| 2016 | 2021 | 2023 | 2024 (projected) | Accounts Payable | 255.7M | 620.3M | 558.3M | 602.4M | Receivables | 481.7M | 1.0B | 921.6M | 754.3M |
Reasons Landstar System (USA Stocks:LSTR) can excite retail investors
 | By Gabriel Shpitalnik | Macroaxis Story |
Landstar System has an average rating of 'Hold' from 14 analysts. Macroaxis provides trading recommendations for Landstar System to complement and cross-verify the current analyst consensus on Landstar System. Our advice engine assesses the company's growth potential exclusively from the perspective of an investor's current risk tolerance and investment horizon.
Key Takeaways
Landstar System (LSTR) is a compelling investment opportunity in the industrials sector, specifically within the integrated freight and logistics industry. Despite the recent market downturn, the company's robust operating income of $385.9M and a market capitalization of $7B underscore its financial stability and potential for growth. Furthermore, the stock's Jensen Alpha of 0.0993, a measure of risk-adjusted performance, suggests that Landstar System has been generating excess returns given the risks it has taken on. This, coupled with a day typical price of $195.27, which is higher than Wall Street's target price of $175.71, indicates that the stock is currently undervalued, presenting a potential buying opportunity for investors.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Raphi Shpitalnik
Landstar System (LSTR), a key player in the industrials sector, specifically in ground transportation, is presenting a potential buying opportunity amid the current market downturn. Despite a quarterly earnings growth loss of 38% and a quarterly revenue growth loss of 29%, the company maintains a strong return on assets of 12.64% and an impressive return on equity of 31.28%. With a profit margin of 5.18%, Landstar System's operating income stands at $385.9M, and income before tax at $395.6M. The company's market capitalization is $7B, with a book value of $29.02. The EPS estimate for the next year is $7.67, and for the next quarter, it's $1.84. Despite the negative price action indicator of -1.41, the company's real value is estimated at $165.03, which is below the market value of $194.98, indicating a potential undervaluation. The company also offers a dividend per share of $1.23. Given these factors, Landstar System could be a valuable addition to your portfolio. For more information, visit their website at https://www.landstar.com or contact them at 904 398 9400. Currently, Landstar System's Cash Flow Per Share remains relatively stable compared to the previous year. As of January 31, 2024, the Quick Ratio is projected to increase to 1.95, while Average Assets are expected to slightly exceed 2 billion. Given the growing interest of investors in the ground transportation sector, it is appropriate to evaluate Landstar System. We will examine why recent price movements in Landstar System's stock suggest a potential rebound in March. In this article, I will also discuss various factors influencing Landstar System's products and services and explain how these may impact retail investors in Landstar System.The performance of Landstar System in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Landstar System's stock prices. When investing in Landstar System, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Landstar Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Landstar System carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.
And What about dividends?
A dividend is the distribution of a portion of Landstar System earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Landstar System dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Landstar one year expected dividend income is about USD2.19 per share.
At this time, Landstar System's Dividend Yield is relatively stable compared to the past year. As of 11/30/2024, Dividend Paid And Capex Coverage Ratio is likely to grow to 7.63, though Dividends Paid is likely to grow to (111.3 M). | Last Reported | Projected for Next Year | ||
| Dividends Paid | -117.1 M | -111.3 M | |
| Dividend Yield | 0.02 | 0.02 | |
| Dividend Payout Ratio | 0.24 | 0.16 | |
| Dividend Paid And Capex Coverage Ratio | 5.05 | 7.63 |
Investing in dividend-paying stocks, such as Landstar System is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Landstar System must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Landstar System. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.How important is Landstar System's Liquidity
Landstar System financial leverage refers to using borrowed capital as a funding source to finance Landstar System ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Landstar System financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Landstar System's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Landstar System's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Landstar System's total debt and its cash.
What do experts say about Landstar?
Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
Analysis ConsensusDetailed Perspective On Landstar System
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Landstar System has an asset utilization ratio of 298.86 percent. This connotes that the Company is making $2.99 for each dollar of assets. An increasing asset utilization means that Landstar System is more efficient with each dollar of assets it utilizes for everyday operations.
"Buy when others are fearful," is a timeless investment wisdom that seems apt for the current situation of Landstar System (LSTR). Amid a market downturn, LSTR presents a potential buying opportunity with its robust financial health and steady performance.The company's current ratio stands at 1.58X, indicating a healthy ability to cover its short-term liabilities. Its net income from continuing operations is a solid 299.7M, reflecting a strong bottom line. Despite a slight dip in quarterly revenue growth, the company's operating income remains robust at 385.9M. Furthermore, the company's price to earnings ratio of 23.35 and Wall Street's target price of 175.71 suggest that the stock is undervalued. Therefore, for investors looking to capitalize on market downturns, Landstar System could be a promising pick. .
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