Landstar System (LSTR) AI Stock Analysis

• Market Cap: $4.98B
• Dividend Yield: 2.44%
• Average Volume (3M): 379.06K
• Price to Earnings (P/E): 28.3
• Beta (1Y): 0.92
• Revenue Growth: -4.72%
• EPS Growth: -22.46%
• Country: US
• Employees: 1,400
• Sector: Industrials
• Sector Strength: 93
• Industry: Integrated Freight & Logistics
• EPS (TTM): 0.95
• Shares Outstanding: 34,946,180
• 10 Day Avg. Volume: 436,673
• 30 Day Avg. Volume: 379,061
• PEG Ratio: -3.17
• Price to Book (P/B): 5.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.35
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 7.27
• Enterprise Value/Ebitda: 3.64
• 1Y Price Target: $141.80
• Price Target Upside: -0.59% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 68 Neutral
• Price Target: $154.00 ▲(7.96%Upside)

Landstar System's overall stock score is impacted by strong financial management and cash flow, but hampered by declining revenues and external challenges such as supply chain fraud. Technical indicators are neutral, and valuation metrics suggest the stock might be overvalued. Earnings call insights reveal mixed sentiment, while corporate events indicate some governance concerns.

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 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

EPS Guidance

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

Insurance and Claims Costs

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

Supply Chain Fraud

A significant supply chain fraud remains under investigation and may adversely affect earnings per share, primarily related to an impairment of a trade accounts receivable.

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 Logistics segment offers a range of transportation services, including truckload and less-than-truckload transportation, rail intermodal, air cargo, ocean cargo, expedited ground and air delivery of time-critical freight, heavy-haul/specialized, U.S.-Canada and U.S.-Mexico cross-border, intra-Mexico, intra-Canada, project cargo, and customs brokerage, as well as offers transportation services to other transportation companies, such as third party logistics, small package and less-than-truckload service providers. It provides truck services through dry and specialty vans of various sizes, unsided/platform trailers, temperature-controlled vans, and containers; rail intermodal services through contracts with domestic and Canadian railroads; and air and ocean services through contracts with domestic and international airlines and ocean lines. This segment serves the automotive parts and assemblies, consumer durables, building products, metals, chemicals, foodstuffs, heavy machinery, retail, electronics, and military equipment industries. The Insurance segment reinsures certain risks of the company's independent contractors. The company markets its services through independent commission sales agents and third party capacity providers. Landstar System, Inc. was founded in 1968 and is headquartered in Jacksonville, Florida.

How the Company Makes Money

Landstar System generates revenue primarily through the provision of transportation management solutions, acting as a non-asset-based third-party logistics provider. The company earns money by connecting shippers with a network of independent agents and third-party capacity providers, such as owner-operators and small fleet operators, to transport freight. Key revenue streams include commissions earned from facilitating transportation services and fees for value-added services like logistics planning and supply chain management. Significant partnerships with independent sales agents and capacity providers are critical to its business model, enabling Landstar to maintain a flexible and scalable service offering without owning the transportation assets. The company's earnings are influenced by factors such as transportation demand, fuel prices, and regulatory changes in the logistics industry.

Landstar System Financial Statement Overview

Summary

Landstar System demonstrates strong profitability with effective cost management and a solid balance sheet. However, the significant decline in revenue and reduced free cash flow are concerns that need addressing to sustain long-term growth.

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	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	624.51M	714.24M	960.23M	866.08M	553.50M
EBITDA	305.64M	392.16M	628.54M	555.28M	298.81M
Net Income	195.95M	264.39M	430.91M	381.52M	192.11M
Balance Sheet
Total Assets	1.81B	1.80B	1.93B	2.05B	1.65B
Cash, Cash Equivalents and Short-Term Investments	566.64M	540.70M	393.54M	251.30M	290.73M
Total Debt	163.34M	132.68M	196.35M	303.52M	175.52M
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: Positive
• Last Price: 142.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 142.64 is above the 20-day moving average (MA) of 140.68, above the 50-day MA of 139.94, and below the 200-day MA of 157.59, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 56.59 is Neutral, neither overbought nor oversold. The STOCH value of 67.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$6.02B	84.98	2.61%	―	23.40%	-55.55%
XPO	70 Outperform	$16.29B	42.56	26.24%	―	1.94%	60.91%
CHRW	70 Neutral	$12.25B	24.65	32.11%	2.41%	-0.22%	65.52%
HUBG	69 Neutral	$2.21B	21.15	6.35%	1.39%	-4.63%	-18.94%
LSTR	68 Neutral	$4.98B	28.29	18.34%	2.44%	-4.72%	-22.46%
JBHT	66 Neutral	$14.85B	27.21	14.33%	1.17%	-2.24%	-5.43%
Sector *	65 Neutral	$11.16B	15.86	5.39%	1.92%	3.11%	-24.90%

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.