One-glance verdict
Overvalued
$64.78 our estimate vs market $279.39
Wall Street consensus: $303.67 (368.8% higher than our fair-value estimate)
331% above our estimate, beyond the bull case
Fundamentals snapshot
Ryder System, Inc.
R · NYQ · Industrials · Rental & Leasing Services
Current price
$279.39
52-week range
$161.41 - $287.00
Market cap
$10.68B
Balance sheet
Distressed
2.74x Stretched
Net debt $7.98B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 3.3% last year.
- Reward Returns 17.2% on equity, ahead of 75% of its peers.
- Risk Stock trades 76.2% above its 5-year average P/E.
- Risk Net debt grew 24.4% over 3 years.
What this company does
Ryder System, Inc.
Ryder System, Inc. is a company that helps other businesses move their stuff around, offering everything from renting trucks and maintaining them to managing warehouses and delivering packages. Their money primarily comes from these services, meaning they make money repeatedly from ongoing contracts, which is important because it shows a steady flow of income for the business. This business model matters because it means Ryder is a key player in making sure goods get to where they need to go, from factories to your doorstep.
How the company got here
Ryder System, Inc. started in 1933 with a single truck hauling concrete. Its founder, James Ryder, quickly realized that businesses preferred to outsource their transportation needs rather than manage their own fleets. This insight led Ryder to pivot towards truck leasing and rental services, a model that formed the foundation of the company. Over the decades, Ryder expanded its services and geographic reach, evolving from a local rental firm into a comprehensive logistics and fleet management provider. Key milestones include going public in 1955 and listing on the New York Stock Exchange in 1960, which fueled further expansion and acquisitions. The company has continuously adapted its business model, moving towards more integrated services and technology to meet the changing demands of the transportation and logistics industry.
What it actually does
Ryder System, Inc. is a company that helps other businesses move their goods. Think of them as a behind-the-scenes partner for companies that need trucks, drivers, warehouses, and help managing their entire delivery process. They offer a range of services that cover everything from getting products from a port to a customer's doorstep. This includes providing vehicles, managing maintenance, operating warehouses, and coordinating transportation. Essentially, Ryder helps businesses keep their supply chains running smoothly so they can focus on making and selling their products.
Fleet Management Solutions (FMS)
This is Ryder's largest business segment, making up about 46.6% of its revenue. FMS is all about providing companies with the vehicles they need to operate. This includes full-service leasing, where Ryder owns and maintains the trucks, and customers use them for their deliveries. They also offer commercial rentals for shorter-term needs and provide maintenance services to keep fleets running efficiently. Essentially, FMS helps businesses access and manage a fleet of vehicles without the hassle of owning and maintaining them themselves.
Supply Chain Solutions (SCS)
This segment, which accounts for about 44% of Ryder's revenue, focuses on managing the entire flow of goods for a company. SCS offers services like warehousing (storing goods), distribution (getting goods to the right places), and transportation management (figuring out the best way to move things). They also handle e-commerce fulfillment, which means getting online orders ready and shipped out, and last-mile delivery, the final step of getting a package to a customer's home. This segment helps businesses streamline their operations from start to finish.
Dedicated Transportation Solutions (DTS)
DTS makes up about 17.9% of Ryder's revenue and offers a more specialized transportation service. In this segment, Ryder provides not just the vehicles and maintenance, but also the professional drivers to operate them. It's a comprehensive solution where Ryder manages all aspects of a company's dedicated transportation needs, ensuring reliability and safety. This allows businesses to have a consistent and professional delivery service without having to hire and manage their own drivers and fleet.
