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Rush Enterprises B (RUSHB)
NASDAQ:RUSHB
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Rush Enterprises B
(NASDAQ:RUSHB)
62Neutral
Rush Enterprises B (RUSHB) vs. S&P 500 (SPY)
Market Cap
$4.04B
Dividend Yield1.33%
Average Volume (3M)32.48K
Price to Earnings (P/E)14.4
Beta (1Y)1.02
Revenue Growth-1.52%
EPS Growth-9.80%
CountryUS
Employees7,827
SectorConsumer Cyclical
Sector Strength63
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)3.73
Shares Outstanding16,562,977
10 Day Avg. Volume34,747
30 Day Avg. Volume32,480
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.56
Price to Cash Flow (P/CF)9.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Rush Enterprises B Business Overview & Revenue Model
Company DescriptionRush 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 MoneyRush Enterprises makes money through several key revenue streams. The primary source of income is the sale of new and used commercial vehicles, which constitutes a significant portion of the company's revenue. Additionally, Rush Enterprises generates revenue through the sale of aftermarket parts and service, providing maintenance and repair services for a variety of commercial vehicle brands. The company also offers leasing and rental services, providing flexible options for businesses to manage their fleets. Financial services, including financing and insurance products, enhance the company's revenue portfolio. Strategic partnerships with major truck manufacturers and a strong presence in the commercial transportation market further contribute to Rush Enterprises' earnings.
Rush Enterprises B Financial Statement Overview
Summary
Rush Enterprises B shows solid financial health with consistent revenue growth, strong cash flows, and a stable balance sheet. However, challenges with declining net profit margins and increasing debt levels present some risks.Income Statement
Rush Enterprises B has shown consistent revenue growth from 2020 to 2023, albeit with a slight decline in 2024. The gross profit margin has been relatively stable around 20%, indicating strong cost management. However, net profit margins have decreased from 2022 to 2024, reflecting higher operating expenses or other cost pressures. EBIT and EBITDA margins have remained healthy, supporting overall profitability.78
Positive
Balance Sheet
The company's balance sheet reflects a moderate debt-to-equity ratio, indicating a balanced approach to leverage. Return on equity has been strong, although it declined slightly in 2024. The equity ratio shows a solid equity base compared to total assets, suggesting financial stability. However, the increase in total debt over the years could pose a risk if not managed carefully.72
Positive
Cash Flow
Cash flow analysis reveals strong operating cash flow, especially in 2024, indicating robust core business operations. Free cash flow has also improved significantly from negative in 2023 to positive in 2024, enhancing financial flexibility. The operating cash flow to net income ratio is strong, but free cash flow to net income fluctuated, suggesting variability in capital expenditures.81
Very Positive
| 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 B Technical Analysis
Negative
53.43
Price Trends
55.98
Negative
55.48
Negative
50.24
Positive
Market Momentum
0.61
Negative
52.08
Neutral
73.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RUSHB, the sentiment is Negative. The current price of 53.43 is below the 20-day moving average (MA) of 55.90, below the 50-day MA of 55.98, and above the 200-day MA of 50.24, indicating a neutral trend. The MACD of 0.61 indicates Negative momentum. The RSI at 52.08 is Neutral, neither overbought nor oversold. The STOCH value of 73.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RUSHB.
