Landstar System (LSTR) AI Stock Analysis

• Market Cap: $4.26B
• Dividend Yield: 2.9%
• Average Volume (3M): 377.24K
• Price to Earnings (P/E): 25.3
• Beta (1Y): 0.92
• Revenue Growth: -2.10%
• EPS Growth: -22.19%
• Country: US
• Employees: 1,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Integrated Freight & Logistics
• EPS (TTM): 1.20
• Shares Outstanding: 34,653,538
• 10 Day Avg. Volume: 415,071
• 30 Day Avg. Volume: 377,243
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 0.96
• Enterprise Value/Gross Profit: 6.28
• Enterprise Value/Ebitda: 17.53
• 1Y Price Target: $139.55
• Price Target Upside: 15.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 67 Neutral
• Price Target: $143.00 ▲(17.91% Upside)

Landstar System's overall score reflects strong financial management and profitability, but is tempered by revenue decline and strategic challenges. Technical indicators suggest bearish momentum, and valuation metrics indicate potential overvaluation. Earnings call insights and corporate events highlight both strategic adjustments and ongoing challenges.

Positive Factors

Strong Cash Position

A strong cash position enhances financial flexibility, allowing Landstar to invest in growth opportunities and return capital to shareholders, supporting long-term stability.

Heavy Haul Revenue Growth

Growth in the heavy haul segment indicates strong demand and operational efficiency, contributing to revenue diversification and resilience against market fluctuations.

Low Leverage

Low leverage reduces financial risk and interest obligations, providing Landstar with greater capacity to withstand economic downturns and invest in strategic initiatives.

Negative Factors

Revenue Decline

A significant revenue decline suggests challenges in maintaining market share or pricing power, potentially impacting long-term growth and profitability.

Increased Insurance Costs

Rising insurance costs can erode profit margins and indicate higher operational risks, potentially affecting the company's financial performance and cost structure.

Strategic Challenges

Strategic realignments, such as selling underperforming units, may indicate underlying operational issues and could lead to restructuring costs, impacting near-term financial results.

Landstar System Business Overview & Revenue Model

Company Description

Landstar System, Inc. is a transportation and logistics services company based in the United States. It operates primarily through a network of independent agents and third-party capacity providers, offering a range of services including freight transportation, logistics management, and supply chain solutions. The company serves various sectors, including manufacturing, retail, and construction, providing tailored services to meet the diverse needs of its customers.

How the Company Makes Money

Landstar generates revenue primarily through its extensive network of independent agents who provide logistics services and manage the transportation of freight. The company earns money by charging fees for the logistics solutions it offers, which include truckload, less-than-truckload, and intermodal transportation. Additionally, Landstar benefits from its ability to leverage the capacity of third-party transport providers, allowing it to expand its service offerings without significant capital investment. Key revenue streams include the commissions and fees received from freight transportation services, as well as revenue from value-added services such as supply chain consulting and inventory management. Landstar's strong relationships with its independent agents and capacity providers are crucial to its business model, as they enhance its operational efficiency and market reach.

Landstar System Financial Statement Overview

Summary

Landstar System demonstrates strong profitability and a robust balance sheet with low leverage. However, the significant revenue decline is a concern, and the decrease in free cash flow could impact future investments.

Income Statement

Landstar System's income statement reveals strong profitability despite a recent decline in revenues. The gross profit margin for TTM is 12.9%, with a net profit margin of 3.7%, indicating effective cost management. However, revenue has declined from $7.44 billion in 2022 to $4.80 billion in TTM, marking a significant contraction. The EBIT margin stands at 4.8%, and the EBITDA margin at 5.8%, reflecting a resilient operational performance despite declining revenues. Overall, the company maintains healthy profitability, but the recent revenue decline is a concern.

Balance Sheet

Landstar System's balance sheet is robust, with a low debt-to-equity ratio of 0.16, indicating prudent financial management and low leverage. The return on equity (ROE) is 19.2%, showcasing efficient use of equity to generate profits. The equity ratio is 54.2%, reflecting strong capitalization with a good balance of assets funded by equity. The balance sheet strength is evident in the company's ability to maintain solid shareholder value and manage liabilities effectively.

