At the moment, the debt-to-equity of Landstar System, Inc. (NASDAQ:LSTR) is low, standing at 18.70, a figure that is less than the 61.29 average recorded by the industry. This means that the company is currently holding a debt level at 128.43 M. LSTR shares have a strong debt-to-equity ratio but their quick ratio which reads 1.90 is strong and might cause problems for them later in the future.
Even though there was a rise of +12.43% in revenue, the company failed to succeed in outperforming the industry average of 14.10%. For the most recent quarter, the net income has jumped by +5.55%. This strength in their income has affected them and thus increased their earnings to $103.70 M. The 12.45% yoy growth of LSTR’s revenue has gone up that of the industry average by -14.14%. For the past 12 months, Landstar System, Inc. revenue has gone up by 26.59%. The sustained growth in their revenue has helped boost their earnings per share.
The 12-month return on equity has significantly fallen to 33.24 in comparison to the same data for other companies in the same industry. This shows that there is a major weakness within the organization over the past one year. Comparing them to other companies in the industry and the overall Services sector, the industry average is 9.17 while 12.54 is of the sector.
LSTR total operating cash flow had jumped to $91.18 billion compared to $41.03 billion in the same quarter last year. Also, looking at the price to cash flow of the company and the industry average, the 16.06 ratio of the stock is higher than the industry’s 14.93.
Landstar System, Inc. (NASDAQ:LSTR) has a price-to-earnings ratio of 19.26 which is lower than the 41.86 industry average at the moment. In addition to their unfavorable P/E ratio, Landstar System, Inc. has maintained a gross margin of 14.53. This shows whether the company has what it takes to effectively turn the revenue into profit.
The company’s ROA is 16.26 when compared to 4.97 for the stocks operating in the same industry. This can be attributed to the strength recorded in the net income produced by total assets. Comparing it to other companies in the sector, Landstar System, Inc. ROE is above 12.54 that of both the sector average.
The operating profit margin for Landstar System, Inc. (LSTR) is 7.18%, a figure which is considered to be weak. It has gone 9.53 from the 7.05 over the past 5 years. In addition to this, their operating margin is -2.35 lower than the industry average.
The net profit margin which stood at 4.66 on average in the past 5 years has jumped to 4.81 in the last 12 months. Added to that, this ratio has missed the industry net margin that stands at 6.57.
Analysts meanwhile rate Landstar System, Inc. (NASDAQ:LSTR) as a buy. Still some above discussed indicators of the $4.27B company show strength while others show weakness. There is little evidence at the moment to justify the expectation of the LSTR shares to either perform positively or negatively when compared to other stocks. The primary strengths of Landstar System, Inc. can be witnessed in its increased revenue, growing earnings per share, higher return on equity, increased operating cash and high net margin. Subsequently, financial analysis have also identified some weak areas that includes high debt, relatively high P/E ratio, lower return on assets and low net margin.