Rush Enterprises A (RUSHA) AI Stock Analysis

• Market Cap: $4.16B
• Dividend Yield: 1.4%
• Average Volume (3M): 581.75K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.96
• Revenue Growth: -1.29%
• EPS Growth: -9.44%
• Country: US
• Employees: 7,827
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Auto - Dealerships
• EPS (TTM): 3.58
• Shares Outstanding: 62,592,030
• 10 Day Avg. Volume: 611,010
• 30 Day Avg. Volume: 581,746
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.95
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $60.50
• Price Target Upside: 19.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Rush Enterprises exhibits strong financial performance with robust cash flow management and a healthy balance sheet. Despite a slight revenue dip, the company's operational efficiency and cash generation are commendable. However, technical indicators suggest bearish momentum, which is a concern. The valuation is favorable, providing some upside potential. The earnings call highlights both resilience and challenges, reflecting mixed sentiment. Overall, the stock presents a balanced risk-reward profile with notable strengths in financial performance but caution warranted regarding technical trends.

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 centered around its dealership operations. The primary revenue source is the sale of new and used commercial vehicles, which forms a significant portion of its earnings. The company also earns substantial income from its aftermarket parts and service division, which provides necessary maintenance and repair services for commercial vehicles. Additionally, Rush Enterprises offers financial services, including truck leasing and financing, which contribute to its revenue mix. The company also benefits from insurance services tailored to commercial vehicles. Strategic partnerships with leading truck manufacturers and financial institutions enhance its ability to offer comprehensive solutions to its customers, thereby strengthening its revenue model.

Rush Enterprises A Financial Statement Overview

Summary

Rush Enterprises demonstrates solid financial health with strong cash flow management and stable profitability metrics. The company maintains a balanced approach to leverage, providing a cushion against potential market fluctuations. Despite a slight revenue dip in the last year, its efficiency and cash generation capacity underscore a positive outlook.

Income Statement

Rush Enterprises shows strong profitability with a consistent gross profit margin around 20% and a net profit margin of approximately 4% over recent years. Revenue growth has been positive, with a significant increase of nearly 55% from 2020 to 2021, though there was a slight decline of around 1.5% from 2023 to 2024. EBIT and EBITDA margins are stable, reflecting healthy operational efficiency.

Balance Sheet

The company's balance sheet is relatively strong with a stable debt-to-equity ratio around 0.8, indicating moderate leverage. Return on equity has shown variations but remains healthy, exceeding 16% in recent years. Equity ratio is robust, hovering above 45%, which signifies a solid equity base in its capital structure.

Cash Flow

Cash flow analysis reveals a substantial improvement in free cash flow, growing significantly in the latest period. The operating cash flow to net income ratio is strong, indicating effective conversion of income into cash flows. Recent free cash flow figures demonstrate a remarkable turnaround from negative values in 2023 to positive in 2024, boosting financial resilience.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.80B	7.93B	7.10B	5.13B	4.74B
	Gross Profit
1.53B	1.59B	1.49B	1.09B	875.47M
	EBIT
468.09M	512.38M	506.11M	309.04M	154.60M
	EBITDA
705.94M	736.90M	702.81M	477.10M	330.10M
	Net Income Common Stockholders
304.15M	347.06M	391.38M	241.41M	114.89M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
228.13M	183.72M	201.04M	148.15M	312.05M
	Total Assets
4.62B	4.36B	3.82B	3.12B	2.99B
	Total Debt
1.73B	1.81B	1.44B	1.15B	1.22B
	Net Debt
1.51B	1.63B	1.23B	1.00B	907.86M
	Total Liabilities
2.46B	2.47B	2.06B	1.65B	1.72B
	Stockholders Equity
2.14B	1.87B	1.74B	1.47B	1.27B
Cash Flow		Free Cash Flow
619.55M	-73.17M	51.34M	255.17M	626.78M
	Operating Cash Flow
619.55M	295.71M	294.40M	422.35M	762.98M
	Investing Cash Flow
-445.58M	-387.03M	-240.93M	-432.90M	-127.46M
	Financing Cash Flow
-129.32M	73.96M	-690.00K	-153.34M	-505.10M

Rush Enterprises A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 50.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RUSHA, the sentiment is Negative. The current price of 50.55 is below the 20-day moving average (MA) of 51.29, below the 50-day MA of 53.52, and below the 200-day MA of 54.70, indicating a bearish trend. The MACD of -0.85 indicates Negative momentum. The RSI at 43.20 is Neutral, neither overbought nor oversold. The STOCH value of 32.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RUSHA.

Rush Enterprises A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAG	77 Outperform	$10.41B	11.45	18.57%	2.82%	3.29%	-1.30%
RUSHB	75 Outperform	$4.16B	15.18	14.28%	1.26%	-1.29%	-9.44%
AN	74 Outperform	$6.49B	9.75	28.45%	―	-0.24%	-19.76%
GPI	73 Outperform	$5.33B	11.61	16.25%	0.46%	15.13%	-15.91%
RUSHA	70 Outperform	$4.16B	13.60	14.28%	1.40%	-1.29%	-9.44%
SAH	68 Neutral	$2.13B	8.95	24.52%	2.07%	1.59%	43.91%
Sector *	61 Neutral	$6.65B	11.71	3.09%	3.98%	2.65%	-20.82%

Rush Enterprises A Corporate Events

Rush Enterprises Reports Q1 2025 Revenue Decline

Rush Enterprises reported first-quarter 2025 revenues of $1.85 billion and net income of $60.3 million, reflecting a decline from the previous year due to challenging market conditions, including a freight recession and economic uncertainties. Despite these challenges, the company outperformed the industry in medium-duty truck sales and maintained steady aftermarket revenues, supported by strategic initiatives and a diversified customer base. The board declared a $0.18 per share dividend, and the company anticipates slight improvements in aftermarket revenues and truck sales in the coming quarters, although uncertainties around tariffs and emissions regulations remain a concern.

Spark’s Take on RUSHA Stock

According to Spark, TipRanks’ AI Analyst, RUSHA is a Outperform.

Rush Enterprises exhibits solid financial performance with strong cash flow management and a healthy balance sheet. However, the technical indicators suggest bearish momentum, and economic uncertainties add risk. The valuation is favorable, and the latest earnings call highlights resilience despite market challenges. Overall, the stock presents a balanced risk-reward profile.

To see Spark’s full report on RUSHA stock, click here.

Rush Enterprises Announces Executive Compensation Plans

On March 3, 2025, Rush Enterprises, Inc. announced compensation payments for its executive officers, including cash bonuses, stock options, and restricted stock awards. The cash bonuses, based on competitive market data and the company’s 2024 fiscal year results, will be distributed on March 14, 2025. Stock options and restricted stock awards will also be granted on this date, with vesting conditions outlined in the company’s long-term incentive plan.

Rush Enterprises A Reports Strong 2024 Financial Results

For the year ending December 31, 2024, Rush Enterprises reported annual revenues of $7.8 billion and net income of $304.2 million, reflecting a slight decrease from the previous year. Despite challenges such as the freight recession and high interest rates impacting over-the-road carriers, the company maintained strong sales in vocational and public sector segments. The Board declared a quarterly dividend of $0.18 per share, underscoring confidence in future cash flow and shareholder value. The company’s strategic expansion included new service locations and increased focus on mobile services, which contributed to market share growth in the aftermarket sector despite a slight decline in revenue. Looking ahead, the company anticipates challenges in the freight market and potential impacts from proposed tariffs but remains optimistic about medium-duty market growth and strengthening aftermarket operations.