These Factors Make Landstar System Inc (NASDAQ:LSTR) A Great Investment
Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Landstar System Inc (NASDAQ:LSTR) due to its excellent fundamentals in more than one area. LSTR is a company with great financial health as well as a a strong track record of performance. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Landstar System here.
Flawless balance sheet with proven track record
LSTR delivered a bottom-line expansion of 56.0% in the prior year, with its most recent earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 34.4% return to shareholders, which is an optimistic signal for the future. LSTR’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. LSTR’s has produced operating cash levels of 1.15x total debt over the past year, which implies that LSTR’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Next Steps:
For Landstar System, I’ve put together three relevant factors you should further research:
Future Outlook: What are well-informed industry analysts predicting for LSTR’s future growth? Take a look at our free research report of analyst consensus for LSTR’s outlook.
Valuation: What is LSTR worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether LSTR is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of LSTR? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
