Rush Enterprises B (RUSHB) AI Stock Analysis

• Market Cap: $3.88B
• Dividend Yield: 1.43%
• Average Volume (3M): 29.91K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.98
• Revenue Growth: -1.29%
• EPS Growth: -9.44%
• Country: US
• Employees: 7,827
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Auto - Dealerships
• EPS (TTM): 0.73
• Shares Outstanding: 16,621,305
• 10 Day Avg. Volume: 42,778
• 30 Day Avg. Volume: 29,905
• PEG Ratio: 0.13
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 60.71
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 2.97
• Enterprise Value/Ebitda: 1.65
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: $59.00 ▲(17.27%Upside)

Rush Enterprises B's score is driven primarily by its solid financial performance, despite challenges in profitability and revenue growth. Technical indicators suggest a bearish trend, while valuation appears reasonable. The earnings call provides mixed insights, with outperformance in specific areas but ongoing market uncertainties.

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 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 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.

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.

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.

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
	EBIT
448.81M	468.09M	512.38M	506.11M	309.04M	154.60M
	EBITDA
603.54M	705.94M	736.90M	702.81M	477.10M	330.10M
	Net Income Common Stockholders
292.87M	304.15M	347.06M	391.38M	241.41M	114.89M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
228.72M	228.13M	183.72M	201.04M	148.15M	312.05M
	Total Assets
4.69B	4.62B	4.36B	3.82B	3.12B	2.99B
	Total Debt
1.33B	1.73B	1.81B	1.44B	1.15B	1.22B
	Net Debt
1.10B	1.51B	1.63B	1.23B	1.00B	907.86M
	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

• Technical Analysis Sentiment: Negative
• Last Price: 50.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 50.31 is below the 20-day moving average (MA) of 52.83, below the 50-day MA of 54.75, and below the 200-day MA of 52.96, indicating a bearish trend. The MACD of -0.91 indicates Positive momentum. The RSI at 36.52 is Neutral, neither overbought nor oversold. The STOCH value of 55.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RUSHB.

Rush Enterprises B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GPI	77 Outperform	$5.50B	11.97	16.25%	0.47%	15.13%	-15.98%
ABG	74 Outperform	$4.71B	11.06	11.92%	―	11.11%	-23.41%
AN	72 Outperform	$7.15B	11.22	28.45%	―	-0.24%	-19.76%
SAH	72 Outperform	$2.55B	10.71	24.52%	1.86%	1.59%	43.91%
RUSHA	70 Outperform	$3.88B	13.89	14.28%	1.45%	-1.29%	-9.44%
RUSHB	69 Neutral	$3.88B	14.06	14.28%	1.43%	-1.29%	-9.44%
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%