Landstar System Inc.
Find Ratings ReportsLANDSTAR SYSTEM INC's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Sales and net income fell significantly, underperforming compared to the average company in its subsector. LANDSTAR SYSTEM INC has strong liquidity. Currently, the Quick Ratio is 1.97 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 10.89% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 1207.71 | 1675.91 |
EBITDA ($mil) | 88.22 | 139.16 |
EBIT ($mil) | 74.57 | 124.33 |
Net Income ($mil) | 57.99 | 93.3 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 540.7 | 393.54 |
Total Assets ($mil) | 1801.85 | 1931.88 |
Total Debt ($mil) | 134.38 | 198.4 |
Equity ($mil) | 983.92 | 887.22 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 19.89 | 20.55 |
EBITDA Margin | 7.3 | 8.3 |
Operating Margin | 6.17 | 7.42 |
Sales Turnover | 2.95 | 3.85 |
Return on Assets | 14.67 | 22.3 |
Return on Equity | 26.87 | 48.57 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 2.0 | 1.64 |
Debt/Capital | 0.12 | 0.18 |
Interest Expense | 0.0 | 0.35 |
Interest Coverage | 0.0 | 360.39 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 35.72 | 35.93 |
Div / share | 0.33 | 0.3 |
EPS | 1.62 | 2.6 |
Book value / share | 27.55 | 24.7 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 270020.0 | 228773.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 34.99 for the Truck Transportation subsector and a discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 6.53 indicates a significant premium versus the S&P 500 average of 4.68 and a discount versus the subsector average of 6.87. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, LANDSTAR SYSTEM INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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LSTR 24.48 | Peers 34.99 | LSTR 16.33 | Peers 18.43 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. LSTR is trading at a significant discount to its peers. |
Discount. 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 discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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LSTR 21.96 | Peers 21.36 | LSTR NM | Peers 1.81 | |||||||||||||||||||||
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 significant premium to its peers. |
Neutral. 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's negative PEG ratio makes this valuation measure meaningless. |
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Price/Book |
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Earnings Growth |
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LSTR 6.53 | Peers 6.87 | LSTR -37.45 | Peers -18.92 | |||||||||||||||||||||
Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. LSTR is trading at a valuation on par with 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 |
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Sales Growth |
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LSTR 1.21 | Peers 3.73 | LSTR -28.58 | Peers -7.61 | |||||||||||||||||||||
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. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. LSTR significantly trails its peers on the basis of sales growth. |
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