Ryder System Inc (NYSE: R)

Sector: Industrials Industry: Rental & Leasing Services CIK: 0000085961
Market Cap 8.88 Bn
P/B 2.91
P/E 17.80
P/S 0.70
ROIC (Qtr) 7.80
Div Yield % 1.59
Rev 1y % (Qtr) -0.44
Total Debt (Qtr) 7.65 Bn
Debt/Equity (Qtr) 2.50
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About

Ryder System Inc., often referred to as Ryder, operates in the logistics and transportation industry, providing outsourced services that offer significant growth opportunities in secular trends and large addressable markets. The company's main business activities encompass Fleet Management Solutions (FMS), Supply Chain Solutions (SCS), and Dedicated Transportation Solutions (DTS), with revenue generated primarily through the FMS business segment. This segment offers full-service leasing, commercial rental, and maintenance services to customers in...

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Investment thesis

Bull case

  • Operating cash flow of 2.59B provides strong 34.57x coverage of stock compensation 75M, indicating sustainable incentive practices.
  • Strong operating cash flow of 2.59B provides 1.76x coverage of SG&A expenses 1.47B, showing efficient operational cost management.
  • Tangible assets of 14.82B provide robust 11.67x coverage of other current liabilities 1.27B, indicating strong asset backing.
  • Operating cash flow of 2.59B provides solid 0.93x coverage of current liabilities 2.78B, showing strong operational health.
  • Retained earnings of 2.57B represent substantial 0.84x of equity 3.05B, indicating strong internal capital generation.

Bear case

  • Operating cash flow of 2.59B barely covers its investment activities of (1.65B), with a coverage ratio of -1.57, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 2.59B provides thin coverage of dividend payments of (145M) with a -17.88 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 198M provide limited coverage of acquisition spending of (1M), which is -198x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating earnings of 1.09B show weak coverage of depreciation charges of 2.08B, with a 0.52 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 2.08B relative to operating cash flow of 2.59B, which is 0.80x suggests significant maintenance capital requirements affecting free cash flow.

Geographical Breakdown of Revenue (2025)

Industry Sector Breakdown of Revenue (2025)

Peer comparison

Companies in the Rental & Leasing Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 URI United Rentals, Inc. 55.62 Bn 22.30 3.45 15.35 Bn
2 FTAI FTAI Aviation Ltd. 27.80 Bn -179.72 106.00 3.45 Bn
3 AER AerCap Holdings N.V. 26.27 Bn 7.00 3.08 43.57 Bn
4 UHAL U-Haul Holding Co /NV/ 13.75 Bn 106.91 2.29 8.06 Bn
5 GATX Gatx Corp 9.00 Bn 53.16 6.81 9.03 Bn
6 R Ryder System Inc 8.88 Bn 17.80 0.70 7.65 Bn
7 AL Air Lease Corp 7.23 Bn 6.92 2.40 19.73 Bn
8 HRI Herc Holdings Inc 5.00 Bn 5,004.00 1.14 9.68 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.01 1.32
EV to Cash from Ops. EV/CFO 6.38 77.20
EV to Debt EV to Debt 2.16 3.45
EV to EBIT EV/EBIT 15.22 -105.66
EV to EBITDA EV/EBITDA 5.16 20.85
EV to Free Cash Flow [EV/FCF] EV/FCF 17.53 -1.38
EV to Market Cap EV to Market Cap 1.86 3.10
EV to Revenue EV/Rev 1.31 9.87
Price to Book Value [P/B] P/B 2.91 7.72
Price to Earnings [P/E] P/E 17.80 277.95
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 3.44 3.00
Dividend Payout Ratio % Div Payout % (Qtr) 28.30 500.03
Dividend per Basic Share Div per Share (Qtr) 3.44 1.19
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 14.71 6.22
Interest Coverage Int. cover (Qtr) 2.69 -60.94
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 22.65 17.05
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 28.57 54.66
Dividend Growth (1y) % Div 1y % (Qtr) 13.16 0.10
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 2.53 38.63
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 1.68 5.40
EBIT Growth (1y) % EBIT 1y % (Qtr) 3.82 2.84
EBT Growth (1y) % EBT 1y % (Qtr) 3.33 42.60
EPS Growth (1y) % EPS 1y % (Qtr) 7.62 243.85
FCF Growth (1y) % FCF 1y % (Qtr) 615.15 5.41
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 3.36 31.59
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.77 0.54
Cash Payout Ratio Cash Payout (Qtr) 0.03 0.03
Cash Ratio Cash Ratio (Qtr) 0.07 0.21
Current Ratio Curr Ratio (Qtr) 0.89 1.01
Debt to Equity Ratio Debt/Equity (Qtr) 2.50 20.57
Interest Cover Ratio Int Coverage (Qtr) 2.69 -60.94
Times Interest Earned Times Interest Earned (Qtr) 2.69 -60.94
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 25.00 35.32
EBIT Margin % EBIT Margin % (Qtr) 8.58 12.98
EBT Margin % EBT Margin % (Qtr) 5.39 3.50
Gross Margin % Gross Margin % (Qtr) 20.20 42.91
Net Profit Margin % Net Margin % (Qtr) 3.90 1.24