$188.63
52 Week LowUS$137.15
Beta0.94
1 Month Change-1.83%
3 Month Change-0.79%
1 Year Change-7.65%
3 Year Change33.46%
5 Year Change45.97%
Change since IPO8,869.23%

Recent News & Updates

Sep 16

I Would Love To Buy Landstar System, Inc.

Summary The company has posted excellent financial results for the first 26 weeks of the year. Revenue, net income, and the dividend are materially higher. This is a (volatile) growth company. In spite of this, the shares are trading at a reasonable valuation. That is a compelling combination, in my view. I will be buying when the puts I wrote in April expire. These have outperformed the shares, highlighting yet again their risk-reducing, yield-enhancing potential. It's been exactly five months since I put out my latest piece on Landstar System, Inc. (LSTR), and in that time, the shares have returned a loss of about 3.4% against a loss of about 12.5% for the S&P 500. The company has reported results since, so I want to review the name again to see if it makes sense to buy or not. I'll review the latest financials, and will look at the current valuation. Additionally, as is my wont, I'm going to spend some time bragging about the performance of my short put options, so get ready for that. It's that time again, dear readers. It's the time when I post my "thesis statement" paragraph for your enjoyment and edification. It's here where I offer you the gist of my thinking in a short, hopefully pithy, paragraph. This allows you to save time, and avoid the bragging that I threatened above. You're welcome. Anyway, I think Landstar has had a magnificent time since I last wrote about the business. Sales and profits are up dramatically relative to both last year and the pre-pandemic period. Additionally, the very well-covered dividend has grown nicely. Debt has also grown dramatically but remains well below cash on hand, so there's not much risk in the capital structure in my view. In spite of all of this, the shares are trading near multi-year low valuations. There will be a slowdown in the business at some point, as it's clearly cyclical, but the market is overreacting in my view. The puts I wrote back in April have done very well, especially against the stock. This is yet another example of short puts offering better returns and lower risk. The puts expire next month and, assuming the world hasn't changed dramatically, I'll be buying the shares then. If it weren't for these puts, I'd be buying the stock today. If you aren't saddled by such commitments yourself, I would recommend picking up a few shares of this wonderful growth machine at a reasonable price. Financial Snapshot I think the latest financial results at Landstar have been mostly spectacular. For example, revenue and net income are up 38% and 40% respectively. The company saw fit to reward shareholders with this improvement in the business by increasing the dividend by fully 19%. When compared to the pre-pandemic period, things look even better. For instance, revenue for the first 26 weeks of 2022 was about 89% higher than the same period in 2019, and net income was up by 91%. In my estimation, this fits the definition of a "growth" company. It's not all sunshine and lollipops over at Landstar, though. The company has loaded up on debt over the past year as the business has grown. Specifically, long-term debt is now about 35% higher than it was this time last year. Unsurprisingly, interest expenses have also jumped by about 11% for the first 26 weeks of 2022 relative to the same period in 2021. I would normally be much more bothered about this than I am, but the company is sitting on an enormous cash hoard. Their cash and short-term investments are currently about $119.7 million against long-term debt of $110.8 million. Thus, I'm not too worried about leverage here, though I'd prefer to see the company clean up the capital structure somewhat. I do think the dividend is reasonably well covered, and for that reason, I'd be very happy to buy the stock at the right price. Landstar System Financials (Landstar System investor relations) The Stock As my regulars know, I consider the "business" and the "stock" to be quite different things. In case you're new here, I'll tell you also. I consider the "business" and the "stock" to be quite different things. My