TacticScaleWhat Landstar System Does & How It Makes Money (LSTR)
Updated October 2026 · reflects Landstar System's latest reported financials
Asset-light trucking and freight logistics network run by independent agents. Landstar is paid by shippers to move their freight and hires independent agents and third-party carriers to do the hauling, keeping the difference.
How Landstar System makes money
Landstar is paid by shippers to move their freight and hires independent agents and third-party carriers to do the hauling, keeping the difference. A separate insurance segment earns revenue from risk and claims management services and from reinsuring the risks of its independent contractors.
What Landstar System does
Founded in 1988 and based in Jacksonville, Florida, Landstar System manages freight transportation for customers in the United States, Canada, Mexico and elsewhere. Its Transportation Logistics segment covers truckload and less-than-truckload hauling, rail intermodal, air and ocean cargo, and time-critical expedited delivery. It also handles specialized work such as heavy-haul, hazardous materials, temperature-controlled freight, project cargo and customs brokerage. Customers come from automotive parts, building products, metals, chemicals, foodstuffs, retail, electronics and military equipment, among other industries, and some are other transportation companies. Landstar sells its services mainly through a network of independent agents and third-party capacity providers, with employees filling out the rest. That setup lets the company offer broad coverage across many types of freight. A smaller Insurance segment provides risk and claims management services and reinsures the risks of the independent contractors who haul freight for it.
Products & services
- Truckload and less-than-truckload transportation
- Heavy-haul and specialized freight
- Rail intermodal, air and ocean cargo
- U.S.-Canada and U.S.-Mexico cross-border shipping
- Customs brokerage
- Risk and claims management and reinsurance
What is Landstar System worth?
On an owner-earnings DCF, Landstar System's most-likely value is about $161 versus a recent price near $169 (5% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$91) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
Related companies
Heartland Express (HTLD) · ArcBest (ARCB) · Hub (HUBG) · FedEx Freight Holding (FDXF) · Saia (SAIA)