Landstar System (LSTR) AI Stock Analysis

• Market Cap: $4.79B
• Dividend Yield: 1.02%
• Average Volume (3M): 396.66K
• Price to Earnings (P/E): 27.2
• Beta (1Y): 0.91
• Revenue Growth: -4.72%
• EPS Growth: -22.46%
• Country: US
• Employees: 1,400
• Sector: Industrials
• Sector Strength: 92
• Industry: Integrated Freight & Logistics
• EPS (TTM): 0.95
• Shares Outstanding: 34,946,180
• 10 Day Avg. Volume: 408,752
• 30 Day Avg. Volume: 396,657
• PEG Ratio: -4.60
• Price to Book (P/B): 4.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.54
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 5.97
• Enterprise Value/Ebitda: 3.34
• 1Y Price Target: $140.30
• Price Target Upside: 2.40% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 68 Neutral
• Price Target: $151.00 ▲( 10.21% Upside)

Landstar System's overall stock score of 68 reflects a blend of solid financial performance and operational challenges. The company's profitability and balance sheet are strengths, but the decline in revenue and issues highlighted in the earnings call, such as supply chain fraud and increased costs, pose risks. The technical indicators and valuation suggest a cautious approach for investors.

Positive Factors

Load Performance

The number of loads hauled via truck exceeded the high end of the guidance, marking the first time in at least 15 years where the number of loads hauled in 1Q exceeded the fourth quarter.

Revenue Growth

Revenue per mile on BCO loads was up 14% year-over-year for unsided/platform equipment and up 2% for van equipment.

Revenue Performance

The company's first quarter revenue was above original expectations and better than the mid-point of the guidance range provided on the fourth quarter earnings call.

Negative Factors

Earnings Guidance

The updated EPS guidance of $.90-$.95 is below the previous $1.05-$1.25 range.

Fraud Investigation

LSTR identified a significant supply chain fraud that may adversely affect earnings per share.

Insurance Costs

Insurance and claims costs are expected to be highly elevated, primarily due to cargo theft and truck accident claim development.

Landstar System Business Overview & Revenue Model

Company Description

Landstar 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 Money

Landstar 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's financial performance shows stable profitability margins and a strong balance sheet, countered by declining revenue trends. The cash flow remains robust, supporting financial flexibility, though revenue contraction poses a growth challenge.

Income Statement

Landstar System's income statement shows a downward trend in revenue, with a notable decline from 2022 to 2023. The gross profit margin and net profit margin have shown resilience, maintaining stability despite revenue fluctuations. However, the decline in EBIT and EBITDA margins indicates pressure on operational efficiency. Overall, while profitability margins are relatively stable, the revenue decline poses a challenge.

Balance Sheet

The balance sheet reflects a solid equity base with a debt-to-equity ratio well-managed at a low level, suggesting limited leverage risk. The equity ratio is strong, indicating a healthy financial structure. Although stockholders' equity has shown minor fluctuations, the overall financial stability remains intact, bolstered by a strong cash position.

Cash Flow

Landstar System demonstrates strong cash flow generation capabilities, with consistent free cash flow and operating cash flow levels. The operating cash flow to net income ratio is robust, indicating efficient cash conversion. However, the absence of free cash flow growth in recent periods suggests limited expansion in cash-generating capacity. Despite this, the cash flow positioning remains a strong point for the company.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.82B	5.30B	7.44B	6.54B	4.13B
	Gross Profit
1.07B	714.24M	960.23M	866.08M	553.50M
	EBIT
248.91M	344.15M	571.08M	505.67M	252.95M
	EBITDA
290.83M	392.16M	628.54M	555.28M	298.81M
	Net Income Common Stockholders
195.95M	264.39M	430.91M	381.52M	192.11M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
566.64M	540.70M	393.54M	251.30M	290.73M
	Total Assets
1.81B	1.80B	1.93B	2.05B	1.65B
	Total Debt
163.34M	132.68M	196.35M	228.28M	175.52M
	Net Debt
-351.68M	-348.36M	-143.23M	12.76M	-73.83M
	Total Liabilities
840.87M	817.92M	1.04B	1.18B	961.96M
	Stockholders Equity
972.44M	983.92M	887.22M	862.01M	691.84M
Cash Flow		Free Cash Flow
255.56M	367.96M	596.65M	253.48M	180.09M
	Operating Cash Flow
286.56M	393.65M	622.66M	276.74M	210.72M
	Investing Cash Flow
-10.50M	-6.48M	-24.77M	-73.34M	-28.42M
	Financing Cash Flow
-237.34M	-247.97M	-475.68M	-232.95M	-252.03M

Landstar System Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 137.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 137.01 is below the 20-day moving average (MA) of 138.10, below the 50-day MA of 141.04, and below the 200-day MA of 166.65, indicating a bearish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 45.16 is Neutral, neither overbought nor oversold. The STOCH value of 17.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LSTR.

Landstar System Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GXO	74 Outperform	$4.53B	63.99	2.61%	―	23.40%	-55.55%
CHRW	70 Outperform	$11.37B	22.88	32.11%	2.58%	-0.22%	65.52%
LSTR	68 Neutral	$4.79B	27.17	18.34%	1.02%	-4.72%	-22.46%
HUBG	65 Neutral	$2.04B	19.52	6.35%	1.50%	-4.63%	-18.94%
JBHT	65 Neutral	$13.63B	24.95	13.97%	1.26%	-3.82%	-12.80%
Sector *	64 Neutral	$4.39B	11.81	5.20%	249.38%	3.96%	-12.36%
XPO	64 Neutral	$13.78B	36.00	26.24%	―	1.94%	60.91%

Landstar System Corporate Events

Landstar System Stockholders Reject Executive Compensation Plan

Landstar System, Inc. held its 2025 annual meeting of stockholders on May 16, 2025, with approximately 96% of common stock represented. During the meeting, stockholders elected eight directors for terms expiring in 2026, ratified the appointment of KPMG LLP as the independent auditor for 2025, and voted on executive compensation. The advisory vote on executive compensation was not approved, with more negative votes than affirmative ones.

The most recent analyst rating on (LSTR) stock is a Hold with a $163.00 price target. To see the full list of analyst forecasts on Landstar System stock, see the LSTR Stock Forecast page.

Landstar System Reports Q1 2025 Financial Results

On May 13, 2025, Landstar System reported its first-quarter financial results for fiscal 2025, with a revenue of $1.153 billion and earnings per share of $0.85. The company also announced an 11% increase in its quarterly dividend. Despite a challenging macro-economic environment, Landstar saw an increase in truckloads hauled compared to the previous quarter for the first time in fifteen years. The company faced a $4.8 million pre-tax charge due to a supply chain fraud incident unrelated to its core North American truckload services. Landstar continues to focus on returning capital to shareholders through stock purchases and dividends.

The most recent analyst rating on (LSTR) stock is a Hold with a $163.00 price target. To see the full list of analyst forecasts on Landstar System stock, see the LSTR Stock Forecast page.

Landstar System Reschedules Earnings Call Amid Fraud Probe

On April 25, 2025, Landstar System announced the rescheduling of its 2025 first quarter earnings release and conference call to May 13, 2025, due to an ongoing evaluation of accounting and internal control matters related to a supply chain fraud identified in its international freight forwarding operations. The company expects the financial impact of the fraud to not exceed $15 million in net income. Despite this, Landstar reported strong financial performance for the first quarter of 2025, with total revenue of $1.153 billion and earnings per share of $0.95, alongside a robust balance sheet with $473 million in cash and short-term investments.