📊 AI Stock Rating — Summary

For the quarter ending September 27, 2025, Landstar System, Inc. reported revenues of $1.21 billion, with a net income of $19.36 million and an EPS of $0.56. The net margin stands at approximately 1.6%. The company generated substantial free cash flow of $86.04 million, highlighting strong cash conversion. Year-over-year comparisons indicate steady financial performance, despite modest margins. In terms of growth, Landstar has maintained stable revenue levels with minimal fluctuation. Profitability is modest with relatively low net margins but sufficient to cover operational and strategic initiatives. Strong free cash flow and disciplined capital expenditure suggest prudent financial management. The balance sheet remains healthy with a remarkable net cash position. The leverage is minimal with a debt/equity ratio favorably low, bolstering financial resilience. Returns to shareholders are strong, with consistent dividends and a significant share repurchase program. Over the past year, the share price performance has been positive, indicating market confidence in the company’s strategy. Analyst price targets suggest potential upside, with a high target of $147. Overall, Landstar appears reasonably valued, supported by a conservative financial structure and favorable analyst sentiment.

AI Score Breakdown

Revenue Growth — Score: 6/10

The company's revenue growth is stable but not particularly high, with a consistent revenue stream. However, the main drivers and potential growth catalysts remain less defined in the dataset provided.

Profitability — Score: 5/10

Operating margins are modest, with a net margin of about 1.6%. While EPS is positive, growth appears limited, suggesting room for improving efficiency or profitability.

Cash Flow Quality — Score: 8/10

Free cash flow is strong at $86.04 million, and there is evidence of good liquidity management with consistent dividends and share buybacks, supporting a high-quality cash flow profile.

Leverage & Balance Sheet — Score: 9/10

Exceptional financial resilience with a strong net cash position and low leverage, indicated by significant cash holdings and a healthier debt level.

Shareholder Returns — Score: 8/10

Shareholder returns are enhanced by regular dividends and significant share buybacks. Without precise one-year price change data, it's inferred from strong cash distributions and positive stock sentiment.

Analyst Sentiment & Valuation — Score: 8/10

Analyst targets suggest potential for continued upside, with a favorable consensus compared to current valuations. The stock appears fairly valued, considering the strong balance sheet and analyst confidence.

⚠ AI-generated — informational only, not financial advice.