This is a step-by-step stock review to answer the question, is Landstar (LSTR) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Landstar (LSTR) stock a good buy?
1. Landstar Company History
When investing in stocks, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.
- Founded in 1988 through a merger of several trucking companies.
- Headquarters: Located in Jacksonville, Florida.
- Business Model: Operates as a non-asset-based provider of transportation services, leveraging a network of independent agents and capacity providers.
- Services: Specializes in truckload, less-than-truckload, expedited, and heavy/specialized freight.
- 1993: Became a publicly traded company on NASDAQ.
- Technology: Invests in advanced logistics technology for tracking and managing freight.
- Safety: Prioritizes safety with robust programs for drivers and equipment.
- Network: Includes thousands of independent owner-operators and third-party capacity providers.
- Awards: Recognized for excellence in logistics and transportation management.
- Sustainability: Implements eco-friendly practices to reduce environmental impact.
- Growth: Expanded services to include international transportation and supply chain solutions.
- Community: Supports various charitable organizations and disaster relief efforts.
- Today: A leading logistics company with a strong reputation for reliability and efficiency.
Landstar’s history showcases its growth from a trucking company merger to a leading logistics provider. With a focus on innovation, safety, and sustainability, Landstar continues to deliver comprehensive transportation solutions to customers worldwide.
2. MOS (Margin of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: watch
- Score: 50/100
- MOS: 1%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Landstar (LSTR) makes money:
- Arranges transportation for businesses using independent drivers and other providers.
- Charges fees for coordinating shipments of various freight types.
- Earns commissions for providing logistics and supply chain solutions.
- Offers extra services like insurance and warehousing for more money.
- Makes money from technology for tracking freight.
- Collects fees from agents and providers in the Landstar network.
Landstar uses these ways to make money and help businesses.
Here are a few of the other companies that Landstar has acquired over the years. This is important because a company will use a “Buy before build” philosophy to go to market faster and add additional streams of revenue. A company with more revenue streams has a more stable business model. Keep in mind, that most companies don’t build new software because it takes too long to go to market and generate revenue.
- N8ID
- ARALOC
- Data443
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Landstar (LSTR) stacks up against other companies.
- Landstar System, Inc. (LSTR) – 50
- Air T, Inc. (AIRTP) – 45
- J.B. Hunt Transport Services, Inc. (JBHT) – 44
- Hub Group, Inc. (HUBG) – 44
- C.H. Robinson Worldwide, Inc.(CHRW) – 39
- Air T, Inc. (AIRT) – 33
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- Frank Lonegro joined Landstar as CFO in 2020.
- He optimized costs and improved operational efficiencies to strengthen Landstar’s financial health.
- Lonegro focused on strategic investments to support long-term growth.
- He enhanced financial transparency to boost investor confidence and company valuation.
- Lonegro implemented advanced financial technologies to streamline processes.
- He played a key role in navigating Landstar through the economic impacts of the COVID-19 pandemic.
- Lonegro supported initiatives to enhance customer service and expand service offerings.
- Under his financial leadership, Landstar maintained strong profitability and stable cash flow.
- He prioritized risk management to ensure Landstar’s financial resilience.
- Lonegro contributed to Landstar’s continued success and competitive position in the logistics and transportation industry.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Landstar (LSTR) 50 /100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Landstar (LSTR) stock a good buy?
Some of the top questions investors can have is Landstar (LSTR) stock a good buy or should I buy Landstar (LSTR) stock?
Investing in Landstar can be a smart move. Landstar is a leading asset-light transportation and logistics company, benefiting from its flexible business model and broad network of independent agents and capacity providers. This model helps minimize overhead costs and adapt to market changes efficiently. The company’s strong financial performance, consistent dividend payouts, and focus on technology and innovation drive growth. However, it faces competition and depends on economic cycles affecting freight demand. Careful analysis of these factors is crucial before investing in Landstar.
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To truly know if Landstar is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
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