Cash Flow

The cash flow statement demonstrates solid operational cash generation, with a free cash flow to net income ratio of 1.26, indicating that the company generates ample cash relative to its earnings. However, free cash flow has decreased by 12.2% from the previous annual period, which could constrain future investments or debt repayments. The operating cash flow to net income ratio is 1.39, signifying efficient cash conversion. The overall cash flow position remains healthy, despite a decline in free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.79B	4.82B	5.30B	7.44B	6.54B	4.13B
Gross Profit	728.83M	624.51M	714.24M	960.23M	866.08M	553.50M
EBITDA	261.32M	305.64M	392.16M	628.54M	555.28M	298.81M
Net Income	167.93M	195.95M	264.39M	430.91M	381.52M	192.11M
Balance Sheet
Total Assets	1.70B	1.81B	1.80B	1.93B	2.05B	1.65B
Cash, Cash Equivalents and Short-Term Investments	426.17M	566.64M	540.70M	393.54M	251.30M	290.73M
Total Debt	30.75M	163.34M	132.68M	196.35M	303.52M	175.52M
Total Liabilities	777.82M	840.87M	817.92M	1.04B	1.18B	961.96M
Stockholders Equity	921.83M	972.44M	983.92M	887.22M	862.01M	691.84M
Cash Flow
Free Cash Flow	183.79M	255.56M	367.96M	596.65M	253.48M	180.09M
Operating Cash Flow	199.92M	286.56M	393.65M	622.66M	276.74M	210.72M
Investing Cash Flow	1.13M	-10.50M	-6.48M	-24.77M	-73.34M	-28.42M
Financing Cash Flow	-219.06M	-237.34M	-247.97M	-475.68M	-232.95M	-252.03M

Landstar System Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 121.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 121.28 is below the 20-day moving average (MA) of 128.51, below the 50-day MA of 131.07, and below the 200-day MA of 146.24, indicating a bearish trend. The MACD of -2.76 indicates Positive momentum. The RSI at 36.56 is Neutral, neither overbought nor oversold. The STOCH value of 17.61 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	5.83B	99.87	2.14%	―	22.39%	-54.71%
CHRW	69 Neutral	15.74B	30.35	29.94%	1.85%	-2.55%	59.07%
LSTR	67 Neutral	$4.26B	25.31	17.47%	2.90%	-2.10%	-22.19%
XPO	67 Neutral	15.32B	44.68	19.37%	―	-0.11%	-4.28%
HUBG	64 Neutral	2.12B	20.97	5.97%	1.44%	-5.37%	-11.26%
FWRD	44 Neutral	853.55M	-4.65	-114.00%	―	30.12%	79.23%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Landstar System Corporate Events

Landstar System Markets Mexican Subsidiary for Sale

On August 11, 2025, Landstar System announced its decision to actively market its Mexican subsidiary, Landstar Metro, for sale as part of its annual strategic review. This decision is due to the subsidiary not meeting strategic or operational goals, and the company expects to record a non-cash impairment charge of $13 million to $17 million in the third quarter of 2025. Additionally, Landstar plans to wind down its Blue TMS platform, incurring a $9 million impairment charge, and may record a $5 million impairment related to its investment in Cavnue. Furthermore, a jury verdict on August 6, 2025, determined that Landstar Ranger, a subsidiary, was partially liable for damages in a vehicular accident, but this is not expected to impact the company’s financial standing significantly.

Landstar System Reports Strong Q2 2025 Financial Results

On July 29, 2025, Landstar System, Inc. reported its financial results for the second quarter of fiscal 2025, with revenue totaling $1.211 billion and earnings per share of $1.20. The company highlighted a 3.2% sequential increase in truck revenue per load and maintained a stable BCO truck count, indicating strong performance in a challenging freight environment. Despite a slight decrease in total revenue compared to the previous year, Landstar continued its capital return initiatives, purchasing over 686,000 shares and declaring a quarterly dividend. The company’s balance sheet remains robust with $426 million in cash and short-term investments, and it achieved a 17% return on average shareholders’ equity.