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Landstar System Inc LSTR

Morningstar Rating
$184.00 +1.09 (0.60%)
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Company Report

Landstar's Truck Brokerage Backdrop Still Bouncing Along the Bottom, but Execution Steady

Landstar System ranks among the largest third-party logistics providers in the highly fragmented $120 billion-plus domestic asset-light truck brokerage space. Since Landstar doesn't own tractors, only a fleet of trailers, it has much lower operating leverage than pure asset-based truckload carriers. Thus, it enjoys a variable cost structure with relatively low capital intensity that generates solid capital returns—34% on average over the past seven years. Moreover, as one of the largest providers, Landstar has built a vast network of shippers, asset-based truckload carriers, and independent sales agents that support a wide economic moat, in our view.

Price vs Fair Value

LSTR is trading at a 885% premium.
Price
$184.00
Fair Value
$934.00
Uncertainty
Medium
1-Star Price
$793.27
5-Star Price
$948.80
Economic Moat
Kfx
Capital Allocation
Blyfqdyfwg

Bulls Say, Bears Say

Bulls

Landstar has a history of excellent execution and healthy EPS growth throughout the freight cycle. We expect that to persist.

Bears

Because of excess truckload market capacity, spot rates will remain depressed into the first half of 2024.

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News

Trading Information

Previous Close Price
$182.91
Day Range
$180.95184.46
52-Week Range
$161.13208.62
Bid/Ask
$183.20 / $184.70
Market Cap
$6.58 Bil
Volume/Avg
162,351 / 273,189

Key Statistics

Price/Earnings (Normalized)
28.31
Price/Sales
1.31
Dividend Yield (Trailing)
0.72%
Dividend Yield (Forward)
0.72%
Total Yield
1.30%

Company Profile

Landstar System is an agent based asset-light third-party logistics provider focused on domestic truck brokerage (90% of revenue). Historically, around half of its truck transportation freight is hauled by leased owner-operators with the remainder hauled by third-party broker-carriers. To a smaller degree, it offers intermodal, global air and ocean forwarding, and warehousing services. Landstar also runs a small business that offers insurance programs to captive owner-operators. It has a long history of industry-leading execution and operating profitability.
Sector
Industrials
Industry
Integrated Freight & Logistics
Stock Style Box
Small Core
Total Number of Employees
1,468

Competitors

Valuation

Metric
LSTR
JBHT
CHRW
Price/Earnings (Normalized)
28.3124.0828.66
Price/Book Value
6.464.117.27
Price/Sales
1.311.380.61
Price/Cash Flow
22.2910.4223.20
Price/Earnings
LSTR
JBHT
CHRW

Financial Strength

Metric
LSTR
JBHT
CHRW
Quick Ratio
2.200.871.30
Current Ratio
2.221.261.37
Interest Coverage
13.6318.50
Quick Ratio
LSTR
JBHT
CHRW

Profitability

Metric
LSTR
JBHT
CHRW
Return on Assets (Normalized)
12.87%8.95%6.56%
Return on Equity (Normalized)
23.49%18.53%25.22%
Return on Invested Capital (Normalized)
20.36%14.53%10.70%
Return on Assets
LSTR
JBHT
CHRW
See how this stock stacks up to its competitors with Morningstar Investor

Integrated Freight & Logistics Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
United Parcel Service Inc Class B
UPS
TmjqwprkXnpsj$124.2 Bil
FedEx Corp
FDX
DmsxzbdpzFjbks$74.8 Bil
DHL Group
DPSTF
Mxqtk$51.3 Bil
DHL Group ADR
DHLGY
CpvzscxflLsfplj$51.3 Bil
Expeditors International of Washington Inc
EXPD
CkkqkgmdpWqym$17.0 Bil
JB Hunt Transport Services Inc
JBHT
LgjjmlspXlrzms$16.7 Bil
ZTO Express (Cayman) Inc ADR
ZTO
DwyhqxcdBqsyvq$15.8 Bil
C.H. Robinson Worldwide Inc
CHRW
MkvhpkrmKwpy$10.4 Bil
Hub Group Inc Class A
HUBG
RctgmpzkpGpnrlb$2.8 Bil

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