Rush Enterprises B Risk Analysis
Rush Enterprises B disclosed 24 risk factors in its most recent earnings report. Rush Enterprises B 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 B Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $4.04B | 13.55 | 15.16% | 1.41% | -1.52% | -9.80% | |
75 Outperform | $4.18B | 9.88 | 12.76% | ― | 16.11% | -24.72% | |
66 Neutral | $4.98B | 10.38 | 17.23% | 0.50% | 11.53% | -13.75% | |
63 Neutral | $6.22B | 9.36 | 29.65% | ― | -0.68% | -25.24% | |
62 Neutral | $4.04B | 14.37 | 15.16% | 1.33% | -1.52% | -9.80% | |
60 Neutral | $1.90B | 9.10 | 22.11% | 2.31% | -1.03% | 24.64% | |
59 Neutral | $11.20B | 10.09 | -1.41% | 3.96% | 1.31% | -16.95% |
* Consumer Cyclical Sector Average
Performance Comparison
RUSHB
Rush Enterprises B
53.43
3.15
6.26%
ABG
Asbury
212.58
-12.24
-5.44%
AN
AutoNation
158.55
-0.48
-0.30%
GPI
Group 1 Automotive
382.11
104.85
37.82%
RUSHA
Rush Enterprises A
50.36
-1.47
-2.84%
SAH
Sonic Automotive
56.16
5.24
10.29%
Rush Enterprises B Earnings Call Summary
Earnings Call Date: Feb 18, 2025 | % Change Since: -7.16% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment. While the company saw strong performance in medium-duty truck sales and stability in leasing revenues, challenges such as a decline in Class 8 truck sales and aftermarket revenue, alongside potential tariff impacts and high inventory levels, weighed heavily. The company's strategic initiatives in diversification and vocational markets provided some positive offset, but the overall outlook remains cautious due to ongoing market pressures.Highlights
Annual Revenue and Net Income
Rush Enterprises, Inc. reported $7.8 billion in annual revenues for 2024 and a net income of $304.2 million or $3.72 per diluted share.
Strong Performance in Medium-Duty Truck Sales
Class 4 through 7 new truck sales were up 5.1% year-over-year, with 13,935 units sold in 2024, outperforming the market.
Strategic Focus on Diversification
The company's strategic focus on diversifying its customer base and focusing on large national accounts paid off, as evidenced by strong medium-duty truck sales.
Robust Vocational and Public Sector Markets
Strength in public sector and vocational markets helped balance out weak demand for new Class 8 trucks from over-the-road customers.
Leasing and Rental Revenue Stability
Leasing and rental revenue was $354.9 million, basically flat from 2023, with leasing revenue increasing as 1,500 units were replaced in the fleet.
Lowlights
Decline in Class 8 Truck Sales
Sales of new Class 8 trucks were down 11.4% year-over-year in 2024, influenced by high inventory levels and competitive pricing.
Aftermarket Revenue Decline
Parts, service, and body shop revenues of $2.5 billion were down 1.8% from 2023, with a lower absorption ratio of 132.2% compared to 135.3% in 2023.
Challenges in the Used Truck Market
The used truck market was challenged due to falling values and tight credit, although disciplined inventory and pricing strategies helped deliver strong results.
Potential Impact of Proposed Tariffs
Proposed tariffs on vehicles and component parts manufactured in Canada, Mexico, or China could increase the aggregate price of new commercial vehicles or parts, potentially decreasing demand.
High Inventory and Competitive Pricing Pressure
High inventory levels and competitive pricing pressures affected the Class 8 truck market.
Company Guidance
In the fourth quarter of 2024, Rush Enterprises reported annual revenues of $7.8 billion and a net income of $304.2 million, equating to $3.72 per diluted share. For the quarter, revenues were $2 billion, with net income reaching $74.7 million or $0.91 per diluted share. The company announced a cash dividend of $0.18 per common share. Despite challenges in the Class 8 truck market due to high interest rates and a freight recession, Rush Enterprises maintained strong sales in Class 4 through 7 trucks, outperforming the medium-duty truck market. Aftermarket revenues totaled $2.5 billion, down 1.8% from 2023, with an absorption ratio of 132.2%, slightly down from 135.3% the previous year. The company sold 15,465 new Class 8 trucks, an 11.4% decrease year-over-year, representing 6.1% of the US market and 1.7% of the Canadian market. Class 4 through 7 new truck sales increased by 5.1%, with 13,935 units sold, capturing 5.3% of the US market and 3.1% of the Canadian market. Used truck sales were stable with 7,110 units sold, while leasing and rental revenue was flat at $354.9 million. Looking forward to 2025, the company expects a soft aftermarket demand initially but anticipates improvement as the freight market recovers. Additionally, potential new tariffs on vehicles and parts manufactured in Canada, Mexico, or China could impact demand for new commercial vehicles in 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.