RYDER SYSTEM INC (R) Stock Fundamental Analysis
NYSE:R - New York Stock Exchange, Inc. - US7835491082 - Common Stock - Currency: USD
Overall R gets a fundamental rating of 4 out of 10. We evaluated R against 39 industry peers in the Ground Transportation industry. R has a medium profitability rating, but doesn't score so well on its financial health evaluation. R has a decent growth rate and is not valued too expensively. Finally R also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
R had positive earnings in the past year.
In the past year R had a positive cash flow from operations.
Of the past 5 years R 4 years were profitable.
In the past 5 years R always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.92%, R is in line with its industry, outperforming 44.74% of the companies in the same industry.
R's Return On Equity of 15.59% is fine compared to the rest of the industry. R outperforms 63.16% of its industry peers.
R has a Return On Invested Capital of 5.15%. This is in the better half of the industry: R outperforms 60.53% of its industry peers.
The Average Return On Invested Capital over the past 3 years for R is below the industry average of 7.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.92% | ||
| ROE | 15.59% | ||
| ROIC | 5.15% |
ROA(3y)3.82%
ROA(5y)2.85%
ROE(3y)19.37%
ROE(5y)14.23%
ROIC(3y)5.41%
ROIC(5y)4.39%
1.3 Margins
Looking at the Profit Margin, with a value of 3.85%, R is in line with its industry, outperforming 44.74% of the companies in the same industry.
R's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 7.83%, R is doing good in the industry, outperforming 60.53% of the companies in the same industry.
In the last couple of years the Operating Margin of R has grown nicely.
R has a Gross Margin (40.33%) which is comparable to the rest of the industry.
R's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.83% | ||
| PM (TTM) | 3.85% | ||
| GM | 40.33% |
OM growth 3Y5.72%
OM growth 5Y18.71%
PM growth 3Y-10.39%
PM growth 5YN/A
GM growth 3Y-6.04%
GM growth 5Y-4.26%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), R is destroying value.
The number of shares outstanding for R has been reduced compared to 1 year ago.
The number of shares outstanding for R has been reduced compared to 5 years ago.
R has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.43, we must say that R is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.43, R is not doing good in the industry: 71.05% of the companies in the same industry are doing better.
A Debt/Equity ratio of 2.14 is on the high side and indicates that R has dependencies on debt financing.
With a Debt to Equity ratio value of 2.14, R is not doing good in the industry: 86.84% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.43 |
ROIC/WACC0.63
WACC8.14%
2.3 Liquidity
R has a Current Ratio of 0.75. This is a bad value and indicates that R is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.75, R is not doing good in the industry: 81.58% of the companies in the same industry are doing better.
A Quick Ratio of 0.75 indicates that R may have some problems paying its short term obligations.
The Quick ratio of R (0.75) is worse than 76.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The earnings per share for R have decreased by -7.10% in the last year.
The Earnings Per Share has been growing by 64.13% on average over the past years. This is a very strong growth
R shows a small growth in Revenue. In the last year, the Revenue has grown by 7.25%.
R shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.20% yearly.
EPS 1Y (TTM)-7.1%
EPS 3Y7.96%
EPS 5Y64.13%
EPS Q2Q%16.95%
Revenue 1Y (TTM)7.25%
Revenue growth 3Y9.35%
Revenue growth 5Y7.2%
Sales Q2Q%5.49%
3.2 Future
Based on estimates for the next years, R will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.03% on average per year.
The Revenue is expected to grow by 6.08% on average over the next years.
EPS Next Y14.51%
EPS Next 2Y15.36%
EPS Next 3Y16.03%
EPS Next 5YN/A
Revenue Next Year3.06%
Revenue Next 2Y4.54%
Revenue Next 3Y6.08%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.71 indicates a correct valuation of R.
Based on the Price/Earnings ratio, R is valued cheaply inside the industry as 89.47% of the companies are valued more expensively.
R's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
A Price/Forward Earnings ratio of 11.97 indicates a reasonable valuation of R.
Compared to the rest of the industry, the Price/Forward Earnings ratio of R indicates a rather cheap valuation: R is cheaper than 86.84% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, R is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.71 | ||
| Fwd PE | 11.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, R is valued cheaper than 89.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.46 |
4.3 Compensation for Growth
R's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
R's earnings are expected to grow with 16.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.94
PEG (5Y)0.21
EPS Next 2Y15.36%
EPS Next 3Y16.03%
5. Dividend
5.1 Amount
R has a Yearly Dividend Yield of 1.93%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.35, R pays a better dividend. On top of this R pays more dividend than 92.11% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, R has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
5.2 History
The dividend of R is nicely growing with an annual growth rate of 7.39%!
R has been paying a dividend for at least 10 years, so it has a reliable track record.
