Education
About Us
Working with TipRanks
Follow Us
Landstar System (LSTR)
NASDAQ:LSTR
Top Page
Landstar System
(NASDAQ:LSTR)
67Neutral
Positive Factors
Revenue Performance
Revenue per truckload was 3.1% above the prior year quarter, which was within the upper half of the guidance range.
Volume Trends
Volume trends are slightly better than the mid-point of the company’s guidance range.
Negative Factors
Earnings Guidance
Updated earnings guidance is below the previous range due to elevated insurance and claims costs.
Insurance 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 identified may adversely affect earnings per share.
Landstar System (LSTR) vs. S&P 500 (SPY)
Market Cap
$4.90B
Dividend Yield1.02%
Average Volume (3M)387.17K
Price to Earnings (P/E)25.1
Beta (1Y)0.95
Revenue Growth-9.13%
EPS Growth-25.11%
CountryUS
Employees1,441
SectorIndustrials
Sector Strength68
IndustryIntegrated Freight & Logistics
Share Statistics
EPS (TTM)5.51
Shares Outstanding35,316,074
10 Day Avg. Volume444,631
30 Day Avg. Volume387,167
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.09
Price to Cash Flow (P/CF)21.50
P/FCF Ratio20.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$153.40Price Target Upside12.27% Upside
Rating ConsensusHold
Number of Analyst Covering12
Landstar System Business Overview & Revenue Model
Company DescriptionLandstar System, Inc. (LSTR) is a leading asset-light provider of integrated transportation management solutions based in the United States. Operating within the logistics and transportation sectors, the company offers a range of services including truckload, less-than-truckload, and intermodal transportation, as well as freight brokerage and supply chain solutions. Landstar's network is comprised of independent sales agents and third-party capacity providers, allowing it to deliver efficient and flexible transportation services to a broad customer base across North America.
How the Company Makes MoneyLandstar System makes money primarily through its role as a non-asset-based provider of transportation services. The company's revenue model is centered around connecting shippers with a network of independent third-party capacity providers, including truck owner-operators and other transportation service providers. Key revenue streams include fees from freight brokerage services, commissions from its independent agents, and transaction fees from its technology platforms. Landstar's asset-light model allows it to minimize capital expenditures and operational risks while maximizing flexibility and scalability. Significant partnerships with a large network of independent sales agents and capacity providers contribute to its earnings by enabling the company to efficiently match supply with demand in the transportation market.
Landstar System Financial Statement Overview
Summary
Landstar System presents a mixed financial picture with stable profitability margins and a strong balance sheet offset by declining revenue trends. The cash flow remains a key strength, supporting financial flexibility. While the company maintains a healthy leverage position, the revenue contraction poses a challenge for future growth. Continued focus on operational efficiency and revenue diversification could enhance overall financial performance.Income Statement
Landstar System's income statement shows a downward trend in revenue, with a notable decline from 2022 to 2023. The gross profit margin and net profit margin have shown resilience, maintaining stability despite revenue fluctuations. However, the decline in EBIT and EBITDA margins indicates pressure on operational efficiency. Overall, while profitability margins are relatively stable, the revenue decline poses a challenge.70
Positive
Balance Sheet
The balance sheet reflects a solid equity base with a debt-to-equity ratio well-managed at a low level, suggesting limited leverage risk. The equity ratio is strong, indicating a healthy financial structure. Although stockholders' equity has shown minor fluctuations, the overall financial stability remains intact, bolstered by a strong cash position.75
Positive
Cash Flow
Landstar System demonstrates strong cash flow generation capabilities, with consistent free cash flow and operating cash flow levels. The operating cash flow to net income ratio is robust, indicating efficient cash conversion. However, the absence of free cash flow growth in recent periods suggests limited expansion in cash-generating capacity. Despite this, the cash flow positioning remains a strong point for the company.80
Positive
| 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 |
| 1.07B | 714.24M | 960.23M | 866.08M | 553.50M | EBIT |
| 248.91M | 344.15M | 571.08M | 505.67M | 252.95M | EBITDA |
| 290.83M | 392.16M | 628.54M | 555.28M | 298.81M | Net Income Common Stockholders |
| 195.95M | 264.39M | 430.91M | 381.52M | 192.11M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 566.64M | 540.70M | 393.54M | 251.30M | 290.73M | Total Assets |
| 1.81B | 1.80B | 1.93B | 2.05B | 1.65B | Total Debt |
| 33.12M | 132.68M | 196.35M | 228.28M | 175.52M | Net Debt |
| -481.90M | -348.36M | -143.23M | 12.76M | -73.83M | 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 | |||
| 393.65M | 367.96M | 596.65M | 253.48M | 180.09M | Operating Cash Flow |
| 393.65M | 393.65M | 622.66M | 276.74M | 210.72M | Investing Cash Flow |
| -6.48M | -6.48M | -24.77M | -73.34M | -28.42M | Financing Cash Flow |
| -247.97M | -247.97M | -475.68M | -232.95M | -252.03M |
Landstar System Technical Analysis
Negative
136.64
Price Trends
156.52
Negative
167.06
Negative
173.99
Negative
Market Momentum
-2.90
Negative
43.86
Neutral
60.69
Neutral
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 136.64 is below the 20-day moving average (MA) of 148.97, below the 50-day MA of 156.52, and below the 200-day MA of 173.99, indicating a bearish trend. The MACD of -2.90 indicates Negative momentum. The RSI at 43.86 is Neutral, neither overbought nor oversold. The STOCH value of 60.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LSTR.
