The Short Answer
Landstar stock (LSTR) is doubtful on the current examined asset-based screen. Freight brokerage and transportation are generally permissible, but the March 28, 2026 filing shows receivables plus cash/assets of 68.26%, above the examined FTSE and MSCI limits. Cargo classification and market-cap methods remain separate questions.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-28; calculated 2026-07-14.
69.266 / 1,602.198
410.952 / 1,602.198
1,093.655 / 1,602.198
2.974 / 1,182.585
- Financial
- Fails
- Overall
- Fails
Debt/assets is 4.32% and liquidity/assets is 25.65%, but receivables plus cash/assets is 68.26%, above the examined 50% limit; investment income/revenue is 0.25%.
- Financial
- Fails
- Overall
- Fails
Receivables plus cash/assets is 68.26%, above the examined MSCI 33.33% total-assets limit; this is not an index-membership claim.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets and identifiable liquidity/assets are below the examined SAC limits; this is a contextual calculation, not an official classification.
- Financial
- Not calculated
- Overall
- Not calculated
A properly licensed reproducible market-cap history is not stored; a spot estimate is not substituted.
Business-activity disclosure
Landstar connects shippers with independent carriers through freight brokerage, truck capacity, rail, ocean and air logistics. Transportation and brokerage are generally permissible, while the filing does not quantify every downstream cargo category into a school-specific prohibited-revenue numerator.
Limitation: The filing does not provide a reproducible market-cap denominator history or a universal prohibited-revenue taxonomy.
Purification
Investment income of 2.974 million is disclosed, but no fixed purification percentage is prescribed; investors should seek qualified guidance.
Inputs, assumptions and primary sources
- Amounts are USD millions from Landstar's March 28, 2026 Form 10-Q.
- Interest-bearing debt is current maturities of 26.121 plus long-term debt of 43.145; operating leases are excluded.
- Cash is 353.255 and short-term investments are 57.697.
- Receivables combine trade accounts receivable of 692.016 and other receivables of approximately 48.384.
- Thirteen-week total revenue is 1,182.585 and investment income is 2.974.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
Investment income is disclosed, but no fixed purification percentage is prescribed by ZakatInvest. Investors should use their chosen scholar or board's treatment.
Sharia Screening Methodology
Islamic scholars use several criteria to screen stocks:
- Business activity screen: Is the company's primary business halal?
- Debt ratio: Total debt / market cap must be under 33%
- Interest income: Interest income / total revenue must be under 5%
- Haram revenue: Revenue from haram sources must be under 5%
- Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)
Landstar's Business Activity
Landstar System operates an asset-light freight transportation network that connects shippers with independent transportation capacity. Its model includes:
- Business Capacity Owners (BCOs): Independent owner-operator truck drivers contracted to Landstar
- Approved Truck Brokerage Carriers: Third-party carriers used to expand network capacity
- Specialty equipment for heavy haul, oversized loads, and hazardous materials
- Air, ocean, and rail intermodal freight services
- Independent commission sales agents who source freight
Freight transportation and brokerage are unambiguously permissible essential services. Goods movement is foundational to economic activity, and Landstar's model creates economic opportunity for thousands of independent operators.
Financial Ratios (March 28, 2026)
Using Landstar's latest Form 10-Q, stated in USD millions:
- Interest-bearing debt / total assets: 4.32% ✅ (69.266 / 1,602.198)
- Cash + short-term investments / total assets: 25.65% ✅ (410.952 / 1,602.198)
- Receivables + cash / total assets: 68.26% ✅ (1,093.655 / 1,602.198)
- Investment income / revenue: 0.25% ✅ (2.974 / 1,182.585)
Debt, liquidity and investment-income ratios are within the examined limits, but the receivables-plus-cash ratio fails. Receivables include trade and other receivables reported in the filing.
Concerns to Be Aware Of
1. Interest Income on Cash
Landstar reports 2.974 million of investment income. That disclosed amount is not a universal purification prescription; investors should seek qualified guidance.
No fixed percentage is stated here because purification treatment differs across scholars and methodologies.
2. Cyclical Freight Demand
Freight demand is cyclical and tied to broader economic activity. This is a financial risk consideration, not a Sharia concern, but Muslim investors using long-horizon strategies should size positions appropriately.
3. Owner-Operator Model Exposure
Landstar's capacity is largely sourced from independent contractors. While this is part of what makes the model so capital-efficient, it does create operational sensitivity to contractor retention and freight rate spreads.
How to Read the Quantitative Result
The examined asset-based screen fails on receivables plus cash under FTSE Yasaar and MSCI. The core freight business remains generally permissible, while cargo-level prohibited revenue and reproducible market-cap methods are not calculated.
Bottom Line
Landstar (LSTR) is doubtful on the current examined screen. Freight logistics is generally permissible, but the receivables-plus-cash ratio fails two examined asset-based methodologies. Re-screen after a successor filing and consult a qualified scholar.
Investors using a different market-cap methodology should not infer a pass without a reproducible calculation and qualified review.
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