Rush Enterprises A (RUSHA) AI Stock Analysis

• Market Cap: $5.39B
• Dividend Yield: 1.32%
• Average Volume (3M): 684.05K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.90
• Revenue Growth: -1.95%
• EPS Growth: -10.89%
• Country: US
• Employees: 7,827
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): 0.81
• Shares Outstanding: 60,643,500
• 10 Day Avg. Volume: 734,276
• 30 Day Avg. Volume: 684,052
• PEG Ratio: -1.29
• Price to Book (P/B): 1.92
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 7.38
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 4.73
• Enterprise Value/Ebitda: 12.34
• 1Y Price Target: $78.67
• Price Target Upside: 10.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 3.72
• Revenue Forecast (FY): $7.52B

• Rating: 73 Outperform
• Price Target: $82.00 ▲(14.99% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by solid financial footing (strong 2025 cash generation and improving leverage) and strong technical momentum. Offsetting these are compressed margins/returns and a valuation that is only moderately attractive (P/E ~22.4 with ~1% yield), while the latest call was constructive but flagged a weak Q1 and ongoing industry and execution risks.

Positive Factors

Cash generation & improving leverage

Materially stronger 2025 operating and free cash flow (~$862M) and a lower debt-to-equity (~0.70) improve financial flexibility. This durable cash generation supports buybacks/dividends, funds capex for network/service, and reduces refinancing strain through cyclical downturns.

Aftermarket margins & recurring revenue

Aftermarket and collision (large share of gross profit) produced ~$2.5B with consistent ~37% blended margins. Recurring parts & service cash flows are less cyclical than new-vehicle sales, stabilizing revenue and margins and enabling reinvestment in service and mobile capabilities long term.

Scale, network expansion & mobile service

Targeted acquisitions and geographic expansion broaden service reach and OEM coverage, while increased mobile service (mid-30% share) deepens customer access. Scale and service density create durable competitive advantages in parts penetration and customer retention across cycles.

Negative Factors

Revenue and margin compression

Multi-year revenue softness and declining margins have compressed returns (ROE fell to ~12% in 2025). Lower operating leverage reduces cash conversion and reinvestment capacity, making the business more sensitive to volume swings and prolonging recovery of profitability.

Cyclicality in Class 8 & medium-duty demand

A high exposure to new-truck cycles means weak Class 8 and medium-duty markets materially depress revenue when freight rates and replacement demand falter. Recovery timing is uncertain, leaving new-vehicle sales and related absorption vulnerable for several quarters.

Technician staffing & supply-chain execution risk

Persistent technician shortages and upfitting/supplier timing risk can erode service capacity and delay deliveries, limiting aftermarket growth and absorption. These structural operational constraints require multi-year training and hiring to restore full service throughput.

Rush Enterprises A Business Overview & Revenue Model

Company Description

Rush Enterprises, Inc., through its subsidiaries, operates as an integrated retailer of commercial vehicles and related services in the United States. The company operates a network of commercial vehicle dealerships under the Rush Truck Centers name. Its Rush Truck Centers primarily sell commercial vehicles manufactured by Peterbilt, International, Hino, Ford, Isuzu, IC Bus, or Blue Bird. The company also provides new and used commercial vehicles, and aftermarket parts, as well as service and repair, financing, and leasing and rental services; and offers property and casualty insurance, including collision and liability insurance on commercial vehicles, cargo insurance, and credit life insurance to its commercial vehicle customers. In addition, it provides equipment installation and repair, parts installation, and paint and body repair services; new vehicle pre-delivery inspection, truck modification, and natural gas fuel system installation services; body, chassis upfitting, and component installation services, as well as sells tires for use on commercial vehicles, new and used trailers, and vehicle telematics products; and manufactures compressed natural gas fuel systems and related component parts for commercial vehicles. The company serves regional and national fleets, corporations, local and state governments, and owner operators. It operates a network of centers located in the states of Alabama, Arizona, California, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Missouri, Nevada, Nebraska, New Mexico, North Carolina, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas, Utah, and Virginia. Rush Enterprises, Inc. was incorporated in 1965 and is headquartered in New Braunfels, Texas.

How the Company Makes Money

Rush Enterprises generates revenue through multiple streams primarily from its dealership operations. The company earns money from the sale of new and used trucks, which represents a significant portion of its revenue. Additionally, Rush generates income from the aftermarket segment, which includes parts sales and service repairs for trucks, contributing to consistent revenue from existing customers. The leasing and rental services also provide a steady income stream, catering to businesses that require flexible vehicle solutions. Furthermore, strategic partnerships with leading manufacturers enhance its product offerings and increase sales potential. Economic factors such as the demand for commercial transportation and infrastructure investments also play a crucial role in driving Rush Enterprises' earnings.

Rush Enterprises A Financial Statement Overview

Summary

Strong 2025 operating/free cash flow and improving leverage support financial quality, but revenue softness and multi-year margin/ROE compression signal weaker operating leverage and profitability versus prior years.

Income Statement

Revenue has softened recently (down ~3.1% in 2025 after a flat 2024), following strong growth in 2022–2023. Profitability remains positive but has compressed versus prior years: 2025 gross margin ~18.7% and net margin ~3.5% versus ~20.1% and ~4.4% in 2023, with EBITDA margin also down meaningfully (about 6.2% in 2025 vs ~9.0% in 2024). Net income declined from 2022–2025, indicating weaker operating leverage in the current environment.

