Landstar System Inc (LSTR)
NASDAQ:LSTR
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Landstar System
(NASDAQ:LSTR)
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Rating:70Outperform
Price Target:
$195.00
▲(12.80% Upside)
Action:Reiterated
Date:05/06/26
The score is driven primarily by strong financial resilience (low leverage and solid free cash flow) and a constructive technical uptrend. Earnings-call tone supports the outlook with margin expansion and improving pricing, but the overall score is capped by compressed profitability versus prior-cycle levels and a relatively expensive valuation (P/E ~33.8).
Positive Factors
Conservative balance sheet / very low leverage
Extremely low leverage (debt-to-equity ~0.03) provides durable financial flexibility to fund buybacks, dividends, and strategic technology investments while absorbing demand shocks. This conservatism lowers refinancing risk and preserves capacity for opportunistic capital allocation over months to years.
Negative Factors
Compressed profitability vs prior cycle
Despite revenue rebound, margins remain materially below prior-cycle levels, indicating weaker operating leverage or structural cost pressures. Sustained lower profitability reduces free cash flow growth potential and impairs long-term return on capital absent durable margin recovery or structural cost improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / very low leverage
Extremely low leverage (debt-to-equity ~0.03) provides durable financial flexibility to fund buybacks, dividends, and strategic technology investments while absorbing demand shocks. This conservatism lowers refinancing risk and preserves capacity for opportunistic capital allocation over months to years.
Read all positive factors
Landstar System Key Performance Indicators (KPIs)
Landstar System (LSTR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.08B
Dividend Yield2.56%
Average Volume (3M)477.81K
Price to Earnings (P/E)33.8
Beta (1Y)0.80
Revenue Growth-0.79%
EPS Growth-28.21%
CountryUS
Employees1,400
SectorIndustrials
Sector Strength72
IndustryIntegrated Freight & Logistics
Share Statistics
EPS (TTM)3.62
Shares Outstanding33,928,210
10 Day Avg. Volume489,259
30 Day Avg. Volume477,815
Financial Highlights & Ratios
PEG Ratio-1.10
Price to Book (P/B)6.37
Price to Sales (P/S)1.07
P/FCF Ratio23.58
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue1.23
Enterprise Value/Gross Profit7.12
Enterprise Value/Ebitda24.70
Forecast
1Y Price Target
$179.36Price Target Upside3.76% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)5.64
Revenue Forecast (FY)$5.13B
Landstar System Business Overview & Revenue Model
Company Description
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 Logisti...
How the Company Makes Money
Landstar primarily makes money by arranging freight transportation as a broker/third-party logistics provider rather than operating a large company-owned truck fleet. Its core revenue is generated from transportation services it provides to shippe...
Landstar System Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The call emphasized multiple clear operational and financial improvements (gross profit and margin expansion, variable contribution growth, large heavy-haul strength, meaningful EPS improvement, improved insurance claim trends, healthy cash balances and active capital returns). Management also highlighted strategic investments in AI and technology with early pilot benefits and improving BCO metrics and utilization. Headwinds included modest overall load volume declines, softness in several commodity categories, decreases in non‑truck revenue (ocean), higher specific operating costs, and external risks (geopolitical, tariffs, and regulatory uncertainty). Management framed many of the negative items as either transitory (prior-year pull-forward) or intentional (carrier vetting) and reiterated confidence in positioning and discretionary capital allocation. On balance, the positive operational momentum, margin expansion and balance-sheet strength outweigh the lowlights.Positive Updates
Modest Revenue Growth
Total revenue increased approximately 2% year-over-year in 2026 Q1 versus 2025 Q1, supported by stronger pricing and segment mix.
Negative Updates
Overall Volume Weakness
Total load volume remained pressured: overall loads hauled via truck decreased ~2% YoY and the transportation & logistics segment saw a ~3% decline in volume YoY (pricing gains partially offset). Management noted some categories experienced softness impacting year-over-year volume comparisons.
Read all updates
Q1-2026 Updates
Positive
Negative
Modest Revenue Growth
Total revenue increased approximately 2% year-over-year in 2026 Q1 versus 2025 Q1, supported by stronger pricing and segment mix.
