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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on R

Ryder System, Inc.'s recent performance was positively driven by strategic initiatives and resilient supply chain and dedicated transportation segments. The company's Q4 FY25 adjusted EPS of $3.59 beat estimates. Its contractual revenue, with ~90% of revenue coming from contracts with 3-7 year terms, provides a defensive and stable earnings profile. Technology platforms like RyderShare and RyderGyde drive customer stickiness and structural growth. Analysts have a "Moderate Buy" consensus rating on the stock, with 8 buy ratings and 2 hold ratings.

1.c. Company Highlights

2. Ryder System's 2025 Earnings: A Year of Transformation

Ryder System's fourth-quarter 2025 operating revenue was $2.6 billion, in line with the prior year, as contractual revenue growth in Supply Chain Solutions (SES) was offset by lower revenue in Dedicated Transportation Services (DTS) and Fleet Management Solutions (FMS). Comparable earnings per share from continuing operations were $3.59, up 4% from the prior year, but slightly below analyst estimates of $3.66. The company's return on equity, a primary financial metric, was 17%, up from the prior year, driven by benefits from share repurchases and dividends.

Publication Date: Feb -14

📋 Highlights
  • Revenue Mix Shift:: 62% of 2025 revenue came from supply chain and dedicated (asset-light businesses), up from 44% in 2018.
  • Earnings Growth:: 2025 comparable EPS reached $12.92, doubling from $5.95 in 2018 despite freight market troughs.
  • 2026 EPS Outlook:: Projected EPS growth of up to 12% to $14.45, driven by $70M in strategic initiative benefits.
  • Capital Allocation:: $500M expected from used vehicle sales in 2026, with $1.9B in capital expenditures planned.
  • Cycle Recovery Impact:: Anticipated $250M pretax earnings boost by next cycle peak from FMS recovery and omnichannel growth.

Revenue Mix Shift and Margin Performance

The company's revenue mix has shifted towards supply chain and dedicated, with 62% of its 2025 revenue generated by these asset-light businesses, compared to 44% in 2018. This strategic shift has contributed to the company's ability to deliver meaningfully higher earnings and returns, even during the prolonged freight downturn. The company's focus on profitable growth and strategic investments is expected to continue driving earnings growth in 2026.

Outlook for 2026

Ryder System expects operating revenue to grow approximately 3% in 2026, driven by revenue growth from new business and supply chain, offset by near-term pressures in dedicated and fleet management. Comparable EPS is expected to increase by 12% at the high end of the forecast range, driven by $70 million of benefits from strategic initiatives. The company's guidance doesn't reflect the current positive PMI print, but it expects a six-month lag before market conditions improve in rental.

Valuation and Growth Prospects

With a P/E Ratio of 17.44 and an ROE of 40.43%, the company's valuation appears reasonable, considering its growth prospects. Analysts estimate revenue growth at 6.1% next year, indicating a positive outlook for the company's top-line performance. The company's focus on strategic initiatives, including lease pricing and maintenance cost-saving initiatives, is expected to drive earnings growth and increase returns in 2026.

3. NewsRoom

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Medicus Pharma To Discuss Positive Skinject(R) Phase 2 Topline Results In Fireside Chat Hosted By Brookline Capital Markets Biotechnology Equity Research Analyst

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Zomedica Announces Strategic Collaboration with Boehringer Ingelheim to Expand Equine Endocrine Diagnostic Testing Using TRUFORMA(R) Platform

Mar -18

Source: accessnewswire.com

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Ryder System, Inc. (R) Presents at JPMorgan Industrials Conference 2026 Transcript

Mar -17

Source: seekingalpha.com

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THERMAL-XR(R) Sales in the United States to Commence After GMG Receives U.S. EPA Approval

Mar -16

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.57%)

6. Segments

Fleet Management Solutions

Expected Growth: 8%

Ryder System's Fleet Management Solutions growth is driven by increasing demand for outsourced logistics, rising adoption of digital fleet management technologies, and growing need for cost savings and efficiency in transportation. Additionally, the company's investments in electrification, autonomous vehicles, and data analytics are enhancing its offerings, further fueling growth.

