DCF Tool

LSTR

Landstar System, Inc. – General Freight Trucking, Local
Landstar System, Inc. is a worldwide, asset-light provider of integrated transportation management solutions delivering safe, specialized transportation services to a broad range of customers utilizing a network of agents, third-party capacity providers and employees. Landstar transportation services companies are certified to ISO 9001:2015 quality management system standards and RC14001:2015 environmental, health, safety and security management system standards. Landstar System, Inc. is headquartered in Jacksonville, Florida.
Analysis Results
Intrinsic Value $225.20
Latest Price $159.40
Relative Value 29% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 10.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 10.4%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 359 334
2023 396 343
2024 438 352
2025 483 362
2026 533 372
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 9930 million. This corresponds to a present value of 6440 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1760 million. Adding in the terminal value gives a total present value of 8200 million.

There are presently 36.4 million outstanding shares, so the intrinsic value per share is 225.2.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,522,900,000
Current Cash 251,300,000
Current Liabilities 1,009,983,000
Current Debt 153,039,000
Non-Cash Working Capital (NCWC) 414,656,000
Change in NCWC 151,809,000
EBIT 505,668,000
Tax Provision 120,168,000
Depreciation and Amortization 49,609,000
Capital Expenditure -23,261,000
Unlevered Free Cash Flow 562,704,646
Current Assets 1,208,175,000
Current Cash 249,354,000
Current Liabilities 806,137,000
Current Debt 110,163,000
Non-Cash Working Capital (NCWC) 262,847,000
Change in NCWC 40,868,000
EBIT 255,532,000
Tax Provision 56,891,000
Depreciation and Amortization 45,855,000
Capital Expenditure -30,626,000
Unlevered Free Cash Flow 253,244,878
Current Assets 997,888,000
Current Cash 319,515,000
Current Liabilities 552,904,000
Current Debt 96,510,000
Non-Cash Working Capital (NCWC) 221,979,000
Change in NCWC -112,796,000
EBIT 298,904,000
Tax Provision 68,060,000
Depreciation and Amortization 44,468,000
Capital Expenditure -19,416,000
Unlevered Free Cash Flow 142,377,203
Current Assets 971,429,000
Current Cash 199,736,000
Current Liabilities 535,818,000
Current Debt 98,900,000
Non-Cash Working Capital (NCWC) 334,775,000
Change in NCWC 80,338,000
EBIT 331,735,000
Tax Provision 73,168,000
Depreciation and Amortization 43,570,000
Capital Expenditure -9,747,000
Unlevered Free Cash Flow 371,980,680
Current Assets 961,203,000
Current Cash 242,416,000
Current Liabilities 548,643,000
Current Debt 84,293,000
Non-Cash Working Capital (NCWC) 254,437,000
Change in NCWC -5,060,000
EBIT 243,968,000
Tax Provision 63,806,000
Depreciation and Amortization 40,560,000
Capital Expenditure -15,586,000
Unlevered Free Cash Flow 199,237,095
Current Assets 737,407,000
Current Cash 178,897,000
Current Liabilities 380,311,000
Current Debt 81,298,000
Non-Cash Working Capital (NCWC) 259,497,000
Change in NCWC 2,776,000
EBIT 223,251,000
Tax Provision 82,107,000
Depreciation and Amortization 35,796,000
Capital Expenditure -22,645,000
Unlevered Free Cash Flow 155,651,523
Current Assets 662,670,000
Current Cash 114,520,000
Current Liabilities 369,537,000
Current Debt 78,108,000
Non-Cash Working Capital (NCWC) 256,721,000
Change in NCWC 29,095,000
EBIT 241,706,000
Tax Provision 91,068,000
Depreciation and Amortization 29,102,000
Capital Expenditure -4,804,000
Unlevered Free Cash Flow 202,906,176
Current Assets 732,328,000
Current Cash 163,944,000
Current Liabilities 410,451,000
Current Debt 69,693,000
Non-Cash Working Capital (NCWC) 227,626,000
Change in NCWC 45,773,000
EBIT 224,372,000
Tax Provision 82,386,000
Depreciation and Amortization 27,575,000
Capital Expenditure -10,539,000
Unlevered Free Cash Flow 203,611,698
Current Assets 682,468,000
Current Cash 180,302,000
Current Liabilities 375,660,000
Current Debt 55,347,000
Non-Cash Working Capital (NCWC) 181,853,000
Change in NCWC -44,131,000
EBIT 176,590,000
Tax Provision 64,457,000
Depreciation and Amortization 27,667,000
Capital Expenditure -6,373,000
Unlevered Free Cash Flow 88,102,248
Current Assets 591,944,000
Current Cash 74,284,000
Current Liabilities 344,339,000
Current Debt 52,663,000
Non-Cash Working Capital (NCWC) 225,984,000
Change in NCWC 43,088,000
EBIT 205,853,000
Tax Provision 72,968,000
Depreciation and Amortization 27,456,000
Capital Expenditure -7,072,000
Unlevered Free Cash Flow 195,239,891

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