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Relative to Consumer Discretionary Sector Median (N=442)
Metric
RUSHA
Benchmark
P/E Ratio
18.3x
-25%
EV/EBITDA
9.3x
+90%
Price / Book
2.3x
Implied Value Audit
OVERVALUED
Implied Fair Value (vs Sector)
-39.0%
$43.42Spot: $71.15
Spot
Implied
-50% Delta+50% Delta
Relative valuation derived from Consumer Discretionary sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
12.6%
Sector: 6.2%
Dividend Analysis audit
GROWTH
1.37%
Trailing Yield
$1.37
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
25%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, RUSH ENTERPRISES INC \TX\ (RUSHA) receives a "Hold" rating with a composite score of 51.3/100, ranked #1600 out of 4446 stocks. Key factor scores: Quality 50/100, Value 67/100, Momentum 59/100. This is quantitative analysis only — not investment advice.
RUSH ENTERPRISES INC \TX\ (RUSHA) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does RUSH ENTERPRISES INC \TX\ Do?
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. RUSH ENTERPRISES INC \TX\ (RUSHA) is classified as a mid-cap stock in the Consumer Discretionary sector, specifically within the Retail industry. The company is led by CEO William M. Rush and employs approximately 8,040 people, headquartered in NEW BRAUNFELS, Texas. With a market capitalization of $5.1B, RUSHA is one of the notable companies in the Consumer Discretionary sector.
As of April 2026, RUSH ENTERPRISES INC \TX\ receives a Hold rating with a composite score of 51.3/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.RUSHA ranks #1,600 out of 4,446 stocks in our coverage universe. Within the Consumer Discretionary sector, RUSH ENTERPRISES INC \TX\ ranks #136 of 442 stocks, placing it in the upper half of its Consumer Discretionary peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
RUSHA Stock Price and 52-Week Range
RUSH ENTERPRISES INC \TX\ (RUSHA) currently trades at $71.15. The stock lost $0.06 (0.1%) in the most recent trading session. The 52-week high for RUSHA is $75.99, which means the stock is currently trading -6.4% from its annual peak. The 52-week low is $45.67, putting the stock 55.8% above its annual trough. Recent trading volume was 514K shares, suggesting relatively thin trading activity.
Is RUSHA Overvalued or Undervalued? — Valuation Analysis
RUSH ENTERPRISES INC \TX\ (RUSHA) carries a value factor score of 67/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 18.33x, compared to the Consumer Discretionary sector average of 24.47x — a discount of 25%. The price-to-book ratio stands at 2.31x, versus the sector average of 1.99x. The price-to-sales ratio is 0.68x, compared to 0.27x for the average Consumer Discretionary stock. On an enterprise value basis, RUSHA trades at 9.33x EV/EBITDA, versus 4.91x for the sector. The EV/EBIT multiple is 16.62x.
Overall, RUSHA's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
RUSH ENTERPRISES INC \TX\ (RUSHA) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 12.6%, compared to the Consumer Discretionary sector average of 6.2%, which is within a healthy range. Return on assets (ROA) comes in at 6.3% versus the sector average of 2.5%.
On a margin basis, RUSH ENTERPRISES INC \TX\ reports gross margins of 19.7%, compared to 36.9% for the sector. The operating margin is 5.6% (sector: 3.8%). Net profit margin stands at 3.7%, versus 2.1% for the average Consumer Discretionary stock. Revenue growth is running at -7.2% on a trailing basis, compared to 3.3% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
RUSHA Debt, Balance Sheet, and Financial Health
RUSH ENTERPRISES INC \TX\ has a debt-to-equity ratio of 12.0%, compared to the Consumer Discretionary sector average of 89.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 1.40x, suggesting adequate working capital coverage. Total debt on the balance sheet is $275M. Cash and equivalents stand at $242M.
RUSHA has a beta of 1.00, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for RUSH ENTERPRISES INC \TX\ is 72/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
RUSH ENTERPRISES INC \TX\ Revenue and Earnings History — Quarterly Trend
In TTM 2026, RUSH ENTERPRISES INC \TX\ reported revenue of $7.56B and earnings per share (EPS) of $3.37. Net income for the quarter was $281M. Gross margin was 19.7%. Operating income came in at $423M.
In FY 2025, RUSH ENTERPRISES INC \TX\ reported revenue of $7.43B and earnings per share (EPS) of $3.37. Net income for the quarter was $266M. Gross margin was 19.7%. Revenue grew -4.7% year-over-year compared to FY 2024. Operating income came in at $394M.
