RYDER SYSTEM INC (R) Stock Fundamental Analysis
NYSE:R - New York Stock Exchange, Inc. - US7835491082 - Common Stock - Currency: USD
Taking everything into account, R scores 4 out of 10 in our fundamental rating. R was compared to 41 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. R also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year R was profitable.
R had a positive operating cash flow in the past year.
R had positive earnings in 4 of the past 5 years.
In the past 5 years R always reported a positive cash flow from operatings.
1.2 Ratios
R has a Return On Assets (2.92%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 15.59%, R is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
The Return On Invested Capital of R (5.15%) is better than 63.41% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for R is below the industry average of 8.12%.
| 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
With a Profit Margin value of 3.85%, R perfoms like the industry average, outperforming 58.54% of the companies in the same industry.
In the last couple of years the Profit Margin of R has declined.
R's Operating Margin of 7.83% is fine compared to the rest of the industry. R outperforms 65.85% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so R is destroying value.
R has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, R has less shares outstanding
Compared to 1 year ago, R has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.37, we must say that R is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of R (1.37) is worse than 68.29% of its industry peers.
A Debt/Equity ratio of 2.14 is on the high side and indicates that R has dependencies on debt financing.
The Debt to Equity ratio of R (2.14) is worse than 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.37 |
ROIC/WACC0.67
WACC7.75%
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.
R has a Current ratio of 0.75. This is in the lower half of the industry: R underperforms 78.05% of its industry peers.
A Quick Ratio of 0.75 indicates that R may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.75, R is doing worse than 73.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
R shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.57%.
R shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 64.13% yearly.
Looking at the last year, R shows a small growth in Revenue. The Revenue has grown by 7.24% in the last year.
R shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.20% yearly.
EPS 1Y (TTM)0.57%
EPS 3Y7.96%
EPS 5Y64.13%
EPS Q2Q%14.95%
Revenue 1Y (TTM)7.24%
Revenue growth 3Y9.35%
Revenue growth 5Y7.2%
Sales Q2Q%1.07%
3.2 Future
R is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.02% yearly.
The Revenue is expected to grow by 5.76% on average over the next years.
EPS Next Y11.65%
EPS Next 2Y13.15%
EPS Next 3Y15.02%
EPS Next 5YN/A
Revenue Next Year1.68%
Revenue Next 2Y3.56%
Revenue Next 3Y5.76%
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
The Price/Earnings ratio is 11.19, which indicates a very decent valuation of R.
R's Price/Earnings ratio is rather cheap when compared to the industry. R is cheaper than 87.80% of the companies in the same industry.
When comparing the Price/Earnings ratio of R to the average of the S&P500 Index (28.87), we can say R is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.97, the valuation of R can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of R indicates a rather cheap valuation: R is cheaper than 92.68% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, R is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.19 | ||
| Fwd PE | 8.97 |
4.2 Price Multiples
R's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. R is cheaper than 92.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.98 |
4.3 Compensation for Growth
The 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 15.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.96
PEG (5Y)0.17
EPS Next 2Y13.15%
EPS Next 3Y15.02%
5. Dividend
5.1 Amount
R has a Yearly Dividend Yield of 2.36%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.67, R pays a better dividend. On top of this R pays more dividend than 90.24% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.46, R has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
5.2 History
On average, the dividend of R grows each year by 7.39%, which is quite nice.
R has paid a dividend for at least 10 years, which is a reliable track record.
R has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.39%
Div Incr Years20
Div Non Decr Years34
5.3 Sustainability
R pays out 27.78% of its income as dividend. This is a sustainable payout ratio.
The dividend of R is growing, but earnings are growing more, so the dividend growth is sustainable.
DP27.78%
EPS Next 2Y13.15%
EPS Next 3Y15.02%
138.17
+0.95 (+0.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners91.83%
Inst Owner Change0.22%
Ins Owners2.84%
Ins Owner Change11.84%
Market Cap5.77B
Analysts77.14
Price Target167.68 (21.36%)
Short Float %2.41%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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)-5.66%
PT rev (3m)0.42%
EPS NQ rev (1m)-1.44%
EPS NQ rev (3m)-6.86%
EPS NY rev (1m)-2.5%
EPS NY rev (3m)-3.18%
Revenue NQ rev (1m)-0.53%
Revenue NQ rev (3m)-4.35%
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)-4.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.19 | ||
| Fwd PE | 8.97 | ||
| P/S | 0.46 | ||
| P/FCF | N/A | ||
| P/OCF | 2.55 | ||
| P/B | 1.85 | ||
| P/tB | 3.84 | ||
| EV/EBITDA | 4.98 |
EPS(TTM)12.35
EY8.94%
EPS(NY)15.4
Fwd EY11.15%
FCF(TTM)-10.04
FCFYN/A
OCF(TTM)54.24
OCFY39.26%
SpS302.76
BVpS74.68
TBVpS35.98
PEG (NY)0.96
PEG (5Y)0.17
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 | 1.37 |
F-Score7
WACC7.75%
ROIC/WACC0.67
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)0.57%
EPS 3Y7.96%
EPS 5Y64.13%
EPS Q2Q%14.95%
EPS Next Y11.65%
EPS Next 2Y13.15%
EPS Next 3Y15.02%
EPS Next 5YN/A
Revenue 1Y (TTM)7.24%
Revenue growth 3Y9.35%
Revenue growth 5Y7.2%
Sales Q2Q%1.07%
Revenue Next Year1.68%
Revenue Next 2Y3.56%
Revenue Next 3Y5.76%
Revenue Next 5YN/A
EBIT growth 1Y12.9%
EBIT growth 3Y15.61%
EBIT growth 5Y27.25%
EBIT Next Year185.27%
EBIT Next 3Y49.24%
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%