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Landstar System (LSTR)
NASDAQ:LSTR
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Landstar System
(NASDAQ:LSTR)67Neutral
Positive Factors
Business Cycle
The upcycle is believed to be entering its next leg higher, which is promising for LSTR's spot exposure.
Revenue Performance
Revenue per truckload was 3.1% above the prior year quarter, which was within the upper half of the guidance range.
Negative Factors
BCO Count
BCO count continues to decline given the low-rate environment and the significant increase in the cost to maintain and operate a truck.
Earnings Guidance
First quarter 2025 revenue guidance is below estimates and EPS guidance is below estimates.
Operating Income
Operating income as a percent of net revenue is back down to '09/'10 levels.
Landstar System (LSTR) vs. S&P 500 (SPY)
Market Cap
$5.46B
Dividend Yield0.91%
Average Volume (3M)291.47K
Price to Earnings (P/E)28.0
Beta (1Y)0.99
Revenue Growth-9.13%
EPS Growth-25.11%
CountryUS
Employees1,468
SectorIndustrials
Sector Strength66
IndustryTransportation
Share Statistics
EPS (TTM)5.51
Shares Outstanding35,316,074
10 Day Avg. Volume310,927
30 Day Avg. Volume291,472
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.14
Price to Cash Flow (P/CF)22.40
P/FCF Ratio21.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$164.29Price Target Upside6.32% Upside
Rating ConsensusHold
Number of Analyst Covering9
Landstar System Business Overview & Revenue Model
Company DescriptionLandstar System, Inc. (LSTR) is a leading asset-light provider of integrated transportation management solutions based in the United States. Operating within the logistics and transportation sectors, the company offers a range of services including truckload, less-than-truckload, and intermodal transportation, as well as freight brokerage and supply chain solutions. Landstar's network is comprised of independent sales agents and third-party capacity providers, allowing it to deliver efficient and flexible transportation services to a broad customer base across North America.
How the Company Makes MoneyLandstar System makes money primarily through its role as a non-asset-based provider of transportation services. The company's revenue model is centered around connecting shippers with a network of independent third-party capacity providers, including truck owner-operators and other transportation service providers. Key revenue streams include fees from freight brokerage services, commissions from its independent agents, and transaction fees from its technology platforms. Landstar's asset-light model allows it to minimize capital expenditures and operational risks while maximizing flexibility and scalability. Significant partnerships with a large network of independent sales agents and capacity providers contribute to its earnings by enabling the company to efficiently match supply with demand in the transportation market.
Landstar System Financial Statement Overview
Summary
Landstar System presents stable profitability with efficient cost management, despite a significant revenue decline of 35.23%. The balance sheet is robust with low leverage and strong equity, highlighted by a low debt-to-equity ratio of 0.12. Cash flow generation has faced challenges, with a decrease in operating cash flow and negative free cash flow growth, yet remains efficiently managed.Income Statement
The company's income statement shows a decline in revenue, with a significant drop of 35.23% from the previous year to TTM, indicating potential challenges in sales or market conditions. However, the gross profit and net profit margins remain healthy at 13.20% and 4.32% respectively, suggesting efficient cost management. The EBIT and EBITDA margins are moderate, at 5.30% and 6.61%, respectively, indicating stable operational efficiency despite revenue pressures.72
Positive
Balance Sheet
The balance sheet is solid with a low debt-to-equity ratio of 0.12, indicating a conservative financial structure with minimal leverage risk. The equity ratio stands at 57.84%, reflecting strong equity financing. The return on equity is 20.45%, indicating effective use of equity to generate profits, although slightly decreased compared to past performance.80
Positive
Cash Flow
The cash flow statement shows a decrease in operating cash flow, while free cash flow growth is negative at -32.34%, reflecting potential challenges in cash generation. However, the operating cash flow to net income ratio is strong at 1.36, indicating good cash conversion from profits. The free cash flow to net income ratio is also healthy at 1.20, implying efficient cash management.75
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 4.81B | 5.30B | 7.44B | 6.54B | 4.13B | 4.08B | Gross Profit |
| 635.22M | 714.24M | 960.23M | 866.08M | 553.50M | 570.41M | EBIT |
| 255.37M | 344.15M | 571.08M | 505.67M | 252.95M | 298.90M | EBITDA |
| 318.46M | 392.16M | 628.54M | 555.28M | 298.81M | 343.37M | Net Income Common Stockholders |
| 207.74M | 264.39M | 430.91M | 381.52M | 192.11M | 227.72M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 540.70M | 540.70M | 393.54M | 251.30M | 290.73M | 352.42M | Total Assets |
| 1.80B | 1.80B | 1.93B | 2.05B | 1.65B | 1.43B | Total Debt |
| 132.68M | 132.68M | 196.35M | 228.28M | 175.52M | 166.72M | Net Debt |
| -348.36M | -348.36M | -143.23M | 12.76M | -73.83M | -152.79M | Total Liabilities |
| 817.92M | 817.92M | 1.04B | 1.18B | 961.96M | 706.24M | Stockholders Equity |
| 983.92M | 983.92M | 887.22M | 862.01M | 691.84M | 721.47M |
| Cash Flow | Free Cash Flow | ||||
| 248.88M | 367.96M | 596.65M | 253.48M | 180.09M | 288.42M | Operating Cash Flow |
| 283.43M | 393.65M | 622.66M | 276.74M | 210.72M | 307.84M | Investing Cash Flow |
| -16.14M | -6.48M | -24.77M | -73.34M | -28.42M | -18.56M | Financing Cash Flow |
| -269.23M | -247.97M | -475.68M | -232.95M | -252.03M | -170.56M |
Landstar System Technical Analysis
Negative
154.52
Price Trends
166.36
Negative
174.02
Negative
177.15
Negative
Market Momentum
-3.36
Negative
34.49
Neutral
36.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LSTR, the sentiment is Negative. The current price of 154.52 is below the 20-day moving average (MA) of 158.99, below the 50-day MA of 166.36, and below the 200-day MA of 177.15, indicating a bearish trend. The MACD of -3.36 indicates Negative momentum. The RSI at 34.49 is Neutral, neither overbought nor oversold. The STOCH value of 36.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LSTR.