Read all positive updates
Company Guidance
Management did not give formal Q2 guidance but provided directional commentary: historically (pre‑pandemic) Q1→Q2 typically implies ~+7% loads and ~+2% truck revenue per load (generally yielding mid‑ to high‑single‑digit revenue growth), while more recent Q1→Q2 volume gains have been closer to +3–4%. They cautioned that variable contribution margin has historically compressed ~25–45 basis points Q1→Q2 due to mix (BCO revenue mix higher in Q1), noted last year’s Q2 pricing comp was +320 bps versus a more typical ~200 bps, and said incremental push‑through to variable contribution in Q1 (adjusted for the 2025 fraud matter) was well above 70%. Early April data showed dispatches essentially flat versus April 2025 while truck revenue per load was roughly +13% YoY and preliminary April BCO revenue per load indicates the Feb→Mar underperformance should reverse, so the company will provide Q2 commentary (not formal guidance) as it monitors market, capacity and geopolitical risks.Landstar System Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
86
Very Positive
Cash Flow
73
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.77B | 4.74B | 4.83B | 5.31B | 7.44B | 6.54B |
| Gross Profit | 821.79M | 621.63M | 974.88M | 1.13B | 1.51B | 1.32B |
| EBITDA | 236.93M | 197.97M | 304.05M | 397.73M | 625.59M | 553.45M |
| Net Income | 124.64M | 115.01M | 195.95M | 264.39M | 430.91M | 381.52M |
Balance Sheet | ||||||
| Total Assets | 1.60B | 1.64B | 1.81B | 1.80B | 1.93B | 2.05B |
| Cash, Cash Equivalents and Short-Term Investments | 410.95M | 452.23M | 566.64M | 540.70M | 393.54M | 251.30M |
| Total Debt | 26.12M | 133.48M | 163.34M | 132.68M | 299.75M | 303.52M |
| Total Liabilities | 803.22M | 840.27M | 840.87M | 817.92M | 1.04B | 1.18B |
| Stockholders Equity | 798.98M | 795.66M | 972.44M | 983.92M | 887.22M | 862.01M |
Cash Flow | ||||||
| Free Cash Flow | 233.60M | 215.00M | 255.56M | 367.96M | 596.65M | 253.48M |
| Operating Cash Flow | 247.40M | 224.88M | 286.56M | 393.65M | 622.66M | 276.74M |
| Investing Cash Flow | -9.30M | -2.36M | -10.50M | -6.48M | -24.77M | -73.34M |
| Financing Cash Flow | -303.48M | -343.14M | -237.34M | -247.97M | -475.68M | -232.95M |
Landstar System Technical Analysis
Positive
172.87
Price Trends
167.82
Positive
160.18
Positive
144.30
Positive
Market Momentum
2.16
Positive
58.57
Neutral
76.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LSTR, the sentiment is Positive. The current price of 172.87 is below the 20-day moving average (MA) of 179.39, above the 50-day MA of 167.82, and above the 200-day MA of 144.30, indicating a bullish trend. The MACD of 2.16 indicates Positive momentum. The RSI at 58.57 is Neutral, neither overbought nor oversold. The STOCH value of 76.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LSTR.
Landstar System Risk Analysis
Landstar System disclosed 19 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $6.08B | 33.75 | 14.64% | 2.56% | -0.79% | -28.21% | |
68 Neutral | $2.33B | 18.11 | 6.30% | 1.14% | -5.79% | -1.57% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $20.01B | 33.78 | 33.32% | 1.51% | -6.68% | 18.19% | |
57 Neutral | $23.54B | 56.34 | 19.04% | ― | 3.63% | -11.81% | |
55 Neutral | $5.42B | 371.73 | 4.46% | ― | 10.38% | 84.52% | |
42 Neutral | $268.81M | -3.77 | -75.30% | ― | -3.22% | 90.10% |
* Industrials Sector Average
LSTR
Landstar System
182.15
42.80
30.71%
CHRW
CH Robinson
173.02
74.81
76.18%
XPO
XPO
202.30
77.86
62.57%
FWRD
Forward Air
8.31
-9.73
-53.94%
HUBG
Hub Group
38.36
3.35
9.57%
GXO
GXO Logistics
45.52
4.14
10.00%
Landstar System Corporate Events
Executive/Board ChangesShareholder Meetings
Landstar System Shareholders Back Board, Auditor and Pay
Positive
May 6, 2026
Landstar System, Inc. reported that its 2026 Annual Meeting of stockholders was held on May 5, 2026, with about 93% of outstanding common shares represented in person or by proxy. Shareholders elected nine directors, including Homaira Akbari and F...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Landstar System Reports Strong Q1 2026 Earnings Growth
Positive
Apr 28, 2026
On April 28, 2026, Landstar System reported first-quarter 2026 revenue of $1.171 billion, up 2% year over year, while earnings per share rose 36% to $1.16, helped by a stronger rate environment and comparison with a prior-year period affected by a...
Executive/Board Changes
Landstar System Announces Transition in Top Legal Leadership
Neutral
Apr 2, 2026
On April 2, 2026, Landstar System, Inc. announced that longtime executive officer Michael K. Kneller will resign as vice president, general counsel and secretary, effective May 8, 2026, to join transportation-focused law firm Scopelitis, Garvin, L...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.