Balance Sheet

Leverage looks manageable and improving, with debt-to-equity down to ~0.70 in 2025 from ~0.97 in 2023, while equity has grown over the period. Returns have moderated (ROE ~12.0% in 2025 vs ~18.6% in 2023 and ~22.4% in 2022), which aligns with the margin and earnings compression. Overall capitalization appears solid for the industry, but profitability-driven balance-sheet efficiency has weakened.

Cash Flow

Cash generation strengthened materially in 2025: operating cash flow rose to ~$862M (from ~$620M in 2024), and free cash flow also surged to ~$862M, with strong reported free-cash-flow growth (~24.3%). The main weakness is volatility: free cash flow was negative in 2023, highlighting working-capital and investment swings that can occur in dealership operations. (Some provided coverage ratios are shown as 0.0 in 2025, so they are not relied upon.)

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.43B	7.80B	7.93B	7.10B	5.13B
Gross Profit	1.39B	1.53B	1.59B	1.49B	1.09B
EBITDA	463.24M	705.94M	736.90M	702.81M	477.10M
Net Income	263.78M	304.15M	347.06M	391.38M	241.41M
Balance Sheet
Total Assets	4.43B	4.62B	4.36B	3.82B	3.12B
Cash, Cash Equivalents and Short-Term Investments	212.65M	228.13M	183.72M	201.04M	148.15M
Total Debt	1.55B	1.73B	1.81B	1.44B	1.15B
Total Liabilities	2.20B	2.46B	2.47B	2.06B	1.65B
Stockholders Equity	2.20B	2.14B	1.87B	1.74B	1.47B
Cash Flow
Free Cash Flow	573.25M	186.50M	-73.17M	51.34M	255.17M
Operating Cash Flow	973.09M	619.55M	295.71M	294.40M	422.35M
Investing Cash Flow	-417.11M	-445.58M	-387.03M	-240.93M	-432.90M
Financing Cash Flow	-571.60M	-129.32M	73.96M	-690.00K	-153.34M

Rush Enterprises A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 71.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RUSHA, the sentiment is Positive. The current price of 71.31 is below the 20-day moving average (MA) of 71.90, above the 50-day MA of 64.48, and above the 200-day MA of 55.61, indicating a neutral trend. The MACD of 1.99 indicates Positive momentum. The RSI at 56.69 is Neutral, neither overbought nor oversold. The STOCH value of 33.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RUSHA.

Rush Enterprises A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RUSHA	73 Outperform	$5.39B	16.18	12.76%	1.32%	-1.95%	-10.89%
RUSHB	72 Outperform	$5.39B	16.18	12.76%	1.26%	-1.95%	-10.89%
ABG	62 Neutral	$4.09B	9.17	13.31%	―	8.07%	60.95%
GPI	62 Neutral	$3.85B	15.78	11.10%	0.49%	19.45%	-24.27%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
AN	58 Neutral	$6.77B	12.12	27.05%	―	6.06%	-1.71%
SAH	56 Neutral	$2.15B	11.15	12.51%	2.27%	9.09%	-33.59%

Rush Enterprises A Corporate Events

Rush Enterprises Posts Lower 2025 Results, Maintains Dividend

Rush Enterprises, Inc., which runs North America’s largest commercial vehicle dealership network focused on trucks, buses and aftermarket services, reported 2025 revenues of $7.4 billion and net income of $263.8 million, or $3.27 per diluted share, down from $7.8 billion in revenue and $304.2 million in net income in 2024. Aftermarket products and services generated about 63.7% of gross profit, parts, service and collision center revenues edged up to $2.5 billion, and the company expanded its footprint with new IC Bus dealerships in Canada and a full-service Peterbilt location in Tennessee.

Management highlighted that 2025 was marked by weak demand for new commercial vehicles amid depressed freight rates, excess capacity and regulatory uncertainty, which weighed on Class 8 sales even as vocational and public sector demand remained relatively stable. Despite the difficult environment, the board declared a quarterly dividend of $0.19 per share payable on March 18, 2026, and Rush underscored continued investments in facilities, technology and strategic initiatives, a robust balance sheet, significant share repurchases and cautious optimism that aging fleets and improved clarity on tariffs and emissions standards will support stronger truck and aftermarket demand later in 2026.

The most recent analyst rating on (RUSHA) stock is a Buy with a $74.00 price target. To see the full list of analyst forecasts on Rush Enterprises A stock, see the RUSHA Stock Forecast page.

Rush Enterprises Announces $150 Million Stock Buyback

On December 1, 2025, Rush Enterprises, Inc. amended its Bylaws to align with the Texas Business Organizations Code, introducing provisions that limit derivative proceedings to shareholders owning at least 3% of the company’s stock and designating specific courts for internal claims. Additionally, the amendments require shareholders to waive jury trials in certain legal actions and comply with specific nomination rules. On December 3, 2025, the company announced a new $150 million stock repurchase program, replacing the previous one, reflecting confidence in its financial stability and strategic initiatives. This program, effective immediately, allows the company to repurchase shares at its discretion until December 31, 2026.

The most recent analyst rating on (RUSHA) stock is a Hold with a $54.00 price target. To see the full list of analyst forecasts on Rush Enterprises A stock, see the RUSHA Stock Forecast page.