We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should Investors Get Rid of Ryder Stock Despite Its Lower Valuation?
Read MoreHide Full Article
Key Takeaways
Ryder trades at a discount forward P/S ratio than its industry average, signaling a cheap valuation.
Ryder's dividends, buybacks and raised 2025 free cash flow outlook to $900M$1B support shareholder returns.
Ryder's operating costs keep climbing, leverage is high, and earnings estimates for 2025-2026 moved lower.
Ryder System, Inc. (R - Free Report) ) looks cheap from a valuation standpoint. Considering the forward 12-month price-to-sales ratio (P/S-F12M), Ryder is trading at a discount compared to the industry.
The stock has a forward 12-month P/S-F12M of 0.58X compared with 2.29X for the industry over the past five years. These factors indicate that the stock’s valuation is attractive. Ryder has a Value Score of A.
Ryder P/S Ratio (Forward 12 Months) Vs. Industry
Image Source: Zacks Investment Research
Now, the question is whether it is worth buying, holding, or selling the Ryder stock at current prices. Let us delve deeper to find out.
Tailwinds Working in Favor of Ryder Stock
Ryder has been making uninterrupted dividend payments for more than 48 years. Ryder’s bottom line has been benefiting from its consistent efforts to reward its shareholders through dividends and share buybacks. During 2022, Ryder paid dividends of $123 million and repurchased shares worth $557 million. In 2023, Ryder paid dividends of $128 million and repurchased shares worth $337 million. In 2024, Ryder returned $456 million in cash to shareholders through share repurchases and dividends. During the first nine months of 2025, Ryder paid $108 million in the form of dividend payments and repurchased shares worth $350 million.
Such shareholder-friendly moves indicate the company’s commitment to creating value for shareholders and underline its confidence in its business. Dividend-paying stocks provide a solid income stream and have fewer chances of experiencing wild price swings. Dividend stocks, like Ryder, are safe bets for creating wealth, as the payouts generally act as a hedge against economic uncertainty like the current scenario.
Ryder's cost-cutting initiatives in response to the weak freight market conditions are also commendable. Higher free cash flow generation expectation (this reflects lower capital spending due to softer lease sales activity) for the full year is another added positive. For 2025, Ryder raised the free cash flow outlook to the range of $900 million-$1 billion from the prior guidance of $375 - $475 million.
Ryder Stock’s Price Performance
Shares of Ryder have gained 25% over the past six months, outperforming the Zacks Transportation - Equipment and Leasing industry’s 10.4% increase, as well as that of other industry players, The Greenbrier Companies, Inc. (GBX - Free Report) and Wabtec Corporation (WAB - Free Report) .
Ryder Stock Six-Month Price Comparison
Image Source: Zacks Investment Research
Headwinds Weighing on Ryder Stock
Ryder continues to face significant financial pressure due to elevated operating costs and weak liquidity. In the third quarter of 2025, the company’s operating expenses remained high. This uptick was due to a 3.26% rise in the selling, general and administrative (SG&A) expenses, which constitutes 13.2% of the total operating expenses. The trend of rising costs is not new for Ryder. The company has experienced a consistent increase in operating expenses over recent years, from $10.8 billion in 2022, $11.2 billion in 2023 and $11.9 billion in 2024. This sustained upward trajectory in expenses poses substantial risks to R’s operational and financial stability.
Ryder’s liquidity position is concerning. The company exited the third quarter of 2025 with cash and cash equivalents of $189 million, lower than the current debt level of $577 million. This implies that the company does not have sufficient cash to meet its current debt obligations. Meanwhile, long-term debt level has increased to $7.28 billion (which translates into a debt-to-capitalization of 71.7%) at the end of third-quarter 2025 from $6.62 billion (which translates into a debt-to-capitalization of 71.3%) at third-quarter 2024-end.
Moreover, companies like Ryder are navigating a volatile macro environment marked by economic uncertainty, shifting tariff regulations and geopolitical tensions.
What Do Earnings Estimates Say for Ryder?
The negative sentiment surrounding Ryder stock is evident from the fact that the Zacks Consensus Estimate for the fourth quarter of 2025, as well as for full-year 2025 and 2026 earnings, has been revised downward in the past 60 days. The consensus mark for first-quarter 2026 earnings has also been projected downward in the past 60 days. The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.
Image Source: Zacks Investment Research
Time to Get Rid of Ryder
There is no doubt that the stock is attractively valued, and consistent shareholder-friendly initiatives and strong cash flow generating ability represent major tailwinds for Ryder. Despite such positives, investors should refrain from rushing to buy Ryder now due to the headwinds that it faces.
Ryder continues to grapple with challenges arising from increased operating expenses, which are adversely impacting the company’s performance, making it an unattractive choice for investors’ portfolios. Ryder’s financial metrics indicate that its leverage is elevated and is a massive negative for its shareholders. The ongoing volatile macro environment marked by economic uncertainty, shifting tariff regulations and geopolitical tensions also clouds Ryder’s prospects. Collectively, these factors diminish Ryder’s appeal as an investment at this juncture. So, the stock appears to be a risky bet for investors. The stock’s current Zacks Rank #4 (Sell) justifies our analysis.
