Landstar System, Inc.
Find Ratings ReportsLANDSTAR SYSTEM INC's gross profit margin for the fourth quarter of its fiscal year 2020 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its subsector. LANDSTAR SYSTEM INC has average liquidity. Currently, the Quick Ratio is 1.48 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 4.10% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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| Income Statement | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Net Sales ($mil) | 1297.04 | 996.18 |
| EBITDA ($mil) | 111.55 | 77.94 |
| EBIT ($mil) | 99.91 | 66.52 |
| Net Income ($mil) | 65.07 | 50.05 |
| Balance Sheet | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Cash & Equiv. ($mil) | 290.73 | 352.42 |
| Total Assets ($mil) | 1653.8 | 1427.71 |
| Total Debt ($mil) | 178.12 | 169.47 |
| Equity ($mil) | 691.84 | 721.47 |
| Profitability | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Gross Profit Margin | 19.94 | 20.13 |
| EBITDA Margin | 8.6 | 7.82 |
| Operating Margin | 7.7 | 6.68 |
| Sales Turnover | 2.5 | 2.86 |
| Return on Assets | 11.61 | 15.95 |
| Return on Equity | 27.77 | 31.56 |
| Debt | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Current Ratio | 1.5 | 1.8 |
| Debt/Capital | 0.2 | 0.19 |
| Interest Expense | 1.02 | 0.86 |
| Interest Coverage | 98.24 | 77.08 |
| Share Data | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Shares outstanding (mil) | 38.39 | 39.47 |
| Div / share | 0.21 | 0.19 |
| EPS | 1.7 | 1.27 |
| Book value / share | 18.02 | 18.28 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 292066.0 | 280317.0 |
BUY. This stock's P/E ratio indicates a discount compared to an average of 38.20 for the Truck Transportation subsector and a discount compared to the S&P 500 average of 43.53. For additional comparison, its price-to-book ratio of 9.36 indicates a significant premium versus the S&P 500 average of 4.31 and a significant premium versus the subsector average of 7.11. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. The valuation analysis reveals that, LANDSTAR SYSTEM INC seems to be trading at a discount to investment alternatives.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| LSTR 33.89 | Peers 29.43 | LSTR 30.74 | Peers 17.19 | |||||||||||||||||||||
|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. LSTR is trading at a premium to its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. LSTR is trading at a significant premium to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| LSTR 24.18 | Peers 22.91 | LSTR 1.04 | Peers 1.23 | |||||||||||||||||||||
|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. LSTR is trading at a premium to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. LSTR trades at a discount to its peers. |
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| Price/Book |
|
Earnings Growth |
|
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| LSTR 9.36 | Peers 7.11 | LSTR -13.09 | Peers -4.26 | |||||||||||||||||||||
|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. LSTR is trading at a significant premium to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, LSTR is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
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| LSTR 1.57 | Peers 6.91 | LSTR 1.14 | Peers -4.46 | |||||||||||||||||||||
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Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. LSTR is trading at a significant discount to its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. LSTR has a sales growth rate that significantly exceeds its peers. |
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