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Rush Enterprises A (RUSHA)
NASDAQ:RUSHA
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Rush Enterprises A (RUSHA) AI Stock Analysis

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RUSHA

Rush Enterprises A

(NASDAQ:RUSHA)

Rating:72Outperform
Price Target:
$60.00
▲(10.82%Upside)
Rush Enterprises maintains a robust financial position with effective cash flow and stable profitability. Corporate events further bolster the company's outlook, reflecting strategic initiatives and financial strength. However, technical indicators show mixed signals, and valuation is average, suggesting potential but with caution due to market uncertainties and segment-specific challenges.

Rush Enterprises A (RUSHA) vs. SPDR S&P 500 ETF (SPY)

Rush Enterprises A Business Overview & Revenue Model

Company DescriptionRush Enterprises, Inc. (RUSHA) operates as an integrated retailer of commercial vehicles and related services. The company primarily focuses on providing a comprehensive range of solutions for the transportation and logistics sectors. Rush Enterprises offers new and used commercial vehicle sales, aftermarket parts, service, and leasing, serving various industries including freight and delivery services, construction, and municipal services.
How the Company Makes MoneyRush Enterprises generates revenue through multiple streams, primarily from the sale of new and used commercial vehicles, which includes trucks and buses. The company also earns significant income from its aftermarket parts and service operations, which provide necessary maintenance, repair, and replacement parts for commercial vehicles. Leasing and rental services contribute to the revenue by offering flexible vehicle solutions to businesses that require temporary or scalable transportation capacity. Additionally, Rush Enterprises benefits from strategic partnerships with leading vehicle manufacturers, enhancing its product offerings and market reach.

Rush Enterprises A Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q1-2025)
|
% Change Since: 1.92%|
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. While the company achieved strong revenue and income, declared dividends, and outperformed in certain segments, it faced significant challenges from economic uncertainties, declining aftermarket revenues, and challenges in Class 8 truck sales due to the broader market conditions and regulatory uncertainties.
Q1-2025 Updates
Positive Updates
Strong Revenue and Net Income
Achieved revenues of $1.85 billion and net income of $60.3 million or $0.73 per diluted share in Q1 2025.
Dividend Declaration
Board of Directors declared a cash dividend of $0.18 per common share for the quarter.
Outperformance in Medium Duty Truck Sales
Despite a 3.5% decline in the overall market, sold 3,329 new Class 4 through 7 trucks, increasing market share to 5.6% in the U.S.
Aftermarket Expansion
Expanded aftermarket sales force and added service technicians to improve service levels and decrease customer dwell time.
Leasing and Rental Revenue Increase
Leasing and rental revenue increased by 2.3% compared to Q1 2024, totaling $90 million for the quarter.
Negative Updates
Freight Recession and Economic Uncertainty
The business environment was difficult due to the freight recession, economic uncertainty, U.S. trade policies, tariffs, and emissions regulations.
Decline in Aftermarket Revenues
Parts, service, and body shop revenues were $619 million, down 4.6% compared to the previous year.
Class 8 Truck Sales Challenges
U.S. and Canadian retail truck sales totaled 57,946 in Q1, down 9% year-over-year. The company's sales were down 7.8%.
Used Truck Sales Decline
Sold 1,769 used trucks in Q1, a decrease of 2.7% compared to 2021.
Tariff and Regulation Uncertainties
Concerns over tariffs and emission regulations create uncertainty in the market, affecting customer purchasing decisions.
Company Guidance
In the first quarter of 2025, Rush Enterprises reported revenues of $1.85 billion and net income of $60.3 million, which amounts to $0.73 per diluted share. The company declared a cash dividend of $0.18 per common share. Despite a challenging business environment characterized by a freight recession, economic uncertainty, and changing trade policies, Rush Enterprises managed to outperform the broader market thanks to strategic initiatives and a diversified customer base. Class 8 truck sales were down 7.8% year-over-year, but the company maintained a 6.1% market share in the U.S. and 1.1% in Canada. Medium duty truck sales allowed Rush to outperform the market with a 5.6% market share in the U.S. and 3.1% in Canada. The aftermarket segment saw revenues of $619 million, a 4.6% decrease year-over-year, with an absorption ratio of 128.6%. Leasing and rental revenue was up 2.3%, totaling $90 million for the quarter. Looking ahead, management anticipates slight sequential improvement in Class 8 sales and aftermarket revenues in Q2, while actively monitoring supply chain issues and proposed tariffs that may impact parts availability and pricing.

