Rush Enterprises B (RUSHB) AI Stock Analysis

• Market Cap: $4.86B
• Dividend Yield: 1.26%
• Average Volume (3M): 34.59K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.90
• Revenue Growth: -1.95%
• EPS Growth: -10.89%
• Country: US
• Employees: 7,827
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): 0.83
• Shares Outstanding: 16,437,908
• 10 Day Avg. Volume: 33,451
• 30 Day Avg. Volume: 34,590
• PEG Ratio: -1.42
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 23.23
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 0.81
• Enterprise Value/Gross Profit: 4.18
• Enterprise Value/Ebitda: 10.10
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $63.00 ▲(9.55% Upside)

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

Aftermarket revenue diversification

A high-margin aftermarket business supplying parts, service and collision repairs provides recurring revenue and steadier gross profit than cyclical new-vehicle sales. Representing ~63% of gross profit and showing modest growth, it supports margin stability and cash generation through downturns.

Strong free cash flow growth

Robust free cash flow growth expands financial flexibility to fund dividends, buybacks, leasing fleet investments and working capital. A 151.6% TTM increase and solid conversion of earnings to cash strengthen the company's ability to navigate cycles and invest in durable competitive positions.

Manageable leverage and solid ROE

Moderate leverage and a healthy ROE indicate balanced capital structure and effective use of shareholder equity. This financial conservatism provides resilience to cyclical demand swings, preserves access to capital, and supports long-term investment and shareholder-return programs.

Negative Factors

Declining new truck sales

Material declines in core new-vehicle volumes reduce revenue scale and increase earnings volatility. Persistent weakness in Class 8 and medium-duty sales undermines the primary revenue driver of the dealership model and pressures utilization of sales resources and manufacturer relationships over the medium term.

Weak top-line growth and compressed margins

Flat-to-negative revenue trends combined with narrowing net margins constrain internal reinvestment and reduce margin of safety. Low net margin (3.57%) limits ability to absorb further cost or demand shocks, pressuring cash available for strategic investments and shareholder returns over the coming quarters.

Industry, regulatory and freight headwinds

Regulatory ambiguity around emissions and tariff pressures, together with depressed freight rates and overcapacity, structurally dampen fleet replacement cycles and customer willingness to invest in new trucks. These persistent industry forces can restrain new-vehicle demand and dealership revenue growth.

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

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

• Technical Analysis Sentiment: Positive
• 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 Positive. The current price of 57.51 is below the 20-day moving average (MA) of 58.13, above the 50-day MA of 56.60, and above the 200-day MA of 55.15, indicating a bullish trend. The MACD of 0.61 indicates Positive momentum. The RSI at 54.53 is Neutral, neither overbought nor oversold. The STOCH value of 22.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RUSHB.

Rush Enterprises B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RUSHA	72 Outperform	$4.86B	19.07	12.76%	1.32%	-1.95%	-10.89%
AN	70 Neutral	$7.38B	12.06	27.16%	―	6.06%	-1.71%
ABG	67 Neutral	$4.56B	8.23	15.49%	―	8.07%	60.95%
GPI	67 Neutral	$4.47B	13.99	11.10%	0.49%	19.45%	-24.27%
RUSHB	62 Neutral	$4.86B	17.53	12.76%	1.26%	-1.95%	-10.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SAH	61 Neutral	$2.05B	16.20	12.51%	2.27%	9.09%	-33.59%