NYSE:R

Stock Analysis Report

Executive Summary

Ryder System, Inc. provides transportation and supply chain management solutions worldwide.

Snowflake

Fundamentals

6 star dividend payer and fair value.


Similar Companies

Share Price & News

How has Ryder System's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

6.5%

R

5.5%

US Transportation

1.8%

US Market


1 Year Return

-19.9%

R

10.3%

US Transportation

7.3%

US Market

Return vs Industry: R underperformed the US Transportation industry which returned 10.3% over the past year.

Return vs Market: R underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

RIndustryMarket
7 Day6.5%5.5%1.8%
30 Day-2.5%-1.4%-0.7%
90 Day-11.4%-7.6%0.06%
1 Year-16.7%-19.9%12.3%10.3%9.7%7.3%
3 Year-10.1%-17.9%83.3%74.6%46.3%36.9%
5 Year-29.7%-38.5%69.1%54.4%64.5%46.5%

Price Volatility Vs. Market

How volatile is Ryder System's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ryder System undervalued compared to its fair value and its price relative to the market?

8.7x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: R ($51.85) is trading above our estimate of fair value ($34.15)

Significantly Undervalued: R is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: R is good value based on its PE Ratio (8.7x) compared to the Transportation industry average (17.7x).

PE vs Market: R is good value based on its PE Ratio (8.7x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: R is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: R is good value based on its PB Ratio (1.1x) compared to the US Transportation industry average (2x).


Next Steps

Future Growth

How is Ryder System forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

4.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: R's forecast earnings growth (4.5% per year) is above the savings rate (2.7%).

Earnings vs Market: R's earnings (4.5% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: R's earnings are forecast to grow, but not significantly.

Revenue vs Market: R's revenue (3.4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: R's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: R's Return on Equity is forecast to be low in 3 years time (9.9%).


Next Steps

Past Performance

How has Ryder System performed over the past 5 years?

18.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: R's earnings have grown by 18% per year over the past 5 years.

Accelerating Growth: R's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: R had negative earnings growth (-60.1%) over the past year, making it difficult to compare to the Transportation industry average (-40.1%).


Return on Equity

High ROE: R's Return on Equity (12%) is considered low.


Return on Assets

ROA vs Industry: R's Return on Assets is below or equal to the Transportation industry average last year.


Return on Capital Employed

ROCE Improving: R's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Ryder System's financial position?


Financial Position Analysis

Short Term Liabilities: R's short term assets ($1.6B) do not cover its short term liabilities ($2.6B)

Long Term Liabilities: R's short term assets (1.6B) do not cover its long term liabilities (9.3B)


Debt to Equity History and Analysis

Debt Level: R's debt to equity ratio (292.5%) is considered high

Reducing Debt: R's debt to equity ratio has increased from 239.9% to 292.5% over the past 5 years.

Debt Coverage: R's debt is well covered by operating cash flow (23.8%).

Interest Coverage: R's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet

Inventory Level: R has a low level of unsold assets or inventory.

Debt Coverage by Assets: R's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is Ryder System's current dividend yield, its reliability and sustainability?

4.32%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Ryder System before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.3%marketbottom25%1.5%markettop25%3.7%industryaverage1.8%forecastin3Years4.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: R's dividend (4.32%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: R's dividend (4.32%) is in the top 25% of dividend payers in the US market (3.72%)

Stable Dividend: R's dividends per share have been stable in the past 10 years.

Growing Dividend: R's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.2%), R's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: R's dividends in 3 years are forecast to be well covered by earnings (42% payout ratio).


Next Steps

Management

What is the CEO of Ryder System's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Robert Sanchez (54yo)

6.8yrs

Tenure

US$7,351,625

Compensation

Mr. Robert E. Sanchez serves as President at Ryder System, Inc. and has been Chief Executive Officer since January 2013 and Chairman since May 2013 and served as its President from 2012 to 2014, and served ...


CEO Compensation Analysis

Compensation vs. Market: Robert's total compensation ($USD7.35M) is about average for companies of similar size in the US market ($USD5.11M).

Compensation vs Earnings: Robert's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.3yrs

Average Tenure

53yo

Average Age

Experienced Management: R's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

7.1yrs

Average Tenure

61.5yo

Average Age

Experienced Board: R's board of directors are considered experienced (7.1 years average tenure).


Insider Trading

Insider Buying: R insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$107,01428 Aug 19
Luis Nieto
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,293
Max PriceUS$46.67
SellUS$92,26231 May 19
Karen Jones
EntityIndividual
Role
Head of Marketing
Executive VP & Chief Marketing Officer
Shares1,767
Max PriceUS$52.21
SellUS$71,48907 May 19
E. Smith
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,138
Max PriceUS$62.82
BuyUS$114,47009 Nov 18
David Nord
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$57.24

Ownership Breakdown


Management Team

  • Robert Sanchez (54yo)

    Chairman

    • Tenure: 6.8yrs
    • Compensation: US$7.35m
  • Bob Fatovic (53yo)

    Executive VP

    • Tenure: 15.4yrs
    • Compensation: US$1.40m
  • Bob Brunn

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Rajeev Ravindran (53yo)

    Senior VP & Chief Information Officer

    • Tenure: 1.8yrs
  • John Gleason (63yo)

    Executive VP & Chief Sales Officer

    • Tenure: 3.9yrs
  • Scott Parker (51yo)

    Executive VP & CFO

    • Tenure: 0.5yrs
  • Karen Jones (56yo)

    Executive VP & Chief Marketing Officer

    • Tenure: 6.1yrs
  • John Diez (47yo)

    President of Fleet Management Solutions

    • Tenure: 0.2yrs
    • Compensation: US$2.20m
  • Steve Sensing (51yo)

    President of Global Supply Chain Solutions

    • Tenure: 4.6yrs
    • Compensation: US$2.20m
  • Frank Mullen (50yo)

    Principal Accounting Officer

    • Tenure: 0yrs

Board Members

  • Hansel Tookes (71yo)

    Lead Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$329.13k
  • E. Smith (59yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: US$299.51k
  • Luis Nieto (63yo)

    Independent Director

    • Tenure: 12.7yrs
    • Compensation: US$290.27k
  • Bob Hagemann (62yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$269.04k
  • Dave Nord (61yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$226.50k
  • Abbie Smith (66yo)

    Independent Director

    • Tenure: 16.3yrs
    • Compensation: US$283.07k
  • Robert Sanchez (54yo)

    Chairman

    • Tenure: 6.8yrs
    • Compensation: US$7.35m
  • Mike Hilton (65yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$253.09k
  • Tamara Adler Lundgren (61yo)

    Independent Director

    • Tenure: 7yrs
    • Compensation: US$260.26k
  • Bob Eck (60yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$266.36k

Company Information

Ryder System, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ryder System, Inc.
  • Ticker: R
  • Exchange: NYSE
  • Founded: 1933
  • Industry: Trucking
  • Sector: Transportation
  • Market Cap: US$2.765b
  • Shares outstanding: 53.33m
  • Website: https://www.ryder.com

Number of Employees


Location

  • Ryder System, Inc.
  • 11690 NW 105th Street
  • Miami
  • Florida
  • 33178
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1968
RYDDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1968

Biography

Ryder System, Inc. provides transportation and supply chain management solutions worldwide. The company operates through three segments: Fleet Management Solutions (FMS), Dedicated Transportation Solutions ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:41
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.