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Rush Enterprises B (RUSHB)
NASDAQ:RUSHB
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Rush Enterprises B
(NASDAQ:RUSHB)
Rating:73Outperform
Price Target:
$60.00
▲(11.07%Upside)
Rush Enterprises B (RUSHB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.23B
Dividend Yield1.33%
Average Volume (3M)77.49K
Price to Earnings (P/E)15.5
Beta (1Y)1.00
Revenue Growth-1.29%
EPS Growth-9.44%
CountryUS
Employees7,827
SectorConsumer Cyclical
Sector Strength66
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)0.73
Shares Outstanding16,621,305
10 Day Avg. Volume98,733
30 Day Avg. Volume77,492
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)1.79
Price to Sales (P/S)0.00
P/FCF Ratio60.71
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue0.14
Enterprise Value/Gross Profit2.97
Enterprise Value/Ebitda1.65
Forecast
1Y Price Target
$59.00Price Target Upside9.22% Upside
Rating ConsensusHold
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 generates revenue through several key streams. The primary source of income is the sale of new and used commercial vehicles, which constitutes a significant portion of its earnings. Additionally, the company earns revenue from its aftermarket parts and service operations, which include repair and maintenance services, collision repair, and the sale of replacement parts. Leasing and rental services provide another critical revenue stream, as does the company's finance and insurance arm, which offers various programs to support vehicle purchases. Strategic partnerships with major truck manufacturers and a robust network of dealerships further bolster the company's revenue generation capabilities.
Rush Enterprises B Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: -6.28%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong financial performance and strategic outperformance in certain segments, but significant challenges and uncertainties in the broader market environment and specific business areas.Q1-2025 Updates
Positive Updates
Strong Revenue and Net Income
Rush Enterprises achieved revenues of $1.85 billion and net income of $60.3 million or $0.73 per diluted share in Q1 2025.
Dividend Declaration
The Board of Directors declared a cash dividend of $0.18 per common share for the quarter.
Outperformance in Medium Duty Truck Sales
Despite a declining market, Rush Enterprises outperformed with steady Class 4 through 7 sales, increasing market share to 5.6% in the U.S. and 3.1% in Canada.
Sequential Growth in Used Truck Sales
Used truck sales experienced a sequential growth from the fourth quarter, with 1,769 units sold in Q1.
Solid Leasing and Rental Performance
Leasing and rental revenue increased by 2.3% compared to Q1 2024, totaling $90 million for the quarter.
Negative Updates
Challenging Business Environment
The industry continues to struggle with a freight recession, economic uncertainty, and concerns around U.S. trade policies and tariffs.
Decline in Parts, Service, and Body Shop Revenues
Aftermarket revenues were $619 million, down 4.6% compared to last year.
Class 8 Truck Sales Decline
Class 8 new truck sales were down 7.8%, with 3,222 units sold, compared to a 9% decline in the broader market.
Lower Utilization Rates in Rental Segment
Rental revenue was slightly down year-over-year due to lower utilization rates.
Market Uncertainty and Economic Concerns
Ongoing concerns about tariffs and emission regulations create uncertainty for the second half of the year, affecting purchasing decisions.
