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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on RUSHA

Rush Enterprises, Inc.'s recent performance has been impacted by cyclicality in the commercial vehicle dealership industry. Despite a resilient balance sheet and strong capital allocation, the company faces challenges from razor-thin margins. The upcoming Q3 2025 earnings call, announced on October 2, 2025, may provide insight into the company's ability to maintain profitability. With a history of weathering downturns, Rush Enterprises' ability to navigate current challenges will be closely watched. Its scaled leadership in a fragmented industry is a notable factor.

1.c. Company Highlights

2. Rush Enterprises' Q3 2025 Earnings: Navigating Industry Headwinds

Rush Enterprises reported third-quarter 2025 revenues of $1.9 billion and net income of $66.7 million, or $0.83 per diluted share, slightly beating analyst estimates of $0.81 EPS. The company's aftermarket operations accounted for approximately 63% of its total gross profit, with parts, service, and collision center revenues reaching $642.7 million, a 1.5% increase compared to the third quarter of 2024. The absorption ratio was 129.3%, indicating the company's ability to manage its costs effectively despite challenging industry conditions.

Publication Date: Nov -03

📋 Highlights
  • Revenue and Net Income:: Q3 2025 revenue reached $1.9 billion with net income of $66.7 million ($0.83 per diluted share).
  • Class 8 Truck Sales:: Sold 3,120 new U.S. Class 8 trucks, representing 5.8% of the total U.S. market share.
  • Aftermarket Performance:: Generated $642.7 million in parts, service, and collision center revenue (1.5% YoY growth), contributing 63% of total gross profit with a 129.3% absorption ratio.
  • Leasing Growth:: Rush Truck Leasing achieved record $93.3 million in revenue (4.7% YoY increase) due to new vehicle additions and cost efficiency.
  • Capital Allocation:: $9.2 million in stock repurchases under the $200 million authorization and $14.8 million cash dividend paid in Q3 2025.

Operational Performance

The commercial vehicle industry faced ongoing challenges in the third quarter of 2025, with Rush Enterprises selling 3,120 new Class 8 trucks in the U.S., accounting for 5.8% of the total U.S. market. However, the company's medium-duty results outperformed the broader market. Used truck sales were essentially flat compared to the same period in 2024. Rush Truck Leasing achieved record revenues of $93.3 million in the third quarter, up 4.7% year-over-year, driven by increased full-service leasing revenue.

Outlook and Challenges

Looking ahead, Rush Enterprises anticipates continued challenges in its aftermarket business due to seasonal trends and broader industry headwinds. The company expects medium-duty commercial vehicle sales to remain stable through the remainder of the year. As W. Rush mentioned, "I'm worried about unemployment and tariffs, which will be passed down to the consumer. I'm also concerned about inflation and the potential for a recession." The outlook for the remainder of '25 and the first half of '26 is challenging, with a tough end to '25 and the persistence of weakness into Q1.

Valuation and Growth Prospects

With a P/E Ratio of 14.19 and an EV/EBITDA of 9.25, the market appears to be pricing in moderate growth expectations. Analysts estimate next year's revenue growth at 6.3%. The company's focus on parts and service, as well as its investment in people, mobile services, and expanding its outside service and parts business, is expected to drive growth. The Dividend Yield of 1.48% and Free Cash Flow Yield of 10.46% are also attractive, indicating a reasonable valuation. The ROE of 12.64% and ROIC of 7.97% demonstrate the company's ability to generate returns on equity and invested capital.

3. NewsRoom

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Rush Enterprises, Inc. Adopts $150 Million Stock Repurchase Program

Dec -03

Source: globenewswire.com

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Rush Enterprises, Inc. $RUSHA Shares Acquired by Edgestream Partners L.P.

Dec -03

Source: defenseworld.net

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Rush Enterprises: Searching For A Bottom, Time To Be A Contrarian

Nov -10

Source: seekingalpha.com

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Rush Enterprises, Inc. (RUSHA) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

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Rush Enterprises, Inc. Reports Third Quarter 2025 Results, Announces $0.19 Per Share Dividend

Oct -29

Source: globenewswire.com

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Rush Enterprises, Inc. Conference Call Advisory for Third Quarter 2025 Earnings Results

Oct -02

Source: globenewswire.com

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Rush Enterprises: Hidden Quality Underneath Cyclicality

Aug -14

Source: seekingalpha.com

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Rush Enterprises, Inc. (RUSHA) Q2 2025 Earnings Call Transcript

Aug -01

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.20%)

6. Segments

Truck

Expected Growth: 1.2%

Rush Enterprises, Inc.'s truck segment growth of 1.2% is driven by increasing demand for commercial vehicles, fueled by a strong economy, rising freight volumes, and growing e-commerce sales. Additionally, the company's strategic expansion into new markets, investments in digital technologies, and focus on customer service have contributed to its growth momentum.

All Other

Expected Growth: 0.8%

Rush Enterprises' 'All Other' segment growth of 0.8% is driven by increased demand for aftermarket parts and services, expansion of its truck rental fleet, and strategic acquisitions. Additionally, the company's focus on digital transformation and cost savings initiatives have contributed to the segment's growth.

7. Detailed Products

New Heavy-Duty Trucks

Rush Enterprises sells new heavy-duty trucks from top manufacturers like Peterbilt, International, Ford, and Isuzu.

Used Heavy-Duty Trucks

Rush Enterprises offers a wide selection of pre-owned heavy-duty trucks from various manufacturers.

Truck Parts and Accessories

Rush Enterprises provides a vast inventory of genuine and aftermarket parts and accessories for heavy-duty trucks.

Truck Repair and Maintenance

Rush Enterprises offers comprehensive repair and maintenance services for heavy-duty trucks, including routine maintenance, repairs, and diagnostics.

Leasing and Rental Services

Rush Enterprises provides flexible leasing and rental options for heavy-duty trucks, trailers, and equipment.

Financing and Insurance

Rush Enterprises offers financing and insurance solutions for heavy-duty trucks and equipment, including customized financing options and insurance products.

8. Rush Enterprises, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Rush Enterprises, Inc. is medium due to the presence of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple suppliers in the market, but the company's large scale of operations gives it some negotiating power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the industry, including high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the market, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 46.21%
Debt Cost 3.99%
Equity Weight 53.79%
Equity Cost 9.30%
WACC 6.85%
Leverage 85.91%

11. Quality Control: Rush Enterprises, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Value: 6.9

Growth: 7.1

Quality: 4.8

Yield: 5.0

Momentum: 7.0

Volatility: 8.0

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A-Score: 5.4/10

Value: 6.6

Growth: 7.8

Quality: 3.5

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Growth: 6.7

Quality: 5.2

Yield: 1.0

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Rush Enterprises

A-Score: 5.2/10

Value: 6.6

Growth: 4.7

Quality: 4.7

Yield: 3.0

Momentum: 5.0

Volatility: 7.3

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A-Score: 3.4/10

Value: 6.5

Growth: 5.4

Quality: 4.4

Yield: 0.0

Momentum: 0.5

Volatility: 3.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

54.92$

Current Price

54.92$

Potential

-0.00%

Expected Cash-Flows