Landstar System Inc (LSTR) stock analysis

P/E above its 5-year median

Landstar System's P/E of 31.2 is above its own 5-year median of 26.8.

P/E below the industry

Landstar System's P/E of 31.2 is below the Trucking and Courier Services, except Air median of 34.1.

EV/EBITDA above its 5-year median

Landstar System's EV/EBITDA of 18.0 is above its 5-year median of 15.4.

P/B above the industry

Landstar System's price-to-book of 5.98 is above the Trucking and Courier Services, except Air median of 1.83.

Trading above fair value

The share price of $147.31 is above our fair value estimate of $124.15.

Margin of safety under 20%

The price is 18.7% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -13.9% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -34.5% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 16.8% over the last twelve months, against a 5-year average of -9.8% a year.

Growing faster than the industry

Revenue grew 10.7% over the last twelve months; the Trucking and Courier Services, except Air median is 7.6%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

This company does not report gross profit.

Return on equity over 15%

Return on equity was 18.7% over the last twelve months and averaged 31.9% over five years.

Return on capital over 10%

Return on invested capital was 34.7%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Landstar System's return on equity of 18.7% is above the Trucking and Courier Services, except Air median of 3.4%.

Earnings shrank over 5 years

Net income shrank 9.8% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 3.0% over the last twelve months, against a 5-year average of 4.6%.

Net margin above the industry

Landstar System's net margin of 3.0% is above the Trucking and Courier Services, except Air median of 2.1%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt coverage

Needs operating cash flow.

Interest well covered

Operating income covers interest expense 42.4 times.

Short-term assets cover short-term debts

Current assets are 1.79 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 9.05; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Landstar System paid dividends worth 1.1% of the share price over the last twelve months.

Yield below Treasuries

The 1.1% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Landstar System yields 1.1%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 77.2% of net income.

Covered by free cash flow

Dividends take 78.6% of free cash flow.