Rush Enterprises B (RUSHB) AI Stock Analysis

• Market Cap: $5.19B
• Dividend Yield: 1.26%
• Average Volume (3M): 34.59K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.94
• 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: 16,437,908
• 10 Day Avg. Volume: 33,451
• 30 Day Avg. Volume: 34,590
• 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: 1.24
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 4.45
• Enterprise Value/Ebitda: 11.60
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 3.72
• Revenue Forecast (FY): $7.52B

• Rating: 72 Outperform
• Price Target: $74.00 ▲(28.67% Upside)
• Action: Upgraded Date: 02/25/26
• Date: Action: Upgraded 02/25/26

The score is driven primarily by stable overall fundamentals with improved leverage and a sharp 2025 cash flow rebound, tempered by recent revenue declines and margin compression. Technicals add support with a clear uptrend and positive momentum, while valuation is only average. Earnings-call commentary is cautiously positive (expected 1Q trough and stronger back half), but with meaningful operational and cycle-related risks.

Positive Factors

Aftermarket revenue and margins

A large, stable aftermarket (parts, service, collision) with high blended margins (~37%) creates recurring, less cyclic revenue and strong gross profit per repair. This durability cushions new-vehicle cyclicality, supports cash flow and cross-sell economics across the dealer network over multiple quarters.

Strong cash flow rebound

A material rebound to ~$862M in operating/free cash flow improves financial flexibility to fund capex, reinvest in service/mobile initiatives, and sustain buybacks/dividends. Persistent strong cash conversion in dealer models underpins long-term capital allocation despite historical FCF volatility.

Improved leverage and capital returns

Lower leverage increases resilience to cyclical swings and provides room for strategic deployment (acquisitions, mobile service, network expansion). Combined with a history of buybacks and dividends, the balance sheet improvement supports sustainable shareholder returns and investment optionality.

Negative Factors

Revenue and margin erosion

Declining top-line and compressed margins reduce operating leverage and earnings resilience. For a dealership model, sustained revenue weakness and lower gross margins impair ROIC and limit ability to fund growth or returns without further margin recovery, elevating cyclical vulnerability.

Technician and workforce constraints

Service capacity depends on skilled technicians; headcount declines and training bottlenecks limit ability to scale high-margin aftermarket and mobile services. Persistent workforce shortages can elevate labor costs, reduce throughput, and cap long-term revenue from the most profitable business lines.

Industry/regulatory and supply risks

Regulatory shifts and supplier/OEM disruptions can delay vehicle delivery, upfitting and replacement cycles, depressing new-vehicle sales and aftermarket cadence. These structural timing risks can compress volumes and margin sustainability across multiple quarters and complicate inventory management.

Rush Enterprises B 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 B generates revenue through multiple key streams, including the sale of new and used commercial vehicles, which constitutes a significant portion of its income. The company also earns money from its service and parts departments, where it provides maintenance and repair services for vehicles, ensuring a steady flow of income from existing customers. Additionally, Rush Enterprises B offers financing options and leasing services, allowing them to capture revenue from interest and fees associated with these financial products. Strategic partnerships with leading manufacturers of commercial vehicles further enhance their market position and contribute to their earnings through increased sales volume and access to exclusive products.

Rush Enterprises B Financial Statement Overview

Summary

Fundamentals are stable with moderate leverage improvement (debt-to-equity ~0.70 in 2025) and a strong 2025 operating/free cash flow rebound (~$862M). Offsetting this is a weakening trend in revenue and profitability, with notable margin compression (net margin ~5.5% in 2022 to ~3.5% in 2025) that raises cyclical risk.

Income Statement

Revenue has softened over the last two years (2024 and 2025 declines), following strong growth in 2022–2023. Profitability remains positive but has clearly compressed: gross margin stepped down from ~21% (2021–2022) to ~18.7% (2025), and net margin declined from ~5.5% (2022) to ~3.5% (2025). EBIT and EBITDA margins also trended lower, indicating weaker operating leverage and/or higher cost pressure. Offsetting this, the business still generates consistent earnings and maintains mid-single-digit operating margins for a dealer model, but the trajectory is the key near-term concern.

Balance Sheet

Leverage looks manageable and has improved versus the more levered periods: debt relative to equity is ~0.70 in 2025 (down from ~0.97 in 2023). Equity has grown over time, supporting a larger asset base, and returns on equity remain solid (about ~12% in 2025), though down from the stronger 2022–2023 levels. The main weakness is that profitability has cooled, which can pressure returns and flexibility if the cycle weakens, but overall balance sheet risk appears moderate rather than elevated.

Cash Flow

Cash generation improved meaningfully in 2025 with operating cash flow of ~$862M and free cash flow also reported at ~$862M, up sharply from 2024 free cash flow (~$187M) and recovering from negative free cash flow in 2023. This rebound suggests stronger working-capital performance and/or lower cash investment needs in 2025. The key watch-out is volatility: free cash flow swung from negative (2023) to modest (2024) to very strong (2025), which is common in dealership models but reduces predictability. (Note: some provided coverage ratios are shown as 0.0 in 2025, so they are not relied upon here.)

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 B Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 57.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RUSHB, the sentiment is Neutral. The current price of 57.51 is below the 20-day moving average (MA) of 64.89, below the 50-day MA of 60.93, and above the 200-day MA of 56.00, indicating a neutral trend. The MACD of 0.90 indicates Positive momentum. The RSI at 45.58 is Neutral, neither overbought nor oversold. The STOCH value of 25.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RUSHB.

Rush Enterprises B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RUSHB	72 Outperform	$5.19B	16.18	12.76%	1.26%	-1.95%	-10.89%
RUSHA	72 Outperform	$5.19B	16.18	12.76%	1.32%	-1.95%	-10.89%
ABG	62 Neutral	$4.00B	9.17	13.31%	―	8.07%	60.95%
GPI	62 Neutral	$3.87B	15.78	11.10%	0.49%	19.45%	-24.27%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
AN	58 Neutral	$6.71B	12.12	27.05%	―	6.06%	-1.71%
SAH	56 Neutral	$2.10B	11.15	12.51%	2.27%	9.09%	-33.59%