regulars know that I've talked myself out of some profitable trades with the words "at the right price" many times, but as we close in on the end of a week that's seen a 6% decline in the S&P 500, I'm reminded that an instinct to preserve capital isn't a bad one. I'd rather miss out on some gains than lose capital. To continue with the theme that businesses and stocks are distinct things, consider the following. Every business buys a number of inputs, performs value-adding activities on them and sells the results at a profit. In the final analysis, that's what every business is. The stock, on the other hand, is an ownership stake in the business that gets traded around in a market that aggregates the crowd's rapidly changing views about the future health of the business, future demand for transportation and logistics services, changing input costs, and so on. It may be that some analyst decides that "future growth catalysts" for a related business like railroads are weaker than we once thought, and Landstar falls in price in sympathy, in spite of absolutely no change at the company. The stock also moves around because it gets taken along for the ride when the crowd changes its views about "the market" in general. So, in some sense, the stock is buffeted by the crowds' rapidly changing views about a given company, a series of related and obliquely related industries, and the crowd's rapidly changing views about the overall stock market. This is troublesome, but it's a potential source of profit because these price movements have the potential to create a disconnect between market expectations and subsequent reality. In my experience, this is the only way to generate profits trading stocks: by determining the crowd's expectations about a given company's performance, spotting discrepancies between those assumptions and stock price, and placing a trade accordingly. I've also found it's the case that investors do better/less badly when they buy shares that are relatively cheap, because cheap shares correlate with low expectations. As my regulars know, I measure the relative cheapness of a stock in a few ways. For example, I like to look at the ratio of price to some measure of economic value, like earnings, sales, free cash, and the like. I like to see a company trading at a discount to both the overall market, and to its own history. Previously, I was lukewarm on Landstar because the price to free cash flow was sitting around 21.8 times, and the price to book was stuck at 6.26 times. Fast-forward five months and the shares are about 26% cheaper on a price to free cash basis, and about 5.75% cheaper on a price to book basis. Additionally, shares seem to be close to a multi-year valuation low on a price to free cash basis. LSTR data by YCharts LSTR data by YCharts In addition to looking at simple ratios, I actually use a large number of other, more complex valuation measures, one of which involves trying to understand the assumptions currently embedded in price. If you read me regularly, you know that I rely on the work of Professor Stephen Penman, and increasingly Mauboussin and Rappaport to do this. This approach uses the stock price itself as a source of information. It involves "reverse engineering" the assumptions that cause the current price by isolating the "g" (growth) variable in a standard finance formula. When I apply this approach to Landstar, it seems the market is assuming growth rate of about 4.9%, which is a slightly more optimistic forecast than the last time I reviewed the name when it was sitting at 4.8%. So there's no movement on this front, but the shares are much cheaper on a price to free cash flow basis, which I find quite compelling. Options Update I find the current price level compelling, which prompts the question: am I a buyer at current levels? I certainly would be if it were not for my short put position. Way back in April, I wrote 10 Landstar puts with a strike of $115 for $2.55 each, and these are now bid at $0, so that trade's worked out well in my view. That strike price lined up with a price to free cash ratio of about 17 times, when the company was generating far less cash. As of now, the strike now represents a price to free cash flow ratio of about 12.9 times, which would be a great entry price in my view.