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
75
Positive
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.
Balance Sheet
70
Positive
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.
Cash Flow
80
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue7.78B7.80B7.93B7.10B5.13B4.74B
Gross Profit1.46B1.53B1.59B1.49B1.09B875.47M
EBITDA648.07M705.94M736.90M702.81M477.10M330.10M
Net Income292.87M304.15M347.06M391.38M241.41M114.89M
Balance Sheet
Total Assets4.69B4.62B4.36B3.82B3.12B2.99B
Cash, Cash Equivalents and Short-Term Investments228.72M228.13M183.72M201.04M148.15M312.05M
Total Debt1.73B1.73B1.81B1.44B1.15B1.22B
Total Liabilities2.50B2.46B2.47B2.06B1.65B1.72B
Stockholders Equity2.17B2.14B1.87B1.74B1.47B1.27B
Cash Flow
Free Cash Flow574.21M186.50M-73.17M51.34M255.17M626.78M
Operating Cash Flow928.12M619.55M295.71M294.40M422.35M762.98M
Investing Cash Flow-472.89M-445.58M-387.03M-240.93M-432.90M-127.46M
Financing Cash Flow-391.68M-129.32M73.96M-690.00K-153.34M-505.10M

Rush Enterprises A Technical Analysis

Technical Analysis Sentiment
Positive
Last Price54.14
Price Trends
50DMA
51.72
Positive
100DMA
51.84
Positive
200DMA
54.82
Negative
Market Momentum
MACD
0.61
Negative
RSI
55.71
Neutral
STOCH
68.61
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 54.14 is above the 20-day moving average (MA) of 53.33, above the 50-day MA of 51.72, and below the 200-day MA of 54.82, indicating a neutral trend. The MACD of 0.61 indicates Negative momentum. The RSI at 55.71 is Neutral, neither overbought nor oversold. The STOCH value of 68.61 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 24 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 (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$5.33B11.4215.72%0.47%19.75%-10.74%
72
Outperform
$4.25B15.2413.79%1.33%-2.81%-6.88%
71
Outperform
$11.12B11.7018.08%2.83%2.39%5.83%
71
Outperform
$4.25B15.2513.79%1.31%-2.81%-6.88%
69
Neutral
$7.29B12.0527.24%3.15%-12.49%
64
Neutral
$2.52B16.4115.99%1.87%4.48%-16.26%
57
Neutral
HK$25.10B4.09-2.03%5.85%-0.24%-68.05%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RUSHA
Rush Enterprises A
54.14
2.66
5.17%
AN
AutoNation
192.64
21.90
12.83%
GPI
Group 1 Automotive
412.15
70.85
20.76%
PAG
Penske Automotive Group
167.41
8.03
5.04%
SAH
Sonic Automotive
72.35
17.63
32.22%
RUSHB
Rush Enterprises B
54.31
8.04
17.38%

Rush Enterprises A Corporate Events

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.

The most recent analyst rating on (RUSHA) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on Rush Enterprises A stock, see the RUSHA Stock Forecast page.

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.

The most recent analyst rating on (RUSHA) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on Rush Enterprises A stock, see the RUSHA Stock Forecast page.

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.

The most recent analyst rating on (RUSHA) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on Rush Enterprises A stock, see the RUSHA Stock Forecast page.

Stock BuybackBusiness Operations and Strategy
Rush Enterprises Expands Stock Repurchase Program
Positive
May 29, 2025

On May 29, 2025, Rush Enterprises announced a $50 million increase to its stock repurchase program, raising the total authorization to $200 million. This decision reflects the company’s confidence in its financial strength despite challenges in the commercial vehicle market, and aims to enhance shareholder value while supporting its growth strategy.

The most recent analyst rating on (RUSHA) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on Rush Enterprises A stock, see the RUSHA Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Rush Enterprises Holds 2025 Annual Shareholders Meeting
Neutral
May 20, 2025

On May 20, 2025, Rush Enterprises, Inc. held its 2025 Annual Meeting of Shareholders, where the election of directors and the ratification of the company’s independent registered public accounting firm were key agenda items. Shareholders elected nine directors, including W.M. “Rusty” Rush and others, to serve until the 2026 Annual Meeting. Additionally, Ernst & Young LLP was ratified as the independent registered public accounting firm for the 2025 fiscal year.

The most recent analyst rating on (RUSHA) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on Rush Enterprises A stock, see the RUSHA Stock Forecast page.

Business Operations and Strategy
Rush Enterprises Engages with Investors via Presentation
Neutral
May 6, 2025

Rush Enterprises, Inc. has announced that its senior management will be engaging with current and potential investors and business analysts over the next few months. The company will utilize an Investor Presentation, which will be available on its website, to facilitate these discussions, though it reserves the right to remove the presentation at any time.

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.Date of analysis: Aug 01, 2025