NasdaqGS:LSTR

Stock Analysis Report

Executive Summary

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

Snowflake

Flawless balance sheet with proven track record.

Rewards

PE ratio (18.5x) is below the Transportation industry average (19.6x)

Earnings have grown 15.8% per year over the past 5 years

Risk Analysis

No risks detected for LSTR from our risk checks.


Similar Companies

Share Price & News

How has Landstar System's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LSTR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.0%

LSTR

-1.4%

US Transportation

0.4%

US Market


1 Year Return

9.5%

LSTR

15.0%

US Transportation

13.1%

US Market

Return vs Industry: LSTR underperformed the US Transportation industry which returned 15% over the past year.

Return vs Market: LSTR underperformed the US Market which returned 13.1% over the past year.


Shareholder returns

LSTRIndustryMarket
7 Day-3.0%-1.4%0.4%
30 Day0.6%4.0%4.0%
90 Day8.7%4.7%7.4%
1 Year10.2%9.5%17.1%15.0%15.6%13.1%
3 Year45.1%40.7%70.8%62.7%48.2%38.6%
5 Year59.5%51.0%53.7%23.5%62.6%44.6%

Price Volatility Vs. Market

How volatile is Landstar System's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Landstar System undervalued compared to its fair value and its price relative to the market?

18.51x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LSTR ($113.68) is trading above our estimate of fair value ($86.44)

Significantly Below Fair Value: LSTR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LSTR is good value based on its PE Ratio (18.5x) compared to the Transportation industry average (19.6x).

PE vs Market: LSTR is poor value based on its PE Ratio (18.5x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: LSTR is poor value based on its PEG Ratio (18.6x)


Price to Book Ratio

PB vs Industry: LSTR is overvalued based on its PB Ratio (5.9x) compared to the US Transportation industry average (2.2x).


Next Steps

Future Growth

How is Landstar System forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

1.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LSTR's forecast earnings growth (1% per year) is below the savings rate (2.7%).

Earnings vs Market: LSTR's earnings (1% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: LSTR's earnings are forecast to grow, but not significantly.

Revenue vs Market: LSTR's revenue (1.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: LSTR's revenue (1.7% per year) is forecast to grow slower than 20% 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 (28.6%)


Next Steps

Past Performance

How has Landstar System performed over the past 5 years?

15.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LSTR has high quality earnings.

Growing Profit Margin: LSTR's current net profit margins (5.8%) are higher than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: LSTR's earnings have grown by 15.8% per year over the past 5 years.

Accelerating Growth: LSTR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LSTR had negative earnings growth (-2.2%) over the past year, making it difficult to compare to the Transportation industry average (-45%).


Return on Equity

High ROE: LSTR's Return on Equity (32.5%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Landstar System's financial position?


Financial Position Analysis

Short Term Liabilities: LSTR's short term assets ($970.8M) exceeds its short term liabilities ($483.8M)

Long Term Liabilities: LSTR's short term assets (970.8M) exceeds its long term liabilities (146.0M)


Debt to Equity History and Analysis

Debt Level: LSTR's debt to equity ratio (5.9%) is considered satisfactory

Reducing Debt: LSTR's debt to equity ratio has reduced from 7.7% to 5.9% over the past 5 years.

Debt Coverage: LSTR's debt is well covered by operating cash flow (794.2%).

Interest Coverage: LSTR's interest payments on its debt are well covered by EBIT (99.9x coverage).


Balance Sheet

Inventory Level: LSTR has a low level of unsold assets or inventory.

Debt Coverage by Assets: LSTR's debt is covered by short term assets (assets are 21.8x debt).


Next Steps

Dividend

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

0.65%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%1.4%markettop25%3.7%industryaverage1.7%forecastin3Years0.6%

Current dividend yield vs market & industry

Notable Dividend: LSTR's dividend (0.65%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: LSTR's dividend (0.65%) is low compared to the top 25% of dividend payers in the US market (3.66%).


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LSTR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Landstar System's salary, the management and board of directors tenure and is there insider trading?

