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Rush Enterprises B (RUSHB)
:RUSHB
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Rush Enterprises B
(NASDAQ:RUSHB)
Rating:66Neutral
Price Target:
$57.00
▲(4.95%Upside)
Rush Enterprises B (RUSHB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.15B
Dividend Yield1.33%
Average Volume (3M)74.97K
Price to Earnings (P/E)14.9
Beta (1Y)1.02
Revenue Growth-2.81%
EPS Growth-6.88%
CountryUS
Employees7,827
SectorConsumer Cyclical
Sector Strength68
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)0.90
Shares Outstanding16,621,305
10 Day Avg. Volume32,539
30 Day Avg. Volume74,970
Financial Highlights & Ratios
PEG Ratio-6.90
Price to Book (P/B)1.99
Price to Sales (P/S)0.00
P/FCF Ratio7.34
Enterprise Value/Market Cap1.29
Enterprise Value/Revenue0.17
Enterprise Value/Gross Profit3.65
Enterprise Value/Ebitda2.00
Forecast
1Y Price Target
$59.00Price Target Upside8.64% Upside
Rating ConsensusHold
Number of Analyst Covering0
Rush Enterprises B Business Overview & Revenue Model
Company DescriptionRush Enterprises, Inc. (RUSHB) is a premier solutions provider to the commercial vehicle industry. The company operates a network of commercial vehicle dealerships, primarily under the Rush Truck Centers brand, which spans across the United States. Rush Enterprises offers an extensive range of products and services including new and used truck sales, aftermarket parts, service and collision repair, financing, insurance, and leasing services. With a focus on providing comprehensive transportation solutions, the company serves a diverse client base ranging from individual owner-operators to large fleet operators.
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:Jul 30, 2025
(Q2-2025)
| % Change Since: 1.84%|
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Neutral
While the company demonstrated strong performance in its aftermarket operations and leasing revenues, challenges persist in the new truck sales market due to regulatory and economic uncertainties. The company continues to strategically manage capital allocation, but the overall market environment remains difficult.Q2-2025 Updates
Positive Updates
Strong Aftermarket Operations
Aftermarket operations accounted for approximately 63% of total gross profit in the second quarter, with parts, service, and collision center revenues reaching $636.3 million, marking a 1.4% increase compared to the second quarter of 2024. The highest level of aftermarket revenues in the past 12 months was reported.
Record Leasing Revenues
Rush Truck Leasing achieved record revenues of $93.1 million in the second quarter, up 6.3% year-over-year, driven by new units entering service, lower operating costs, and increased profitability.
Successful Capital Allocation
The company repurchased $83.9 million of common stock as part of the expanded $200 million repurchase authorization and increased the quarterly dividend by 5.6%.
Negative Updates
Decline in New Class 8 Truck Sales
Sales of new Class 8 trucks in the U.S. decreased by 20% year-over-year, attributed to the timing of several large fleet deliveries in the previous year and ongoing market challenges.
Freight Recession and Market Uncertainty
The industry continues to face a freight recession persisting for over two years, alongside uncertainty with trade policies and engine emissions regulations, impacting customer decisions on vehicle acquisition and maintenance.
Production Cuts and Uncertainty
OEMs are reducing production due to regulatory uncertainty, with April, May, and June being the worst months for order intake since 2009. The market is in gridlock due to unclear EPA regulations and trade policies.
Company Guidance
In the Rush Enterprises Q2 earnings call, the company reported second-quarter revenues of $1.9 billion with a net income of $72.4 million, translating to $0.90 per diluted share. The Board approved a $0.19 per share cash dividend, marking a 1% increase from the previous quarter. Despite challenging market conditions, particularly due to a prolonged freight recession and uncertainties around trade policies and engine emissions regulations, the company's aftermarket operations, which accounted for approximately 63% of total gross profit, saw revenues of $636.3 million—an increase of 1.4% compared to the previous year. Rush Enterprises sold 3,178 new Class 8 trucks in the U.S., representing a 20% decrease year-over-year, largely due to timing differences in fleet deliveries. In the medium-duty market, sales of Class 4-7 commercial vehicles in the U.S. increased by 1% year-over-year. Used commercial vehicle sales remained flat year-over-year, while Rush Truck Leasing achieved record revenues of $93.1 million, up 6.3% from last year. The company also repurchased $83.9 million of its common stock and paid a $14.5 million cash dividend during the quarter. Looking ahead, Rush anticipates stable aftermarket demand with potential for modest growth, amid ongoing uncertainties in the truck sales market.Rush Enterprises B Financial Statement Overview
Summary
Rush Enterprises B shows solid cash flow and a stable balance sheet, but profitability is pressured by declining net profit margins and negative revenue growth in the TTM period. Moderate leverage and an improving equity ratio provide some stability, but declining ROE is a concern.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 | 648.07M | 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 | 1.73B | 1.73B | 1.81B | 1.44B | 1.15B | 1.22B |
| Total Liabilities | 2.50B | 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 | 928.12M | 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
Negative
54.31
Price Trends
52.98
Negative
54.51
Negative
54.16
Negative
Market Momentum
0.11
Positive
44.17
Neutral
32.56
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 54.31 is above the 20-day moving average (MA) of 53.93, above the 50-day MA of 52.98, and above the 200-day MA of 54.16, indicating a bearish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 44.17 is Neutral, neither overbought nor oversold. The STOCH value of 32.56 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 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
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $5.31B | 11.36 | 15.72% | 0.47% | 19.75% | -10.74% | |
74 Outperform | $4.38B | 8.15 | 15.19% | ― | 8.39% | 40.35% | |
73 Outperform | $4.15B | 15.28 | 13.79% | 1.34% | -2.81% | -6.88% | |
69 Neutral | $7.19B | 11.94 | 27.24% | ― | 3.15% | -12.49% | |
67 Neutral | ¥264.20B | 13.61 | 6.49% | 2.55% | 5.08% | -13.04% | |
66 Neutral | $4.15B | 14.94 | 13.79% | 1.33% | -2.81% | -6.88% | |
64 Neutral | $2.45B | 15.94 | 15.99% | 1.88% | 4.48% | -16.26% |
* Consumer Cyclical Sector Average
Performance Comparison
RUSHB
Rush Enterprises B
52.36
8.54
19.49%
ABG
Asbury
223.02
-7.15
-3.11%
AN
AutoNation
190.58
24.52
14.77%
GPI
Group 1 Automotive
410.20
73.29
21.75%
RUSHA
Rush Enterprises A
53.55
4.01
8.09%
SAH
Sonic Automotive
71.65
15.08
26.66%
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.