Rush Enterprises A (RUSHA) AI Stock Analysis

• Market Cap: $4.76B
• Dividend Yield: 1.32%
• Average Volume (3M): 684.05K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.95
• 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: 60,503,265
• 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: 1.29
• Enterprise Value/Revenue: 0.83
• Enterprise Value/Gross Profit: 4.25
• Enterprise Value/Ebitda: 11.09
• 1Y Price Target: $78.67
• Price Target Upside: 26.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 3.72
• Revenue Forecast (FY): $7.52B

• Rating: 72 Outperform
• Price Target: $79.00 ▲(26.68% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

Overall score reflects solid financial quality led by strong 2025 cash generation and improving leverage, tempered by multi-year margin/return compression and softer revenue. Technicals are supportive with an uptrend and positive MACD, while valuation is reasonable but not compelling given the modest dividend. Earnings commentary points to a likely early-2026 trough with gradual recovery, but near-term industry headwinds remain a key risk.

Positive Factors

Strong 2025 cash generation

Material operating and free cash flow (~$862M in 2025) provides durable internal funding for buybacks, dividends, reinvestment and capex. Strong cash conversion improves balance-sheet flexibility to weather cyclical troughs and fund strategic initiatives without relying heavily on external financing.

High-margin aftermarket business

A large, high-margin aftermarket segment (~$2.5B, ~37% blended margin) delivers recurring, less-cyclical revenue and cash flow. This stable, high-margin service footprint cushions new-vehicle cyclicality and supports steady gross-profit generation and reinvestment in mobile service and network capabilities.

Share gains and network expansion

Outperforming a weak market and gaining share shows competitive strength and distribution scale. Market-share gains in medium-duty combined with targeted dealership acquisitions enhance geographic coverage and service density, supporting sustainable revenue mix improvements and long-term customer relationships.

Negative Factors

Revenue and margin compression

Multi-year revenue decline and falling margins/ROE indicate weakened operating leverage and lower capital returns. Persistent margin compression reduces retained earnings and reinvestment capacity, making long-term profitability and return metrics more vulnerable to industry cyclicality and slower recoveries.

Weak Class 8 demand and industry headwinds

Sustained weakness in heavy-truck demand and structural freight-rate pressures compress new-vehicle revenue and gross profit. Because new-truck sales are a core profit driver, prolonged industry softness or excess capacity could depress margins and slow recovery timelines, weighing on medium-term results.

Technician labor and capacity constraints

Ongoing technician shortages and retention issues limit service throughput and growth of high-margin aftermarket revenue. Persistent labor constraints raise personnel costs, slow service turnaround, and could cap scalable expansion of mobile and fixed service capacity, pressuring long-term margin sustainability.

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

Financials are solid but mixed: leverage has improved (debt-to-equity down to ~0.70) and 2025 cash generation strengthened materially (operating cash flow and free cash flow both ~$862M). Offsetting this, revenue softened (~-3.1% in 2025) and margins/returns compressed versus prior years (net margin ~3.5% in 2025 vs ~4.4% in 2023; ROE ~12% vs ~18.6% in 2023).

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: Neutral
• Last Price: 62.36
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RUSHA, the sentiment is Neutral. The current price of 62.36 is below the 20-day moving average (MA) of 69.00, below the 50-day MA of 65.90, and above the 200-day MA of 56.19, indicating a neutral trend. The MACD of -1.32 indicates Positive momentum. The RSI at 34.43 is Neutral, neither overbought nor oversold. The STOCH value of 8.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$4.76B	16.18	12.07%	1.32%	-1.95%	-10.89%
RUSHB	72 Outperform	$4.76B	16.18	12.07%	1.26%	-1.95%	-10.89%
ABG	62 Neutral	$3.68B	9.17	9.29%	―	8.07%	60.95%
GPI	62 Neutral	$3.58B	15.78	10.85%	0.49%	19.45%	-24.27%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
AN	58 Neutral	$6.34B	12.12	26.70%	―	6.06%	-1.71%
SAH	56 Neutral	$2.04B	11.15	11.15%	2.27%	9.09%	-33.59%

Rush Enterprises A Corporate Events

Rush Enterprises Approves 2025 Executive Bonuses and Equity Awards

On March 4, 2026, Rush Enterprises’ board, acting on the recommendation of its Compensation and Human Capital Committee, approved substantial 2025 performance-based cash bonuses for top executives, including $3,508,150 for President, CEO and Chairman W. M. “Rusty” Rush, with additional six-figure payouts to the CFO, COO and senior sales leadership, scheduled for payment on March 13, 2026. The committee also authorized equity incentives effective March 13, 2026, granting stock options in Class A shares that vest over three years beginning on the third anniversary of the grant date, and restricted stock awards in Class B shares that vest in three annual installments starting one year after the grant date, including a $250,000 RSA grant for Senior Advisor and director Michael J. McRoberts, underscoring the company’s emphasis on long-term alignment between executive leadership and shareholder interests.

These compensation decisions, based on competitive market data and the company’s 2025 operating results, reinforce Rush Enterprises’ strategy of using a mix of cash and long-term equity awards to retain key executives and board-level talent. The multi-year vesting structures for both stock options and restricted stock awards are designed to support management continuity, incentivize sustained performance and potentially strengthen the company’s positioning in the competitive commercial truck and aftermarket services sector.

The most recent analyst rating on (RUSHA) stock is a Buy with a $82.00 price target. To see the full list of analyst forecasts on Rush Enterprises A stock, see the RUSHA Stock Forecast page.

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.