Sep 04
Should You Be Adding Landstar System (NASDAQ:LSTR) To Your Watchlist Today?

Should You Be Adding Landstar System (NASDAQ:LSTR) To Your Watchlist Today?

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...

Aug 11
Is Landstar System (NASDAQ:LSTR) A Risky Investment?

Is Landstar System (NASDAQ:LSTR) A Risky Investment?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Jul 27
Is Now An Opportune Moment To Examine Landstar System, Inc. (NASDAQ:LSTR)?

Is Now An Opportune Moment To Examine Landstar System, Inc. (NASDAQ:LSTR)?

While Landstar System, Inc. ( NASDAQ:LSTR ) might not be the most widely known stock at the moment, it received a lot...

Shareholder Returns

LSTRUS TransportationUS Market
7D2.2%-3.7%-2.0%
1Y-7.6%-25.6%-20.3%

Return vs Industry: LSTR exceeded the US Transportation industry which returned -25.6% over the past year.

Return vs Market: LSTR exceeded the US Market which returned -20.3% over the past year.

Price Volatility

Is LSTR's price volatile compared to industry and market?
LSTR volatility
LSTR Average Weekly Movement4.1%
Transportation Industry Average Movement6.7%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: LSTR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: LSTR's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19681,399Jim Gattonihttps://www.landstar.com

Landstar System, Inc. provides integrated transportation management solutions in the United States, Canada, Mexico, and internationally. The company operates through two segments: Transportation Logistics, and Insurance. The Transportation Logistics segment offers a range of transportation services, including truckload and less-than-truckload transportation, rail intermodal, air cargo, ocean cargo, expedited ground and air delivery of time-critical freight, heavy-haul/specialized, U.S.-Canada and U.S.-Mexico cross-border, intra-Mexico, intra-Canada, project cargo, and customs brokerage, as well as offers transportation services to other transportation companies, such as third party logistics, small package and less-than-truckload service providers.

Landstar System Fundamentals Summary

How do Landstar System's earnings and revenue compare to its market cap?
LSTR fundamental statistics
Market CapUS$5.32b
Earnings (TTM)US$449.38m
Revenue (TTM)US$7.63b

11.8x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LSTR income statement (TTM)
RevenueUS$7.63b
Cost of RevenueUS$5.98b
Gross ProfitUS$1.52b
Other ExpensesUS$1.07b
EarningsUS$449.38m

Last Reported Earnings

Jun 25, 2022

Next Earnings Date

Oct 19, 2022

Earnings per share (EPS)12.34
Gross Margin19.91%
Net Profit Margin5.89%
Debt/Equity Ratio13.3%

How did LSTR perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

8%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is LSTR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LSTR?

Other financial metrics that can be useful for relative valuation.

LSTR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.7x
Enterprise Value/EBITDA8.4x
PEG Ratio-0.6x

Price to Earnings Ratio vs Peers

How does LSTR's PE Ratio compare to its peers?

LSTR PE Ratio vs Peers
The above table shows the PE ratio for LSTR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average8.9x
SAIA Saia
15x4.0%US$5.1b
KNX Knight-Swift Transportation Holdings
9x-3.0%US$8.0b
SNDR Schneider National
8x-5.8%US$3.8b
CAR Avis Budget Group
2.9x-50.0%US$6.9b
LSTR Landstar System
11.8x-21.3%US$5.3b

Price-To-Earnings vs Peers: LSTR is expensive based on its Price-To-Earnings Ratio (11.8x) compared to the peer average (8.7x).


Price to Earnings Ratio vs Industry

How does LSTR's PE Ratio compare vs other companies in the US Transportation Industry?

Price-To-Earnings vs Industry: LSTR is expensive based on its Price-To-Earnings Ratio (11.8x) compared to the US Transportation industry average (9x)


Price to Earnings Ratio vs Fair Ratio

What is LSTR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LSTR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.8x
Fair PE Ratio7.2x

Price-To-Earnings vs Fair Ratio: LSTR is expensive based on its Price-To-Earnings Ratio (11.8x) compared to the estimated Fair Price-To-Earnings Ratio (7.2x).


Share Price vs Fair Value

What is the Fair Price of LSTR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LSTR ($145.75) is trading below our estimate of fair value ($230.21)

Significantly Below Fair Value: LSTR is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies

Future Growth

How is Landstar System forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-21.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LSTR's earnings are forecast to decline over the next 3 years (-21.3% per year).

Earnings vs Market: LSTR's earnings are forecast to decline over the next 3 years (-21.3% per year).

High Growth Earnings: LSTR's earnings are forecast to decline over the next 3 years.

Revenue vs Market: LSTR's revenue is expected to decline over the next 3 years (-12.8% per year).

High Growth Revenue: LSTR's revenue is forecast to decline over the next 3 years (-12.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LSTR's Return on Equity is forecast to be high in 3 years time (27.5%)


Discover growth companies

Past Performance

How has Landstar System performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


15.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LSTR has high quality earnings.