R has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.39%
Div Incr Years20
Div Non Decr Years34
5.3 Sustainability
27.78% of the earnings are spent on dividend by R. This is a low number and sustainable payout ratio.
The dividend of R is growing, but earnings are growing more, so the dividend growth is sustainable.
DP27.78%
EPS Next 2Y15.36%
EPS Next 3Y16.03%
164.95
-1.12 (-0.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners90.24%
Inst Owner Change7.2%
Ins Owners2.4%
Ins Owner Change11.94%
Market Cap6.98B
Analysts77.14
Price Target177.74 (7.75%)
Short Float %2.03%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
Yearly Dividend3.14
Dividend Growth(5Y)7.39%
DP27.78%
Div Incr Years20
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.64%
Min EPS beat(2)-1.47%
Max EPS beat(2)0.2%
EPS beat(4)3
Avg EPS beat(4)5.99%
Min EPS beat(4)-1.47%
Max EPS beat(4)22.81%
EPS beat(8)6
Avg EPS beat(8)6.67%
EPS beat(12)10
Avg EPS beat(12)11.61%
EPS beat(16)14
Avg EPS beat(16)22.33%
Revenue beat(2)0
Avg Revenue beat(2)-5.65%
Min Revenue beat(2)-5.74%
Max Revenue beat(2)-5.57%
Revenue beat(4)0
Avg Revenue beat(4)-3.97%
Min Revenue beat(4)-5.74%
Max Revenue beat(4)-0.8%
Revenue beat(8)0
Avg Revenue beat(8)-3.84%
Revenue beat(12)3
Avg Revenue beat(12)6.46%
Revenue beat(16)7
Avg Revenue beat(16)5.52%
PT rev (1m)4.59%
PT rev (3m)12.78%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)-0.3%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-0.1%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-0.06%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.71 | ||
| Fwd PE | 11.97 | ||
| P/S | 0.55 | ||
| P/FCF | N/A | ||
| P/OCF | 3.08 | ||
| P/B | 2.24 | ||
| P/tB | 4.64 | ||
| EV/EBITDA | 5.46 |
EPS(TTM)12.03
EY7.29%
EPS(NY)13.78
Fwd EY8.35%
FCF(TTM)-9.91
FCFYN/A
OCF(TTM)53.54
OCFY32.46%
SpS298.82
BVpS73.71
TBVpS35.52
PEG (NY)0.94
PEG (5Y)0.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.92% | ||
| ROE | 15.59% | ||
| ROCE | 7.38% | ||
| ROIC | 5.15% | ||
| ROICexc | 5.21% | ||
| ROICexgc | 5.94% | ||
| OM | 7.83% | ||
| PM (TTM) | 3.85% | ||
| GM | 40.33% | ||
| FCFM | N/A |
ROA(3y)3.82%
ROA(5y)2.85%
ROE(3y)19.37%
ROE(5y)14.23%
ROIC(3y)5.41%
ROIC(5y)4.39%
ROICexc(3y)5.51%
ROICexc(5y)4.47%
ROICexgc(3y)6.22%
ROICexgc(5y)4.98%
ROCE(3y)7.75%
ROCE(5y)6.29%
ROICexcg growth 3Y8.66%
ROICexcg growth 5Y27.35%
ROICexc growth 3Y6.65%
ROICexc growth 5Y25.18%
OM growth 3Y5.72%
OM growth 5Y18.71%
PM growth 3Y-10.39%
PM growth 5YN/A
GM growth 3Y-6.04%
GM growth 5Y-4.26%
F-Score7
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.48 | ||
| Cap/Depr | 158.38% | ||
| Cap/Sales | 21.23% | ||
| Interest Coverage | 2.66 | ||
| Cash Conversion | 84.38% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 1.43 |
F-Score7
WACC8.14%
ROIC/WACC0.63
Cap/Depr(3y)166.96%
Cap/Depr(5y)132.61%
Cap/Sales(3y)23.53%
Cap/Sales(5y)20.86%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.1%
EPS 3Y7.96%
EPS 5Y64.13%
EPS Q2Q%16.95%
EPS Next Y14.51%
EPS Next 2Y15.36%
EPS Next 3Y16.03%
EPS Next 5YN/A
Revenue 1Y (TTM)7.25%
Revenue growth 3Y9.35%
Revenue growth 5Y7.2%
Sales Q2Q%5.49%
Revenue Next Year3.06%
Revenue Next 2Y4.54%
Revenue Next 3Y6.08%
Revenue Next 5YN/A
EBIT growth 1Y12.9%
EBIT growth 3Y15.61%
EBIT growth 5Y27.25%
EBIT Next Year195.12%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y52.44%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-3.78%
OCF growth 3Y1.33%
OCF growth 5Y1.11%