Download PDF

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.

Show Full description

1.b. Last Insights on R

Ryder System, Inc.'s recent performance was impacted by mixed third-quarter results, with earnings surpassing estimates but revenue growth stagnant. The company's contractual earnings and share repurchases drove earnings growth, with a $3.57 per share earnings beat. Despite this, investors may view the stock as undervalued with potential for double-digit EPS growth. A new discretionary and anti-dilutive plan to repurchase shares was authorized, which could boost shareholder value. (Source: Ryder System, Inc. Q3 2025 Earnings Call Transcript)

1.c. Company Highlights

2. Ryder System's Earnings Beat Expectations with Strong Contractual Revenue Growth

Ryder System reported a strong third-quarter 2025 earnings performance, with operating revenue of $2.6 billion, up 1% from the prior year, driven by contractual revenue growth in Supply Chain Solutions (SCS) and Fleet Management Solutions (FMS). The company's comparable earnings per share from continuing operations were $3.57, up 4% from $3.44 in the prior year, beating analyst estimates of $3.56. Return on equity (ROE) was 17%, up from the prior year, reflecting the company's transformed business model and pricing discipline.

Publication Date: Oct -26

📋 Highlights
  • EPS Growth & Revenue Resilience:: Comparable EPS rose 4% to $3.57, with 1% revenue growth ($2.6B) driven by 4% growth in Supply Chain Solutions and stable Fleet Management Solutions revenue.
  • Strong ROE & Shareholder Returns:: ROE reached 17%, up from prior year, while $457M was returned to shareholders via $457M share repurchases (2.2M shares) and dividends in 2025.
  • Strategic Initiatives Impact:: $150M in incremental pretax earnings from strategic initiatives, supporting full-year 2025 EPS guidance of $12.85–$13.05 and $900M–$1B free cash flow.
  • Segment Performance Contrast:: Supply Chain Solutions revenue grew 4% (new omnichannel retail contracts), but earnings fell 8% due to e-commerce costs; Dedicated revenue dropped 6% but earnings held steady.
  • Used Vehicle Pricing Recovery:: Tractor and truck pricing down 6%–15% YoY, but expected modest Q4 improvement as new truck prices rise, alleviating USMCA tariff pressures on foreign-made vehicles.

Segment Performance

FMS operating revenue was in line with the prior year, with pretax earnings of $146 million, up year-over-year. Used vehicle sales pricing declined year-over-year, with tractor pricing down 6% and truck pricing down 15%. Supply Chain operating revenue increased 4%, driven by new business in omnichannel retail, while earnings decreased 8% due to e-commerce network performance and higher medical costs. Dedicated operating revenue decreased 6% due to lower fleet count, but earnings were in line with the prior year.

Outlook and Guidance

For full-year 2025, the company forecasts comparable EPS of $12.85 to $13.05, ROE of 17%, and free cash flow of $900 million to $1 billion. The company expects to realize benefits from strategic initiatives, with incremental pretax earnings benefits of approximately $150 million. Analysts estimate next year's revenue growth at 2.8%, indicating a positive outlook for the company's continued growth.

Valuation Metrics

With a P/E Ratio of 13.37 and ROE of 16.34%, the company's valuation appears reasonable. The P/B Ratio of 2.17 and EV/EBITDA of 4.7 also suggest a relatively attractive valuation. The Dividend Yield of 2.07% provides a stable return for shareholders.

Strategic Initiatives and Industry Trends

The company is investing in technology, including RyderGyde, RyderShare, and RyderShip, which are driving sales activity and making a difference in how the company competes. The CDL regulations are expected to tighten the driver market, benefiting the dedicated business. The company's transformed business model has demonstrated resiliency over the elongated freight cycle downturn, positioning it for continued growth.

3. NewsRoom

Card image cap

Ryder System, Inc. (R) Presents at Goldman Sachs Industrials and Materials Conference 2025 Transcript

Dec -04

Source: seekingalpha.com

Card image cap

Tenon Medical Announces Successful Completion of Initial Cases with New SImmetry(R)+ SI Joint Fusion System

Dec -04

Source: accessnewswire.com

Card image cap

Envoy Medical to Host Fireside Chat with CEO Brent Lucas and the First Acclaim(R) Cochlear Implant Patient

Dec -04

Source: newsfilecorp.com

Card image cap

Ryder Accelerates Southeast Expansion with New Truck Rental and Maintenance Facility in McDonough, Georgia

Dec -04

Source: businesswire.com

Card image cap

Zomedica Expands TRUFORMA(R) Diagnostic Menu with Launch of Equine Progesterone Assay

Dec -04

Source: accessnewswire.com

Card image cap

Edgestream Partners L.P. Buys New Stake in Ryder System, Inc. $R

Dec -03

Source: defenseworld.net

Card image cap

Here's Why Investors Should Give Ryder System Stock a Miss Now

Dec -02

Source: zacks.com

Card image cap

StimCell Energetics Inc. Announces Study into eBalance(R) Device's Impact on Neuronal Mitochondrial Function

Dec -02

Source: accessnewswire.com

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

Stock-Card
McGrath Rent

A-Score: 6.4/10

Value: 4.6

Growth: 7.8

Quality: 6.6

Yield: 4.0

Momentum: 6.5

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
Ryder System

A-Score: 6.3/10

Value: 7.5

Growth: 6.8

Quality: 3.1

Yield: 5.0

Momentum: 8.0

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
FTAI Aviation

A-Score: 5.6/10

Value: 3.0

Growth: 4.7

Quality: 8.5

Yield: 6.0

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
Avis Budget Group

A-Score: 5.6/10

Value: 9.6

Growth: 5.8

Quality: 5.0

Yield: 1.0

Momentum: 9.5

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
Fortress Transportation

A-Score: 5.1/10

Value: 3.0

Growth: 4.7

Quality: 8.5

Yield: 6.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
FTAI Aviation

A-Score: 4.9/10

Value: 3.0

Growth: 4.7

Quality: 8.5

Yield: 5.0

Momentum: 6.5

Volatility: 2.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

184.9$

Current Price

184.9$

Potential

-0.00%

Expected Cash-Flows