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 37th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for LSTR, they are:
Interest coverage, a measure of earnings relative to interest payments, is 61.87; that's higher than 94.96% 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 11.16% 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 47.48% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as LSTR, try JCI, NSSC, WCN, PATI, and TTC.
I'll admit it, dear reader. I'm host to a number of personality flaws. Those who know me know that I can be a bit of a bore when I go on about "the more you pay for something, the lower your subsequent returns will be" blah blah blah. I have...
Patrick Doyle on Seeking Alpha | September 29, 2020
Oppenheimer dives into the update posted by Landstar System (LSTR) via a new SEC filing."Landstar number of loads hauled via truck and truck revenue per load are now anticipated to increase in a 'low single-digit percentage range' y/y in 3Q20. On 7/23/20, Landstar had expected 3Q20 number of loads hauled...
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