4.9yrs

Average management tenure


CEO

Jim Gattoni (58yo)

4.9yrs

Tenure

US$5,469,699

Compensation

Mr. James B. Gattoni, also known as Jim, has been the Chief Executive Officer of Landstar System Inc. since December 29, 2014 and has been its President since January 2014. Mr. Gattoni served as the Chief  ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD5.47M) is about average for companies of similar size in the US market ($USD5.10M).

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


Management Age and Tenure

4.9yrs

Average Tenure

55yo

Average Age

Experienced Management: LSTR's management team is considered experienced (4.9 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

61yo

Average Age

Experienced Board: LSTR's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$586,13808 Nov 19
Joseph Beacom
EntityIndividual
Role
Chief Operating Officer
VP and Chief Safety & Operations Officer
Shares5,000
Max PriceUS$117.23
SellUS$825,74507 Nov 19
Diana Murphy
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares7,000
Max PriceUS$117.96
SellUS$2,548,87608 May 19
Patrick O'Malley
EntityIndividual
Role
Senior Key Executive
Special Advisor to the Chief Executive Officer
Shares23,000
Max PriceUS$110.82
SellUS$570,61401 May 19
Joseph Beacom
EntityIndividual
Role
Chief Operating Officer
VP and Chief Safety & Operations Officer
Shares5,000
Max PriceUS$114.12
SellUS$2,156,19022 Feb 19
James Gattoni
EntityIndividual
Role
Chief Executive Officer
President
Shares19,481
Max PriceUS$110.68
SellUS$665,92221 Feb 19
L. Stout
EntityIndividual
Role
Chief Financial Officer
VP, CFO & Assistant Secretary
Shares6,000
Max PriceUS$110.99

Ownership Breakdown

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


Management Team

  • Jim Gattoni (58yo)

    President

    • Tenure: 4.9yrs
    • Compensation: US$5.47m
  • Joe Beacom (55yo)

    VP and Chief Safety & Operations Officer

    • Tenure: 8.5yrs
    • Compensation: US$2.03m
  • Michael Kneller (45yo)

    VP, General Counsel & Secretary

    • Tenure: 14.4yrs
    • Compensation: US$2.02m
  • Ricardo Coro (55yo)

    VP & Chief Information Officer

    • Tenure: 2.5yrs
  • Pat O'Malley (60yo)

    Special Advisor to the Chief Executive Officer

    • Tenure: 0.5yrs
    • Compensation: US$2.03m
  • Patty McMenamin

    Vice President of Corporate Communications

    • Tenure: 0yrs
  • L. Stout (50yo)

    VP, CFO & Assistant Secretary

    • Tenure: 4.9yrs
    • Compensation: US$2.32m
  • Rob Brasher (48yo)

    VP & Chief Commercial Officer

    • Tenure: 0yrs

Board Members

  • Diana Murphy (62yo)

    Non-Executive Chairman

    • Tenure: 4.5yrs
    • Compensation: US$237.52k
  • David Bannister (63yo)

    Independent Director

    • Tenure: 28.6yrs
    • Compensation: US$187.52k
  • George Scanlon (61yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$187.52k
  • Tony Orlando (59yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$188.15k
  • Jim Gattoni (58yo)

    President

    • Tenure: 4.9yrs
    • Compensation: US$5.47m
  • Homaira Akbari (58yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$187.52k
  • Larry Thoele (68yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$187.52k

Company Information

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


Key Information

  • Name: Landstar System, Inc.
  • Ticker: LSTR
  • Exchange: NasdaqGS
  • Founded: 1968
  • Industry: Trucking
  • Sector: Transportation
  • Market Cap: US$4.486b
  • Shares outstanding: 39.46m
  • 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

Biography

Landstar System, Inc. provides integrated transportation management solutions in the United States, Canada, Mexico, and internationally. It operates through two segments, Transportation Logistics and Insur ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 23:36
End of Day Share Price2019/11/13 00:00
Earnings2019/09/28
Annual Earnings2018/12/29


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.