Ryder System (R) AI Stock Analysis

• Market Cap: $6.98B
• Dividend Yield: 1.97%
• Average Volume (3M): 420.96K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 1.21
• Revenue Growth: 1.68%
• EPS Growth: 9.91%
• Country: US
• Employees: 50,700
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 3.57
• Shares Outstanding: 40,376,534
• 10 Day Avg. Volume: 396,963
• 30 Day Avg. Volume: 420,964
• PEG Ratio: 0.61
• Price to Book (P/B): 2.17
• Price to Sales (P/S): 0.53
• P/FCF Ratio: -16.17
• Enterprise Value/Market Cap: 2.37
• Enterprise Value/Revenue: 1.30
• Enterprise Value/Gross Profit: 6.52
• Enterprise Value/Ebitda: 5.44
• 1Y Price Target: $205.60
• Price Target Upside: 21.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $170.00 ▲(0.41% Upside)

Ryder's overall stock score reflects a mix of solid financial performance and strategic initiatives, offset by technical weaknesses and financial risks. The company's focus on asset-light operations and shareholder returns is promising, but high leverage and weak market momentum pose challenges. Valuation remains reasonable, providing some support to the stock.

Positive Factors

Earnings Growth

Consistent earnings growth indicates strong operational performance and effective cost management, which supports long-term profitability and shareholder value.

Supply Chain Sales Pipeline

A robust sales pipeline in the supply chain segment suggests future revenue growth, enhancing Ryder's market position and competitive advantage in logistics.

Free Cash Flow Forecast

Strong free cash flow projections enable strategic investments and shareholder returns, supporting financial stability and growth initiatives.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, particularly in volatile markets, potentially impacting long-term financial health.

Negative Free Cash Flow Growth

Negative free cash flow growth indicates potential liquidity issues, limiting the company's ability to reinvest in growth or reduce debt, affecting future stability.

Used Vehicle Sales Challenges

Declining used vehicle sales prices reflect market challenges, potentially impacting revenue and profitability in the vehicle sales segment.

Ryder System Business Overview & Revenue Model

Company Description

Ryder System, Inc. operates as a logistics and transportation company worldwide. The company operates through three segments: Fleet Management Solutions (FMS), Supply Chain Solutions (SCS), and Dedicated Transportation Solutions (DTS). The FMS segment offers full service leasing and leasing with flexible maintenance options, as well as maintenance services, supplies, and related equipment for operation of the vehicles; commercial vehicle rental services; and contract or transactional maintenance services of trucks, tractors, and trailers, as well as fleet support services. This segment also provides access to diesel fuel; offers fuel planning and tax reporting, cards, and monitoring services, and centralized billing; and sells used vehicles through its 63 retail sales centers and www.ryder.com/used-trucks website. The DTS segment offers equipment, maintenance, drivers, administrative, and additional services, as well as routing and scheduling, fleet sizing, safety, regulatory compliance, risk management, and technology and communication systems support services. The SCS segment comprises distribution management services, such as designing and managing customer's distribution network and facilities; coordinating warehousing and transportation for inbound and outbound material flows; handling import and export for international shipments; coordinating just-in-time replenishment of component parts to manufacturing and final assembly; and offering shipments to customer distribution centers or end customer delivery points, as well as other value added services, such as light assembly of components. This segment also offers transportation management services, such as shipment optimization, load scheduling, and delivery confirmation services; knowledge-based professional services; and e-commerce and last mile services. Ryder System, Inc. was founded in 1933 and is headquartered in Miami, Florida.

How the Company Makes Money

Ryder System generates revenue through multiple key streams. The Fleet Management Solutions segment earns income from the leasing and rental of vehicles, along with maintenance and repair services. Supply Chain Solutions contributes by providing logistics and warehousing services, often through long-term contracts with clients. The Dedicated Transportation Solutions segment generates revenue by offering customized transportation services tailored to specific customer needs. Additionally, Ryder benefits from strategic partnerships with various companies that enhance its service offerings and operational efficiency, including collaborations with technology providers to improve logistics and fleet management capabilities.

Ryder System Financial Statement Overview

Summary

Ryder System demonstrates solid profitability and operational efficiency, with stable revenue growth and healthy margins. However, high leverage and negative free cash flow growth highlight potential financial risks. The company needs to focus on improving cash flow management and reducing debt to enhance financial stability and support future growth.

Income Statement

Ryder System shows a stable revenue growth rate of 2.4% TTM, with a consistent increase in gross profit margin to 25.7% TTM. The net profit margin is modest at 3.96% TTM, indicating profitability but with room for improvement. EBIT and EBITDA margins are healthy, reflecting efficient operations. However, the revenue growth has slowed compared to previous years, suggesting potential market saturation or increased competition.

Balance Sheet

The company has a high debt-to-equity ratio of 2.54 TTM, indicating significant leverage, which could pose a risk if not managed carefully. Return on equity is strong at 16.34% TTM, showing effective use of equity to generate profits. However, the equity ratio is low, suggesting a reliance on debt financing, which could impact financial stability in volatile markets.

