Education
About Us
Working with TipRanks
Follow Us
Rush Enterprises B (RUSHB)
NASDAQ:RUSHB
Top Page
Rush Enterprises B
(NASDAQ:RUSHB)
Select Model
Select Model
Rating:62Neutral
Price Target:
$63.00
▲(9.55% Upside)
Action:ReiteratedDate:11/08/25
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 (RUSHB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.43B
Dividend Yield1.26%
Average Volume (3M)34.59K
Price to Earnings (P/E)19.8
Beta (1Y)0.90
Revenue Growth-1.95%
EPS Growth-10.89%
CountryUS
Employees7,827
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)0.81
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 Cap1.31
Enterprise Value/Revenue0.93
Enterprise Value/Gross Profit4.76
Enterprise Value/Ebitda11.51
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:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call balanced acknowledgement of a challenging 2025—soft demand, aftermarket pressure, absorption declines, seasonal/weather impacts and operational workforce constraints—with multiple positive developments: solid full-year profitability, disciplined capital returns (dividends and buybacks), network expansion, stable aftermarket revenue and margins, leasing growth, outperformance in medium-duty market share, and improving Class 8 order activity late in the year that management expects to continue. Management emphasized cash generation, cost discipline and strategic investments (mobile service, acquisitions) and expressed cautious optimism that Q1 is the trough and replacement demand will strengthen as 2026 progresses; risks remain around supply-chain timing, technician capacity, and the pace of market recovery.Q4-2025 Updates
Positive Updates
Strong Full-Year and Quarterly Financial Results
2025 revenues of $7.4 billion and net income of $263.8 million ($3.27 per diluted share). Fourth-quarter 2025 revenues of ~$1.8 billion and net income of $64.3 million ($0.81 per diluted share).
Disciplined Capital Returns
Board approved cash dividend of $0.19 per share; returned $58 million to shareholders via dividends (a 5.6% increase vs. 2024); repurchased $193.5 million of common stock in 2025 and established a new repurchase authorization of up to $150 million through 12/31/2026.
Aftermarket Revenue Stability and Margin Maintenance
Aftermarket parts, service and collision center revenues totaled $2.5 billion (essentially flat vs. 2024). Fourth-quarter aftermarket revenue rose to $625.2 million from $606.3 million (+~3.1% YoY). Blended parts and service margin around 37% in Q4, consistent with recent levels.
Medium-Duty Outperformance and Market Share Gains
Company sold 12,285 new U.S. Class 4–7 vehicles in 2025 (down 8.5% YoY) while the U.S. market declined 15.6%, resulting in increased market share to 5.7%. In Canada, sold 993 Class 5–7 vehicles representing a 6.3% share.
Leasing and Rental Growth
Leasing and rental revenues totaled $369.6 million in 2025, up 4.1% vs. 2024; fourth-quarter lease and rental revenue increased 3.6% YoY, supported by a younger fleet and full-service operations.
Network Expansion and Strategic Investments
Expanded footprint via acquisition of IC Bus dealerships in Ontario (covering Ontario, Quebec, New Brunswick, Nova Scotia and PEI) and addition of a full-service Peterbilt dealership in Tennessee. Continued investments in mobile service (incremental ~$4 million depreciation vs. 2024) with mobile now ~mid-30s% of business.
Improving Demand Signals and Optimistic Outlook
Late-Q4 and early-2026 improvement in Class 8 quoting and order intake; ACT forecasting 111,300 new U.S. Class 8 retail sales in 2026. Management expects Q1 to be the trough and anticipates replacement demand to strengthen as fleet ages are elevated.
Negative Updates
Prolonged Industry Headwinds
2025 saw freight rates under pressure, excess capacity and uncertainty around trade policy and 2027 emissions rules, which negatively impacted demand—particularly new over-the-road truck purchases—and created a more difficult aftermarket environment.
Aftermarket Absorption Decline
Annual absorption ratio declined to 130.7% in 2025 from 132.2% in 2024 (down 1.5 percentage points); fourth-quarter absorption fell to 129.3% from 133.0% in the prior-year period, indicating continued aftermarket headwinds despite revenue stability.
