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

Rising buy-rates for truckload capacity will probably temper gross-profit margins on brokerage business throughout 2014.
High returns on capital are attracting competition to the 3PL industry, including startups and truck brokerage operations of traditional asset-based truckers.
The driver shortage is making it more difficult and costly for Landstar to recruit qualified owner-operators. Read more 

Management

In our view, Landstar enjoys a strong 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 managements'   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%) as well   Read more 

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Doll: High-Single Digits Doable for Earnings and the Market 
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