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Ryder System

R
44
Rental & Leasing Services · Industrials
Price
$271.82
-1.24 (-0.45%)
Market Cap
$10.52B
Winston Score
44
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Share count falling — buybacks

21.9% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 53.5M (2021) → 41.8M (2025)

Ryder System is a logistics and transportation company that helps businesses move goods and manage their fleets of trucks. Its main services include leasing and renting commercial trucks, managing entire fleets for other companies, and running supply chain and warehouse operations. Customers range from large retailers and manufacturers to healthcare companies — essentially any business that needs to move products but does not want to own and manage its own trucks.

Ryder makes money through long-term lease contracts, shorter-term rentals, and fees for managing logistics operations on behalf of clients. It operates primarily in the United States, with some presence in Canada and Europe, and generates roughly $12 billion in annual revenue. Its competitive edge comes from its large, established network of maintenance facilities and deep customer relationships built over decades. The main risk is that its business is closely tied to the health of the broader economy — when companies ship less, demand for Ryder's trucks and logistics services tends to fall.

Winston Score History

Score breakdown

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Quality

Gross Margin
18.6%
Thin — 18.6% gross margin
Operating Margin
6.8%
Modest — 6.8% operating margin
ROCE
2.0%
Weak — 2.0% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-0.1%
Shrinking sales (-0.1% YoY)
EPS YoY
+3.3%
Modest earnings growth (3.3% YoY)

Single-digit earnings growth — steady but not exciting.

EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion
510%
Turns 510% of profit into real cash
FCF Margin
3.8%
Thin free cash flow (3.8%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
2.69
Heavy debt load (2.69)
Interest Cover
2.65x
Tight — interest eats into profit (2.6x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)
22.4x
Growth-priced — P/E 22.4

P/E above the market average. People are paying up for expected growth.

P/E vs Forward
+4.4
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (22.4 → 18.0)

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Dividends

Dividend Yield
1.38%
Small dividend — 1.38% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth
+12.3%
Dividend growing fast (12.3% YoY)

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