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Rush Enterprises A (RUSHA)
NASDAQ:RUSHA
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Rush Enterprises A
(NASDAQ:RUSHA)
77Outperform
Rush Enterprises A (RUSHA) vs. S&P 500 (SPY)
Market Cap
$4.31B
Dividend Yield1.31%
Average Volume (3M)376.62K
Price to Earnings (P/E)14.4
Beta (1Y)1.16
Revenue Growth-1.52%
EPS Growth-9.80%
CountryUS
Employees7,827
SectorConsumer Cyclical
Sector Strength50
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)3.73
Shares Outstanding62,683,594
10 Day Avg. Volume441,312
30 Day Avg. Volume376,623
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.54
Price to Cash Flow (P/CF)2.70
P/FCF Ratio3.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$67.00Price Target Upside25.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Rush Enterprises A Business Overview & Revenue Model
Company DescriptionRush Enterprises, Inc. (RUSHA) is a leading commercial vehicle dealership network in North America. The company primarily operates in the transportation and logistics sectors, offering a comprehensive range of products and services related to commercial vehicles. These include new and used truck sales, aftermarket parts sales, service and repair, financing, leasing, and insurance services. Rush Enterprises is renowned for its extensive dealership network, which provides customers with access to a wide array of brands and support services tailored to meet the needs of commercial vehicle operators.
How the Company Makes MoneyRush Enterprises generates revenue through multiple streams centered around its dealership operations. The primary revenue source is the sale of new and used commercial vehicles, which forms a significant portion of its earnings. The company also earns substantial income from its aftermarket parts and service division, which provides necessary maintenance and repair services for commercial vehicles. Additionally, Rush Enterprises offers financial services, including truck leasing and financing, which contribute to its revenue mix. The company also benefits from insurance services tailored to commercial vehicles. Strategic partnerships with leading truck manufacturers and financial institutions enhance its ability to offer comprehensive solutions to its customers, thereby strengthening its revenue model.
Rush Enterprises A Financial Statement Overview
Summary
Rush Enterprises demonstrates solid financial health with strong cash flow management and stable profitability metrics. The company's cash flow score is particularly high due to significant improvement in free cash flow and effective conversion of income into cash flows. The income statement and balance sheet also show strong performance, although there was a slight revenue dip recently.Income Statement
Rush Enterprises shows strong profitability with a consistent gross profit margin around 20% and a net profit margin of approximately 4% over recent years. Revenue growth has been positive, with a significant increase of nearly 55% from 2020 to 2021, though there was a slight decline of around 1.5% from 2023 to 2024. EBIT and EBITDA margins are stable, reflecting healthy operational efficiency.82
Very Positive
Balance Sheet
The company's balance sheet is relatively strong with a stable debt-to-equity ratio around 0.8, indicating moderate leverage. Return on equity has shown variations but remains healthy, exceeding 16% in recent years. Equity ratio is robust, hovering above 45%, which signifies a solid equity base in its capital structure.75
Positive
Cash Flow
Cash flow analysis reveals a substantial improvement in free cash flow, growing significantly in the latest period. The operating cash flow to net income ratio is strong, indicating effective conversion of income into cash flows. Recent free cash flow figures demonstrate a remarkable turnaround from negative values in 2023 to positive in 2024, boosting financial resilience.88
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 7.80B | 7.93B | 7.10B | 5.13B | 4.74B | Gross Profit |
| 1.53B | 1.59B | 1.49B | 1.09B | 875.47M | EBIT |
| 468.09M | 512.38M | 506.11M | 309.04M | 154.60M | EBITDA |
| 705.94M | 736.90M | 702.81M | 477.10M | 330.10M | Net Income Common Stockholders |
| 304.15M | 347.06M | 391.38M | 241.41M | 114.89M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 228.13M | 183.72M | 201.04M | 148.15M | 312.05M | Total Assets |
| 4.62B | 4.36B | 3.82B | 3.12B | 2.99B | Total Debt |
| 1.73B | 1.81B | 1.44B | 1.15B | 1.22B | Net Debt |
| 1.51B | 1.63B | 1.23B | 1.00B | 907.86M | Total Liabilities |
| 2.46B | 2.47B | 2.06B | 1.65B | 1.72B | Stockholders Equity |
| 2.14B | 1.87B | 1.74B | 1.47B | 1.27B |
| Cash Flow | Free Cash Flow | |||
| 619.55M | -73.17M | 51.34M | 255.17M | 626.78M | Operating Cash Flow |
| 619.55M | 295.71M | 294.40M | 422.35M | 762.98M | Investing Cash Flow |
| -445.58M | -387.03M | -240.93M | -432.90M | -127.46M | Financing Cash Flow |
| -129.32M | 73.96M | -690.00K | -153.34M | -505.10M |
Rush Enterprises A Technical Analysis
Negative
53.57
Price Trends
57.54
Negative
58.21
Negative
53.60
Negative
Market Momentum
-0.72
Negative
42.24
Neutral
60.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RUSHA, the sentiment is Negative. The current price of 53.57 is below the 20-day moving average (MA) of 54.63, below the 50-day MA of 57.54, and below the 200-day MA of 53.60, indicating a bearish trend. The MACD of -0.72 indicates Negative momentum. The RSI at 42.24 is Neutral, neither overbought nor oversold. The STOCH value of 60.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RUSHA.
