Morningstar Rating

Stock Research and Analysis

by Matthew Young, CFA

Bulls Say

Constrained truckload-industry capacity (linked to the driver shortage) should support favorable pricing conditions for top-shelf domestic highway brokers in the year ahead.
Landstar's vast network of third-party truckload carriers creates a robust value proposition for shippers, particularly during periods of tight supply.
The truck brokerage industry will likely grow faster than the underlying transportation market, driven in part by share gains from asset-based carriers. That is, we expect brokers to continue expanding the level of for-hire trucking freight they process. Read more 

Bears Say

High returns on capital are attracting competition to the 3PL industry, including startups and truck brokerage operations of traditional asset-based truckers like Knight Transportation and J.B. Hunt.
Small brokerage operations once limited in scope are becoming more efficient (and more of a competitive threat) as they are acquired by larger, more capable 3PLs.
Limited driver availability is making it more difficult and costly for Landstar to recruit qualified owner-operators. Read more 

Management

In October 2014, the firm announced that its board of directors picked CFO Jim Gattoni to succeed longtime CEO and chairman Henry Gerkens. Gattoni assumed the CEO role in December 2014. The transition was not a surprise, however, since Gerkens previously   Read more 

Profile

Landstar System is an asset-light third-party logistics provider focused on over-the-road truck transportation (94% of revenue). It also offers rail intermodal (3%) and   Read more 

2 High-Quality Health-Care Bargains 
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Morningstar.com Premium.