RYDER SYSTEM INC (R) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:R - US7835491082 - Common Stock
190.56 USD
+0.15 (+0.08%)
190.56 USD
0 (0%)
R gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 42 industry peers in the Ground Transportation industry. There are concerns on the financial health of R while its profitability can be described as average. R is not valued too expensively and it also shows a decent growth rate. 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.
- Each year in the past 5 years R had a positive operating cash flow.
1.2 Ratios
- R has a Return On Assets (3.00%) which is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of 16.03%, R is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
- The Return On Invested Capital of R (5.15%) is better than 61.90% of its industry peers.
- R had an Average Return On Invested Capital over the past 3 years of 5.41%. This is in line with the industry average of 6.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3% | ||
| ROE | 16.03% | ||
| 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 decent Profit Margin value of 3.91%, R is doing good in the industry, outperforming 69.05% of the companies in the same industry.
- R's Profit Margin has declined in the last couple of years.
- R's Operating Margin of 8.13% is fine compared to the rest of the industry. R outperforms 69.05% of its industry peers.
- R's Operating Margin has improved in the last couple of years.
- The Gross Margin of R (40.64%) 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 | 8.13% | ||
| PM (TTM) | 3.91% | ||
| GM | 40.64% |
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.
- R has less shares outstanding than it did 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 1.54, we must say that R is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.54, R is doing worse than 64.29% of the companies in the same industry.
- A Debt/Equity ratio of 2.35 is on the high side and indicates that R has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 2.35, R is doing worse than 88.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.35 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.54 |
ROIC/WACC0.57
WACC8.99%
2.3 Liquidity
- A Current Ratio of 1.02 indicates that R should not have too much problems paying its short term obligations.
- The Current ratio of R (1.02) is comparable to the rest of the industry.
- A Quick Ratio of 1.02 indicates that R should not have too much problems paying its short term obligations.
- R has a Quick ratio (1.02) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 11.01% over the past year.
- Measured over the past years, R shows a very strong growth in Earnings Per Share. The EPS has been growing by 64.13% on average per year.
- The Revenue has been growing slightly by 1.68% in the past year.
- The Revenue has been growing slightly by 7.20% on average over the past years.
EPS 1Y (TTM)11.01%
EPS 3Y7.96%
EPS 5Y64.13%
EPS Q2Q%3.78%
Revenue 1Y (TTM)1.68%
Revenue growth 3Y9.35%
Revenue growth 5Y7.2%
Sales Q2Q%0.09%
3.2 Future
- The Earnings Per Share is expected to grow by 12.84% on average over the next years. This is quite good.
- Based on estimates for the next years, R will show a small growth in Revenue. The Revenue will grow by 3.02% on average per year.
EPS Next Y9.24%
EPS Next 2Y11.37%
EPS Next 3Y12.84%
EPS Next 5YN/A
Revenue Next Year-0.25%
Revenue Next 2Y1.67%
Revenue Next 3Y3.02%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 14.89, which indicates a correct valuation of R.
- R's Price/Earnings ratio is rather cheap when compared to the industry. R is cheaper than 92.86% of the companies in the same industry.
- When comparing the Price/Earnings ratio of R to the average of the S&P500 Index (27.25), we can say R is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 12.77, R is valued correctly.
- Based on the Price/Forward Earnings ratio, R is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, R is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.89 | ||
| Fwd PE | 12.77 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, R is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.64 |
4.3 Compensation for Growth
- R's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- R's earnings are expected to grow with 12.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.61
PEG (5Y)0.23
EPS Next 2Y11.37%
EPS Next 3Y12.84%
5. Dividend
5.1 Amount
- R has a Yearly Dividend Yield of 1.85%. Purely for dividend investing, there may be better candidates out there.
- R's Dividend Yield is rather good when compared to the industry average which is at 0.69. R pays more dividend than 88.10% of the companies in the same industry.
- R's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
5.2 History
- On average, the dividend of R grows each year by 7.39%, which is quite nice.
- R has been paying a dividend for at least 10 years, so it has 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
- 28.63% 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.
DP28.63%
EPS Next 2Y11.37%
EPS Next 3Y12.84%
RYDER SYSTEM INC / R FAQ
What is the ChartMill fundamental rating of RYDER SYSTEM INC (R) stock?
ChartMill assigns a fundamental rating of 4 / 10 to R.
Can you provide the valuation status for RYDER SYSTEM INC?
ChartMill assigns a valuation rating of 5 / 10 to RYDER SYSTEM INC (R). This can be considered as Fairly Valued.
What is the profitability of R stock?
RYDER SYSTEM INC (R) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for R stock?
The Price/Earnings (PE) ratio for RYDER SYSTEM INC (R) is 14.89 and the Price/Book (PB) ratio is 2.49.
What is the financial health of RYDER SYSTEM INC (R) stock?
The financial health rating of RYDER SYSTEM INC (R) is 2 / 10.