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Rush Enterprises B (RUSHB)
NASDAQ:RUSHB
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Rush Enterprises B
(NASDAQ:RUSHB)
Rating:70Outperform
Price Target:
$65.00
▲(9.96% Upside)
Positive Factors
Aftermarket Operations Growth
The growth in aftermarket operations indicates a strong recurring revenue stream, enhancing customer retention and providing stability against cyclical downturns in new vehicle sales.
Technician Turnover Improvement
Improved technician retention and expanded sales force enhance service quality and customer satisfaction, supporting long-term growth in service revenue.
Rush Truck Leasing Record Revenues
Record leasing revenues reflect strong demand for leasing services, diversifying income sources and reducing reliance on new truck sales.
Negative Factors
Decline in New Class 8 Truck Sales
A significant decline in new truck sales can impact revenue growth and market share, posing challenges to maintaining overall sales momentum.
Uncertainty in Truck Production
Production cuts by OEMs due to regulatory and demand issues can lead to supply constraints, affecting sales and profitability.
Continued Freight Recession
A prolonged freight recession pressures customer budgets, delaying vehicle purchases and maintenance, impacting revenue from sales and services.
Rush Enterprises B (RUSHB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.41B
Dividend Yield1.23%
Average Volume (3M)50.70K
Price to Earnings (P/E)16.1
Beta (1Y)1.04
Revenue Growth-2.81%
EPS Growth-6.88%
CountryUS
Employees7,827
SectorConsumer Cyclical
Sector Strength75
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)0.90
Shares Outstanding16,614,866
10 Day Avg. Volume29,523
30 Day Avg. Volume50,695
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/Revenue0.75
Enterprise Value/Gross Profit3.94
Enterprise Value/Ebitda9.75
Forecast
1Y Price Target
$65.00Price Target Upside9.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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 is the sale of new and used heavy-duty trucks and buses, which are sourced from leading manufacturers. The company also earns significant income from its parts and service departments, providing maintenance, repairs, and aftermarket parts to its customers. This recurring revenue model is bolstered by long-term relationships with clients, ensuring ongoing service contracts and repeat business. Additionally, Rush Enterprises may engage in financing and leasing options for customers, generating further income through interest and fees. Strategic partnerships with manufacturers and suppliers also enhance its operational efficiency and product offerings, contributing to its overall revenue generation.
Rush Enterprises B Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment, highlighting strong aftermarket performance and leasing revenues, while facing challenges in new truck sales and ongoing regulatory and market uncertainties.Q2-2025 Updates
Positive Updates
Aftermarket Operations Growth
Aftermarket operations accounted for approximately 63% of total gross profit in the second quarter, with revenues reaching $636.3 million, an increase of 1.4% year-over-year. The absorption ratio was 135.5%, and aftermarket revenues reached their highest level in the past 12 months.
Technician Turnover Improvement
Technician turnover reached a 12-month low, and the aftermarket sales force was expanded, strengthening the company's ability to support customers.
Rush Truck Leasing Record Revenues
Rush Truck Leasing achieved record revenues of $93.1 million in Q2, marking a 6.3% year-over-year increase. Full-service leasing revenue increased, leading to lower operating costs and higher profitability.
Stock Repurchase and Dividend Increase
During the second quarter, $83.9 million of common stock was repurchased under a $200 million authorization, and a cash dividend of $14.5 million was paid. The quarterly dividend was increased 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 due to the timing of large fleet deliveries in the previous year. Ongoing trade policy and emissions regulation uncertainties may lead to further declines.
Uncertainty in Truck Production
OEMs are reducing truck production due to regulatory uncertainties and weak demand. April, May, and June were the worst months for order intake since 2009, with less than 30,000 Class 8 trucks ordered in the U.S., Canada, and Mexico.
Continued Freight Recession
The industry faces a persistent freight recession lasting over two years, causing customers to delay vehicle acquisitions and maintenance decisions.
