Is LSTR a high-quality business?

AlphaMadera's AlphaQuality grade scores Landstar System, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how LSTR compares to a Buffett-style quality bar.

What is Landstar System, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to LSTR based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes LSTR a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

LSTR - Landstar System, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $170.75 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

B 69.1 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

B+ 75.5

5yr Avg ROIC 29.8% 100/100
Operating Margin Trend -1.08 pp/yr 18/100

Capital Efficiency

Weight: 15%

A+ 96.6

5yr Avg ROE 34.9% 100/100
5yr Share-Count CAGR -2.4% 90/100

Growth Quality

Weight: 15%

F 10.1

5yr Revenue CAGR -7.7% 5/100
5yr EPS CAGR -24.1% 0/100
Revenue-Growth Years (5) 2/5 40/100

Cash Generation

Weight: 15%

B 71.6

5yr FCF Margin 5.7% 53/100
5yr FCF/NI Conversion 1.32x 95/100

Balance Sheet

Weight: 20%

A+ 100.0

Net Debt / EBITDA -1.61x 100/100
Interest Coverage (EBIT/Int) 152.19x 100/100
Altman Z-Score 11.00 100/100

Stability

Weight: 15%

C- 48.9

EPS Volatility (σ/μ) 0.47 35/100
Piotroski F-Score 7 78/100
Negative-Revenue Years (5) 3/5 40/100

1 of 3 gurus held; 1 trimmed; 2 full exits.

Holders: 1 -2
Avg Δ position: -18.8%
New buys: 0
Full exits: 2

Dalio sold -100%
Wood sold -100%
Greenblatt decreased -19%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.