Landstar System (LSTR) AI Stock Analysis

• Market Cap: $4.98B
• Dividend Yield: 2.56%
• Average Volume (3M): 423.29K
• Price to Earnings (P/E): 37.0
• Beta (1Y): 0.83
• Revenue Growth: -0.74%
• EPS Growth: -32.79%
• Country: US
• Employees: 1,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Integrated Freight & Logistics
• EPS (TTM): 1.22
• Shares Outstanding: 34,344,704
• 10 Day Avg. Volume: 509,839
• 30 Day Avg. Volume: 423,287
• PEG Ratio: -1.26
• Price to Book (P/B): 6.37
• Price to Sales (P/S): 1.28
• P/FCF Ratio: 24.24
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 4.56
• Enterprise Value/Ebitda: 17.23
• 1Y Price Target: $133.40
• Price Target Upside: -7.92% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $158.00 ▲(9.06% Upside)

Landstar System's overall stock score is driven by its strong balance sheet and cash flow metrics, despite challenges in revenue and profit margins. The stock's technical indicators suggest a bullish trend, but overbought conditions may limit short-term gains. Valuation concerns persist with a high P/E ratio, though the dividend yield offers some compensation. The earnings call and corporate events provide mixed signals, with positive developments in certain segments but overall revenue challenges.

Positive Factors

Strong Balance Sheet

A strong balance sheet with minimal leverage enhances financial stability and provides flexibility for strategic investments and growth.

Heavy Haul Revenue Growth

Growth in the heavy haul segment indicates strong demand and operational efficiency, supporting long-term revenue potential.

Board Expansion

Expanding the board with experienced members can enhance governance and strategic decision-making, positively impacting long-term business direction.

Negative Factors

Declining Revenue

A decline in revenue suggests challenges in market conditions or competitive pressures, potentially impacting future growth and profitability.

Noncash Impairment Charges

Significant impairment charges can indicate strategic missteps or asset devaluation, affecting financial performance and future earnings.

Insurance Cost Increase

Rising insurance costs can erode profit margins and signal higher operational risks, impacting long-term financial health.

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 makes money primarily through its brokerage services, where it matches shippers with independent truck drivers and carriers. The company generates revenue by charging shippers a fee for arranging transportation and pays carriers a commission for their services. Key revenue streams include truckload services, logistics services, and intermodal transport solutions. Additionally, Landstar benefits from its extensive network of independent agents, who operate as entrepreneurs under the Landstar brand, allowing the company to minimize capital expenditures while maximizing service offerings. Partnerships with various carriers and shippers enhance its operational capacity and market reach, contributing significantly to its earnings.

Landstar System Financial Statement Overview

Summary

Landstar System demonstrates strong profitability and a robust balance sheet with low leverage. However, the significant decline in revenue from $7.44 billion in 2022 to $4.80 billion in TTM is a concern. Cash flow generation remains solid, but the decline in free cash flow should be monitored.

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	4.83B	5.31B	7.44B	6.54B	4.14B
Gross Profit	857.55M	974.88M	1.13B	1.51B	1.32B	855.76M
EBITDA	227.19M	304.05M	397.73M	625.59M	553.45M	326.90M
Net Income	137.26M	195.95M	264.39M	430.91M	381.52M	192.11M
Balance Sheet
Total Assets	1.66B	1.81B	1.80B	1.93B	2.05B	1.65B
Cash, Cash Equivalents and Short-Term Investments	434.42M	566.64M	540.70M	393.54M	251.30M	290.73M
Total Debt	125.12M	163.34M	132.68M	299.75M	303.52M	175.52M
Total Liabilities	773.49M	840.87M	817.92M	1.04B	1.18B	961.96M
Stockholders Equity	888.70M	972.44M	983.92M	887.22M	862.01M	691.84M
Cash Flow
Free Cash Flow	198.88M	255.56M	367.96M	596.65M	253.48M	180.09M
Operating Cash Flow	213.29M	286.56M	393.65M	622.66M	276.74M	210.72M
Investing Cash Flow	1.04M	-10.50M	-6.48M	-24.77M	-73.34M	-28.42M
Financing Cash Flow	-306.77M	-237.34M	-247.97M	-475.68M	-232.95M	-252.03M

Landstar System Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 144.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 144.87 is above the 20-day moving average (MA) of 141.55, above the 50-day MA of 133.34, and above the 200-day MA of 134.93, indicating a bullish trend. The MACD of 4.13 indicates Positive momentum. The RSI at 63.12 is Neutral, neither overbought nor oversold. The STOCH value of 23.84 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
CHRW	72 Outperform	$19.44B	33.36	34.32%	1.51%	-7.08%	71.39%
XPO	70 Outperform	$16.44B	50.35	19.26%	―	-0.30%	-11.02%
HUBG	68 Neutral	$2.69B	25.28	6.31%	1.14%	-5.79%	-1.57%
GXO	68 Neutral	$6.18B	70.62	2.94%	―	16.94%	-14.01%
LSTR	67 Neutral	$4.98B	37.00	14.41%	2.56%	-0.74%	-32.79%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FWRD	54 Neutral	$791.83M	-6.59	-63.14%	―	14.54%	87.85%

Landstar System Corporate Events

Landstar System Declares Special Cash Dividend

On December 3, 2025, Landstar System, Inc.’s Board of Directors declared a special cash dividend of $2.00 per share for its common stockholders. This dividend is set to be paid on January 21, 2026, to those recorded as stockholders by January 6, 2026, reflecting the company’s financial strategy and potential positive impact on shareholder value.

Landstar System Expands Board with New Appointments

On October 30, 2025, Landstar System, Inc. announced the election of Barr Blanton and Melanie Housey Hart to its Board of Directors, effective October 31, 2025. The appointments expand the Board to ten members and are set to expire at the company’s 2026 annual meeting of stockholders. Both appointees meet the independence and financial literacy requirements under relevant securities regulations and have been appointed to several key committees, including the Audit and Compensation Committees. They will receive compensation in the form of restricted stock awards and annual fees, with pro-rated payments for the fourth quarter of 2025.

Landstar System Reports Q3 2025 Financial Results

Landstar System reported its financial results for the third quarter of 2025, showing a slight decrease in total revenue to $1,205 million compared to the previous year. The company faced a significant drop in earnings per share due to non-cash impairment charges related to strategic decisions, including the sale of its Mexican subsidiary and changes in its transportation management systems. Despite these challenges, Landstar experienced growth in its unsided/platform equipment services and an increase in BCO truck count, indicating potential for future growth. The company also continued its stock repurchase program and declared a quarterly dividend, reflecting its commitment to returning capital to shareholders.