Company Guidance
In the Q2 earnings call for Rush Enterprises, the company reported second quarter revenues of $1.9 billion and a net income of $72.4 million, equivalent to $0.90 per diluted share. The Board of Directors approved a $0.19 per share cash dividend, marking a 1% increase over the previous quarter and the ninth increase since the initiation of quarterly cash dividends in July 2018. Despite challenging market conditions, including a prolonged freight recession and uncertainties around trade policies and engine emissions regulations, aftermarket operations accounted for 63% of the total gross profit, with parts, service, and collision center revenues of $636.3 million, reflecting a 1.4% increase compared to the second quarter of 2024. The absorption ratio stood at 135.5%. In truck sales, the company sold 3,178 new Class 8 trucks in the U.S., representing a 5.4% market share, although this was a 20% year-over-year decrease primarily due to the timing of large fleet deliveries in the prior year. Medium-duty truck sales in the U.S. saw a 1% year-over-year increase with 3,626 units sold, representing a 6.2% market share. Additionally, Rush Truck Leasing achieved record revenues of $93.1 million, a 6.3% increase year-over-year. The company repurchased $83.9 million of its common stock under its $200 million repurchase authorization during the quarter and paid a cash dividend of $14.5 million.Rush Enterprises B Financial Statement Overview
Summary
Rush Enterprises B shows strong cash flow and a stable balance sheet with moderate leverage. However, declining net profit margins and negative revenue growth are concerns, alongside a decrease in ROE, indicating pressure on profitability.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 | 7.69B | 7.80B | 7.93B | 7.10B | 5.13B | 4.74B |
| Gross Profit | 1.47B | 1.53B | 1.59B | 1.49B | 1.09B | 875.47M |
| EBITDA | 593.50M | 705.94M | 736.90M | 702.81M | 477.10M | 330.10M |
| Net Income | 286.64M | 304.15M | 347.06M | 391.38M | 241.41M | 114.89M |
Balance Sheet | ||||||
| Total Assets | 4.72B | 4.62B | 4.36B | 3.82B | 3.12B | 2.99B |
| Cash, Cash Equivalents and Short-Term Investments | 211.11M | 228.13M | 183.72M | 201.04M | 148.15M | 312.05M |
| Total Debt | 1.75B | 1.73B | 1.81B | 1.44B | 1.15B | 1.22B |
| Total Liabilities | 2.54B | 2.46B | 2.47B | 2.06B | 1.65B | 1.72B |
| Stockholders Equity | 2.15B | 2.14B | 1.87B | 1.74B | 1.47B | 1.27B |
Cash Flow | ||||||
| Free Cash Flow | 402.39M | 186.50M | -73.17M | 51.34M | 255.17M | 626.78M |
| Operating Cash Flow | 885.19M | 619.55M | 295.71M | 294.40M | 422.35M | 762.98M |
| Investing Cash Flow | -516.67M | -445.58M | -387.03M | -240.93M | -432.90M | -127.46M |
| Financing Cash Flow | -324.75M | -129.32M | 73.96M | -690.00K | -153.34M | -505.10M |
Rush Enterprises B Technical Analysis
Neutral
59.11
Price Trends
55.62
Positive
54.68
Positive
54.96
Positive
Market Momentum
0.76
Positive
47.52
Neutral
34.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RUSHB, the sentiment is Neutral. The current price of 59.11 is above the 20-day moving average (MA) of 57.82, above the 50-day MA of 55.62, and above the 200-day MA of 54.96, indicating a neutral trend. The MACD of 0.76 indicates Positive momentum. The RSI at 47.52 is Neutral, neither overbought nor oversold. The STOCH value of 34.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $4.86B | 9.02 | 15.19% | ― | 8.39% | 40.35% | |
75 Outperform | $6.09B | 13.04 | 15.72% | 0.40% | 19.75% | -10.74% | |
70 Outperform | $4.41B | 16.11 | 13.79% | 1.23% | -2.81% | -6.88% | |
70 Outperform | $8.42B | 13.99 | 27.24% | ― | 3.15% | -12.49% | |
70 Outperform | $4.51B | 16.18 | 13.79% | 1.27% | -2.81% | -6.88% | |
68 Neutral | $2.77B | 18.07 | 15.99% | 1.63% | 4.48% | -16.26% | |
61 Neutral | $18.09B | 12.97 | -1.60% | 2.98% | 1.42% | -15.92% |
* Consumer Cyclical Sector Average
Performance Comparison
RUSHB
Rush Enterprises B
59.11
12.34
26.38%
ABG
Asbury
252.85
31.15
14.05%
AN
AutoNation
227.00
60.04
35.96%
GPI
Group 1 Automotive
488.25
125.48
34.59%
RUSHA
Rush Enterprises A
57.59
7.36
14.65%
SAH
Sonic Automotive
82.97
27.88
50.61%
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.