Ryder System (R) AI Stock Analysis

• Market Cap: $5.98B
• Dividend Yield: 2.17%
• Average Volume (3M): 434.67K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 1.14
• Revenue Growth: 6.21%
• EPS Growth: 47.05%
• Country: US
• Employees: 50,700
• Sector: Industrials
• Sector Strength: 79
• Industry: Rental & Leasing Services
• EPS (TTM): 11.43
• Shares Outstanding: 41,340,794
• 10 Day Avg. Volume: 446,698
• 30 Day Avg. Volume: 434,672
• PEG Ratio: 0.27
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.48
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 6.00
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $163.33
• Price Target Upside: 12.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Ryder System's overall stock score reflects its strong financial performance and attractive valuation, offset by technical indicators suggesting bearish trends. The company's strategic initiatives and asset-light business model present opportunities for stable earnings growth, but high leverage and market challenges pose risks. Continued improvement in profitability and effective capital management will be key to enhancing shareholder value.

Positive Factors

Earnings Growth

Ryder delivered a solid operating beat with EPS growing 17% year over year, outperforming the median of flat growth for the sector.

Future Guidance

FY25 guidance came in ahead of expectations, driving the stock higher despite conservative cycle assumptions.

Valuation

Discounted valuation screens favorably in a group where multiples have drifted to cycle highs.

Negative Factors

Investor Sentiment

Investors have been hesitant to underwrite much of Ryder's gains as structural, and this quarter likely does little to help move that forward.

Market Conditions

Q4 EPS outlook is conservatively set below consensus, reflecting weaker market conditions and vehicle sales.

Revenue Growth

Management assumes a muted growth environment with only 2% revenue growth, comfortably below long-term targets.

Ryder System Business Overview & Revenue Model

Company Description

Ryder 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 Money

Ryder 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’s financial performance shows robust revenue growth and improved operational efficiency, as reflected in rising EBIT margins and strong operating cash flow. However, profitability at the net income level remains a challenge, and the company's high leverage could pose risks in less favorable economic conditions. Continued focus on managing capital expenditures and improving net profit margins will be crucial for long-term financial health.

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	12.46B	9.66B	8.42B
	Gross Profit
2.47B	2.30B	2.84B	1.80B	1.28B
	EBIT
1.07B	878.00M	-385.00M	-1.13B	-1.91B
	EBITDA
2.90B	2.93B	3.39B	2.70B	2.26B
	Net Income Common Stockholders
489.00M	406.00M	867.00M	519.00M	-112.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
154.00M	204.00M	267.00M	234.00M	151.30M
	Total Assets
16.67B	15.78B	14.39B	13.83B	12.93B
	Total Debt
8.88B	8.15B	7.89B	6.58B	6.61B
	Net Debt
8.73B	7.94B	7.63B	6.35B	6.46B
	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: 144.71
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Positive. The current price of 144.71 is above the 20-day moving average (MA) of 137.89, above the 50-day MA of 144.42, and below the 200-day MA of 148.27, indicating a neutral trend. The MACD of -1.10 indicates Negative momentum. The RSI at 55.93 is Neutral, neither overbought nor oversold. The STOCH value of 57.34 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	74 Outperform	$2.70B	11.36	22.80%	1.74%	7.31%	91.99%
GATX	71 Outperform	$5.32B	18.89	11.64%	1.57%	12.07%	11.93%
R	69 Neutral	$5.98B	12.66	16.41%	2.17%	6.21%	47.05%
Sector *	64 Neutral	$4.28B	11.80	5.33%	250.46%	4.10%	-9.26%
HRI	61 Neutral	$3.27B	15.53	9.60%	2.32%	8.34%	-63.02%
HEES	56 Neutral	$3.33B	36.43	15.74%	1.21%	-3.52%	-46.60%
CAR	51 Neutral	$3.38B	8.26	78.26%	―	-1.82%	-219.91%

Ryder System Corporate Events

Ryder System Reports 21% Increase in Q1 2025 EPS

Ryder System, Inc. reported a 21% increase in GAAP EPS from continuing operations for the first quarter of 2025, driven by strategic initiatives that bolstered contractual earnings across all segments despite weaker market conditions in rental and used vehicle sales. The company’s total revenue rose by 1% to $3.1 billion, with operating revenue increasing by 2% due to acquisition and contractual revenue growth in Supply Chain Solutions and Fleet Management Solutions. Ryder’s strategic initiatives, including lease pricing and maintenance optimization, are expected to continue yielding benefits throughout 2025, demonstrating the resilience of its business model.

Spark’s Take on R Stock

According to Spark, TipRanks’ AI Analyst, R is a Neutral.

Ryder System’s stock is rated moderately strong, driven by solid financial performance with improving margins and profitability. The company is effectively managing costs and delivering revenue growth through strategic acquisitions. However, high leverage and negative free cash flow present financial management challenges. Technical indicators suggest a bearish trend, but the valuation appears attractive with a low P/E ratio and reasonable dividend yield. The positive earnings call outlook further supports the stock, despite some market challenges.

To see Spark’s full report on R stock, click here.

Ryder System Reports Strong Q4 2024 Financial Results

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.