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Rush Enterprises A (RUSHA)
:RUSHA
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Rush Enterprises A
(NASDAQ:RUSHA)
Rating:70Outperform
Price Target:
$64.00
▲(12.85% Upside)
Positive Factors
Aftermarket Operations
Strong aftermarket operations contribute significantly to profitability, providing a stable revenue stream less susceptible to economic cycles.
Leasing Revenue Growth
Growth in leasing revenues indicates successful expansion of service offerings, enhancing long-term revenue stability and customer retention.
Financial Flexibility
Increased financing capacity enhances financial flexibility, supporting strategic initiatives and potential growth opportunities.
Negative Factors
Decline in Class 8 Truck Sales
A significant drop in Class 8 truck sales could impact revenue and market share, challenging the company's growth trajectory.
Regulatory Uncertainties
Regulatory uncertainties can delay customer purchasing decisions, affecting sales and operational planning in the long term.
Declining Free Cash Flow
Declining free cash flow can limit the company's ability to invest in growth opportunities and manage financial obligations effectively.
Rush Enterprises A (RUSHA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.51B
Dividend Yield1.27%
Average Volume (3M)326.79K
Price to Earnings (P/E)16.2
Beta (1Y)1.06
Revenue Growth-2.81%
EPS Growth-6.88%
CountryUS
Employees7,827
SectorConsumer Cyclical
Sector Strength75
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)0.90
Shares Outstanding61,244,698
10 Day Avg. Volume239,299
30 Day Avg. Volume326,789
Financial Highlights & Ratios
PEG Ratio-1.42
Price to Book (P/B)2.02
Price to Sales (P/S)0.56
P/FCF Ratio23.23
Enterprise Value/Market Cap1.27
Enterprise Value/Revenue0.74
Enterprise Value/Gross Profit3.89
Enterprise Value/Ebitda9.62
Forecast
1Y Price Target
$60.00Price Target Upside5.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Rush Enterprises A Business Overview & Revenue Model
Company DescriptionRush Enterprises, Inc. (RUSHA) is a leading provider of services and products to the commercial vehicle industry in the United States. The company operates through several segments, including the sale of new and used trucks, parts, and service for heavy- and medium-duty trucks. Rush Enterprises represents various manufacturers, including Peterbilt, International, and Isuzu, and also engages in the sale of truck-related equipment and accessories, providing a comprehensive suite of solutions to its customers.
How the Company Makes MoneyRush Enterprises generates revenue primarily through the sale of new and used trucks, which is a significant portion of its earnings. The company also earns income from its parts and service operations, which include maintenance, repairs, and aftermarket products. Additionally, Rush Enterprises has established key partnerships with major truck manufacturers, allowing it to offer a diverse range of products that cater to various customer needs. The company's revenue model is bolstered by its ability to provide financing options for customers, further enhancing its sales capabilities. Overall, the combination of vehicle sales, parts, services, and strategic partnerships contributes to Rush Enterprises' strong financial performance.
Rush Enterprises A Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted solid performance in aftermarket operations and leasing revenues, alongside an increase in dividends and share repurchases. However, these positives were counterbalanced by significant challenges, including a decline in Class 8 truck sales, ongoing freight recession, and uncertainties in truck production due to regulatory issues. The sentiment reflects a cautious outlook with balanced positive and negative aspects.Q2-2025 Updates
Positive Updates
Solid Aftermarket Performance
Aftermarket operations accounted for approximately 63% of total gross profit in Q2, with parts, service, and collision center revenues reaching $636.3 million, a 1.4% increase compared to Q2 2024.
Record Leasing Revenues
Rush Truck Leasing achieved record revenues of $93.1 million in Q2, up 6.3% year-over-year, with full-service leasing revenue increasing due to new units brought into service.
Dividend Increase
The Board of Directors approved a $0.19 per share cash dividend, a 1% increase over the prior quarterly dividend, marking the ninth increase since 2018.
Share Repurchase
During Q2, Rush Enterprises repurchased $83.9 million of common stock as part of an expanded $200 million repurchase authorization.
Negative Updates
Decline in New Class 8 Truck Sales
The company sold 3,178 new Class 8 trucks in the U.S. during Q2, representing a 20% year-over-year decrease, primarily due to the timing of large fleet deliveries in the previous year.
