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Ryder System (R)
NYSE:R
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Ryder System
(NYSE:R)70Outperform
Positive Factors
Earnings
Ryder delivered a solid operating beat with EPS growing 17% year over year, exceeding the median flat growth expectation.
Guidance
FY25 guidance came in ahead of expectations, driven by idiosyncratic initiatives that should result in double-digit percentage EPS growth.
Negative Factors
Sales
Management noted near-term sales headwinds from delayed customer decisions and is not seeing an upturn yet.
Ryder System (R) vs. S&P 500 (SPY)
Market Cap
$6.92B
Dividend Yield1.91%
Average Volume (3M)392.88K
Price to Earnings (P/E)14.9
Beta (1Y)1.37
Revenue Growth7.25%
EPS Growth25.82%
CountryUS
Employees50,700
SectorIndustrials
Sector Strength66
IndustryCorporate Services
Share Statistics
EPS (TTM)11.04
Shares Outstanding42,084,927
10 Day Avg. Volume392,308
30 Day Avg. Volume392,879
Financial Highlights & Ratios
PEG Ratio0.58
Price to Book (P/B)N/A
Price to Sales (P/S)0.55
Price to Cash Flow (P/CF)3.10
P/FCF Ratio2.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$181.75Price Target Upside18.49% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Ryder System Business Overview & Revenue Model
Company DescriptionRyder System, Inc. is a leading logistics and transportation company headquartered in Miami, Florida. The company operates in three core business segments: Fleet Management Solutions, Supply Chain Solutions, and Dedicated Transportation Solutions. Ryder offers a comprehensive range of services including commercial truck rental, fleet management, and supply chain management, providing businesses with the tools needed for efficient logistics and transportation operations.
How the Company Makes MoneyRyder System makes money primarily through its three business segments. Fleet Management Solutions generates revenue by leasing and maintaining commercial trucks and vehicles for businesses, offering rental services and maintenance programs. Supply Chain Solutions contributes to revenue by providing end-to-end logistics and supply chain management services, including warehousing, distribution, and transportation management. Dedicated Transportation Solutions offers customized transportation services where Ryder manages and operates a fleet dedicated to a single customer's specific needs. The company also benefits from strategic partnerships and long-term contracts with businesses across various industries, which provide a stable and recurring revenue stream.
Ryder System Financial Statement Overview
Summary
Ryder System demonstrates strong revenue growth and improving net profit margins, highlighting efficient cost management despite increased operating expenses. The balance sheet shows high leverage, typical for its industry, with an improving ROE indicating enhanced profitability from equity. Cash flow remains a concern with negative free cash flow, although operating cash flow is strong, suggesting the company is capable of generating cash but faces investment and expenditure challenges.Income Statement
Ryder System has shown a solid revenue growth of 7.23% in 2024 compared to 2023, with a consistent gross profit margin around 43.8% in 2024. However, the EBIT margin decreased to 3.87% from 7.45% in 2023, indicating increased operating expenses or cost pressures. Despite this, the net profit margin improved to 3.87% from 3.45% in the previous year, suggesting effective cost management in other areas.75
Positive
Balance Sheet
The company's debt-to-equity ratio stands at 2.50 in 2024, indicating high leverage, which can be risky but is common in capital-intensive industries. The return on equity (ROE) improved to 15.69% from 13.23% in 2023, reflecting better profitability. The equity ratio is relatively stable at 18.7%, suggesting a balanced capital structure, though slightly more reliant on debt.70
Positive
Cash Flow
Ryder System's free cash flow remained negative at -$418 million in 2024, although improved from -$881 million in 2023, highlighting challenges in capital expenditure management. The operating cash flow to net income ratio is robust at 4.63, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio remains negative, pointing to ongoing investment needs or cash flow management issues.60
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 11.19B | 12.64B | 11.78B | 12.46B | 9.66B | 8.42B | Gross Profit |
| 2.37B | 2.47B | 2.30B | 2.84B | 1.80B | 1.28B | EBIT |
| 269.78M | 489.00M | 878.00M | -385.00M | -1.13B | -1.91B | EBITDA |
| 3.10B | 2.90B | 2.93B | 3.39B | 2.70B | 2.26B | Net Income Common Stockholders |
| 734.20M | 489.00M | 406.00M | 867.00M | 519.00M | -112.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 154.00M | 154.00M | 204.00M | 267.00M | 234.00M | 151.30M | Total Assets |
| 16.67B | 16.67B | 15.78B | 14.39B | 13.83B | 12.93B | Total Debt |
| 7.78B | 7.78B | 8.15B | 7.89B | 6.58B | 6.61B | Net Debt |
| 7.63B | 7.63B | 7.94B | 7.63B | 6.35B | 6.46B | Total Liabilities |
| 13.55B | 13.55B | 12.71B | 11.46B | 11.04B | 10.68B | Stockholders Equity |
| 3.12B | 3.12B | 3.07B | 2.94B | 2.80B | 2.26B |
| Cash Flow | Free Cash Flow | ||||
| -85.17M | -418.00M | -881.00M | -321.00M | 233.90M | 1.03B | Operating Cash Flow |
| 2.15B | 2.27B | 2.35B | 2.31B | 2.18B | 2.18B | Investing Cash Flow |
| -1.90B | -2.45B | -2.66B | -1.85B | -1.45B | -601.00M | Financing Cash Flow |
| -54.74M | 153.00M | 256.00M | -861.00M | -203.71M | -1.51B |
Ryder System Technical Analysis
Negative
153.39
Price Trends
159.68
Negative
157.90
Negative
143.90
Positive
Market Momentum
-0.32
Positive
39.64
Neutral
24.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For R, the sentiment is Negative. The current price of 153.39 is below the 20-day moving average (MA) of 160.93, below the 50-day MA of 159.68, and above the 200-day MA of 143.90, indicating a neutral trend. The MACD of -0.32 indicates Positive momentum. The RSI at 39.64 is Neutral, neither overbought nor oversold. The STOCH value of 24.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for R.
