Intrinsic value of Ryder System - R

Previous Close

$73.79

  Intrinsic Value

$73.68

stock screener

  Rating & Target

hold

-0%

  Value-price divergence*

+25%

Previous close

$73.79

 
Intrinsic value

$73.68

 
Up/down potential

-0%

 
Rating

hold

 
Value-price divergence*

+25%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of R stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 3.9

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  3.27
  7.20
  6.98
  6.78
  6.60
  6.44
  6.30
  6.17
  6.05
  5.95
  5.85
  5.77
  5.69
  5.62
  5.56
  5.50
  5.45
  5.41
  5.37
  5.33
  5.30
  5.27
  5.24
  5.22
  5.19
  5.18
  5.16
  5.14
  5.13
  5.12
  5.10
Revenue, $m
  6,787
  7,276
  7,784
  8,311
  8,860
  9,431
  10,025
  10,644
  11,288
  11,959
  12,659
  13,389
  14,151
  14,947
  15,777
  16,646
  17,553
  18,503
  19,496
  20,535
  21,623
  22,761
  23,954
  25,204
  26,513
  27,886
  29,324
  30,832
  32,413
  34,071
  35,810
Variable operating expenses, $m
 
  5,345
  5,715
  6,100
  6,500
  6,917
  7,350
  7,801
  8,271
  8,761
  9,271
  9,765
  10,320
  10,900
  11,506
  12,140
  12,802
  13,494
  14,218
  14,976
  15,769
  16,600
  17,470
  18,381
  19,336
  20,337
  21,386
  22,485
  23,639
  24,848
  26,116
Fixed operating expenses, $m
 
  1,309
  1,342
  1,375
  1,410
  1,445
  1,481
  1,518
  1,556
  1,595
  1,635
  1,676
  1,717
  1,760
  1,804
  1,849
  1,896
  1,943
  1,992
  2,041
  2,093
  2,145
  2,198
  2,253
  2,310
  2,367
  2,427
  2,487
  2,550
  2,613
  2,679
Total operating expenses, $m
  6,234
  6,654
  7,057
  7,475
  7,910
  8,362
  8,831
  9,319
  9,827
  10,356
  10,906
  11,441
  12,037
  12,660
  13,310
  13,989
  14,698
  15,437
  16,210
  17,017
  17,862
  18,745
  19,668
  20,634
  21,646
  22,704
  23,813
  24,972
  26,189
  27,461
  28,795
Operating income, $m
  553
  622
  727
  836
  950
  1,070
  1,194
  1,325
  1,461
  1,604
  1,753
  1,949
  2,113
  2,286
  2,467
  2,657
  2,856
  3,066
  3,286
  3,517
  3,761
  4,017
  4,286
  4,569
  4,867
  5,181
  5,511
  5,859
  6,225
  6,610
  7,015
EBITDA, $m
  1,808
  1,620
  1,791
  1,970
  2,157
  2,351
  2,554
  2,766
  2,987
  3,219
  3,461
  3,714
  3,978
  4,256
  4,546
  4,850
  5,170
  5,504
  5,855
  6,224
  6,611
  7,017
  7,443
  7,891
  8,362
  8,856
  9,376
  9,922
  10,497
  11,100
  11,735
Interest expense (income), $m
  144
  187
  209
  232
  256
  281
  307
  334
  362
  391
  421
  453
  486
  521
  557
  594
  634
  675
  718
  763
  810
  859
  911
  965
  1,022
  1,081
  1,143
  1,209
  1,277
  1,349
  1,424
Earnings before tax, $m
  406
  435
  518
  604
  694
  789
  888
  991
  1,099
  1,213
  1,332
  1,496
  1,627
  1,765
  1,910
  2,062
  2,222
  2,391
  2,568
  2,754
  2,951
  3,157
  3,375
  3,604
  3,846
  4,100
  4,368
  4,650
  4,948
  5,261
  5,591
Tax expense, $m
  141
  118
  140
  163
  187
  213
  240
  268
  297
  328
  360
  404
  439
  477
  516
  557
  600
  645
  693
  744
  797
  852
  911
  973
  1,038
  1,107
  1,179
  1,256
  1,336
  1,420
  1,510
Net income, $m
  262
  318
  378
  441
  507
  576
  648
  724
  803
  886
  973
  1,092
  1,188
  1,289
  1,394
  1,505
  1,622
  1,745
  1,875
  2,011
  2,154
  2,305
  2,464
  2,631
  2,807
  2,993
  3,189
  3,395
  3,612
  3,841
  4,082

