Ryder System (R) AI Stock Analysis

• Market Cap: $7.61B
• Dividend Yield: 1.79%
• Average Volume (3M): 285.75K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 1.24
• Revenue Growth: 3.68%
• EPS Growth: 6.61%
• Country: US
• Employees: 50,700
• Sector: Industrials
• Sector Strength: 73
• Industry: Rental & Leasing Services
• EPS (TTM): 3.32
• Shares Outstanding: 40,790,634
• 10 Day Avg. Volume: 254,810
• 30 Day Avg. Volume: 285,746
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.00
• Enterprise Value/Revenue: 1.20
• Enterprise Value/Gross Profit: 6.09
• Enterprise Value/Ebitda: 5.03
• 1Y Price Target: $192.13
• Price Target Upside: 3.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 78 Outperform
• Price Target: $204.00 ▲(9.41% Upside)

Ryder System's strong financial performance, positive earnings call, and technical indicators contribute to a favorable stock score. The company's strategic initiatives and improved cash flow outlook are significant strengths, while high leverage and market challenges in the freight and used vehicle segments are notable risks.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust business expansion and effective market penetration, supporting long-term stability and competitiveness.

Improved Free Cash Flow

Enhanced free cash flow forecast reflects strong cash generation and financial health, providing flexibility for investments and shareholder returns.

Strategic Initiatives

Strategic initiatives are set to deliver significant earnings benefits, enhancing operational efficiency and supporting long-term growth objectives.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, particularly if revenue streams face disruptions, impacting long-term stability.

Weaker Freight Market

Weak freight market conditions can hinder revenue and profitability in core segments, posing challenges to maintaining growth momentum.

Decline in Used Vehicle Sales

Declining used vehicle sales pricing affects revenue from asset sales, impacting overall profitability and cash flow generation.

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 strong revenue growth and profitability, supported by effective cost management and a solid return on equity. Despite high leverage, the company maintains a stable equity position. Cash flow performance has improved significantly, though high capital expenditures remain a concern.

Income Statement

Ryder System shows strong revenue growth with a 7.9% increase from the previous year, reflecting robust business expansion in the rental and leasing sector. Gross profit margin stands at 32% for TTM, indicating effective cost management. However, there is a slight decline in EBIT margin from 7.7% in 2023 to 6.4% in TTM, suggesting rising operational costs. Net profit margin improved to 4.0% in TTM, up from 3.9% in 2023, indicating enhanced profitability.

Balance Sheet

The company's balance sheet reflects a stable equity position with an equity ratio of 22.3% in TTM, slightly below industry norms due to high leverage. The debt-to-equity ratio is elevated at 2.51, suggesting potential financial risk if income streams are disrupted. Return on equity is solid at 16.5% in TTM, highlighting efficient use of equity to generate profits.

Cash Flow

Ryder exhibits a positive free cash flow in TTM, a significant turnaround from negative values in previous years, indicating improved cash generation. The operating cash flow to net income ratio is robust at 5.1, emphasizing strong cash conversion efficiency. However, the free cash flow to net income ratio is low at 0.06, reflecting high capital expenditures.

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	2.49B	2.42B	2.26B	2.39B	1.80B	1.28B
EBITDA	3.02B	2.79B	2.93B	3.39B	2.70B	2.26B
Net Income	506.00M	489.00M	406.00M	867.00M	519.00M	-122.77M
Balance Sheet
Total Assets	1.38B	16.67B	15.78B	14.39B	13.83B	12.93B
Cash, Cash Equivalents and Short-Term Investments	180.00M	154.00M	204.00M	267.00M	234.00M	151.30M
Total Debt	7.73B	8.88B	8.15B	7.08B	6.94B	6.88B
Total Liabilities	13.40B	13.55B	12.71B	11.46B	11.04B	10.68B
Stockholders Equity	3.07B	3.12B	3.07B	2.94B	2.80B	2.26B
Cash Flow
Free Cash Flow	28.00M	-418.00M	-881.00M	-321.00M	233.90M	1.03B
Operating Cash Flow	2.59B	2.27B	2.35B	2.31B	2.18B	2.18B
Investing Cash Flow	-2.35B	-2.45B	-2.66B	-1.85B	-1.45B	-601.00M
Financing Cash Flow	-41.00M	153.00M	256.00M	-861.00M	-203.71M	-1.51B

Ryder System Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 186.46
• 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 186.46 is above the 20-day moving average (MA) of 184.55, above the 50-day MA of 178.08, and above the 200-day MA of 158.31, indicating a bullish trend. The MACD of 3.12 indicates Positive momentum. The RSI at 58.16 is Neutral, neither overbought nor oversold. The STOCH value of 40.03 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
MGRC	81 Outperform	$3.02B	11.94	23.85%	1.57%	8.78%	117.40%
R	78 Outperform	$7.61B	15.92	16.38%	1.79%	3.68%	6.61%
GATX	74 Outperform	$6.00B	19.26	12.54%	1.41%	11.74%	33.85%
Sector *	63 Neutral	$10.70B	15.26	7.37%	2.02%	2.87%	-14.59%
WSC	62 Neutral	$4.22B	38.76	9.82%	0.89%	-2.34%	-37.24%
HRI	56 Neutral	$4.43B	154.51	1.41%	2.07%	11.41%	-92.67%
CAR	47 Neutral	$5.58B	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.