Ryder System (R) AI Stock Analysis

• Market Cap: $6.46B
• Dividend Yield: 1.98%
• Average Volume (3M): 422.77K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 1.18
• Revenue Growth: 6.21%
• EPS Growth: 47.05%
• Country: US
• Employees: 50,700
• Sector: Industrials
• Sector Strength: 91
• Industry: Rental & Leasing Services
• EPS (TTM): 2.46
• Shares Outstanding: 41,340,794
• 10 Day Avg. Volume: 380,062
• 30 Day Avg. Volume: 422,773
• PEG Ratio: 3.59
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -49.53
• Enterprise Value/Market Cap: 2.27
• Enterprise Value/Revenue: 0.29
• Enterprise Value/Gross Profit: 5.78
• Enterprise Value/Ebitda: 1.89
• 1Y Price Target: $163.33
• Price Target Upside: 4.51% 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. 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’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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
12.70B	12.64B	11.78B	12.46B	9.66B	8.42B
	Gross Profit
2.54B	2.47B	2.30B	2.84B	1.80B	1.28B
	EBIT
1.09B	1.07B	878.00M	-385.00M	-1.13B	-1.91B
	EBITDA
2.86B	2.90B	2.93B	3.39B	2.70B	2.26B
	Net Income Common Stockholders
502.00M	489.00M	406.00M	867.00M	519.00M	-112.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
151.00M	154.00M	204.00M	267.00M	234.00M	151.30M
	Total Assets
16.42B	16.67B	15.78B	14.39B	13.83B	12.93B
	Total Debt
8.82B	8.88B	8.15B	7.89B	6.58B	6.61B
	Net Debt
8.67B	8.73B	7.94B	7.63B	6.35B	6.46B
	Total Liabilities
13.42B	13.55B	12.71B	11.46B	11.04B	10.68B
	Stockholders Equity
3.00B	3.12B	3.07B	2.94B	2.80B	2.26B
Cash Flow		Free Cash Flow
-121.00M	-418.00M	-881.00M	-321.00M	233.90M	1.03B
	Operating Cash Flow
2.39B	2.27B	2.35B	2.31B	2.18B	2.18B
	Investing Cash Flow
-2.03B	-2.45B	-2.66B	-1.85B	-1.45B	-601.00M
	Financing Cash Flow
-424.00M	153.00M	256.00M	-861.00M	-203.71M	-1.51B

Ryder System Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 156.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 156.28 is above the 20-day moving average (MA) of 144.56, above the 50-day MA of 142.75, and above the 200-day MA of 149.25, indicating a bullish trend. The MACD of 4.42 indicates Negative momentum. The RSI at 65.94 is Neutral, neither overbought nor oversold. The STOCH value of 86.85 is Negative, 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	79 Outperform	$2.85B	12.00	22.80%	1.65%	7.31%	91.99%
GATX	70 Outperform	$5.34B	19.05	11.64%	1.57%	12.07%	11.93%
R	69 Neutral	$6.46B	13.85	16.41%	1.98%	6.21%	47.05%
HRI	68 Neutral	$3.89B	30.61	9.60%	1.96%	8.34%	-63.02%
Sector *	64 Neutral	$4.44B	11.99	5.16%	249.23%	4.01%	-11.87%
HEES	56 Neutral	$3.52B	38.66	15.74%	1.14%	-3.52%	-46.60%
CAR	56 Neutral	$3.97B	8.26	78.26%	―	-2.78%	-296.07%

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.