Company Guidance
During Rush Enterprises, Inc.'s first quarter 2025 earnings call, CEO Rusty Rush highlighted several key financial metrics and market conditions impacting the business. The company achieved revenues of $1.85 billion and net income of $60.3 million, equating to $0.73 per diluted share. Rush Enterprises declared a cash dividend of $0.18 per common share for the quarter. Despite a challenging business environment marked by a freight recession and economic uncertainties, the company outperformed the market in Class 4 through 7 sales, achieving a 5.6% market share in the U.S. and 3.1% in Canada. Used truck sales totaled 1,769 units, down 2.7% from 2021 levels. Aftermarket revenues from parts, service, and body shop were $619 million, reflecting a 4.6% decrease from the previous year, yet the absorption ratio remained robust at 128.6%. Looking forward, Rush anticipates slight improvements in Class 8 sales and aftermarket revenues in Q2, despite ongoing supply chain challenges and tariff uncertainties.Rush Enterprises B Financial Statement Overview
Summary
The company exhibits strong cash flows and a stable balance sheet, with a moderate debt-to-equity ratio. However, declining net profit margins and negative revenue growth indicate profitability pressures. ROE decline raises concerns about return on equity.Income Statement
The company demonstrates solid gross profit margins, consistently above 18%, indicating efficient cost management relative to revenue. However, the net profit margin has shown a declining trend from 5.5% to 3.8% TTM, reflecting pressure on profitability. The revenue growth rate is negative in the TTM period compared to the previous year, suggesting challenges in maintaining sales momentum.75
Positive
Balance Sheet
The balance sheet reveals a stable debt-to-equity ratio near 0.6, indicating moderate leverage levels. ROE has decreased from 22.4% in 2022 to 13.5% TTM, which might concern investors regarding the company's ability to generate returns on equity. The equity ratio has improved, suggesting a stronger asset base compared to liabilities.70
Positive
Cash Flow
Operating cash flow has shown substantial growth, more than doubling in the TTM period compared to the previous year, reflecting strong cash generation capabilities. The free cash flow to net income ratio is robust, although capital expenditures remain high, indicating significant reinvestment into the business. The free cash flow growth rate is impressive, showcasing effective cash management.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.78B | 7.80B | 7.93B | 7.10B | 5.13B | 4.74B |
| Gross Profit | 1.46B | 1.53B | 1.59B | 1.49B | 1.09B | 875.47M |
| EBITDA | 603.54M | 705.94M | 736.90M | 702.81M | 477.10M | 330.10M |
| Net Income | 292.87M | 304.15M | 347.06M | 391.38M | 241.41M | 114.89M |
Balance Sheet | ||||||
| Total Assets | 4.69B | 4.62B | 4.36B | 3.82B | 3.12B | 2.99B |
| Cash, Cash Equivalents and Short-Term Investments | 228.72M | 228.13M | 183.72M | 201.04M | 148.15M | 312.05M |
| Total Debt | 1.33B | 1.73B | 1.81B | 1.44B | 1.15B | 1.22B |
| Total Liabilities | 2.52B | 2.46B | 2.47B | 2.06B | 1.65B | 1.72B |
| Stockholders Equity | 2.17B | 2.14B | 1.87B | 1.74B | 1.47B | 1.27B |
Cash Flow | ||||||
| Free Cash Flow | 574.21M | 186.50M | -73.17M | 51.34M | 255.17M | 626.78M |
| Operating Cash Flow | 937.62M | 619.55M | 295.71M | 294.40M | 422.35M | 762.98M |
| Investing Cash Flow | -472.89M | -445.58M | -387.03M | -240.93M | -432.90M | -127.46M |
| Financing Cash Flow | -391.68M | -129.32M | 73.96M | -690.00K | -153.34M | -505.10M |
Rush Enterprises B Technical Analysis
Positive
54.02
Price Trends
53.43
Positive
54.66
Negative
53.59
Positive
Market Momentum
0.48
Negative
52.37
Neutral
64.49
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 54.02 is above the 20-day moving average (MA) of 52.82, above the 50-day MA of 53.43, and above the 200-day MA of 53.59, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 52.37 is Neutral, neither overbought nor oversold. The STOCH value of 64.49 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 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $5.23B | 12.53 | 11.92% | ― | 11.11% | -23.41% | |
77 Outperform | $6.17B | 13.44 | 16.25% | 0.42% | 15.13% | -15.98% | |
76 Outperform | $3.00B | 12.59 | 24.52% | 1.59% | 1.59% | 43.91% | |
73 Outperform | $4.23B | 15.50 | 14.28% | 1.33% | -1.29% | -9.44% | |
71 Outperform | $8.10B | 12.59 | 28.45% | ― | -0.24% | -19.76% | |
69 Neutral | $4.23B | 15.11 | 14.28% | 1.34% | -1.29% | -9.44% | |
62 Neutral | AU$2.84B | 27.14 | 5.13% | 5.15% | 2.35% | -31.70% |
* Consumer Cyclical Sector Average
Performance Comparison
RUSHB
Rush Enterprises B
54.02
11.15
26.01%
ABG
Asbury
263.22
13.61
5.45%
AN
AutoNation
212.86
38.94
22.39%
GPI
Group 1 Automotive
477.22
180.27
60.71%
RUSHA
Rush Enterprises A
53.69
7.63
16.57%
SAH
Sonic Automotive
88.25
32.95
59.58%
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.