Medium-Duty and Used Sales Still Soft
Industry Class 4–7 retail sales fell 15.6% YoY in 2025. Company medium-duty sales declined 8.5% YoY (though outperforming market). Used truck sales totaled 6,977 units, down 1.9% YoY.
Weather and Seasonal Disruption Impact
Severe winter weather in January led to shutdowns (e.g., Dallas–Fort Worth), running skeleton crews in some southern stores and depressing parts & service activity; January was softer than a typical seasonal slow month.
Technician Headcount and Workforce Challenges
Technician headcount declined modestly in Q4; management cited turnover among first- and second-year technicians and ongoing training needs as an operational challenge to scale service capacity profitably.
Supply-Chain and Timing Risks
Management cautioned about potential supply-side constraints from tier-two/three suppliers and noted at least one OEM shutdown in Q1; these risks could compress delivery timelines and complicate fulfillment/upfitting in the back half of the year.
Potential Pricing/COGS Lag
Management noted that slowing inflation could create a modest headwind due to a lag between parts price changes and COGS recognition, though they do not view this as a material near-term margin threat.
Company Guidance
Management’s guidance was that 1Q26 should be the trough with improvement into the back half of the year as elevated fleet ages drive replacement and aftermarket demand; ACT is forecasting 2026 U.S. Class 8 retail sales of 111,300 units and Class 4–7 retail sales of 218,225 units, and management expects parts & service to strengthen in 2Q after a soft January. Key metrics cited: FY2025 revenue $7.4B and net income $263.8M ($3.27 diluted); Q4 revenue ~$1.8B and net income $64.3M ($0.81); 2025 aftermarket & collision revenue $2.5B (Q4 $625.2M vs. $606.3M LY), blended parts & service margin ~37%, annual absorption 130.7% (vs. 132.2% in 2024) and Q4 absorption 129.3%; 2025 unit volumes included 12,432 new U.S. Class 8 trucks (5.8% U.S. share), 338 Class 8 in Canada (1.4% share), 12,285 new U.S. Class 4–7 (5.7% share), 993 Class 5–7 in Canada (6.3% share), and 6,977 used truck sales. Financial priorities: keep G&A roughly flat, reinvest roughly half of any gross profit growth, continue returning capital (repurchased $193.5M in 2025, new $150M authorization through 12/31/2026, returned $58M in dividends [+5.6%], and declared a $0.19/share dividend), while monitoring potential prebuy activity and supply-chain constraints ahead of the 2027 NOx rule.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.65
Positive
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.70
Positive
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.75
Positive
| 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
59.94
Positive
56.71
Positive
55.68
Positive
Market Momentum
1.91
Negative
65.92
Neutral
68.09
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 62.84, below the 50-day MA of 59.94, and above the 200-day MA of 55.68, indicating a bullish trend. The MACD of 1.91 indicates Negative momentum. The RSI at 65.92 is Neutral, neither overbought nor oversold. The STOCH value of 68.09 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $5.43B | 22.04 | 12.76% | 1.32% | -1.95% | -10.89% | |
62 Neutral | $5.43B | 19.84 | 12.76% | 1.26% | -1.95% | -10.89% | |
62 Neutral | $4.47B | 8.90 | 13.31% | ― | 8.07% | 60.95% | |
62 Neutral | $4.00B | 13.37 | 11.10% | 0.49% | 19.45% | -24.27% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $2.15B | 18.39 | 12.51% | 2.27% | 9.09% | -33.59% | |
58 Neutral | $7.12B | 11.79 | 27.05% | ― | 6.06% | -1.71% |
* Consumer Cyclical Sector Average
RUSHB
Rush Enterprises B
66.74
15.76
30.91%
ABG
Asbury
226.18
-47.97
-17.50%
AN
AutoNation
201.47
19.65
10.81%
GPI
Group 1 Automotive
342.30
-107.62
-23.92%
RUSHA
Rush Enterprises A
75.26
20.82
38.25%
SAH
Sonic Automotive
66.63
-0.67
-0.99%
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.