Ryder System (R) AI Stock Analysis

• Market Cap: $7.32B
• Dividend Yield: 1.82%
• Average Volume (3M): 383.95K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 1.24
• Revenue Growth: 3.68%
• EPS Growth: 6.61%
• Country: US
• Employees: 50,700
• Sector: Industrials
• Sector Strength: 86
• Industry: Rental & Leasing Services
• EPS (TTM): 3.32
• Shares Outstanding: 40,790,634
• 10 Day Avg. Volume: 527,583
• 30 Day Avg. Volume: 383,948
• PEG Ratio: 8.50
• Price to Book (P/B): 2.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 268.39
• Enterprise Value/Market Cap: 2.06
• Enterprise Value/Revenue: 0.57
• Enterprise Value/Gross Profit: 10.29
• Enterprise Value/Ebitda: 2.43
• 1Y Price Target: $192.13
• Price Target Upside: 8.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 74 Outperform
• Price Target: $205.00 ▲(15.36%Upside)

Ryder System's robust financial performance and strategic initiatives are key strengths, supporting a strong outlook. While technical indicators suggest possible short-term pullback due to overbought conditions, the company's valuation remains fair. The positive earnings call and corporate events further bolster the stock's attractiveness.

Positive Factors

Earnings Growth

Ryder System is on track for one of the highest earnings growth rates in its sector, presenting one of the best risk-reward profiles in the transport industry.

Financial Performance

Ryder System's second-quarter performance exceeded expectations, which is further highlighted by the rare loss on gain from sale being attributed to timing issues that are not expected to recur.

Free Cash Flow

Ryder System's free cash flow guidance has increased significantly, attributed to lower capital expenditures and a bonus depreciation benefit, enhancing the financial outlook.

Negative Factors

Revenue Growth

Management assumes a muted growth environment driving only 2% revenue growth, comfortably below long-term targets, with gains from used vehicles below the prior year.

Sales Headwinds

Management noted near-term sales headwinds from delayed customer decisions and is not seeing an upturn yet.

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 primarily generates revenue through three main segments: Fleet Management Solutions (FMS), Supply Chain Solutions (SCS), and Dedicated Transportation Solutions (DTS). In the FMS segment, Ryder earns money by providing full-service leasing, commercial rental, and maintenance services for trucks and other vehicles. The SCS segment contributes to revenue through comprehensive supply chain management services, including warehousing, distribution, and transportation management. Lastly, the DTS segment generates income by offering dedicated transportation services, where Ryder provides vehicles and drivers to customers on a long-term basis. Strategic partnerships with manufacturers and logistics companies, as well as a focus on technology and innovation, further enhance Ryder's ability to drive earnings across these segments.

Ryder System Financial Statement Overview

Summary

Ryder System shows robust revenue growth and improved operational efficiency with a rising EBIT margin. However, challenges persist in net profit margin and high leverage, which could pose risks in economic downturns. The strong operating cash flow is a positive, but recent free cash flow negativity highlights capital expenditure management issues.

Income Statement

Ryder System has shown strong revenue growth over the past years, with a 31.5% increase in revenue from 2020 to 2025 TTM. The gross profit margin in the TTM period stands at 25.9%, indicating effective cost management. However, the net profit margin is relatively lower at 3.95%, reflecting challenges in translating revenue growth into bottom-line profitability. Despite fluctuations, the EBIT margin has improved to 7.4% in the TTM, showcasing operational efficiency improvements.

Balance Sheet

The company's balance sheet indicates a moderately high debt-to-equity ratio of approximately 2.58, which may pose a risk if revenue declines. Return on Equity (ROE) is at 16.7% in the TTM, reflecting a solid return for shareholders. The equity ratio is relatively low at 18.3%, suggesting a higher reliance on debt financing.

Cash Flow

Ryder's operating cash flow remains robust, with a positive cash flow to net income ratio of 4.76, indicating efficient cash generation relative to net income. However, free cash flow has been negative recently, with a significant improvement from -$881 million in 2023 to -$121 million in 2025 TTM, highlighting challenges in capital expenditure management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.64B	11.78B	12.01B	9.66B	8.42B
Gross Profit	2.47B	2.30B	2.39B	1.80B	1.28B
EBITDA	2.90B	2.93B	3.39B	2.70B	2.26B
Net Income	489.00M	406.00M	867.00M	519.00M	-122.77M
Balance Sheet
Total Assets	16.67B	15.78B	14.39B	13.83B	12.93B
Cash, Cash Equivalents and Short-Term Investments	154.00M	204.00M	267.00M	234.00M	151.30M
Total Debt	8.88B	8.15B	7.08B	6.94B	6.88B
Total Liabilities	13.55B	12.71B	11.46B	11.04B	10.68B
Stockholders Equity	3.12B	3.07B	2.94B	2.80B	2.26B
Cash Flow
Free Cash Flow	-418.00M	-881.00M	-321.00M	233.90M	1.03B
Operating Cash Flow	2.27B	2.35B	2.31B	2.18B	2.18B
Investing Cash Flow	-2.45B	-2.66B	-1.85B	-1.45B	-601.00M
Financing Cash Flow	153.00M	256.00M	-861.00M	-203.71M	-1.51B

Ryder System Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 177.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For R, the sentiment is Positive. The current price of 177.71 is above the 20-day moving average (MA) of 174.34, above the 50-day MA of 161.56, and above the 200-day MA of 154.60, indicating a bullish trend. The MACD of 5.06 indicates Positive momentum. The RSI at 62.55 is Neutral, neither overbought nor oversold. The STOCH value of 64.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for R.

Ryder System Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MGRC	82 Outperform	$3.07B	12.15	23.85%	1.54%	8.78%	117.40%
R	74 Outperform	$7.32B	15.32	16.38%	1.82%	3.68%	6.61%
GATX	72 Outperform	$5.50B	17.63	12.54%	1.53%	11.74%	33.85%
HRI	66 Neutral	$4.10B	143.28	1.41%	2.34%	11.41%	-92.67%
Sector *	65 Neutral	$10.84B	16.29	5.52%	2.09%	3.14%	-29.96%
HEES	56 Neutral	$3.47B	38.00	15.74%	1.16%	-3.52%	-46.60%
CAR	50 Neutral	$5.99B	8.26	78.26%	―	-2.25%	-395.93%

Ryder System Corporate Events

Ryder System Raises Free Cash Flow Forecast

Ryder System, Inc. reported its financial results for the second quarter of 2025, highlighting an 11% increase in GAAP EPS from continuing operations and a 2% rise in operating revenue, driven by growth in its Supply Chain Solutions and Fleet Management Solutions segments. The company raised its free cash flow forecast by $500 million, reflecting strong performance and strategic initiatives, including lease pricing and maintenance cost-saving measures, which are expected to continue benefiting the company throughout 2025.

The most recent analyst rating on (R) stock is a Buy with a $155.00 price target. To see the full list of analyst forecasts on Ryder System stock, see the R Stock Forecast page.