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  59
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  10,902
  11,622
  12,434
  13,277
  14,154
  15,066
  16,015
  17,003
  18,032
  19,104
  20,222
  21,388
  22,605
  23,876
  25,204
  26,591
  28,041
  29,557
  31,143
  32,803
  34,541
  36,360
  38,266
  40,262
  42,354
  44,546
  46,843
  49,252
  51,778
  54,426
  57,204
Adjusted assets (=assets-cash), $m
  10,843
  11,622
  12,434
  13,277
  14,154
  15,066
  16,015
  17,003
  18,032
  19,104
  20,222
  21,388
  22,605
  23,876
  25,204
  26,591
  28,041
  29,557
  31,143
  32,803
  34,541
  36,360
  38,266
  40,262
  42,354
  44,546
  46,843
  49,252
  51,778
  54,426
  57,204
Revenue / Adjusted assets
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
Average production assets, $m
  8,948
  9,589
  10,259
  10,954
  11,678
  12,430
  13,213
  14,028
  14,877
  15,762
  16,685
  17,647
  18,651
  19,699
  20,795
  21,939
  23,135
  24,386
  25,695
  27,065
  28,498
  30,000
  31,572
  33,219
  34,945
  36,753
  38,649
  40,636
  42,720
  44,905
  47,197
Working capital, $m
  -642
  95
  101
  108
  115
  123
  130
  138
  147
  155
  165
  174
  184
  194
  205
  216
  228
  241
  253
  267
  281
  296
  311
  328
  345
  363
  381
  401
  421
  443
  466
Total debt, $m
  5,391
  5,967
  6,625
  7,309
  8,020
  8,759
  9,529
  10,330
  11,165
  12,034
  12,941
  13,887
  14,874
  15,905
  16,981
  18,106
  19,282
  20,512
  21,798
  23,144
  24,554
  26,029
  27,575
  29,193
  30,890
  32,667
  34,531
  36,484
  38,533
  40,680
  42,933
Total liabilities, $m
  8,850
  9,426
  10,084
  10,768
  11,479
  12,218
  12,988
  13,789
  14,624
  15,493
  16,400
  17,346
  18,333
  19,364
  20,440
  21,565
  22,741
  23,971
  25,257
  26,603
  28,013
  29,488
  31,034
  32,652
  34,349
  36,126
  37,990
  39,943
  41,992
  44,139
  46,392
Total equity, $m
  2,052
  2,197
  2,350
  2,509
  2,675
  2,847
  3,027
  3,214
  3,408
  3,611
  3,822
  4,042
  4,272
  4,513
  4,763
  5,026
  5,300
  5,586
  5,886
  6,200
  6,528
  6,872
  7,232
  7,610
  8,005
  8,419
  8,853
  9,309
  9,786
  10,287
  10,812
Total liabilities and equity, $m
  10,902
  11,623
  12,434
  13,277
  14,154
  15,065
  16,015
  17,003
  18,032
  19,104
  20,222
  21,388
  22,605
  23,877
  25,203
  26,591
  28,041
  29,557
  31,143
  32,803
  34,541
  36,360
  38,266
  40,262
  42,354
  44,545
  46,843
  49,252
  51,778
  54,426
  57,204
Debt-to-equity ratio
  2.627
  2.720
  2.820
  2.910
  3.000
  3.080
  3.150
  3.210
  3.280
  3.330
  3.390
  3.440
  3.480
  3.520
  3.560
  3.600
  3.640
  3.670
  3.700
  3.730
  3.760
  3.790
  3.810
  3.840
  3.860
  3.880
  3.900
  3.920
  3.940
  3.950
  3.970
Adjusted equity ratio
  0.189
  0.189
  0.189
  0.189
  0.189
  0.189
  0.189
  0.189
  0.189
  0.189
  0.189
  0.189
  0.189
  0.189
  0.189
  0.189
  0.189
  0.189
  0.189
  0.189
  0.189
  0.189
  0.189
  0.189
  0.189
  0.189
  0.189
  0.189
  0.189
  0.189
  0.189

