Rush Enterprises A (RUSHA) AI Stock Analysis

• Market Cap: $5.40B
• Dividend Yield: 1.32%
• Average Volume (3M): 684.05K
• Price to Earnings (P/E): 21.3
• Beta (1Y): 0.88
• 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: -1.42
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 23.23
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 4.36
• Enterprise Value/Ebitda: 10.55
• 1Y Price Target: $78.00
• Price Target Upside: 8.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $74.00 ▲(3.34% Upside)

Rush Enterprises demonstrates strong cash flow generation and leverage management, which are crucial for future stability. Technical indicators show bullish momentum, although valuation metrics suggest the stock is fairly valued. The earnings call highlighted resilience in aftermarket operations despite market challenges, contributing positively to the overall score.

Positive Factors

Aftermarket Profitability

Aftermarket (parts, service, collision) contributes the majority of gross profit, creating recurring, higher-margin revenue that cushions cyclical new-truck sales. A large service network supports stable cash flows and cross-selling, improving long-term revenue resilience.

Free Cash Flow Generation

A sharp rise in free cash flow indicates stronger cash conversion from operations and leasing, enabling reinvestment, dividends, buybacks, and debt reduction. Durable cash generation improves financial flexibility for capital-intensive dealership and leasing operations.

Improved Leverage

Lower leverage provides greater balance-sheet flexibility to fund inventory, leasing assets, and capex without excessive interest burden. A healthier debt/equity position reduces refinancing risk and supports strategic initiatives across cycles.

Negative Factors

Declining New Truck Sales

Sustained declines in new Class 8 sales weaken Rush's core dealership revenue stream and franchise economics. Given dealer fixed costs and inventory funding needs, prolonged lower unit demand can compress margins and reduce scale benefits over months.

Margin Compression

Falling net and operating margins signal profitability pressure from lower new-vehicle volumes and competitive pricing. Persistent margin erosion limits cash available for reinvestment, dividends, and reduces buffer against future industry downturns.

Industry Headwinds & Regulatory Risk

Structural industry challenges—weak freight rates, excess capacity, and uncertain emissions rules—can delay fleet replacements and raise compliance costs. These factors may suppress durable demand for new trucks and increase capital intensity for clients.

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

Rush Enterprises faces revenue and profitability challenges with declining margins and negative revenue growth. However, improvements in cash flow generation and leverage management are positive indicators for future stability.

Income Statement

Rush Enterprises shows a declining revenue trend with a negative revenue growth rate of -0.2% in the TTM period. The gross profit margin stands at 19.32%, indicating a solid ability to cover costs, but the net profit margin has decreased to 3.57%, reflecting reduced profitability. The EBIT and EBITDA margins have also declined, suggesting operational challenges.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.57 in the TTM period, indicating better leverage management compared to previous years. Return on equity is at 12.64%, showing a reasonable return for shareholders, though it has decreased from prior periods. The equity ratio is stable, reflecting a balanced asset structure.

Cash Flow

Rush Enterprises has demonstrated strong free cash flow growth of 151.60% in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.55, suggesting efficient cash conversion, while the free cash flow to net income ratio of 0.45 indicates a healthy cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.67B	7.80B	7.93B	7.10B	5.13B	4.74B
Gross Profit	1.49B	1.53B	1.59B	1.49B	1.09B	875.47M
EBITDA	616.59M	705.94M	736.90M	702.81M	477.10M	338.80M
Net Income	274.20M	304.15M	347.06M	391.38M	241.41M	114.89M
Balance Sheet
Total Assets	4.55B	4.62B	4.36B	3.82B	3.12B	2.99B
Cash, Cash Equivalents and Short-Term Investments	242.00M	228.13M	183.72M	201.04M	148.15M	312.05M
Total Debt	1.52B	1.73B	1.81B	1.44B	1.15B	1.22B
Total Liabilities	2.32B	2.46B	2.47B	2.06B	1.65B	1.72B
Stockholders Equity	2.21B	2.14B	1.87B	1.74B	1.47B	1.27B
Cash Flow
Free Cash Flow	693.58M	186.50M	-73.17M	51.34M	255.17M	626.78M
Operating Cash Flow	1.14B	619.55M	295.71M	294.40M	422.35M	762.98M
Investing Cash Flow	-469.97M	-445.58M	-387.03M	-240.93M	-432.90M	-127.46M
Financing Cash Flow	-614.19M	-129.32M	73.96M	-690.00K	-153.34M	-505.10M

Rush Enterprises A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 71.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 71.61 is above the 20-day moving average (MA) of 67.08, above the 50-day MA of 60.78, and above the 200-day MA of 54.39, indicating a bullish trend. The MACD of 3.64 indicates Negative momentum. The RSI at 71.65 is Negative, neither overbought nor oversold. The STOCH value of 80.19 is Negative, 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	72 Outperform	$5.40B	21.27	12.76%	1.32%	-1.95%	-10.89%
ABG	62 Neutral	$4.46B	9.15	13.31%	―	8.07%	60.95%
GPI	62 Neutral	$4.22B	13.29	11.10%	0.49%	19.45%	-24.27%
RUSHB	62 Neutral	$5.40B	19.07	12.76%	1.26%	-1.95%	-10.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SAH	61 Neutral	$2.05B	16.24	12.51%	2.27%	9.09%	-33.59%
AN	58 Neutral	$7.00B	11.83	27.05%	―	6.06%	-1.71%

Rush Enterprises A Corporate Events

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.

Rush Enterprises Engages with Investors via Presentation

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

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.