Landstar System, Inc.
Landstar System, Inc. Fundamental Analysis
Landstar System, Inc. (LSTR) shows weak financial fundamentals with a PE ratio of 43.83, profit margin of 2.42%, and ROE of 13.01%. The company generates $4.8B in annual revenue with weak year-over-year growth of -9.13%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze LSTR's fundamental strength across five key dimensions:
Efficiency Score
WeakLSTR struggles to generate sufficient returns from assets.
Valuation Score
ModerateLSTR shows balanced valuation metrics.
Growth Score
WeakLSTR faces weak or negative growth trends.
Financial Health Score
ExcellentLSTR maintains a strong and stable balance sheet.
Profitability Score
WeakLSTR struggles to sustain strong margins.
Key Financial Metrics
Is LSTR Expensive or Cheap?
P/E Ratio
LSTR trades at 43.83 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, LSTR's PEG of -2.82 indicates potential undervaluation.
Price to Book
The market values Landstar System, Inc. at 6.33 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 24.24 times EBITDA. This signals the market has high growth expectations.
How Well Does LSTR Make Money?
Net Profit Margin
For every $100 in sales, Landstar System, Inc. keeps $2.42 as profit after all expenses.
Operating Margin
Core operations generate 3.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.01 in profit for every $100 of shareholder equity.
ROA
Landstar System, Inc. generates $7.03 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Landstar System, Inc. generates limited operating cash flow of $214.11M, signaling weaker underlying cash strength.
Free Cash Flow
Landstar System, Inc. produces free cash flow of $199.64M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $5.81 in free cash annually.
FCF Yield
LSTR converts 3.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
43.83
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.82
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.33
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.06
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.75
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How LSTR Stacks Against Its Sector Peers
| Metric | LSTR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 43.83 | 26.49 | Worse (Expensive) |
| ROE | 13.01% | 1307.00% | Weak |
| Net Margin | 2.42% | -5131.00% (disorted) | Weak |
| Debt/Equity | 0.04 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 1.75 | 10.48 | Neutral |
| ROA | 7.03% | -1549793.00% (disorted) | Weak |
LSTR outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Landstar System, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
32.09%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-3.67%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
4.21%
Industry Style: Cyclical, Value, Infrastructure
Growing