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High materiality8/10

Ryder System: Don't Underestimate Its Shift To Leasing

Sep 14, 2024, 4:53 AM EDT1 sourcesAI-analyzed

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Ryder shares gained 40% in the past year but dropped 6% recently. Management has taken conservative actions, improving business model durability. Earnings declined due to lower used vehicle gains, but fundamentals remain strong. Ryder's shift to long-term leases provides cash flow stability amid market softness. Valuation appears reasonable at 10.4x earnings, with potential upside past $150.

  • Ryder shares gained 40% in the past year but dropped 6% recently.
  • Management has taken conservative actions, improving business model durability.
  • Earnings declined due to lower used vehicle gains, but fundamentals remain strong.
  • Ryder's shift to long-term leases provides cash flow stability amid market softness.
  • Valuation appears reasonable at 10.4x earnings, with potential upside past $150.

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