Landstar System Plummets Following Warning of Difficult Freight Environment
June 24, 2023
🌧️Trending News
The Landstar System ($NASDAQ:LSTR), a global provider of integrated transportation services, has recently seen its stock take a hit following a warning from the company about a difficult freight environment. The news has been devastating for investors, who have watched the stock plunge in the past few days. The company operates a global network of independent agents and third-party capacity providers that provide flexible and reliable transportation services to customers. It provides a full suite of services, including air and ground transportation, expedited freight forwarding, logistics management, and other supply chain services. The company’s stock had been rising steadily in recent months.
However, the warning from Landstar System of a difficult freight environment sent the stock into a tailspin. This has had a negative effect on the company’s revenue, putting pressure on its stock price. The news has been a major blow to investors who had been betting on Landstar System to continue its solid performance. With freight demand expected to remain weak in the coming months, it remains to be seen if Landstar System will be able to recover from the recent drop in its stock price.
Market Price
Shares opened at $171.8 and closed at $172.2, giving a drop of 1.6% from the previous closing price of 175.1. Investors reacted by selling off their shares of Landstar System, causing the stock to decline to its lowest point since September. This comes as the company continues to face challenges in terms of freight volumes, competition, and pricing, all of which have impacted its bottom line. The recent warning by Landstar System has highlighted the need for the company to make adjustments in order to remain competitive in this difficult freight environment. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Landstar System. More…
| Total Revenues | Net Income | Net Margin |
| 6.9k | 384.27 | 5.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Landstar System. More…
| Operations | Investing | Financing |
| 666.73 | -16.46 | -454.18 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Landstar System. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.84k | 902.21 | 26.04 |
Key Ratios Snapshot
Some of the financial key ratios for Landstar System are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 20.1% | 23.7% | 7.4% |
| FCF Margin | ROE | ROA |
| 9.2% | 34.9% | 17.3% |
Analysis
At GoodWhale, we conducted an analysis of LANDSTAR SYSTEM‘s wellbeing and have found that it is a low risk investment in terms of financial and business aspects. Our Risk Rating system has detected only one risk warning in their income sheet, making them a safe and secure option for potential investors. If you’d like to learn more about our findings, please visit our website at goodwhale.com and register to view our full report. More…
Peers
The company offers a full range of services including truckload, less-than-truckload, intermodal, airfreight, ocean freight, and logistics management services. Landstar System Inc’s competitors include Kuehne + Nagel International AG, Tri-Mode System (M) Bhd, Wiseway Group Ltd, and other leading transportation management companies.
– Kuehne + Nagel International AG ($OTCPK:KHNGF)
Kuehne + Nagel International AG is a leading global logistics company that provides innovative and comprehensive supply chain solutions for customers in a wide range of industries. The company’s market cap is 28.7B as of 2022 and its ROE is 76.87%. Kuehne + Nagel has a strong focus on customer service and offers a wide range of logistics services, including transportation, warehousing, and distribution.
– Tri-Mode System (M) Bhd ($KLSE:0199)
Tri-Mode System (M) Bhd is a company with a market cap of 68.06M as of 2022. The company has a ROE of 11.4%. Tri-Mode System (M) Bhd is engaged in the business of providing system solutions and services. The company offers a range of services, including system design, development, integration, implementation, and maintenance. Tri-Mode System (M) Bhd also provides training, support, and consultancy services.
– Wiseway Group Ltd ($ASX:WWG)
Wiseway Group Ltd is a publicly traded company with a market capitalization of $10.87 million as of 2022. The company has a return on equity of -17.59%. Wiseway Group Ltd is engaged in the business of providing logistics and transportation services.
Summary
Landstar System Inc. recently reported a decline in their quarterly results and a warning on the challenging freight environment. This has resulted in the stock dropping sharply. Analysts are cautious about investing in the company, citing factors such as rising fuel costs, increasing competition, weak economic conditions, and stagnant growth as reasons to avoid the stock. While Landstar System Inc. has a strong track record of profitability and a loyal customer base, investors may want to wait for a more favorable market environment before making any decisions about investing in the company.
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