Freight Recession and Regulatory Uncertainties
The industry continues to face a freight recession persisting for over two years, coupled with uncertainties regarding trade policies and engine emissions regulations, leading to delayed vehicle acquisition and maintenance decisions by customers.
Challenges in New Truck Production
OEMs are reducing production and taking shutdown days due to low order intake and regulatory uncertainties, with April, May, and June being the worst months for order intake since 2009.
Company Guidance
In the Rush Enterprises Q2 earnings call, CEO Rusty Rush provided guidance on several key metrics despite ongoing market challenges. The company reported second quarter revenues of $1.9 billion and a net income of $72.4 million, equating to $0.90 per diluted share. The Board of Directors approved a $0.19 per share cash dividend, marking a 1% increase from the prior quarter. Aftermarket operations were highlighted, contributing approximately 63% to the total gross profit with parts, service, and collision center revenues reaching $636.3 million, a 1.4% increase compared to Q2 2024. The absorption ratio stood at 135.5%, indicating efficient cost management. Rush Enterprises sold 3,178 new Class 8 trucks in the U.S., accounting for 5.4% of the market, although this represented a 20% year-over-year decline. In Canada, Class 8 sales were 81 units, capturing 1.2% of the market. Medium-duty truck sales in the U.S. and Canada also showed growth, with a market share of 6.2% and 4.6%, respectively. The used commercial vehicle sales remained stable with 1,715 units sold. Additionally, Rush Truck Leasing achieved a record revenue of $93.1 million, up 6.3% year-over-year. The company continued to focus on shareholder value, repurchasing $83.9 million of stock and paying a $14.5 million cash dividend in the quarter. Looking ahead, the company expects stable aftermarket demand and challenges in new Class 8 truck sales due to regulatory uncertainties.Rush Enterprises A Financial Statement Overview
Summary
Rush Enterprises exhibits strong financial health with effective cash flow management and stable profitability margins. While revenue growth has slightly decreased in the recent period, the company's balance sheet remains solid, supported by a balanced leverage and strong equity position.Income Statement
Rush Enterprises demonstrates solid profitability metrics with a gross profit margin of 18.8% and a net profit margin of 3.76% for TTM. However, the revenue growth rate is slightly negative for the TTM period, indicating a minor contraction in total revenue compared to the previous annual period.75
Positive
Balance Sheet
The company has a healthy equity ratio of 46.2% for TTM, reflecting a robust capital structure. The debt-to-equity ratio stands at 0.61, indicating moderate leverage, but the return on equity of 13.51% suggests effective utilization of equity to generate profits.70
Positive
Cash Flow
There is a significant improvement in free cash flow, with a growth rate of 207.8% in the TTM period, reflecting enhanced cash generation. The operating cash flow to net income ratio of 3.2x underscores strong cash flow relative to earnings.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.69B | 7.80B | 7.93B | 7.10B | 5.13B | 4.74B |
| Gross Profit | 1.47B | 1.53B | 1.59B | 1.49B | 1.09B | 875.47M |
| EBITDA | 593.50M | 705.94M | 736.90M | 702.81M | 477.10M | 330.10M |
| Net Income | 286.64M | 304.15M | 347.06M | 391.38M | 241.41M | 114.89M |
Balance Sheet | ||||||
| Total Assets | 4.72B | 4.62B | 4.36B | 3.82B | 3.12B | 2.99B |
| Cash, Cash Equivalents and Short-Term Investments | 211.11M | 228.13M | 183.72M | 201.04M | 148.15M | 312.05M |
| Total Debt | 1.75B | 1.73B | 1.81B | 1.44B | 1.15B | 1.22B |
| Total Liabilities | 2.54B | 2.46B | 2.47B | 2.06B | 1.65B | 1.72B |
| Stockholders Equity | 2.15B | 2.14B | 1.87B | 1.74B | 1.47B | 1.27B |
Cash Flow | ||||||
| Free Cash Flow | 402.39M | 186.50M | -73.17M | 51.34M | 255.17M | 626.78M |
| Operating Cash Flow | 885.19M | 619.55M | 295.71M | 294.40M | 422.35M | 762.98M |
| Investing Cash Flow | -516.67M | -445.58M | -387.03M | -240.93M | -432.90M | -127.46M |
| Financing Cash Flow | -324.75M | -129.32M | 73.96M | -690.00K | -153.34M | -505.10M |
Rush Enterprises A Technical Analysis
Positive
56.71
Price Trends
55.38
Positive
52.82
Positive
54.72
Positive
Market Momentum
0.64
Positive
54.14
Neutral
31.68
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 56.71 is below the 20-day moving average (MA) of 57.50, above the 50-day MA of 55.38, and above the 200-day MA of 54.72, indicating a bullish trend. The MACD of 0.64 indicates Positive momentum. The RSI at 54.14 is Neutral, neither overbought nor oversold. The STOCH value of 31.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RUSHA.
