NasdaqGS:LSTR

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Excellent balance sheet with acceptable track record.


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 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.


Market Performance


7 Day Return

-0.6%

LSTR

1.3%

US Transportation

2.8%

US Market


1 Year Return

15.9%

LSTR

27.3%

US Transportation

19.7%

US Market

Return vs Industry: LSTR underperformed the US Transportation industry which returned 27.3% over the past year.

Return vs Market: LSTR underperformed the US Market which returned 19.7% over the past year.


Shareholder returns

LSTRIndustryMarket
7 Day-0.6%1.3%2.8%
30 Day1.0%17.4%8.0%
90 Day-3.0%15.7%6.8%
1 Year18.7%15.9%28.9%27.3%22.4%19.7%
3 Year32.9%26.3%68.3%60.2%47.3%37.5%
5 Year130.1%116.7%172.3%149.8%93.6%72.3%

Long-Term 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?

28.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LSTR ($130.36) is trading above our estimate of fair value ($125.4)

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


Price To Earnings Ratio

PE vs Industry: LSTR is poor value based on its PE Ratio (28.6x) compared to the US Transportation industry average (25.8x).

PE vs Market: LSTR is poor value based on its PE Ratio (28.6x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: LSTR is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: LSTR is overvalued based on its PB Ratio (7.1x) compared to the US Transportation industry average (2.5x).


Next Steps

Future Growth

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

18.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LSTR's forecast earnings growth (18.1% per year) is above the savings rate (2.2%).

Earnings vs Market: LSTR's earnings (18.1% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: LSTR's revenue (7.2% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: LSTR's revenue (7.2% 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 (29.7%)


Next Steps

Past Performance

How has Landstar System performed over the past 5 years?

10.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LSTR has high quality earnings.

Growing Profit Margin: LSTR's current net profit margins (4.6%) are lower than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: LSTR's earnings have grown by 10.8% 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 (-28%) over the past year, making it difficult to compare to the Transportation industry average (-10.3%).


Return on Equity

High ROE: LSTR's Return on Equity (25.1%) is considered high.


Next Steps

Financial Health

How is Landstar System's financial position?


Financial Position Analysis

Short Term Liabilities: LSTR's short term assets ($964.1M) exceed its short term liabilities ($543.6M).

Long Term Liabilities: LSTR's short term assets ($964.1M) exceed its long term liabilities ($143.0M).


Debt to Equity History and Analysis

Debt Level: LSTR's debt to equity ratio (6.7%) is considered satisfactory.

Reducing Debt: LSTR's debt to equity ratio has increased from 6.2% to 6.7% over the past 5 years.

Debt Coverage: LSTR's debt is well covered by operating cash flow (490.3%).

Interest Coverage: LSTR's interest payments on its debt are well covered by EBIT (62x coverage).


Balance Sheet


Next Steps

Dividend

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

0.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LSTR's dividend (0.64%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: LSTR's dividend (0.64%) is low compared to the top 25% of dividend payers in the US market (4.05%).


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

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

7.7yrs

Average management tenure


CEO

Jim Gattoni (59 yo)

5.92yrs

Tenure

US$2,645,790

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. He serves as Principal Financial...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD2.65M) is below average for companies of similar size in the US market ($USD6.86M).

Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Gattoni
President5.92yrsUS$2.65m0.20%
$ 10.1m
Joseph Beacom
VP and Chief Safety & Operations Officer9.5yrsUS$1.26m0.11%
$ 5.5m
Ricardo Coro
VP & Chief Information Officer3.5yrsUS$822.84k0.022%
$ 1.1m
Michael Kneller
VP, General Counsel & Secretary15.42yrsUS$1.04m0.13%
$ 6.6m
Patty McMenamin
Vice President of Corporate Communicationsno datano datano data
Robert Brasher
VP & Chief Commercial Officerno datano data0.028%
$ 1.4m

7.7yrs

Average Tenure

56yo

Average Age

Experienced Management: LSTR's management team is seasoned and experienced (7.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Gattoni
President5.92yrsUS$2.65m0.20%
$ 10.1m
Diana Murphy
Independent Chairman5.5yrsUS$235.53k0.065%
$ 3.3m
David Bannister
Independent Director29.58yrsUS$185.53k0.083%
$ 4.2m
George Scanlon
Independent Director3.5yrsUS$185.53k0.011%
$ 564.4k
Anthony Orlando
Independent Director5.5yrsUS$186.98k0.014%
$ 700.0k
Homaira Akbari
Independent Director7.83yrsUS$185.53k0.023%
$ 1.1m
Larry Thoele
Independent Director7.83yrsUS$185.53k0.030%
$ 1.5m

5.8yrs

Average Tenure

62yo

Average Age

Experienced Board: LSTR's board of directors are considered experienced (5.8 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

Ownership Breakdown

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


Top Shareholders

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: 1991
  • Industry: Trucking
  • Sector: Transportation
  • Market Cap: US$5.004b
  • Shares outstanding: 38.38m
  • 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

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 23:09
End of Day Share Price2020/11/25 00:00
Earnings2020/09/26
Annual Earnings2019/12/28


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.