Growing Profit Margin: LSTR's current net profit margins (5.9%) are higher than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: LSTR's earnings have grown by 15.9% per year over the past 5 years.

Accelerating Growth: LSTR's earnings growth over the past year (52%) exceeds its 5-year average (15.9% per year).

Earnings vs Industry: LSTR earnings growth over the past year (52%) underperformed the Transportation industry 62.5%.


Return on Equity

High ROE: LSTR's Return on Equity (52.4%) is considered outstanding.


Discover strong past performing companies

Financial Health

How is Landstar System's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: LSTR's short term assets ($1.5B) exceed its short term liabilities ($977.9M).

Long Term Liabilities: LSTR's short term assets ($1.5B) exceed its long term liabilities ($182.3M).


Debt to Equity History and Analysis

Debt Level: LSTR has more cash than its total debt.

Reducing Debt: LSTR's debt to equity ratio has increased from 5.6% to 13.3% over the past 5 years.

Debt Coverage: LSTR's debt is well covered by operating cash flow (307.4%).

Interest Coverage: LSTR's interest payments on its debt are well covered by EBIT (140.9x coverage).


Balance Sheet


Discover healthy companies

Dividend

What is Landstar System current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.82%

Current Dividend Yield

Dividend Yield vs Market

Landstar System Dividend Yield vs Market
How does Landstar System dividend yield compare to the market?
SegmentDividend Yield
Company (Landstar System)0.8%
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.6%
Industry Average (Transportation)1.9%
Analyst forecast in 3 Years (Landstar System)0.7%

Notable Dividend: LSTR's dividend (0.82%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: LSTR's dividend (0.82%) is low compared to the top 25% of dividend payers in the US market (4.61%).


Stability and Growth of Payments

Stable Dividend: LSTR is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: LSTR is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Earnings Payout to Shareholders

Earnings Coverage: LSTR is not paying a notable dividend for the US market.


Cash Payout to Shareholders

Cash Flow Coverage: LSTR is not paying a notable dividend for the US market.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

7.0yrs

Average management tenure


CEO

Jim Gattoni (61 yo)

7.67yrs

Tenure

US$5,398,583

Compensation

Mr. James B. Gattoni, also known as Jim, serves as the Chief Executive Officer at Landstar System Inc. since December 29, 2014 and also serves as the President since January 2014. He serves as a Director a...


CEO Compensation Analysis

Jim Gattoni's Compensation vs Landstar System Earnings
How has Jim Gattoni's remuneration changed compared to Landstar System's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 25 2022n/an/a

US$449m

Mar 26 2022n/an/a

US$429m

Dec 25 2021US$5mUS$600k

US$382m

Sep 25 2021n/an/a

US$333m

Jun 26 2021n/an/a

US$296m

Mar 27 2021n/an/a

US$228m

Dec 26 2020US$3mUS$500k

US$192m

Sep 26 2020n/an/a

US$177m

Jun 27 2020n/an/a

US$168m

Mar 28 2020n/an/a

US$205m

Dec 28 2019US$3mUS$500k

US$228m

Sep 28 2019n/an/a

US$246m

Jun 29 2019n/an/a

US$260m

Mar 30 2019n/an/a

US$261m

Dec 29 2018US$5mUS$500k

US$255m

Sep 29 2018n/an/a

US$252m

Jun 30 2018n/an/a

US$227m

Mar 31 2018n/an/a

US$202m

Dec 30 2017US$4mUS$450k

US$177m

Sep 30 2017n/an/a

US$152m

Jul 01 2017n/an/a

US$146m

Apr 01 2017n/an/a

US$141m

Dec 31 2016US$1mUS$450k

US$137m

Sep 24 2016n/an/a

US$136m

Jun 25 2016n/an/a

US$139m

Mar 26 2016n/an/a

US$147m

Dec 26 2015US$2mUS$450k

US$148m

Compensation vs Market: Jim's total compensation ($USD5.40M) is below average for companies of similar size in the US market ($USD8.58M).

