Landstar System, Inc. (LSTR) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-34.0%

$97.33

vs $147.53 price

Levered DCF

$98.74

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

9.07

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	44.11×	31.64×	26.31×	13.59×	17.02×	27.18×	19.91×	15.46×
P/B	6.37×	6.37×	7.07×	6.6×	7.53×	7.55×	6.28×	5.75×
P/S	1.07×	1.28×	1.31×	0.79×	0.99×	1.26×	1.11×	0.85×
EV / EBITDA	24.28×	19.22×	16.61×	9.29×	11.89×	15.76×	12.79×	10.51×
Gross margin	13.1%	20.2%	21.3%	20.3%	20.2%	20.7%	21.6%	21.1%
Operating margin	3.6%	5.1%	6.5%	7.7%	7.7%	6.1%	7.3%	7.2%
Net margin	2.4%	4.1%	5.0%	5.8%	5.8%	4.6%	5.6%	5.5%
Current ratio	1.75×	1.96×	2×	1.64×	1.51×	1.5×	1.8×	1.81×
Debt / equity	0.17×	0.17×	0.13×	0.34×	0.35×	0.25×	0.23×	0.27×
Interest coverage	170.74×	0×	0×	157.76×	127.18×	63.99×	95.16×	98.91×
Dividend yield	2.5%	1.9%	1.7%	2.0%	1.7%	2.1%	0.6%	2.3%
Payout ratio	108.5%	61.5%	44.3%	26.8%	29.3%	57.0%	12.2%	34.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	14.5%	20.1%	26.9%	48.6%	44.3%	27.8%	31.6%	37.2%
Return on invested capital	12.7%	15.5%	21.5%	35.6%	32.4%	20.4%	23.7%	28.2%
Return on assets	7.0%	10.8%	14.7%	22.3%	18.7%	11.6%	16.0%	18.5%
Free cash flow yield	4.2%	4.1%	5.3%	10.2%	3.9%	3.4%	6.4%	7.3%
Earnings yield	2.3%	3.2%	3.8%	7.4%	5.9%	3.7%	5.0%	6.5%
Enterprise value	$4.8B	$5.8B	$6.6B	$5.8B	$6.6B	$5.2B	$4.4B	$3.9B
Net debt / EBITDA	-1.33×	-1.16×	-0.88×	-0.06×	0.16×	-0.23×	-0.44×	-0.04×
Cash conversion cycle (days)	23	19	20	18	28	37	25	25