I've been keeping an eye on Landstar System, Inc. (NASDAQ:LSTR) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe LSTR has a lot to offer. Basically, it is a company with great financial health as well as a an impressive history of performance. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on Landstar System here.
Solid track record with excellent balance sheet
LSTR delivered a satisfying double-digit returns of 36% in the most recent year. Unsurprisingly, LSTR surpassed the Transportation industry return of 12%, which gives us more confidence of the company's capacity to drive earnings going forward. LSTR's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that LSTR manages its cash and cost levels well, which is a key determinant of the company’s health. LSTR seems to have put its debt to good use, generating operating cash levels of 8.46x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For Landstar System, I've put together three pertinent factors you should look at:
- 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!
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If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.