Rush Enterprises A Risk Analysis
Rush Enterprises A disclosed 25 risk factors in its most recent earnings report. Rush Enterprises A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Rush Enterprises A Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $4.86B | 9.02 | 15.19% | ― | 8.39% | 40.35% | |
75 Outperform | $6.09B | 13.04 | 15.72% | 0.40% | 19.75% | -10.74% | |
70 Outperform | $4.41B | 16.11 | 13.79% | 1.23% | -2.81% | -6.88% | |
70 Outperform | $4.51B | 16.18 | 13.79% | 1.27% | -2.81% | -6.88% | |
70 Outperform | $8.42B | 13.99 | 27.24% | ― | 3.15% | -12.49% | |
68 Neutral | $2.77B | 18.07 | 15.99% | 1.63% | 4.48% | -16.26% | |
61 Neutral | $18.09B | 12.97 | -1.60% | 2.98% | 1.42% | -15.92% |
* Consumer Cyclical Sector Average
Performance Comparison
RUSHA
Rush Enterprises A
57.59
9.59
19.98%
ABG
Asbury
252.85
39.92
18.75%
AN
AutoNation
227.00
66.05
41.04%
GPI
Group 1 Automotive
488.25
144.77
42.15%
SAH
Sonic Automotive
82.97
29.74
55.87%
RUSHB
Rush Enterprises B
59.11
13.76
30.34%
Rush Enterprises A Corporate Events
Other
Rush Enterprises Hosts Investor Presentation Meeting
Neutral
Aug 15, 2025
Rush Enterprises, Inc. has announced that its senior management will be meeting with current and potential investors and business analysts, utilizing an Investor Presentation that will be available on their website. The company reserves the right to remove this presentation at any time, and it will not be considered filed under the Securities Exchange Act unless specifically stated.
DividendsBusiness Operations and StrategyFinancial Disclosures
Rush Enterprises Reports Strong Q2 2025 Performance
Positive
Jul 30, 2025
Rush Enterprises reported second-quarter 2025 revenues of $1.931 billion and a net income of $72.4 million, despite challenging market conditions impacting the commercial vehicle industry. The company declared a quarterly cash dividend of $0.19 per share, a 5.6% increase from the previous quarter, and noted strong performance in aftermarket services, with a focus on operational efficiency and strategic priorities. While new Class 8 truck sales declined due to market dynamics and past fleet deliveries, medium-duty vehicle sales saw growth, driven by demand in the lease and rental segment. The company remains cautiously optimistic about future demand, despite ongoing economic and regulatory uncertainties.
Executive/Board Changes
Rush Enterprises Announces New Executive Salaries
Neutral
Jun 27, 2025
On June 23, 2025, Rush Enterprises, Inc. announced that its Board of Directors approved new base salaries for its executive officers, effective July 1, 2025. This decision reflects adjustments in compensation for key leadership roles, including the CEO, CFO, COO, and Senior Vice President, which may impact the company’s operational dynamics and stakeholder interests.
Private Placements and FinancingBusiness Operations and Strategy
Rush Enterprises Amends Financing Agreement with BMO
Positive
Jun 18, 2025
On June 13, 2025, Rush Truck Centres of Canada Limited, a subsidiary of Rush Enterprises, Inc., amended its financing agreement with Bank of Montreal, increasing the loan commitment from $116.7 million CAD to $171.7 million CAD. This amendment is expected to enhance the company’s financial flexibility, potentially impacting its operations and market positioning positively.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.