Investment Thesis
Ryder operates with dangerously tight financial metrics: interest coverage of 1.2x provides minimal debt service cushion, while revenue growth has stalled at +0.2% YoY with razor-thin net margins of 3.0%. The combination of high leverage (2.71x debt/equity), weak returns on capital (ROE 3.3%, ROA 0.6%), and sub-1.0 current ratio signals financial vulnerability with limited capacity to absorb operational stress or economic downturns.
Strengths
- Positive operating cash flow of $583M supports debt service
- Free cash flow generation of $156M provides some deleveraging capacity
- Stable business with no revenue decline despite flat growth
Risks
- Interest coverage ratio of 1.2x is critically low with minimal margin for error
- Current ratio of 0.68x indicates potential liquidity stress
- Stagnant revenue growth (+0.2% YoY) with structural margin compression
Key Metrics to Watch
- Interest coverage ratio trends - must remain above 1.5x minimum
- Free cash flow generation and debt paydown rate
- Revenue growth inflection - current trajectory is unsustainable
Financial Metrics
Revenue
3.1B
Net Income
93.0M
EPS (Diluted)
$2.33
Free Cash Flow
156.0M
Total Assets
16.2B
Cash
182.0M
Profitability Ratios
Gross Margin
N/A
Operating Margin
3.8%
Net Margin
3.0%
ROE
3.3%
ROA
0.6%
FCF Margin
5.0%
Balance Sheet & Liquidity
Current Ratio
0.68x
Quick Ratio
0.66x
Debt/Equity
2.71x
Debt/Assets
82.4%
Interest Coverage
1.22x
Long-term Debt
7.7B
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-04-29T15:15:10.378350 |
Data as of: 2026-03-31 |
Powered by Claude AI