Supply Chain Solutions

Expected Growth: 9%

Ryder System's Supply Chain Solutions segment growth is driven by increasing demand for e-commerce fulfillment, rising need for inventory management and visibility, and growing adoption of omnichannel retailing. Additionally, the company's investments in digital technologies, such as robotics and artificial intelligence, are enhancing operational efficiency and driving growth.

Dedicated Transportation Solutions

Expected Growth: 10%

Ryder's Dedicated Transportation Solutions growth is driven by increasing demand for customized logistics, e-commerce growth, and need for cost savings. Additionally, the rise of the gig economy, urbanization, and the need for flexible capacity solutions contribute to this growth. Furthermore, Ryder's expertise in fleet management, maintenance, and technology integration also support this growth.

Eliminations

Expected Growth: 7%

Ryder System, Inc.'s 7% growth is driven by increasing demand for logistics and transportation services, fueled by e-commerce growth and supply chain complexity. Additionally, the company's investments in digitalization, fleet modernization, and strategic acquisitions have improved operational efficiency and expanded its customer base.

7. Detailed Products

Ryder ChoiceLease

A flexible, medium-term lease solution that combines the benefits of leasing with the flexibility to return or purchase the vehicle at the end of the term.

Ryder SelectLease

A long-term lease solution that provides a fixed monthly payment and a set lease term, with the option to purchase the vehicle at the end of the lease.

Ryder Dedicated

A customized transportation solution that provides dedicated vehicles and drivers to meet specific business needs.

Ryder Supply Chain Solutions

A comprehensive logistics solution that integrates transportation, warehousing, and distribution services to optimize supply chain efficiency.

Ryder Last Mile

A customized last-mile delivery solution that provides flexible, same-day, or next-day delivery options for businesses.

Ryder Used Vehicle Sales

A platform for buying and selling used commercial vehicles, offering a wide range of trucks, tractors, and trailers.

8. Ryder System, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Ryder System, Inc. operates in a niche market, providing transportation and logistics services. While there are substitutes available, such as other logistics companies, Ryder's specialized services and strong brand reputation reduce the threat of substitutes.

Bargaining Power Of Customers

Ryder System, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, Ryder's customized logistics solutions and long-term contracts further reduce customer bargaining power.

Bargaining Power Of Suppliers

Ryder System, Inc. relies on a network of suppliers for fuel, vehicles, and other inputs. While suppliers have some bargaining power, Ryder's scale and diversified supplier base mitigate this threat.

Threat Of New Entrants

The logistics industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This reduces the threat of new entrants and allows Ryder System, Inc. to maintain its market position.

Intensity Of Rivalry

The logistics industry is highly competitive, with several established players competing for market share. Ryder System, Inc. must continually innovate and improve its services to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 74.43%
Debt Cost 6.33%
Equity Weight 25.57%
Equity Cost 10.82%
WACC 7.48%
Leverage 291.01%

11. Quality Control: Ryder System, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Ryder System

A-Score: 5.9/10

Value: 7.2

Growth: 6.8

Quality: 3.0

Yield: 5.0

Momentum: 6.0

Volatility: 7.3

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A-Score: 5.5/10

Value: 3.0

Growth: 4.7

Quality: 6.9

Yield: 6.0

Momentum: 6.0

Volatility: 6.7

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McGrath Rent

A-Score: 5.5/10

Value: 4.7

Growth: 7.7

Quality: 6.7

Yield: 4.0

Momentum: 2.0

Volatility: 8.0

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Avis Budget Group

A-Score: 5.2/10

Value: 8.6

Growth: 5.8

Quality: 3.9

Yield: 1.0

Momentum: 8.5

Volatility: 3.7

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Fortress Transportation

A-Score: 5.0/10

Value: 3.0

Growth: 4.7

Quality: 6.9

Yield: 6.0

Momentum: 6.0

Volatility: 3.3

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FTAI Aviation

A-Score: 4.6/10

Value: 3.0

Growth: 4.7

Quality: 6.9

Yield: 5.0

Momentum: 6.0

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

191.78$

Current Price

191.78$

Potential

-0.00%

Expected Cash-Flows