Landstar System Risk Analysis
Landstar System disclosed 14 risk factors in its most recent earnings report. Landstar System reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Landstar System Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $37.19B | 31.94 | 27.94% | 0.60% | -0.88% | -2.79% | |
67 Neutral | $5.46B | 28.02 | 20.15% | 0.91% | -9.13% | -25.11% | |
67 Neutral | $10.58B | 29.39 | 15.67% | ― | 11.37% | 1.82% | |
65 Neutral | $15.76B | 28.37 | 14.22% | 1.10% | -5.79% | -20.32% | |
63 Neutral | $11.67B | 25.49 | 27.04% | 2.45% | 0.73% | 41.65% | |
62 Neutral | $7.76B | 66.01 | 1.65% | 1.30% | 3.76% | -46.10% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% |
* Industrials Sector Average
Performance Comparison
LSTR
Landstar System
154.52
-26.94
-14.85%
CHRW
CH Robinson
98.35
30.01
43.91%
JBHT
JB Hunt
157.62
-40.48
-20.43%
KNX
Knight Transportation
47.88
-6.99
-12.74%
ODFL
Old Dominion Freight
175.00
-39.17
-18.29%
SAIA
Saia
397.14
-207.63
-34.33%
Landstar System Earnings Call Summary
Earnings Call Date: Jan 29, 2025 | % Change Since: -10.44% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in heavy-haul and non-truck transportation services, and a healthy balance sheet. However, these positives were tempered by declines in BCO truck count, soft demand in core services, and increased insurance costs. The company remains optimistic about future growth opportunities.Highlights
Record Heavy-Haul Revenue
Heavy-haul service generated approximately $498 million during the 2024 fiscal year, with a 9% increase in revenue per load and a 3% increase in volume.
Strong Balance Sheet
Landstar ended the quarter with $567 million in cash and short-term investments. Cash flow from operations for the fiscal year was $287 million, with capital expenditures of $31 million.
Positive Performance in Non-Truck Transportation
Non-truck transportation service revenue increased by 20% year-over-year in the fourth quarter, driven by a 23% increase in ocean revenue per shipment and a 15% increase in ocean volumes.
Improvement in Safety Performance
Accident frequency rate improved to 0.59 DOT reportable accidents per million miles, approximately 2% better than the 2023 fiscal year.
Lowlights
Decline in BCO Truck Count
BCO truck count decreased by approximately 10% year-over-year, with expectations of continued decline in the first quarter due to challenging operating environments.
Soft Demand in Core Truckload Service
Overall truckload volumes decreased, with the number of loads hauled via truck down 3.4% year-over-year in the fourth quarter.
Insurance and Claims Cost Pressures
Increased insurance and claims costs were reported, attributed to increased severity on cargo claims and unfavorable development of prior year auto liability claims.
Variable Contribution Margin Decline
Variable contribution margin decreased, impacted by a lower margin on truck brokerage carriers and a mix headwind.
Company Guidance
During the 2025 year-end earnings call, Landstar System Incorporated provided guidance highlighting several key metrics from their 2024 fiscal year performance. The company achieved approximately $498 million in heavy-haul revenue, marking a record for this service line, driven by a 9% increase in revenue per load and a 3% increase in volume. In the fourth quarter of 2024, truckload revenue per load increased by 3.1% year-over-year, with unsided/platform revenue per load rising by 8%. However, the number of loads hauled via truck decreased by 3.4% compared to the previous year. Despite these challenges, the company's balance sheet remained robust, with $567 million in cash and short-term investments at year-end. The company repurchased approximately 452,000 shares, deploying over $82 million in capital for buybacks and declared a $2 per share special dividend. Looking ahead to the first quarter of 2025, Landstar anticipates revenue in the range of $1.075 billion to $1.175 billion and earnings per share between $1.05 and $1.25, with a focus on maintaining a variable contribution margin between 14.0% and 14.3%.Landstar System Corporate Events
Stock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
Landstar System Reports 2024 Q4 Earnings Growth
Positive
Jan 29, 2025
On January 29, 2025, Landstar System reported its fourth-quarter results for fiscal 2024, revealing revenue of $1.209 billion and earnings per share of $1.31. The company achieved year-over-year quarterly revenue growth for the first time since the third quarter of 2022, driven by improved truck pricing and strong performance in its unsided/platform service offering. Despite challenges such as increased insurance and claims costs, the company’s revenue per load increased by 3.1% compared to the previous year. Landstar continues to return capital to shareholders through stock purchases and dividends, with substantial cash and investments strengthening its balance sheet. The company remains optimistic for an improved freight transportation environment as it enters fiscal 2025.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.