Ryder System (R) AI Stock Analysis

• Market Cap: $7.76B
• Dividend Yield: 1.75%
• Average Volume (3M): 362.50K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 1.16
• 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: 292,021
• 30 Day Avg. Volume: 362,498
• 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: 2.13
• Enterprise Value/Revenue: 1.30
• Enterprise Value/Gross Profit: 6.52
• Enterprise Value/Ebitda: 5.44
• 1Y Price Target: $219.00
• Price Target Upside: 13.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $212.00 ▲(10.26% Upside)

Ryder System's overall stock score reflects strong earnings growth and strategic initiatives that bolster future prospects. While financial risks due to high leverage and cash flow challenges exist, the company's positive market momentum and reasonable valuation support a favorable outlook. The earnings call further reinforces confidence in Ryder's strategic direction and potential for sustained growth.

Positive Factors

Strategic Initiatives

Ryder's focus on strategic initiatives and capital deployment is likely to enhance its competitive position and support long-term growth.

Leadership Transition

The planned CEO transition to John Diez ensures leadership continuity, which is crucial for maintaining strategic direction and growth momentum.

Contractual Revenue Stability

Ryder's reliance on multiyear contracts provides revenue stability and predictability, supporting long-term financial health and strategic planning.

Negative Factors

High Leverage

Ryder's significant leverage could pose financial risks, limiting flexibility and increasing vulnerability to economic downturns.

Cash Flow Challenges

Negative free cash flow growth indicates potential liquidity issues, which could hinder investment in growth opportunities and debt reduction.

Used Vehicle Sales Weakness

Declining used vehicle sales prices reflect market challenges, potentially impacting Ryder's revenue and profitability in this 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 money by renting and leasing commercial vehicles to businesses, along with providing maintenance and repair services for these vehicles. The Supply Chain Solutions segment derives income from logistics services, including warehousing, distribution, and freight transportation, often through long-term contracts with large corporations. Meanwhile, the Dedicated Transportation Solutions segment focuses on providing customized transportation services, which also includes vehicle leasing and management. Significant partnerships with major retailers and manufacturers enhance Ryder's earnings by ensuring steady demand for its logistics and transportation services. Additionally, Ryder benefits from service contracts that provide recurring revenue, helping stabilize its financial performance.

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	16.55B	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	673.33M	151.29M
Total Debt	8.84B	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	234.00M	1.03B
Operating Cash Flow	2.40B	2.27B	2.35B	2.31B	2.17B	2.18B
Investing Cash Flow	-2.00B	-2.45B	-2.66B	-1.85B	-1.45B	-601.55M
Financing Cash Flow	-381.00M	153.00M	256.00M	-861.00M	-204.00M	-1.51B

Ryder System Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 192.27
• 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 192.27 is above the 20-day moving average (MA) of 192.18, above the 50-day MA of 181.74, and above the 200-day MA of 169.58, indicating a bullish trend. The MACD of 1.97 indicates Positive momentum. The RSI at 55.15 is Neutral, neither overbought nor oversold. The STOCH value of 61.03 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
GATX	75 Outperform	$6.32B	20.70	11.93%	1.41%	10.66%	13.61%
R	73 Outperform	$7.76B	16.31	16.26%	1.75%	1.68%	9.91%
HRI	67 Neutral	$5.29B	-63.22	-4.05%	1.79%	19.40%	-120.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
WSC	62 Neutral	$4.01B	18.23	21.15%	1.44%	-3.64%	867.62%
MGRC	58 Neutral	$2.70B	18.59	12.70%	1.79%	4.77%	-35.44%
CAR	45 Neutral	$4.34B	-2.07	―	―	-1.22%	-639.34%

Ryder System Corporate Events

Ryder System announces board changes and new director

On December 18, 2025, Ryder System, Inc. announced that long-serving director Abbie Smith will retire from its board and not stand for reelection at the company’s 2026 annual shareholders’ meeting, with the company emphasizing that her departure does not stem from any disagreement over operations, policies, or practices and publicly thanking her for her service. As part of its ongoing director succession planning and drive to balance institutional knowledge with fresh perspectives, the board appointed former Southwest Airlines executive vice president and chief financial officer Tammy Romo as an independent director effective January 5, 2026, assigning her to the Audit and Finance Committees and placing her under the company’s standard non-employee director compensation and indemnification arrangements; Ryder highlighted Romo’s deep transportation and financial expertise, along with her governance experience as an independent director at Tenet Healthcare, as strengthening the board’s strategic oversight and stakeholder-focused capabilities.

The most recent analyst rating on (R) stock is a Buy with a $218.00 price target. To see the full list of analyst forecasts on Ryder System stock, see the R Stock Forecast page.

Ryder System Announces CEO Transition and Succession Plan

On December 11, 2025, Ryder System announced that Robert E. Sanchez will retire as CEO on March 31, 2026, transitioning to the role of Executive Chair. John J. Diez, the current President and COO, will succeed Sanchez as CEO and join the board of directors. This leadership change is part of a comprehensive succession plan aimed at ensuring a smooth transition and continued growth for Ryder. The board has approved new compensation packages for both Sanchez and Diez, reflecting their new roles, and has entered into an amended severance agreement with Diez. This transition highlights Ryder’s strategic focus on leadership continuity and its commitment to leveraging its strong industry position to capitalize on growth opportunities in the logistics and transportation sector.

The most recent analyst rating on (R) stock is a Hold with a $203.00 price target. To see the full list of analyst forecasts on Ryder System stock, see the R Stock Forecast page.

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.