The Company in a Nutshell
- Ryder has been around since truck leasing became a business.
- Ryder is a leader in transportation and logistics outsourcing.
- Fleet Management Solutions (FMS) (61%) is the most important revenue segment followed by Supply Chain Solutions (SCS) (26%) and Dedicated Transportation Solutions (DTS) (13%).
- We do not cover Ryder System at the moment.
Date Reviewed | N/A |
Company Name | Ryder System Inc |
Symbol | R |
Sector | Industrials |
Industry | Rental & Leasing Services |
Beta | 1.267 |
PRO Rating | 3 |
Dividend Safety | 3 |
Business Model
Ryder System, Inc. is a provider of outsourced logistics and transportation services. The Company provides supply chain, dedicated transportation, and commercial fleet management solutions. It operates through three segments: Fleet Management Solutions (FMS), which provides full service leasing that includes its contractual maintenance offering, commercial rental and maintenance services of trucks, tractors and trailers to customers principally in the United States (U.S.) and Canada; Supply Chain Solutions (SCS), which provides fully integrated port-to-door logistics solutions, including distribution management, dedicated transportation, transportation management, freight brokerage, e-commerce fulfillment, last-mile delivery, contract packaging, and contract manufacturing in North America, and Dedicated Transportation Solutions (DTS), which provides turnkey transportation solutions in the U.S., including dedicated vehicles, professional drivers, management, and administrative support.
Current price | 147.87 |
ROE | 13.45 % |
ROIC | 5.05 % |
Shareholder Yield | 1.05 % |
5-Yr Total Return | 226.40 % |
1-Yr Total Return | 43.40 % |
Next Earnings Date | 10-24-24 |
Latest Quarter Information
What the CEO said:
Ryder delivered solid second-quarter results and continued to outperform prior cycles. Comparable EPS were above our forecast primarily reflecting better-than-expected ChoiceLease results. ROE of 16% demonstrated the increased resilience of our transformed business model and is in line with our expectations for the latter stage of a freight-cycle downturn. Our contractual lease, dedicated, and supply chain businesses generated higher year-over-year earnings. Higher ChoiceLease results and our maintenance cost-savings initiatives benefited FMS. Strong automotive performance benefited SCS.
What we say:
08-08-2024, Ryder reported EPS of $3.00 down from $3.61 in the prior year reflecting weaker market conditions in used vehicle sales and rental. It, however, witnessed higher earnings in contractual lease, supply chain, and dedicated businesses. Q2 revenues grew ~10% benefiting from ~44% growth in its Dedicated Transportation Solutions. Segment revenue - FMS: $1.47B (+1% Y/Y), SCS: $1.34B (+14%), and DTS: $635M (+44%). The company updated its 2024 AEPS forecast to $11.90 - $12.40 and expects to achieve an ROE of 16%-16.5%. It also gave an FCF forecast of ~$150M-$250M and operating revenue growth of ~8% for FY24.
Investment Thesis
We do not cover Ryder for the moment.
Dividend Triangle
5-Yr Rev. Growth | 7.40 % |
5-Yr EPS Growth | 10.15 % |
5-Yr Div Growth | 4.65 % |
Potential Risks
Debt/Equity | 2.30 |
Financial Debt to EBITDA (TTM) | 2.85 |
Current Ratio (Quarterly) | 0.60 |
Credit Score | 21 |
Dividend Growth Perspective
Dividend ($) | 3.24 |
Dividend Yield Fwd | 2.25 % |
Dividend Frequency | Quarterly |
Average 5-Yr Yield | 2.95 % |
Payout Ratio (%) | 30.95 |
Cash Payout Ratio (%) | -18.80 |
DGR 1-Yr | 14.50 |
DGR 3-Yr | 5.90 |
DGR 5-Yr | 4.65 |
DGR Streak | 19 |
Chowder Score | 6.90 |
Next DVD PMT | 09-20-24 |
Valuation
(Data for `ddm_recent_annual_dividend` field are missing to build DDM tables)
Video Tutorial: How to Read the Stock Cards DDM Valuation
Market Cap | 6 B |
PE Ratio | 13.15 |
Fwd PE | 10.90 |
Price to Book Ratio | 2.00 |
DDM Valuation | N/A |
Average 5-Yr PE | 15.27 |
Value Score | 88 |
- All financial metrics are updated weekly.
- The DSR PRO rating and Dividend Safety Score are updated quarterly.
- The analysis (investment thesis, risk potential, dividend growth perspective and DDM calculation) is reviewed every 6 months.
- The PDF format includes only comments (no metrics) and is reviewed every 6 months.