Morningstar Rating

Stock Research and Analysis

by Matthew Young, CFA

Bulls Say

We expect constrained truckload-industry capacity to support favorable pricing conditions for top-shelf domestic highway brokers in the year ahead.
Landstar's vast network of third-party truckload carriers crafts a robust value proposition for shippers, particularly during periods of tight supply.
We expect the truck brokerage industry to expand faster than the underlying transportation market, driven by share gains from asset-based carriers and incremental logistics outsourcing among small and midsize shippers. 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.
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.
The driver shortage 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 at the end of December, and Gerkens plans to serve as executive chairman of the board   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 intermodal (3%) and international   Read more 

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