Landstar System (LSTR) AI Stock Analysis

• Market Cap: $5.10B
• Dividend Yield: 1.1%
• Average Volume (3M): 327.16K
• Price to Earnings (P/E): 28.9
• Beta (1Y): 0.91
• Revenue Growth: -4.72%
• EPS Growth: -22.46%
• Country: US
• Employees: 1,400
• Sector: Industrials
• Sector Strength: 86
• Industry: Integrated Freight & Logistics
• EPS (TTM): 0.95
• Shares Outstanding: 34,946,180
• 10 Day Avg. Volume: 340,575
• 30 Day Avg. Volume: 327,157
• PEG Ratio: -1.26
• Price to Book (P/B): 6.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.24
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 10.67
• Enterprise Value/Ebitda: 5.34
• 1Y Price Target: $142.64
• Price Target Upside: -2.22% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 66 Neutral
• Price Target: $151.00 ▲(3.51%Upside)

Landstar System shows robust profitability and a strong balance sheet, but significant revenue decline and valuation concerns weigh on the stock. Earnings call challenges and recent corporate events also contribute to a cautious outlook.

Positive Factors

Operational Efficiency

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

Fraud and EPS Impact

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

Insurance and Claims 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. 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 and a solid balance sheet with low leverage. However, the significant decline in revenue and decrease in free cash flow are concerning, impacting the overall financial performance score.

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	4.80B	4.82B	5.30B	7.44B	6.54B	4.13B
Gross Profit	619.50M	624.51M	714.24M	960.23M	866.08M	553.50M
EBITDA	280.23M	305.64M	392.16M	628.54M	555.28M	298.81M
Net Income	178.66M	195.95M	264.39M	430.91M	381.52M	192.11M
Balance Sheet
Total Assets	1.65B	1.81B	1.80B	1.93B	2.05B	1.65B
Cash, Cash Equivalents and Short-Term Investments	290.73M	566.64M	540.70M	393.54M	251.30M	290.73M
Total Debt	175.52M	163.34M	132.68M	196.35M	303.52M	175.52M
Total Liabilities	961.96M	840.87M	817.92M	1.04B	1.18B	961.96M
Stockholders Equity	691.84M	972.44M	983.92M	887.22M	862.01M	691.84M
Cash Flow
Free Cash Flow	224.43M	255.56M	367.96M	596.65M	253.48M	180.09M
Operating Cash Flow	248.05M	286.56M	393.65M	622.66M	276.74M	210.72M
Investing Cash Flow	-5.71M	-10.50M	-6.48M	-24.77M	-73.34M	-28.42M
Financing Cash Flow	-288.54M	-237.34M	-247.97M	-475.68M	-232.95M	-252.03M

Landstar System Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 145.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 145.88 is above the 20-day moving average (MA) of 140.08, above the 50-day MA of 138.71, and below the 200-day MA of 160.62, indicating a neutral trend. The MACD of 1.23 indicates Negative momentum. The RSI at 62.49 is Neutral, neither overbought nor oversold. The STOCH value of 82.33 is Negative, 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	$5.84B	82.43	2.61%	―	23.40%	-55.55%
XPO	70 Outperform	$15.57B	40.66	26.24%	―	1.94%	60.91%
CHRW	70 Neutral	$11.64B	23.42	32.11%	2.53%	-0.22%	65.52%
HUBG	69 Neutral	$2.19B	20.95	6.35%	1.40%	-4.63%	-18.94%
JBHT	69 Neutral	$15.16B	27.76	13.97%	1.15%	-3.82%	-12.80%
LSTR	66 Neutral	$5.10B	28.93	18.34%	1.10%	-4.72%	-22.46%
Sector *	58 Neutral	$1.34B	4.24	-2.93%	7.38%	3.67%	-51.13%

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.