Landstar System Risk Analysis
Landstar System disclosed 15 risk factors in its most recent earnings report. Landstar System reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Landstar System Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $33.10B | 28.43 | 27.90% | 0.68% | -0.88% | -2.79% | |
68 Neutral | $11.20B | 24.56 | 29.65% | 2.61% | 0.73% | 41.65% | |
67 Neutral | $4.90B | 25.14 | 20.03% | 1.02% | -9.13% | -25.11% | |
67 Neutral | $8.52B | 23.86 | 17.03% | ― | 11.37% | 1.82% | |
65 Neutral | $13.47B | 24.24 | 14.06% | 1.28% | -5.79% | -20.32% | |
62 Neutral | $8.08B | 13.63 | 3.82% | 3.13% | 3.58% | -14.35% | |
61 Neutral | $6.41B | 54.56 | 1.66% | 1.67% | 3.76% | -46.10% |
* Industrials Sector Average
Performance Comparison
LSTR
Landstar System
136.64
-45.39
-24.94%
CHRW
CH Robinson
90.94
20.68
29.43%
JBHT
JB Hunt
134.66
-58.28
-30.21%
KNX
Knight Transportation
38.98
-13.47
-25.68%
ODFL
Old Dominion Freight
152.06
-71.37
-31.94%
SAIA
Saia
322.38
-275.62
-46.09%
Landstar System Earnings Call Summary
Earnings Call Date: Jan 29, 2025 | % Change Since: -20.81% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in heavy-haul and non-truck transportation services, and a healthy balance sheet. However, these positives were tempered by declines in BCO truck count, soft demand in core services, and increased insurance costs. The company remains optimistic about future growth opportunities.Highlights
Record Heavy-Haul Revenue
Heavy-haul service generated approximately $498 million during the 2024 fiscal year, with a 9% increase in revenue per load and a 3% increase in volume.
Strong Balance Sheet
Landstar ended the quarter with $567 million in cash and short-term investments. Cash flow from operations for the fiscal year was $287 million, with capital expenditures of $31 million.
Positive Performance in Non-Truck Transportation
Non-truck transportation service revenue increased by 20% year-over-year in the fourth quarter, driven by a 23% increase in ocean revenue per shipment and a 15% increase in ocean volumes.
Improvement in Safety Performance
Accident frequency rate improved to 0.59 DOT reportable accidents per million miles, approximately 2% better than the 2023 fiscal year.
Lowlights
Decline in BCO Truck Count
BCO truck count decreased by approximately 10% year-over-year, with expectations of continued decline in the first quarter due to challenging operating environments.
Soft Demand in Core Truckload Service
Overall truckload volumes decreased, with the number of loads hauled via truck down 3.4% year-over-year in the fourth quarter.
Insurance and Claims Cost Pressures
Increased insurance and claims costs were reported, attributed to increased severity on cargo claims and unfavorable development of prior year auto liability claims.
Variable Contribution Margin Decline
Variable contribution margin decreased, impacted by a lower margin on truck brokerage carriers and a mix headwind.
Company Guidance
During the 2025 year-end earnings call, Landstar System Incorporated provided guidance highlighting several key metrics from their 2024 fiscal year performance. The company achieved approximately $498 million in heavy-haul revenue, marking a record for this service line, driven by a 9% increase in revenue per load and a 3% increase in volume. In the fourth quarter of 2024, truckload revenue per load increased by 3.1% year-over-year, with unsided/platform revenue per load rising by 8%. However, the number of loads hauled via truck decreased by 3.4% compared to the previous year. Despite these challenges, the company's balance sheet remained robust, with $567 million in cash and short-term investments at year-end. The company repurchased approximately 452,000 shares, deploying over $82 million in capital for buybacks and declared a $2 per share special dividend. Looking ahead to the first quarter of 2025, Landstar anticipates revenue in the range of $1.075 billion to $1.175 billion and earnings per share between $1.05 and $1.25, with a focus on maintaining a variable contribution margin between 14.0% and 14.3%.Landstar System Corporate Events
Stock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
Landstar System Reports 2024 Q4 Earnings Growth
Positive
Jan 29, 2025
On January 29, 2025, Landstar System reported its fourth-quarter results for fiscal 2024, revealing revenue of $1.209 billion and earnings per share of $1.31. The company achieved year-over-year quarterly revenue growth for the first time since the third quarter of 2022, driven by improved truck pricing and strong performance in its unsided/platform service offering. Despite challenges such as increased insurance and claims costs, the company’s revenue per load increased by 3.1% compared to the previous year. Landstar continues to return capital to shareholders through stock purchases and dividends, with substantial cash and investments strengthening its balance sheet. The company remains optimistic for an improved freight transportation environment as it enters fiscal 2025.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.