(RUSHB) Rush Enterprises - Overview
Sector: Consumer Cyclical | Industry: Auto & Truck Dealerships | Exchange: NASDAQ (USA) | Market Cap: 5.735m USD | Total Return: 29.1% in 12m
Industry Rotation: +13.3
Avg Turnover: 5.37M USD
Peers RS (IBD): 76.6
EPS Trend: -69.9%
Qual. Beats: 0
Rev. Trend: 30.3%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Rush Enterprises, Inc. (RUSHB) operates the largest network of commercial vehicle dealerships in North America under the Rush Truck Centers brand. The company functions as an integrated retailer, providing end-to-end solutions including new and used vehicle sales, aftermarket parts, maintenance, and collision repair. Its portfolio features major manufacturers such as Peterbilt, International, and Hino, serving a diverse client base ranging from government entities to national logistics fleets.
The business model relies heavily on high-margin parts and service revenue, which typically offers greater cyclical resilience than new vehicle sales. As a key player in the Trading Companies & Distributors sub-industry, Rush Enterprises benefits from the essential nature of freight transportation and the ongoing technical complexity of heavy-duty engine maintenance. Investors may find it useful to examine ValueRay for deeper insights into the companys long-term valuation trends.
Beyond vehicle distribution, the company maintains diversified revenue streams through financing, leasing, and specialized insurance products. It also provides technical services such as natural gas fuel system installations and telematics integration, positioning the firm to capture value from evolving commercial vehicle technologies and regulatory shifts in the transportation sector.
- Class 8 truck production cycles dictate new vehicle sales volume and revenue
- High-margin aftermarket parts and service revenue stabilizes earnings during economic downturns
- Interest rate fluctuations impact floorplan financing costs and customer leasing demand
- Freight transportation demand and carrier profitability drive commercial fleet replacement cycles
- Strategic expansion of dealership network increases market share across North American regions
| Net Income: 263.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA 0.75 > 1.0 |
| NWC/Revenue: 8.06% < 20% (prev 9.48%; Δ -1.42% < -1%) |
| CFO/TA 0.19 > 3% & CFO 861.8m > Net Income 263.8m |
| Net Debt (1.34b) to EBITDA (553.2m): 2.42 < 3 |
| Current Ratio: 1.40 > 1.5 & < 3 |
| Outstanding Shares: last quarter (79.4m) vs 12m ago -3.70% < -2% |
| Gross Margin: 19.40% > 18% (prev 0.19%; Δ 1.92k% > 0.5%) |
| Asset Turnover: 164.3% > 50% (prev 169.0%; Δ -4.70% > 0%) |
| Interest Coverage Ratio: 8.48 > 6 (EBITDA TTM 553.2m / Interest Expense TTM 46.2m) |
| A: 0.14 (Total Current Assets 2.09b - Total Current Liabilities 1.49b) / Total Assets 4.43b |
| B: 0.43 (Retained Earnings 1.90b / Total Assets 4.43b) |
| C: 0.09 (EBIT TTM 392.1m / Avg Total Assets 4.52b) |
| D: 0.86 (Book Value of Equity 1.90b / Total Liabilities 2.20b) |
| Altman-Z'' Score: 3.78 = AA |
| DSRI: 0.82 (Receivables 277.8m/354.9m, Revenue 7.43b/7.80b) |
| GMI: 0.99 (GM 19.40% / 19.28%) |
| AQI: 1.08 (AQ_t 0.12 / AQ_t-1 0.11) |
| SGI: 0.95 (Revenue 7.43b / 7.80b) |
| TATA: -0.13 (NI 263.8m - CFO 861.8m) / TA 4.43b) |
| Beneish M-Score: -3.30 (Cap -4..+1) = AA |
Over the past week, the price has changed by +7.89%, over one month by +20.87%, over three months by +26.50% and over the past year by +29.11%.
| Analysts Target Price | - | - |
P/E Forward = 11.5741
P/S = 0.7714
P/B = 2.5
P/EG = 2.7435
Revenue TTM = 7.43b USD
EBIT TTM = 392.1m USD
EBITDA TTM = 553.2m USD
Long Term Debt = 274.8m USD (from longTermDebt, last quarter)
Short Term Debt = 971.9m USD (from shortTermDebt, last quarter)
Debt = 1.55b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.34b USD (from netDebt column, last quarter)
Enterprise Value = 7.07b USD (5.73b + Debt 1.55b - CCE 212.6m)
Interest Coverage Ratio = 8.48 (Ebit TTM 392.1m / Interest Expense TTM 46.2m)
EV/FCF = 33.31x (Enterprise Value 7.07b / FCF TTM 212.3m)
FCF Yield = 3.00% (FCF TTM 212.3m / Enterprise Value 7.07b)
FCF Margin = 2.86% (FCF TTM 212.3m / Revenue TTM 7.43b)
Net Margin = 3.55% (Net Income TTM 263.8m / Revenue TTM 7.43b)
Gross Margin = 19.40% ((Revenue TTM 7.43b - Cost of Revenue TTM 5.99b) / Revenue TTM)
Gross Margin QoQ = 18.64% (prev 19.93%)
Tobins Q-Ratio = 1.60 (Enterprise Value 7.07b / Total Assets 4.43b)
Interest Expense / Debt = 0.58% (Interest Expense 8.93m / Debt 1.55b)
Taxrate = 21.41% (17.6m / 82.3m)
NOPAT = 308.2m (EBIT 392.1m * (1 - 21.41%))
Current Ratio = 1.40 (Total Current Assets 2.09b / Total Current Liabilities 1.49b)
Debt / Equity = 0.70 (Debt 1.55b / totalStockholderEquity, last quarter 2.20b)
Debt / EBITDA = 2.42 (Net Debt 1.34b / EBITDA 553.2m)
Debt / FCF = 6.30 (Net Debt 1.34b / FCF TTM 212.3m)
Total Stockholder Equity = 2.18b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.83% (Net Income 263.8m / Total Assets 4.43b)
RoE = 12.07% (Net Income TTM 263.8m / Total Stockholder Equity 2.18b)
RoCE = 15.94% (EBIT 392.1m / Capital Employed (Equity 2.18b + L.T.Debt 274.8m))
RoIC = 8.69% (NOPAT 308.2m / Invested Capital 3.55b)
WACC = 7.39% (E(5.73b)/V(7.28b) * Re(9.27%) + D(1.55b)/V(7.28b) * Rd(0.58%) * (1-Tc(0.21)))
Discount Rate = 9.27% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -1.69%
[DCF] Terminal Value 73.57% ; FCFF base≈202.0m ; Y1≈132.6m ; Y5≈60.6m
[DCF] Fair Price = 0.87 (EV 1.35b - Net Debt 1.34b = Equity 15.2m / Shares 17.4m; r=7.39% [WACC]; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: -69.92 | EPS CAGR: -49.80% | SUE: -4.0 | # QB: 0
Revenue Correlation: 30.33 | Revenue CAGR: 3.40% | SUE: 0.78 | # QB: 0