Landstar System Inc

LSTR

Trucking (No Local)

Mkt Cap

$6.357B

PE

27.25

Debt

Cash

$467.7M

EV

$5.889B

FCF

$320.1M

Market Cap

$6.357B

P/E Ratio

27.25

Debt

Cash

$467.7M

EV

$5.889B

FCF

$320.1M

Charts data: {"Earnings":[{"time":"2014-12-26","value":138809000},{"time":"2015-12-25","value":147689000},{"time":"2016-12-30","value":137350000},{"time":"2017-12-29","value":176996000},{"time":"2018-12-28","value":255213000},{"time":"2019-12-27","value":227703000},{"time":"2020-12-25","value":192106000},{"time":"2021-12-24","value":381524000},{"time":"2022-12-30","value":430914000},{"time":"2023-12-29","value":264394000}],"Sales":[{"time":"2014-12-26","value":3184790000},{"time":"2015-12-25","value":3321091000},{"time":"2016-12-30","value":3167634000},{"time":"2017-12-29","value":3646364000},{"time":"2018-12-28","value":4615144000},{"time":"2019-12-27","value":4084577000},{"time":"2020-12-25","value":4132981000},{"time":"2021-12-24","value":6537568000},{"time":"2022-12-30","value":7436562000},{"time":"2023-12-29","value":5303322000}],"Net Margins":[{"time":"2014-12-26","value":0.043584977345445065},{"time":"2015-12-25","value":0.04447002506104169},{"time":"2016-12-30","value":0.04336043873755617},{"time":"2017-12-29","value":0.048540409021150935},{"time":"2018-12-28","value":0.05529903292291638},{"time":"2019-12-27","value":0.055747021050160155},{"time":"2020-12-25","value":0.0464812202136908},{"time":"2021-12-24","value":0.05835870464368401},{"time":"2022-12-30","value":0.05794532473473629},{"time":"2023-12-29","value":0.049854412008171485}],"Assets":[{"time":"2014-12-26","value":1044212000},{"time":"2015-12-25","value":998070000},{"time":"2016-12-30","value":1096591000},{"time":"2017-12-29","value":1352460000},{"time":"2018-12-28","value":1380564000},{"time":"2019-12-27","value":1427711000},{"time":"2020-12-25","value":1653799000},{"time":"2021-12-24","value":2045465000},{"time":"2022-12-30","value":1931879000},{"time":"2023-12-29","value":1801846000}],"Stockholders Equity":[{"time":"2014-12-26","value":488261000},{"time":"2015-12-25","value":466237000},{"time":"2016-12-30","value":542557000},{"time":"2017-12-29","value":653877000},{"time":"2018-12-28","value":689133000},{"time":"2019-12-27","value":721469000},{"time":"2020-12-25","value":691835000},{"time":"2021-12-24","value":862010000},{"time":"2022-12-30","value":887221000},{"time":"2023-12-29","value":983923000}],"ROE":[{"time":"2014-12-26","value":0.2842926221836272},{"time":"2015-12-25","value":0.31676808146929564},{"time":"2016-12-30","value":0.2531531249251231},{"time":"2017-12-29","value":0.27068699464884066},{"time":"2018-12-28","value":0.3703392523649281},{"time":"2019-12-27","value":0.3156102341195533},{"time":"2020-12-25","value":0.2776760354708854},{"time":"2021-12-24","value":0.44259811371097785},{"time":"2022-12-30","value":0.485689585796549},{"time":"2023-12-29","value":0.26871411685670527}],"ROA":[{"time":"2014-12-26","value":0.21487207578537693},{"time":"2015-12-25","value":0.24217339465167773},{"time":"2016-12-30","value":0.20358638726744976},{"time":"2017-12-29","value":0.1803883294145483},{"time":"2018-12-28","value":0.2402894758953587},{"time":"2019-12-27","value":0.20935889686358095},{"time":"2020-12-25","value":0.15295087250627193},{"time":"2021-12-24","value":0.24721420312740625},{"time":"2022-12-30","value":0.29561012879171006},{"time":"2023-12-29","value":0.193187986098701}]}

Landstar System, Inc. provides integrated transportation management solutions in the United States, Canada, Mexico, and internationally. The company operates through two segments: Transportation Logistics, and Insurance. The Transportation Logistics segment offers a range of transportation services, including truckload and less-than-truckload transportation, rail intermodal, air cargo, ocean cargo, expedited ground and air delivery of time-critical freight, heavy-haul/specialized, U.S.-Canada and U.S.-Mexico cross-border, intra-Mexico, intra-Canada, project cargo, and customs brokerage, as well as offers transportation services to other transportation companies, such as third party logistics, small package and less-than-truckload service providers. It provides truck services through dry and specialty vans of various sizes, unsided/platform trailers, temperature-controlled vans, and containers; rail intermodal services through contracts with domestic and Canadian railroads; and domestic and international air and ocean services. This segment serves the automotive parts and assemblies, consumer durables, building products, metals, chemicals, foodstuffs, heavy machinery, retail, electronics, and military equipment industries. The Insurance segment provides risk and claims management services; and reinsures risks of the company's independent contractors. The company markets its services through independent commission sales agents and third party capacity providers. Landstar System, Inc. was incorporated in 1991 and is headquartered in Jacksonville, Florida.

Sector

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9/29/18
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6/30/18
10-Q
3/31/18
10-K
12/30/17

DCF

Discounted Cash Flow Valuation of Landstar System Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$320.1M	$358.1M	$397.9M	$439.1M	$481.1M	$523.6M	$565.7M	$607M	$646.6M	$683.9M	$718.1M	$7.181B
DCF		$311.4M	$300.9M	$288.7M	$275.1M	$260.3M	$244.6M	$228.2M	$211.4M	$194.4M	$177.5M	$1.775B
Value	$4.267B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 13%

Earnings Stability 67%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	4.4%	4.3%	4.9%	5.5%	5.6%	4.6%	5.8%	5.8%	5%	4.6%
ROA	24%	20%	18%	24%	21%	15%	25%	30%	19%	18%
ROE	32%	25%	27%	37%	32%	28%	44%	49%	27%	23%

What is the average Net Margin?

The average Net Margin over the past 5 years is +5.39%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -0.03%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +22.31%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.34%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +36.01%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +0.48%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	0.00	0.00	0.00	0.00	0.00	0.00	0.30	0.11	0.00	0.00
Debt Equity	0.00	0.00	0.00	0.00	0.00	0.00	0.09	0.08	0.00	0.00
MIN
Graham Stability	-	-	100%	100%	100%	87%	100%	100%	79%	79%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 0.00.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.02.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.79.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	7.6%	2.8%	8.7%	-29%	-0.27%
Net Income	9.8%	0.71%	11%	-39%	-0.68%
Stockholders Equity	8.9%	7.4%	12%	11%	0.33%
FCF	12%	5%	27%	-38%	-4.1%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +2.82%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -0.27%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +0.71%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -0.68%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +7.38%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +0.33%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +5.01%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -4.12%.