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  262
  318
  378
  441
  507
  576
  648
  724
  803
  886
  973
  1,092
  1,188
  1,289
  1,394
  1,505
  1,622
  1,745
  1,875
  2,011
  2,154
  2,305
  2,464
  2,631
  2,807
  2,993
  3,189
  3,395
  3,612
  3,841
  4,082
Depreciation, amort., depletion, $m
  1,255
  998
  1,065
  1,134
  1,206
  1,282
  1,360
  1,442
  1,526
  1,615
  1,707
  1,765
  1,865
  1,970
  2,079
  2,194
  2,314
  2,439
  2,570
  2,706
  2,850
  3,000
  3,157
  3,322
  3,494
  3,675
  3,865
  4,064
  4,272
  4,491
  4,720
Funds from operations, $m
  1,537
  1,315
  1,443
  1,575
  1,713
  1,858
  2,008
  2,165
  2,329
  2,500
  2,680
  2,857
  3,053
  3,258
  3,474
  3,699
  3,936
  4,184
  4,444
  4,717
  5,004
  5,305
  5,621
  5,953
  6,302
  6,668
  7,054
  7,458
  7,884
  8,331
  8,801
Change in working capital, $m
  -62
  6
  7
  7
  7
  7
  8
  8
  8
  9
  9
  9
  10
  10
  11
  11
  12
  12
  13
  14
  14
  15
  16
  16
  17
  18
  19
  20
  21
  22
  23
Cash from operations, $m
  1,599
  1,309
  1,436
  1,568
  1,706
  1,850
  2,000
  2,157
  2,321
  2,492
  2,671
  2,847
  3,043
  3,248
  3,463
  3,688
  3,924
  4,172
  4,431
  4,704
  4,990
  5,290
  5,605
  5,937
  6,285
  6,650
  7,035
  7,439
  7,863
  8,310
  8,779
Maintenance CAPEX, $m
  0
  -895
  -959
  -1,026
  -1,095
  -1,168
  -1,243
  -1,321
  -1,403
  -1,488
  -1,576
  -1,668
  -1,765
  -1,865
  -1,970
  -2,079
  -2,194
  -2,314
  -2,439
  -2,570
  -2,706
  -2,850
  -3,000
  -3,157
  -3,322
  -3,494
  -3,675
  -3,865
  -4,064
  -4,272
  -4,491
New CAPEX, $m
  -1,905
  -641
  -669
  -696
  -723
  -752
  -783
  -815
  -849
  -885
  -922
  -962
  -1,004
  -1,048
  -1,095
  -1,144
  -1,196
  -1,251
  -1,309
  -1,370
  -1,434
  -1,501
  -1,572
  -1,647
  -1,726
  -1,809
  -1,896
  -1,987
  -2,084
  -2,185
  -2,292
Cash from investing activities, $m
  -1,406
  -1,536
  -1,628
  -1,722
  -1,818
  -1,920
  -2,026
  -2,136
  -2,252
  -2,373
  -2,498
  -2,630
  -2,769
  -2,913
  -3,065
  -3,223
  -3,390
  -3,565
  -3,748
  -3,940
  -4,140
  -4,351
  -4,572
  -4,804
  -5,048
  -5,303
  -5,571
  -5,852
  -6,148
  -6,457
  -6,783
Free cash flow, $m
  193
  -227
  -192
  -153
  -113
  -70
  -26
  21
  69
  119
  172
  217
  274
  335
  398
  464
  534
  607
  684
  765
  850
  939
  1,033
  1,133
  1,237
  1,347
  1,464
  1,586
  1,716
  1,852
  1,996
Issuance/(repayment) of debt, $m
  -72
  635
  658
  684
  711
  740
  770
  801
  835
  870
  907
  946
  987
  1,031
  1,076
  1,125
  1,176
  1,230
  1,286
  1,346
  1,409
  1,476
  1,545
  1,619
  1,696
  1,778
  1,863
  1,953
  2,048
  2,148
  2,253
Issuance/(repurchase) of shares, $m
  -19
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -95
  635
  658
  684
  711
  740
  770
  801
  835
  870
  907
  946
  987
  1,031
  1,076
  1,125
  1,176
  1,230
  1,286
  1,346
  1,409
  1,476
  1,545
  1,619
  1,696
  1,778
  1,863
  1,953
  2,048
  2,148
  2,253
Total cash flow (excl. dividends), $m
  89
  408
  466
  531
  598
  670
  744
  822
  903
  989
  1,079
  1,162
  1,261
  1,365
  1,474
  1,589
  1,710
  1,837
  1,970
  2,111
  2,259
  2,415
  2,579
  2,751
  2,933
  3,125
  3,327
  3,540
  3,764
  4,000
  4,249
Retained Cash Flow (-), $m
  -65
  -145
  -153
  -159
  -166
  -172
  -179
  -187
  -194
  -203
  -211
  -220
  -230
  -240
  -251
  -262
  -274
  -287
  -300
  -314
  -328
  -344
  -360
  -377
  -395
  -414
  -434
  -455
  -477
  -501
  -525
Prev. year cash balance distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  263
  312
  371
  433
  497
  565
  635
  709
  786
  867
  942
  1,031
  1,125
  1,223
  1,327
  1,436
  1,550
  1,670
  1,797
  1,930
  2,071
  2,219
  2,374
  2,538
  2,711
  2,893
  3,085
  3,287
  3,500
  3,724
Discount rate, %
 
