Landstar System Inc. is a worldwide, asset-light provider of integrated transportation management solutions delivering safe, specialized transportation services to a broad range of customers utilizing a network of agents, third-party capacity owners and employees. The company serves automotive products, building products, metals, chemicals, foodstuffs, heavy machinery, retail, electronics, ammunition and explosives, and military equipment industries, as well as offers transportation services to other transportation companies, including logistics and less-than-truckload service providers. The company was founded in 1968 and is based in Jacksonville, Florida.
LSTR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Landstar System Inc. To summarize, we found that Landstar System Inc ranked in the 53th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Landstar System Inc ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 82.73; that's higher than 96.53% of US stocks in the Industrials sector that have positive free cash flow.
The business' balance sheet reveals debt to be 3% of the company's capital (with equity being the remaining amount). Approximately merely 10.28% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
LSTR's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 50.81% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
INFO, MATW, WAB, FSTR, and BRC can be thought of as valuation peers to LSTR, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
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