Rush Enterprises A Risk Analysis
Rush Enterprises A disclosed 24 risk factors in its most recent earnings report. Rush Enterprises A 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 A Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $4.31B | 14.41 | 15.16% | 1.31% | -1.52% | -9.80% | |
75 Outperform | $4.29B | 10.14 | 12.76% | ― | 16.11% | -24.72% | |
73 Outperform | $7.62B | 9.80 | 12.47% | 0.72% | 16.75% | -18.09% | |
69 Neutral | $4.90B | 10.21 | 17.23% | 0.50% | 11.53% | -13.75% | |
63 Neutral | $6.24B | 9.39 | 29.65% | ― | -0.68% | -25.24% | |
60 Neutral | $1.87B | 8.93 | 22.11% | 2.27% | -1.03% | 24.64% | |
59 Neutral | $12.26B | 11.12 | -0.55% | 3.78% | 1.42% | -20.63% |
* Consumer Cyclical Sector Average
Performance Comparison
RUSHA
Rush Enterprises A
53.57
1.29
2.47%
ABG
Asbury
218.17
-16.18
-6.90%
AN
AutoNation
159.08
-5.68
-3.45%
GPI
Group 1 Automotive
375.96
87.92
30.52%
LAD
Lithia Motors
289.88
-3.81
-1.30%
SAH
Sonic Automotive
55.11
0.16
0.29%
Rush Enterprises A Earnings Call Summary
Earnings Call Date: Feb 18, 2025 | % Change Since: -12.15% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Neutral
Rush Enterprises faced a challenging year in 2024 with significant declines in Class 8 truck sales and aftermarket revenues amid economic and regulatory uncertainties. However, they achieved strong financial performance with notable success in medium-duty truck sales and maintained stability in leasing revenue, demonstrating resilience and strategic execution.Highlights
Annual Revenue Achievement
Rush Enterprises reported $7.8 billion in annual revenues for 2024 with a net income of $304.2 million, marking a significant financial achievement despite industry challenges.
Strong Medium-Duty Truck Sales
Class 4 through 7 new truck sales were up 5.1% year-over-year, with 13,935 units sold in 2024. This performance outpaced the market in medium-duty truck sales.
Aftermarket Sales Strategy Success
Despite a slight decline in aftermarket revenues, Rush Enterprises grew its market share by expanding its national account sales force, enhancing service to large strategic accounts.
Leasing Revenue Stability
The Rush Truck Leasing division remained a key contributor, with leasing and rental revenue being flat compared to the previous year but with increased leasing revenue as 1,500 units were replaced.
Lowlights
Decline in Class 8 Truck Sales
Sales of new Class 8 trucks were down 11.4% year-over-year, amidst high inventory levels and competitive pricing, representing a significant challenge in the Class 8 truck market.
Aftermarket Revenue Slight Decline
Parts, service, and body shop revenues were down by 1.8% from 2023, with a reduced absorption ratio of 132.2% compared to 135.3% in 2023.
Economic and Policy Uncertainty
Industry challenges highlighted include the ongoing freight recession, high interest rates, potential tariffs on vehicles and components, and regulatory uncertainties with emissions regulations.
Company Guidance
During the fourth quarter 2024 earnings call for Rush Enterprises, Rusty Rush, the Chairman and CEO, provided detailed guidance on various metrics and market conditions for 2025. The company reported $7.8 billion in annual revenues and a net income of $304.2 million for 2024, with fourth-quarter revenues of $2 billion and a net income of $74.7 million. Despite challenges such as a freight recession, high interest rates, and economic uncertainty impacting Class 8 truck sales, Rush Enterprises maintained a strong position in the public sector and vocational markets. The company sold 15,465 new Class 8 trucks and 13,935 Class 4 through 7 trucks in 2024, representing 6.1% and 5.3% of the U.S. market, respectively. The used truck market remained flat, with 7,110 units sold, while leasing and rental revenue was slightly up at $354.9 million. For 2025, Rush anticipates a soft start for aftermarket demand with an expected ramp-up in the second half of the year as the freight market improves. The company also plans to expand its technician workforce to enhance service delivery. Potential tariffs on vehicles and components from Canada, Mexico, or China could impact vehicle and parts pricing, influencing demand. Despite uncertainties around emissions regulations and tariffs, Rush remains optimistic about pre-buy activities and vocational sales driving growth in 2025.Rush Enterprises A Corporate Events
Executive/Board Changes
Rush Enterprises Announces Executive Compensation Plans
Neutral
Mar 5, 2025
On March 3, 2025, Rush Enterprises, Inc. announced compensation payments for its executive officers, including cash bonuses, stock options, and restricted stock awards. The cash bonuses, based on competitive market data and the company’s 2024 fiscal year results, will be distributed on March 14, 2025. Stock options and restricted stock awards will also be granted on this date, with vesting conditions outlined in the company’s long-term incentive plan.
DividendsBusiness Operations and StrategyFinancial Disclosures
Rush Enterprises A Reports Strong 2024 Financial Results
Neutral
Feb 18, 2025
For the year ending December 31, 2024, Rush Enterprises reported annual revenues of $7.8 billion and net income of $304.2 million, reflecting a slight decrease from the previous year. Despite challenges such as the freight recession and high interest rates impacting over-the-road carriers, the company maintained strong sales in vocational and public sector segments. The Board declared a quarterly dividend of $0.18 per share, underscoring confidence in future cash flow and shareholder value. The company’s strategic expansion included new service locations and increased focus on mobile services, which contributed to market share growth in the aftermarket sector despite a slight decline in revenue. Looking ahead, the company anticipates challenges in the freight market and potential impacts from proposed tariffs but remains optimistic about medium-duty market growth and strengthening aftermarket operations.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.