  8.90
  9.35
  9.81
  10.30
  10.82
  11.36
  11.93
  12.52
  13.15
  13.81
  14.50
  15.22
  15.98
  16.78
  17.62
  18.50
  19.43
  20.40
  21.42
  22.49
  23.61
  24.80
  26.03
  27.34
  28.70
  30.14
  31.65
  33.23
  34.89
  36.63
PV of cash for distribution, $m
 
  242
  261
  280
  292
  297
  296
  289
  276
  259
  238
  212
  188
  164
  139
  116
  95
  76
  59
  45
  33
  24
  17
  12
  8
  5
  3
  2
  1
  1
  0
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Ryder System, Inc. provides transportation and supply chain management solutions to small businesses and large enterprises worldwide. The company operates through three segments: Fleet Management Solutions, Dedicated Transportation Solutions, and Supply Chain Solutions. It offers fleet management solutions, including vehicles, as well as maintenance services, supplies, and related equipment for operation of the vehicles; commercial vehicle rental services; contract maintenance services; and contract-related maintenance services for trucks, tractors, and trailers. The company also provides diesel fuel accessing services; offers fuel services, such as fuel planning, fuel tax reporting, centralized billing, fuel cards, and fuel monitoring services; and sells its used vehicles through its 59 retail sales centers and Usedtrucks.Ryder.com Website. In addition, it offers dedicated services comprising equipment, maintenance, and administrative services of a full service lease with drivers, as well as routing and scheduling, fleet sizing, safety, regulatory compliance, risk management, technology and communication systems support, and other technical support services. Further, the company provides distribution management services, such as managing the flow of goods from the receiving to the shipping function; coordinating warehousing and transportation for inbound and outbound material flows; handling import and export for international shipments; coordinating just-in-time replenishment of component parts to manufacturing and final assembly; and providing shipments to customer distribution centers or end customer delivery points, as well as other value added services. Additionally, it offers transport management services, such as shipment optimization, load scheduling, and delivery confirmation services through a series of technological and Web-based solutions; and knowledge-based professional services. The company was founded in 1933 and is headquartered in Miami, Florida.

FINANCIAL RATIOS  of  Ryder System (R)

Valuation Ratios
P/E Ratio 15.1
Price to Sales 0.6
Price to Book 1.9
Price to Tangible Book
Price to Cash Flow 2.5
Price to Free Cash Flow -12.9
Growth Rates
Sales Growth Rate 3.3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -28.6%
Cap. Spend. - 3 Yr. Gr. Rate -2.1%
Financial Strength
Quick Ratio 0
Current Ratio 0
LT Debt to Equity 224.1%
Total Debt to Equity 262.7%
Interest Coverage 4
Management Effectiveness
Return On Assets 3.3%
Ret/ On Assets - 3 Yr. Avg. 3.5%
Return On Total Capital 3.5%
Ret/ On T. Cap. - 3 Yr. Avg. 3.8%
Return On Equity 13%
Return On Equity - 3 Yr. Avg. 13.6%
Asset Turnover 0.6
Profitability Ratios
Gross Margin 55%
Gross Margin - 3 Yr. Avg. 54%
EBITDA Margin 26.6%
EBITDA Margin - 3 Yr. Avg. 25.9%
Operating Margin 8.1%
Oper. Margin - 3 Yr. Avg. 7%
Pre-Tax Margin 6%
Pre-Tax Margin - 3 Yr. Avg. 6.1%
Net Profit Margin 3.9%
Net Profit Margin - 3 Yr. Avg. 3.9%
Effective Tax Rate 34.7%
Eff/ Tax Rate - 3 Yr. Avg. 34.8%
Payout Ratio 34.7%

R stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the R stock intrinsic value calculation we used $6787 million for the last fiscal year's total revenue generated by Ryder System. The default revenue input number comes from 2016 income statement of Ryder System. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our R stock valuation model: a) initial revenue growth rate of 7.2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 8.9%, whose default value for R is calculated based on our internal credit rating of Ryder System, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Ryder System.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of R stock the variable cost ratio is equal to 73.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1277 million in the base year in the intrinsic value calculation for R stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Ryder System.

Corporate tax rate of 27% is the nominal tax rate for Ryder System. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the R stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for R are equal to 131.8%.

Life of production assets of 10 years is the average useful life of capital assets used in Ryder System operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for R is equal to 1.3%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $2052 million for Ryder System - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 53.349 million for Ryder System is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Ryder System at the current share price and the inputted number of shares is $3.9 billion.

RELATED COMPANIES Price Int.Val. Rating
JBHT J.B. Hunt Tran 97.30 70.20  sell
HUBG Hub Group Cl A 35.95 139.59  str.buy
CAR Avis Budget Gr 33.95 9.17  str.sell
SAIA Saia 53.25 12.90  str.sell
PNTR Pointer Teloca 13.45 28.24  str.buy
PAG Penske Automot 40.50 36.49  hold
KNX Knight Transpo 37.35 14.01  str.sell

COMPANY NEWS

▶ Red Eagle Mining Reports Q2 2017 Financial Results   [Aug-15-17 05:30AM  GlobeNewswire]
▶ Local Fortune 500 company inks exclusive partnership with electric-vehicle maker   [Aug-14-17 02:45PM  American City Business Journals]
▶ Hertz Global Holdings, Inc (HTZ) Stock Is a Tire Fire   [Aug-07-17 11:14AM  InvestorPlace]
▶ Ryder beats Street 2Q forecasts   [Jul-26-17 09:19PM  Associated Press]
▶ Ryder Reports Second Quarter 2017 Results   [07:55AM  Business Wire]
▶ 3 Value Stocks for Recent College Graduates   [Jun-22-17 03:29PM  Motley Fool]
▶ Restaurant owners work to drive Players traffic downtown   [May-10-17 09:10AM  American City Business Journals]
▶ Ryder Declares Quarterly Cash Dividend   [May-05-17 04:30PM  Business Wire]
▶ The Players Experience exhibit opens at the World Golf Hall of Fame   [May-04-17 02:25PM  American City Business Journals]
▶ Local Fortune 500 inks exclusive deal with growing drone company   [02:55PM  American City Business Journals]
▶ ETFs with exposure to Ryder System, Inc. : May 1, 2017   [May-01-17 04:20PM  Capital Cube]
▶ Caterpillar and Biogen jump; Express Scripts plunges   [Apr-25-17 05:14PM  Associated Press]
▶ Why Ryder System Stock Just Tumbled 12%   [03:50PM  Motley Fool]
▶ Ryder misses 1Q profit forecasts   [08:02AM  Associated Press]
▶ Ryder Reports First Quarter 2017 Results   [07:55AM  Business Wire]
▶ The Best Earnings Charts to Start the Week   [Apr-24-17 05:51PM  Zacks]
▶ 5 Dividend Stocks to Buy in April   [Apr-20-17 09:03AM  Motley Fool]
▶ Ryder Honors Top Drivers of the Year   [Apr-06-17 06:55AM  Business Wire]
▶ Parksite and Ryder Renew Partnership of 40 Years   [Mar-27-17 06:55AM  Business Wire]
▶ 11 Most Profitable Trucking Companies In America   [Mar-23-17 09:00PM  at Insider Monkey]
▶ Bear of the Day: Ryder (R)   [06:23AM  Zacks]
▶ Ryder to Be a Gold Sponsor of 49th Wharton Global Forum   [Mar-02-17 06:55AM  Business Wire]
▶ Ryder Declares Quarterly Cash Dividend   [Feb-10-17 04:30PM  Business Wire]
Stock chart of R Financial statements of R
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.