Morningstar Rating

Stock Research and Analysis

by Matthew Young, CFA

Bulls Say

Landstar's asset-light model has posted average returns on capital near 30% over the past decade--well above returns generated by most traditional asset-intensive carriers.
The firm's focus on offering a broader portfolio of outsourced supply-chain and transportation management solutions should drive incremental volume through the network over time.
Landstar's vast network of shippers and carriers crafts a robust value proposition. The firm aggregates its buying power to reduce shippers' transportation costs while providing carriers with an attractive source of cargo opportunities. Read more 

Bears Say

High returns on invested capital are attracting competition to the 3PL industry, including startups and truck brokerage operations of traditional asset-based truckers.
Landstar self-insures for a portion of trucking accident claims, adding an element of variability to operating results.
Rising regulation and the related potential for driver shortages across the trucking industry could ultimately constrain Landstar's ability to recruit qualified owner-operators. Read more 

Management

In our view, Landstar possesses a solid management team. CEO Henry Gerkens has been at the helm since 2004, and has held a number of roles (including COO) during his 20-year-plus tenure at the firm. Jim Gattoni has been CFO since early 2007. Senior   Read more 

Profile

Landstar System is an asset-light, third-party logistics provider focused on over-the-road truck transportation (92% of revenue). It also offers intermodal (3%) as well   Read more 

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