Image: Bigstock
Should Investors Get Rid of Ryder Stock Despite Its Lower Valuation?
Key Takeaways
Ryder System, Inc. (R - Free Report) ) looks cheap from a valuation standpoint. Considering the forward 12-month price-to-sales ratio (P/S-F12M), Ryder is trading at a discount compared to the industry.
The stock has a forward 12-month P/S-F12M of 0.58X compared with 2.29X for the industry over the past five years. These factors indicate that the stock’s valuation is attractive. Ryder has a Value Score of A.
Ryder P/S Ratio (Forward 12 Months) Vs. Industry
Now, the question is whether it is worth buying, holding, or selling the Ryder stock at current prices. Let us delve deeper to find out.
Tailwinds Working in Favor of Ryder Stock
Ryder has been making uninterrupted dividend payments for more than 48 years. Ryder’s bottom line has been benefiting from its consistent efforts to reward its shareholders through dividends and share buybacks. During 2022, Ryder paid dividends of $123 million and repurchased shares worth $557 million. In 2023, Ryder paid dividends of $128 million and repurchased shares worth $337 million. In 2024, Ryder returned $456 million in cash to shareholders through share repurchases and dividends. During the first nine months of 2025, Ryder paid $108 million in the form of dividend payments and repurchased shares worth $350 million.
Such shareholder-friendly moves indicate the company’s commitment to creating value for shareholders and underline its confidence in its business. Dividend-paying stocks provide a solid income stream and have fewer chances of experiencing wild price swings. Dividend stocks, like Ryder, are safe bets for creating wealth, as the payouts generally act as a hedge against economic uncertainty like the current scenario.
Ryder's cost-cutting initiatives in response to the weak freight market conditions are also commendable. Higher free cash flow generation expectation (this reflects lower capital spending due to softer lease sales activity) for the full year is another added positive. For 2025, Ryder raised the free cash flow outlook to the range of $900 million-$1 billion from the prior guidance of $375 - $475 million.
Ryder Stock’s Price Performance
Shares of Ryder have gained 25% over the past six months, outperforming the Zacks Transportation - Equipment and Leasing industry’s 10.4% increase, as well as that of other industry players, The Greenbrier Companies, Inc. (GBX - Free Report) and Wabtec Corporation (WAB - Free Report) .
Ryder Stock Six-Month Price Comparison
Headwinds Weighing on Ryder Stock
Ryder continues to face significant financial pressure due to elevated operating costs and weak liquidity. In the third quarter of 2025, the company’s operating expenses remained high. This uptick was due to a 3.26% rise in the selling, general and administrative (SG&A) expenses, which constitutes 13.2% of the total operating expenses. The trend of rising costs is not new for Ryder. The company has experienced a consistent increase in operating expenses over recent years, from $10.8 billion in 2022, $11.2 billion in 2023 and $11.9 billion in 2024. This sustained upward trajectory in expenses poses substantial risks to R’s operational and financial stability.
Ryder’s liquidity position is concerning. The company exited the third quarter of 2025 with cash and cash equivalents of $189 million, lower than the current debt level of $577 million. This implies that the company does not have sufficient cash to meet its current debt obligations. Meanwhile, long-term debt level has increased to $7.28 billion (which translates into a debt-to-capitalization of 71.7%) at the end of third-quarter 2025 from $6.62 billion (which translates into a debt-to-capitalization of 71.3%) at third-quarter 2024-end.
Moreover, companies like Ryder are navigating a volatile macro environment marked by economic uncertainty, shifting tariff regulations and geopolitical tensions.
What Do Earnings Estimates Say for Ryder?
The negative sentiment surrounding Ryder stock is evident from the fact that the Zacks Consensus Estimate for the fourth quarter of 2025, as well as for full-year 2025 and 2026 earnings, has been revised downward in the past 60 days. The consensus mark for first-quarter 2026 earnings has also been projected downward in the past 60 days. The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.
Time to Get Rid of Ryder
There is no doubt that the stock is attractively valued, and consistent shareholder-friendly initiatives and strong cash flow generating ability represent major tailwinds for Ryder. Despite such positives, investors should refrain from rushing to buy Ryder now due to the headwinds that it faces.
Ryder continues to grapple with challenges arising from increased operating expenses, which are adversely impacting the company’s performance, making it an unattractive choice for investors’ portfolios. Ryder’s financial metrics indicate that its leverage is elevated and is a massive negative for its shareholders. The ongoing volatile macro environment marked by economic uncertainty, shifting tariff regulations and geopolitical tensions also clouds Ryder’s prospects. Collectively, these factors diminish Ryder’s appeal as an investment at this juncture. So, the stock appears to be a risky bet for investors. The stock’s current Zacks Rank #4 (Sell) justifies our analysis.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.