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Does Ryder's Lower Valuation Indicate a Buying Opportunity?
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Key Takeaways
Ryder trades at a discount forward P/S ratio compared to its industry average, signaling a cheap valuation.
Ryder benefits from cost-cutting initiatives and upbeat used vehicle sales.
For 2026, Ryder expects adjusted EPS of $14.05 - $14.80 (prior view: $13.45-$14.45).
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 0.79X compared with 2.35X 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 is being well-served by its focus on contractual growth and operational discipline. Upbeat used vehicle sales, particularly in its fleet management segment, along with stable pricing and improved contractual sales activity, bode well.
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 2025, Ryder returned $664 million to shareholders through share repurchases and dividend payments. During first-quarter 2026, Ryder returned $272 million to shareholders in the form of share repurchases and dividends.
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. Ryder generated $2.59 billion of cash from operating activities in 2025, higher than the $2.26 billion generated in 2024. For 2026, adjusted ROE (return on equity) is expected to be 17-18%. Net cash from operating activities is still projected to be $2.7 billion.
Ryder Stock’s Price Performance
Shares of Ryder have gained 43.5% over the past three months, outperforming the Zacks Transportation - Equipment and Leasing industry’s 9.7% increase, as well as that of other industry players, The Greenbrier Companies, Inc. (GBX - Free Report) and Wabtec Corporation (WAB - Free Report) .
Ryder Stock’s Three-Month Price Comparison
Image Source: Zacks Investment Research
What Do Earnings Estimates Say for Ryder?
The positive sentiment surrounding Ryder stock is evident from the fact that the Zacks Consensus Estimate for the second quarter of 2026 and third quarter of 2026 earnings has been revised upward in the past 60 days. The consensus mark for 2026 and 2027 earnings has also been projected northward in the past 60 days.
The favorable estimate revisions indicate brokers’ confidence in the stock.
Image Source: Zacks Investment Research
Time to Buy Ryder Stock
Apart from being attractively valued, Ryder stock is being well-served by its focus on contractual growth and operational discipline. An increase in used vehicle sales, particularly in its fleet management segment, along with stable pricing and improved contractual sales activity, bodes well. Initiatives to reward its shareholders through dividends and buybacks are praiseworthy as well.
We believe that the positives surrounding the stock (as highlighted throughout the write-up) outweigh the concerns regarding supply-chain disruptions and high fuel costs due to the ongoing conflict in the Middle East, tariff-induced economic uncertainties, risks associated with an economic slowdown, geopolitical tensions and a leveraged balance sheet. We, therefore, suggest investors add Ryder stock to their portfolios for healthy returns. The company’s Zacks Rank #2 (Buy) further supports our thesis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
View the Zacks #1 Rank List
Image: Bigstock
Does Ryder's Lower Valuation Indicate a Buying Opportunity?
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 0.79X compared with 2.35X 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 is being well-served by its focus on contractual growth and operational discipline. Upbeat used vehicle sales, particularly in its fleet management segment, along with stable pricing and improved contractual sales activity, bode well.
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 2025, Ryder returned $664 million to shareholders through share repurchases and dividend payments. During first-quarter 2026, Ryder returned $272 million to shareholders in the form of share repurchases and dividends.
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. Ryder generated $2.59 billion of cash from operating activities in 2025, higher than the $2.26 billion generated in 2024. For 2026, adjusted ROE (return on equity) is expected to be 17-18%. Net cash from operating activities is still projected to be $2.7 billion.
Ryder Stock’s Price Performance
Shares of Ryder have gained 43.5% over the past three months, outperforming the Zacks Transportation - Equipment and Leasing industry’s 9.7% increase, as well as that of other industry players, The Greenbrier Companies, Inc. (GBX - Free Report) and Wabtec Corporation (WAB - Free Report) .
Ryder Stock’s Three-Month Price Comparison
Image Source: Zacks Investment Research
What Do Earnings Estimates Say for Ryder?
The positive sentiment surrounding Ryder stock is evident from the fact that the Zacks Consensus Estimate for the second quarter of 2026 and third quarter of 2026 earnings has been revised upward in the past 60 days. The consensus mark for 2026 and 2027 earnings has also been projected northward in the past 60 days.
The favorable estimate revisions indicate brokers’ confidence in the stock.
Time to Buy Ryder Stock
Apart from being attractively valued, Ryder stock is being well-served by its focus on contractual growth and operational discipline. An increase in used vehicle sales, particularly in its fleet management segment, along with stable pricing and improved contractual sales activity, bodes well. Initiatives to reward its shareholders through dividends and buybacks are praiseworthy as well.
We believe that the positives surrounding the stock (as highlighted throughout the write-up) outweigh the concerns regarding supply-chain disruptions and high fuel costs due to the ongoing conflict in the Middle East, tariff-induced economic uncertainties, risks associated with an economic slowdown, geopolitical tensions and a leveraged balance sheet. We, therefore, suggest investors add Ryder stock to their portfolios for healthy returns. The company’s Zacks Rank #2 (Buy) further supports our thesis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.