Ryder System Risk Analysis
Ryder System disclosed 25 risk factors in its most recent earnings report. Ryder System reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ryder System Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $6.92B | 14.88 | 15.69% | 1.91% | 7.25% | 25.82% | |
68 Neutral | $37.51B | 32.22 | 27.94% | 0.59% | -0.88% | -2.79% | |
66 Neutral | $14.42B | 36.99 | 24.17% | ― | 4.22% | 105.29% | |
65 Neutral | $16.12B | 29.01 | 14.22% | 1.10% | -5.79% | -20.32% | |
62 Neutral | $7.76B | 66.01 | 1.65% | 1.30% | 3.76% | -46.10% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% | |
57 Neutral | $4.45B | 38.20 | 3.92% | 1.46% | -3.79% | -50.29% |
* Industrials Sector Average
Performance Comparison
R
Ryder System
153.39
43.27
39.29%
XPO
XPO
116.80
-6.52
-5.29%
JBHT
JB Hunt
157.62
-40.48
-20.43%
KNX
Knight Transportation
47.88
-6.99
-12.74%
ODFL
Old Dominion Freight
175.00
-39.17
-18.29%
SNDR
Schneider National
25.38
3.17
14.27%
Ryder System Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: -2.55% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Positive
The earnings call reflects a company that is successfully navigating a challenging market environment with strong comparable earnings growth and strategic acquisitions driving revenue. However, weak rental market conditions and declining used vehicle sales proceeds present challenges. Despite these lowlights, the overall sentiment is positive, driven by strong financial metrics and a promising outlook for 2025.Highlights
Record Comparable Earnings Growth
The fourth quarter 2024 marked the first quarter in the last eight with year-over-year comparable earnings growth. Comparable earnings per share reached $3.45, up from $2.95 the prior year, indicating double-digit earnings growth in all business segments.
Strong Return on Equity
Ryder System, Inc. achieved an adjusted return on equity of 16% for 2024, reflecting resilience despite challenging freight market conditions.
Revenue Growth Driven by Acquisitions
Operating revenue grew 8% in 2024, driven by the acquisitions of Cardinal Logistics and IFS, and a strategic shift towards asset-light businesses.
Shareholder Returns
Ryder System, Inc. returned $456 million to shareholders through share repurchases and dividends in 2024, with a 14% increase in dividends.
2025 Earnings Growth Outlook
The forecast for 2025 indicates a 17% increase in comparable earnings per share, with an expected ROE of 17% to 18%.
Lowlights
Weak Rental Market Conditions
Rental demand remained low, with utilization on the powered fleet at 73%, down from 75% the prior year. Rental results also reflected weak market conditions.
Decline in Used Vehicle Sales Proceeds
Proceeds from used tractor sales declined 13% and used truck sales declined 12% year-over-year in the fourth quarter.
Lower Growth in Supply Chain and Dedicated Segments
Near-term sales headwinds in the supply chain and dedicated segments are expected due to freight cycle conditions and economic uncertainty.
Uncertainty from Tariffs and Trade Policy
Economic uncertainty, including tariffs and trade policy, continues to create headwinds for long-term contracts and sales growth.
Company Guidance
During the Ryder System, Inc. fourth quarter 2024 earnings call, guidance was provided with several key metrics highlighted. The company reported comparable earnings per share of $12 for 2024, reflecting a significant increase from $5.95 in 2018. The adjusted return on equity (ROE) for 2024 was 16%, and operating revenue grew by 8%, driven by recent acquisitions such as Cardinal Logistics and IFS. The company returned $456 million to shareholders through share repurchases and dividends, and it expects operating revenue to grow by approximately 2% in 2025. The forecast for 2025 includes comparable earnings per share of $13 to $14, ROE between 17% and 18%, and free cash flow between $300 million and $400 million. The strategic focus remains on capital deployment for profitable growth and shareholder returns, with a planned $2.7 billion in capital expenditures for 2025.Ryder System Corporate Events
Business Operations and StrategyFinancial Disclosures
Ryder System Reports Strong Q4 2024 Financial Results
Positive
Feb 12, 2025
Ryder System, Inc. announced its financial results for the fourth quarter of 2024, showing notable growth in earnings across all business segments. The company reported a GAAP EPS from continuing operations of $3.11, up from $2.74 the previous year, and a comparable EPS (non-GAAP) of $3.45, up from $2.95. Total revenue increased by 5% to $3.2 billion, while operating revenue rose by 7% to $2.6 billion. For the full year 2024, Ryder saw a GAAP EPS increase to $11.06 from $8.73, with total revenue climbing 7% to $12.6 billion. Ryder’s 2025 forecast anticipates a further increase in operating revenue and continued positive cash flow, despite challenges in the rental and used vehicle sales markets. CEO Robert Sanchez highlighted the company’s robust performance amid freight market headwinds, attributing success to strong contractual lease, supply chain, and dedicated business growth.
Executive/Board ChangesBusiness Operations and Strategy
Ryder System Announces Key Leadership Changes for 2025
Positive
Dec 16, 2024
Ryder System, Inc. has appointed John J. Diez as President and Chief Operating Officer, effective January 1, 2025. Diez, who has been with the company for 22 years, will oversee the general management of all business segments. Cristina Gallo-Aquino will succeed Diez as Executive Vice President and Chief Financial Officer, continuing her role as Principal Accounting Officer. These leadership changes reflect Ryder’s commitment to talent development and are expected to enhance the company’s operational efficiency and strategic growth.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.