Wide-moat truck broker Landstar announced that Jim Gattoni will be retiring as CEO in February 2024, and will stay on in advisory role until July. Gattoni has been at the helm since 2014 and the firm's execution under his watch has been impressive; Landstar's returns on capital comfortably exceeded 30% over the past decade and its stock price has almost tripled.
Landstar has a history of excellent execution and healthy EPS growth throughout the freight cycle. We expect that to persist.
Freight demand is amid a pullback due to muted retailer restocking and sluggish industrial end markets. Thus, Landstar's truck brokerage operations will see top-line and margin pressure throughout 2023.
|
Metric
|
LSTR
|
CHRW
|
KNX
|
|---|---|---|---|
Price/Earnings (Normalized) | 21.53 | 22.53 | 21.17 |
Price/Book Value | 6.18 | 7.01 | 1.26 |
Price/Sales | 1.13 | 0.55 | 1.30 |
Price/Cash Flow | 17.80 | 18.46 | 7.53 |
|
Metric
|
LSTR
|
CHRW
|
KNX
|
|---|---|---|---|
Quick Ratio | 2.04 | 1.07 | 0.71 |
Current Ratio | 2.08 | 1.12 | 1.02 |
Interest Coverage | — | 5.20 | 5.23 |
|
Metric
|
LSTR
|
CHRW
|
KNX
|
|---|---|---|---|
Return on Assets (Normalized) | 15.93% | 7.44% | 3.74% |
Return on Equity (Normalized) | 31.80% | 30.00% | 6.08% |
Return on Invested Capital (Normalized) | 26.95% | 14.25% | 5.29% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Economic Moat
|
Market Cap
|
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