Compensation vs Earnings: Jim's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: LSTR's management team is seasoned and experienced (7 years average tenure).


Board Members

Experienced Board: LSTR's board of directors are considered experienced (7.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LSTR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

NasdaqGS:LSTR Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
18 Aug 22SellUS$625,755Joseph BeacomIndividual4,000US$156.56
15 Mar 22BuyUS$76,900Homaira AkbariIndividual500US$153.80
24 Feb 22BuyUS$302,601Homaira AkbariIndividual2,000US$151.30

Ownership Breakdown

What is the ownership structure of LSTR?
Owner TypeNumber of SharesOwnership Percentage
State or Government23,8280.06%
Individual Insiders352,8880.9%
Institutions38,074,21099.0%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 77.45% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
10.16%
BlackRock, Inc.
3,701,460$539.5m-9.41%0.01%
9.93%
The Vanguard Group, Inc.
3,618,093$527.3m-2.74%0.01%
9.2%
Kayne Anderson Rudnick Investment Management, LLC
3,352,069$488.6m-1.93%1.45%
8.16%
Eaton Vance Management
2,972,226$433.2m1.67%0.16%
4.36%
Victory Capital Management Inc.
1,588,276$231.5m-2.44%0.26%
4.19%
T. Rowe Price Group, Inc.
1,525,345$222.3m1.47%0.03%
3.69%
Boston Partners Global Investors, Inc.
1,343,933$195.9m103.05%0.17%
3.08%
State Street Global Advisors, Inc.
1,122,009$163.5m-4.9%0.01%
2.38%
Fuller & Thaler Asset Management, Inc.
868,543$126.6m14.65%0.91%
2.32%
FMR LLC
843,314$122.9m13.28%0.01%
2.25%
J.P. Morgan Asset Management, Inc.
820,541$119.6m-3.5%0.02%
1.71%
Geode Capital Management, LLC
621,655$90.6m9.57%0.01%
1.56%
Dimensional Fund Advisors LP
568,354$82.8m3.3%0.02%
1.56%
Northern Trust Global Investments
566,640$82.6m1.23%0.02%
1.47%
Jacobs Levy Equity Management Inc
533,829$77.8m-5.17%0.62%
1.44%
Disciplined Growth Investors, Inc.
523,949$76.4m1.68%2.11%
1.43%
AQR Capital Management, LLC
519,624$75.7m0.97%0.17%
1.31%
Eagle Asset Management, Inc.
476,109$69.4m-2.9%0.44%
1.25%
Royce & Associates, LP
454,510$66.2m-2.33%0.64%
1.21%
Wells Fargo & Company, Securities and Brokerage Investments
439,368$64.0m-4.48%0.03%
1.18%
BNY Mellon Asset Management
431,045$62.8m6.58%0.01%
0.98%
Norges Bank Investment Management
356,044$51.9m0%0.01%
0.89%
Copeland Capital Management, LLC
325,120$47.4m-0.22%1.57%
0.89%
Managed Account Advisors LLC
322,893$47.1m4.11%0.01%
0.88%
Charles Schwab Investment Management, Inc.
319,468$46.6m-2%0.01%

Company Information

Landstar System, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Landstar System, Inc.
  • Ticker: LSTR
  • Exchange: NasdaqGS
  • Founded: 1968
  • Industry: Trucking
  • Sector: Transportation
  • Implied Market Cap: US$5.321b
  • Shares outstanding: 36.43m
  • Website: https://www.landstar.com

Number of Employees


Location

  • Landstar System, Inc.
  • 13410 Sutton Park Drive South
  • Jacksonville
  • Florida
  • 32224
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LSTRNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 1993
LDSDB (Deutsche Boerse AG)YesCommon StockDEEURMar 1993
LSTR *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMar 1993

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/29 00:00
End of Day Share Price2022/09/29 00:00
Earnings2022/06/25
Annual Earnings2021/12/25


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.