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Rush Enterprises B (RUSHB)
NASDAQ:RUSHB
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Rush Enterprises B
(NASDAQ:RUSHB)
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Rating:62Neutral
Price Target:
$54.00
▼(-6.10% Downside)
Rush Enterprises B's overall stock score is driven by a mixed financial performance with stable profitability and strong cash flow generation. Technical analysis indicates bearish momentum, which is a concern. Valuation is reasonable, and the earnings call highlights resilience despite industry challenges. The company should focus on improving sales growth and operational efficiency to enhance future performance.
Positive Factors
Strong Aftermarket Performance
The robust aftermarket segment provides a stable revenue stream, cushioning against volatility in new vehicle sales and enhancing long-term profitability.
Record Leasing Revenue
Growth in leasing revenue indicates a successful diversification strategy, providing a steady income stream and reducing dependence on new vehicle sales.
Cash Flow Generation
Strong cash flow generation enhances financial flexibility, allowing for reinvestment in growth opportunities and shareholder returns.
Negative Factors
Decreased New Truck Sales
Declining new truck sales highlight challenges in core revenue streams, potentially affecting long-term growth and market share.
Economic and Regulatory Uncertainty
Regulatory and economic uncertainties can disrupt customer purchasing decisions, affecting sales and operational planning over the long term.
Freight Industry Challenges
Persistent freight industry challenges can suppress demand for new trucks, impacting revenue and necessitating strategic adjustments.
Rush Enterprises B (RUSHB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.46B
Dividend Yield1.26%
Average Volume (3M)34.59K
Price to Earnings (P/E)16.9
Beta (1Y)0.89
Revenue Growth-1.95%
EPS Growth-10.89%
CountryUS
Employees7,827
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)0.83
Shares Outstanding16,437,908
10 Day Avg. Volume33,451
30 Day Avg. Volume34,590
Financial Highlights & Ratios
PEG Ratio-1.42
Price to Book (P/B)2.02
Price to Sales (P/S)0.56
P/FCF Ratio23.23
Enterprise Value/Market Cap1.33
Enterprise Value/Revenue0.77
Enterprise Value/Gross Profit3.98
Enterprise Value/Ebitda9.62
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 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 Earnings Call Summary
Earnings Call Date:Oct 29, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 18, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a challenging operating environment with notable headwinds in new truck sales and regulatory uncertainty. However, strong aftermarket performance and strategic initiatives in leasing and value return to shareholders highlight resilience. The sentiment is balanced with both positive operational achievements and significant industry challenges.Q3-2025 Updates
Positive Updates
Strong Aftermarket Performance
Aftermarket operations accounted for approximately 63% of total gross profit in Q3, with revenues reaching $642.7 million, a 1.5% increase compared to Q3 2024. The absorption ratio was 129.3%.
Rush Truck Leasing Record Revenue
Rush Truck Leasing achieved record revenues of $93.3 million in Q3, up 4.7% year-over-year.
Diversified Customer Base and Operational Discipline
Despite industry challenges, Rush Enterprises maintained strong performance due to its diversified customer base and operational discipline.
Stock Repurchase and Dividend Payout
Repurchased $9.2 million of common stock and paid a cash dividend of $14.8 million in Q3 as part of value return to shareholders.
Negative Updates
Decreased New Truck Sales
Sold 3,120 new Class 8 trucks in the U.S., an 11% year-over-year decrease. Medium-duty commercial vehicles saw an 8.3% year-over-year decrease.
Economic and Regulatory Uncertainty
Economic uncertainty and regulatory ambiguity, especially concerning tariffs and engine emissions regulations, are impacting vehicle replacement decisions and customer demand.
Freight Industry Challenges
Freight rates remain depressed and overcapacity continues to weigh on the market, particularly affecting new Class 8 truck sales.
Seasonal Weakness in Parts and Service
Parts and service business showed seasonal weakness, with September softer than expected, and Q4 expected to be challenging.
Company Guidance
During the third quarter of 2025, Rush Enterprises achieved revenues of $1.9 billion and net income of $66.7 million, equating to $0.83 per diluted share. The Board of Directors approved a $0.19 per share cash dividend. The aftermarket operations were robust, contributing approximately 63% of the total gross profit, with revenues from parts, service, and collision centers totaling $642.7 million, marking a 1.5% increase from the previous year. The absorption ratio stood at 129.3%. In the truck sales segment, they sold 3,120 new Class 8 trucks in the U.S., capturing a 5.8% market share despite an 11% year-over-year decrease, and 2,979 medium-duty vehicles, representing an 8.3% drop but a 5.6% market share. Used vehicle sales were stable at 1,814 units. Rush Truck Leasing saw record revenues of $93.3 million, a 4.7% increase year-over-year. The company repurchased $9.2 million of common stock and paid $14.8 million in dividends, demonstrating a commitment to shareholder value despite industry challenges.Rush Enterprises B Financial Statement Overview
Summary
Rush Enterprises B shows a mixed financial performance. Revenue growth is challenged, but the company maintains stable profitability margins. The balance sheet is strong with manageable leverage and good return on equity. Cash flow generation is robust, though there is room for improvement in cash flow efficiency.Income Statement
The income statement shows a decline in revenue growth with a negative rate of -0.2% TTM, indicating potential challenges in sales. Gross profit margin is stable at 19.32%, but net profit margin has decreased to 3.57% TTM, reflecting reduced profitability. EBIT and EBITDA margins have also declined, suggesting pressure on operational efficiency.Balance Sheet
The balance sheet reflects a moderate debt-to-equity ratio of 0.57 TTM, indicating manageable leverage. Return on equity is healthy at 12.64%, showing effective use of equity to generate profits. The equity ratio is stable, suggesting a balanced capital structure.Cash Flow
Cash flow analysis reveals strong free cash flow growth of 151.60% TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.55, suggesting efficient conversion of earnings into cash. However, the free cash flow to net income ratio of 0.45 indicates room for improvement in cash flow relative to profits.| 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 B Technical Analysis
Positive
57.51
Price Trends
54.23
Positive
55.64
Positive
54.94
Positive
Market Momentum
0.38
Positive
54.93
Neutral
61.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RUSHB, the sentiment is Positive. The current price of 57.51 is below the 20-day moving average (MA) of 57.78, above the 50-day MA of 54.23, and above the 200-day MA of 54.94, indicating a neutral trend. The MACD of 0.38 indicates Positive momentum. The RSI at 54.93 is Neutral, neither overbought nor oversold. The STOCH value of 61.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RUSHB.
Rush Enterprises B Risk Analysis
Rush Enterprises B disclosed 25 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $5.06B | 14.17 | 12.27% | 0.49% | 19.45% | -24.27% | |
72 Outperform | $4.46B | 17.43 | 12.76% | 1.32% | -1.95% | -10.89% | |
70 Neutral | $7.75B | 12.67 | 27.16% | ― | 6.06% | -1.71% | |
67 Neutral | $4.87B | 8.79 | 15.49% | ― | 8.07% | 60.95% | |
62 Neutral | $4.46B | 16.93 | 12.76% | 1.26% | -1.95% | -10.89% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $2.21B | 17.49 | 12.51% | 2.27% | 9.09% | -33.59% |
* Consumer Cyclical Sector Average
RUSHB
Rush Enterprises B
57.51
4.57
8.63%
ABG
Asbury
250.65
8.73
3.61%
AN
AutoNation
215.30
39.91
22.76%
GPI
Group 1 Automotive
400.97
-25.35
-5.95%
RUSHA
Rush Enterprises A
57.98
2.87
5.21%
SAH
Sonic Automotive
64.47
1.81
2.89%
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.