Is LANDSTAR SYSTEM INC (LSTR) Halal?

NASDAQ Industrials United States $5.4B
✓ HALAL
Confidence: 95/100
LANDSTAR SYSTEM INC (LSTR) is Halal under 4 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 2.6% against the AAOIFI threshold of 30%, LANDSTAR SYSTEM INC comfortably passes the key financial ratio tests. The company operates in the Industrials sector (Integrated Freight & Logistics), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 2.6%
/ 30%
8.7%
/ 30%
13.9%
/ 30%
0.39%
/ 5%
✓ HALAL
DJIM 2.6%
/ 33%
8.7%
/ 33%
13.9%
/ 33%
0.39%
/ 5%
✓ HALAL
MSCI 8.2%
/ 33%
27.6%
/ 33%
44.2%
/ 33%
0.39%
/ 5%
✗ NOT HALAL
S&P 2.6%
/ 33%
8.7%
/ 33%
13.9%
/ 33%
0.39%
/ 5%
✓ HALAL
FTSE 8.2%
/ 33%
27.6%
/ 33%
44.2%
/ 50%
0.39%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
47.4
Forward: 23.4
EPS
$3.30
Dividend Yield
102.0%
Payout: 47.1%
P/B Ratio
6.7
EV/EBITDA
22.0
EV: $5.0B
Revenue
$4.7B
Growth: -2.9%
Beta
0.8
Average volatility
Current Ratio
1.7

Profitability

Gross Margin 19.1%
Operating Margin 2.7%
Net Margin 2.4%
Return on Equity (ROE) 13.0%
Return on Assets (ROA) 6.6%

Cash Flow & Balance Sheet

Operating Cash Flow$225M
Free Cash Flow$215M
Total Debt$133M
Debt-to-Equity16.9
Current Ratio1.7
Total Assets$1.6B

Price & Trading

Last Close$156.37
50-Day MA$153.54
200-Day MA$139.33
Avg Volume564K
Beta0.8
52-Week Range
$119.32
$166.11

About LANDSTAR SYSTEM INC (LSTR)

CEO
Mr. Frank A. Lonegro
Employees
1,378
Sector
Industrials
Industry
Integrated Freight & Logistics
Country
United States
Exchange
NASDAQ
Market Cap
$5.4B
Currency
USD

Landstar System, Inc. provides transportation management solutions in the United States, Canada, Mexico, and internationally. It operates in two segments, Transportation Logistics and Insurance. The Transportation Logistics segment offers a range of transportation services, including truckload, less-than-truckload and other truck transportation, rail intermodal, air cargo, ocean cargo, expedited ground and air delivery of time-critical freight, heavy-haul/specialized, hazardous materials, cold chain/temperature-controlled, U.S.-Canada and U.S.-Mexico cross-border, intra-Mexico, intra-Canada, project cargo, and customs brokerage services, as well as transportation services to other transportation companies, such as third party logistics and less-than-truckload service providers. This segment serves the automotive parts and assemblies, consumer durables, building products, metals, chemicals, foodstuffs, heavy machinery, retail, electronics, military equipment and general commodities industries. The Insurance segment provides risk and claims management services; and reinsures risks of its independent contractors. The company markets its services through a network of agents, third party capacity providers, and employees. Landstar System, Inc. was founded in 1988 and is headquartered in Jacksonville, Florida.

Purification Calculator

As a halal stock with 0.39% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is LANDSTAR SYSTEM INC (LSTR) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), LANDSTAR SYSTEM INC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is LANDSTAR SYSTEM INC's debt ratio?

LANDSTAR SYSTEM INC's debt ratio is 2.6% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 8.2%.

Does LANDSTAR SYSTEM INC require dividend purification?

Yes, LANDSTAR SYSTEM INC has an impermissible income ratio of 0.39%, which means 0.39% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are LANDSTAR SYSTEM INC's key financial metrics?

LANDSTAR SYSTEM INC has a market capitalization of $5.4B, trailing P/E ratio of 47.4, and revenue of $4.7B. The company maintains a gross margin of 19.1% and a net margin of 2.4%. Return on equity stands at 13.0%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.