What management is betting on now
Ryder's current strategy focuses on growing its more stable, contract-based businesses like full-service leasing, dedicated transportation, and supply chain services. They are aiming to increase efficiency through better maintenance and technology, and are also investing in areas like e-commerce fulfillment and last-mile delivery to capture growth in those expanding markets. Management is also looking to expand outsourcing solutions for companies that currently manage their own truck fleets. This strategic shift aims to reduce earnings volatility and drive long-term, profitable growth by focusing on higher-return, contractual revenue streams.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$-201.00M
FY2025 Q1
$137.00M
FY2025 Q2
$63.00M
FY2025 Q3
$-85.00M
FY2025 Q4
$344.00M
FY2026 Q1
$156.00M
FY2026 Q2
$272.00M
FY2026 Q3
$182.00M
Revenue
$3.43B
Net income
$162.00M
Diluted EPS
4.15
Operating cash flow
$725.00M
Free cash flow
$182.00M
Fetching…
Sources
Revenue
$3.35B
Net income
$133.00M
Diluted EPS
3.39
Operating cash flow
$677.00M
Free cash flow
$272.00M
Fetching…
Sources
Revenue
$3.13B
Net income
$93.00M
Diluted EPS
2.33
Operating cash flow
$583.00M
Free cash flow
$156.00M
Fetching…
Sources
Revenue
$3.17B
Net income
$132.00M
Diluted EPS
3.22
Operating cash flow
$749.00M
Free cash flow
$344.00M
Fetching…
Sources
Revenue
$3.17B
Net income
$138.00M
Diluted EPS
3.32
Operating cash flow
$442.00M
Free cash flow
$-85.00M
Fetching…
Sources
Revenue
$3.19B
Net income
$131.00M
Diluted EPS
3.13
Operating cash flow
$752.00M
Free cash flow
$63.00M
Fetching…
Sources
Revenue
$3.13B
Net income
$98.00M
Diluted EPS
2.27
Operating cash flow
$651.00M
Free cash flow
$137.00M
Fetching…
Sources
Revenue
$3.19B
Net income
$135.00M
Diluted EPS
3.09
Operating cash flow
$558.00M
Free cash flow
$-201.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $64.78 vs current price $279.39
Wall Street consensus is the average analyst price target: $303.67 (368.8% higher than our fair-value estimate).
Our most-likely fair value is $64.78 a share — about 76.8% below today's price of $279.39, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $8.0B. Interest coverage 2.7x.
Net debt
$7.98B
Interest coverage
2.74x
Ryder System, Inc.'s profit covers its interest bill about 2.7 times over. which is stronger than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
R
BASELINE
Ryder System, Inc.
Total debt $8.18B Interest coverage 2.74x This is the baseline the peer rows are being compared against.
Total debt $9.37B Interest coverage 4.88x +78% vs R Carries about 1.8x more debt cushion than R.
Total debt $8.15B Interest coverage 1.28x -53% vs R Carries about 2.1x less debt cushion than R.
Total debt $12.48B Interest coverage 1.36x -50% vs R Carries about 2.0x less debt cushion than R.
What you should know
The case for and against R
3 Rewards
3 Risks
Rewards
-
Revenue grew 3.3% last year.
-
Returns 17.2% on equity, ahead of 75% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
-
Stock trades 76.2% above its 5-year average P/E.
-
Net debt grew 24.4% over 3 years.
-
Insider ownership is only 3.1% (peer median: 21.2%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
21.28x
Forward P/E
15.41x
P/B
3.59x
P/S
0.82x
EV/EBITDA
6.64x
PEG ratio
0.86x
Profitability
How much profit each dollar creates
Gross margin
19.6%
Operating margin
9.5%
Net margin
4.0%
ROE
17.2%
ROA
4.0%
Health
Liquidity and balance-sheet strength
Debt / equity
2.75x
Current ratio
0.67x
Quick ratio
0.59x
Total debt
$8.18B
Total cash
$198.00M
Growth
How the business has been compounding
Revenue TTM
$13.08B
Revenue 5Y CAGR
7.0%
EPS TTM
13.13
EPS 5Y CAGR
-11.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$2.73B
Free CF TTM
$459.00M
FCF margin
3.5%
Dividend
Shareholder payout
Yield
1.5%
Payout ratio
28.5%
Last ex-div date
2026-11-23