Cash Flow

Ryder System's cash flow analysis reveals challenges, with negative free cash flow growth and a negative free cash flow to net income ratio, indicating potential liquidity issues. The operating cash flow to net income ratio is close to 1, suggesting that operating cash flow is just covering net income, leaving limited room for reinvestment or debt reduction.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.68B	12.64B	11.78B	12.01B	9.66B	8.42B
Gross Profit	2.53B	2.42B	2.26B	2.39B	1.80B	1.28B
EBITDA	3.03B	2.79B	2.93B	3.39B	2.70B	2.26B
Net Income	502.00M	489.00M	406.00M	867.00M	519.00M	-122.77M
Balance Sheet
Total Assets	1.43B	16.67B	15.78B	14.39B	13.83B	12.93B
Cash, Cash Equivalents and Short-Term Investments	189.00M	154.00M	204.00M	267.00M	234.00M	151.30M
Total Debt	7.86B	8.88B	8.15B	7.08B	6.94B	6.88B
Total Liabilities	13.45B	13.55B	12.71B	11.46B	11.04B	10.68B
Stockholders Equity	3.09B	3.12B	3.07B	2.94B	2.80B	2.26B
Cash Flow
Free Cash Flow	-88.00M	-418.00M	-881.00M	-321.00M	233.90M	1.03B
Operating Cash Flow	2.40B	2.27B	2.35B	2.31B	2.18B	2.18B
Investing Cash Flow	-2.38B	-2.45B	-2.66B	-1.85B	-1.45B	-601.00M
Financing Cash Flow	88.00M	153.00M	256.00M	-861.00M	-203.71M	-1.51B

Ryder System Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 169.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 169.3 is below the 20-day moving average (MA) of 171.22, below the 50-day MA of 180.23, and above the 200-day MA of 162.91, indicating a neutral trend. The MACD of -3.04 indicates Negative momentum. The RSI at 42.44 is Neutral, neither overbought nor oversold. The STOCH value of 64.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for R.

Ryder System Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GATX	68 Neutral	$5.61B	18.38	11.93%	1.54%	10.66%	13.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HRI	63 Neutral	$4.64B	―	-4.05%	1.98%	19.40%	-120.47%
R	61 Neutral	$6.98B	14.66	16.26%	1.97%	1.68%	9.91%
WSC	61 Neutral	$3.31B	15.03	21.15%	1.15%	-3.64%	867.62%
MGRC	58 Neutral	$2.54B	17.50	12.70%	1.87%	4.77%	-35.44%
CAR	41 Neutral	$5.04B	―	―	―	-1.22%	-639.34%

Ryder System Corporate Events

Ryder System’s Earnings Call: Growth Amid Challenges

Ryder System’s recent earnings call painted a picture of balanced optimism, underscored by consistent earnings growth and a robust supply chain sales pipeline. The company has effectively deployed capital, yet it faces challenges in rental demand, used vehicle sales, and supply chain network performance. While Ryder’s achievements are noteworthy, the headwinds in certain segments temper the overall outlook.

Ryder System Reports Steady Q3 2025 Earnings Growth

Ryder System, Inc. is a prominent company specializing in supply chain, dedicated transportation, and fleet management solutions, serving various industries with advanced logistics and transportation services. In its third-quarter 2025 earnings report, Ryder System, Inc. reported a slight increase in GAAP EPS from continuing operations to $3.33, marking a 2% rise from the previous year, while comparable EPS saw a 4% increase to $3.57. The company’s total revenue remained stable at $3.2 billion, with operating revenue experiencing a modest 1% growth, driven by contractual revenue growth in its Supply Chain Solutions and Fleet Management Solutions segments. Key financial highlights include an 11% increase in earnings before tax for Fleet Management Solutions, despite challenges in used vehicle sales and rental markets. Supply Chain Solutions saw a 5% revenue increase, although earnings before tax decreased by 8% due to e-commerce network performance and medical costs. Dedicated Transportation Solutions faced a 10% revenue decline, with earnings before tax remaining steady, reflecting acquisition synergies offset by a reduced fleet count. Looking ahead, Ryder System’s management remains optimistic about achieving earnings growth in 2025, supported by strategic initiatives, lease pricing, and maintenance cost-saving measures, despite a muted freight market environment.

Ryder System Reports Q3 2025 Financial Results

Ryder System, Inc. reported its third-quarter 2025 financial results, highlighting a 2% increase in GAAP EPS from continuing operations and a 4% rise in comparable EPS, driven by higher contractual earnings and share repurchases. The company maintained total revenue at $3.2 billion, with a slight increase in operating revenue due to growth in its Supply Chain Solutions and Fleet Management Solutions segments. Despite challenges in the freight market, Ryder’s strategic initiatives and strong customer relationships have enabled consistent earnings growth and a 17% adjusted return on equity, positioning the company well for continued success in 2025.

The most recent analyst rating on (R) stock is a Buy with a $225.00 price target. To see the full list of analyst forecasts on Ryder System stock, see the R Stock Forecast page.