In Q3 2025, RUSH ENTERPRISES INC \TX\ reported revenue of $1.88B and earnings per share (EPS) of $0.85. Net income for the quarter was $68M. Gross margin was 19.9%. Revenue grew -0.8% year-over-year compared to Q3 2024. Operating income came in at $100M.
In Q2 2025, RUSH ENTERPRISES INC \TX\ reported revenue of $1.93B and earnings per share (EPS) of $0.93. Net income for the quarter was $73M. Gross margin was 19.7%. Revenue grew -4.8% year-over-year compared to Q2 2024. Operating income came in at $110M.
Over the past 8 quarters, RUSH ENTERPRISES INC \TX\ has demonstrated a growth trajectory, with revenue expanding from $2.03B to $7.56B. Investors analyzing RUSHA stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
RUSHA Dividend Yield and Income Analysis
RUSH ENTERPRISES INC \TX\ (RUSHA) currently pays a dividend yield of 1.4%. At this yield, a $10,000 investment in RUSHA stock would generate approximately $$137.00 in annual dividend income.
RUSHA Momentum and Technical Analysis Profile
RUSH ENTERPRISES INC \TX\ (RUSHA) has a momentum factor score of 59/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 36/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 9/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
RUSHA vs Competitors — Consumer Discretionary Sector Ranking and Peer Comparison
Comparing RUSHA against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full RUSHA vs S&P 500 (SPY) comparison to assess how RUSH ENTERPRISES INC \TX\ stacks up against the broader market across all factor dimensions.
RUSHA Next Earnings Date
No upcoming earnings date has been announced for RUSH ENTERPRISES INC \TX\ (RUSHA) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy RUSHA? — Investment Thesis Summary
RUSH ENTERPRISES INC \TX\ presents a balanced picture with arguments on both sides. The value score of 67/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 72/100) reduces downside risk.
In summary, RUSH ENTERPRISES INC \TX\ (RUSHA) earns a Hold rating with a composite score of 51.3/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on RUSHA stock.
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Institutional Research Dossier
RUSH ENTERPRISES INC \TX\ (RUSHA) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Rush Enterprises (RUSHA), driven by a balanced assessment of its strong market position in the commercial vehicle retail sector and its relatively attractive valuation compared to peers, offset by concerns regarding cyclicality and recent revenue declines. While Rush's operational efficiency and robust service offerings provide a degree of resilience, the inherent volatility of the commercial vehicle market warrants caution.
The company's ability to generate free cash flow and maintain a healthy balance sheet are positives, but the recent dip in revenue and the potential for further economic headwinds impacting the transportation industry temper our enthusiasm. We believe the current valuation reflects these factors, leaving limited upside potential in the near term. Investors should closely monitor macroeconomic trends and industry-specific data points to reassess the company's prospects.
Business Strategy & Overview
Rush Enterprises operates as an integrated retailer of commercial vehicles and related services, primarily through its Rush Truck Centers network. The company's core business revolves around the sale of new and used commercial vehicles, primarily manufactured by Peterbilt, International, Hino, Ford, Isuzu, IC Bus, and Blue Bird. This diversified brand portfolio allows Rush to cater to a wide range of customer needs and preferences within the commercial vehicle market.
Beyond vehicle sales, Rush generates significant revenue from aftermarket parts, service and repair, financing, and leasing and rental services. This integrated approach is crucial for maintaining customer relationships and generating recurring revenue streams. The company's service offerings, including equipment installation and repair, parts installation, and paint and body repair, are essential for commercial vehicle operators, creating a sticky customer base.
Rush's strategic positioning involves expanding its network of Rush Truck Centers across the United States, targeting key transportation hubs and regions with high commercial vehicle activity. This expansion strategy aims to increase market share and improve accessibility for its customers. The company also focuses on enhancing its service capabilities and expanding its product offerings, such as vehicle telematics and compressed natural gas fuel systems, to meet evolving customer demands.
The commercial vehicle industry is highly competitive, with numerous dealerships and service providers vying for market share. Rush differentiates itself through its extensive network, comprehensive service offerings, and strong relationships with major commercial vehicle manufacturers. The company's ability to provide a one-stop shop for commercial vehicle needs is a key competitive advantage. However, the industry is also subject to cyclical fluctuations, with demand for commercial vehicles closely tied to economic growth and freight activity.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-7.2%
Sector: 3.3%
-319% VS SCTR
Economic Moat Analysis
Rush Enterprises possesses a Narrow economic moat, primarily derived from its established network of dealerships and its integrated service offerings. While the commercial vehicle retail industry is generally competitive, Rush's scale and geographic reach provide a degree of competitive advantage. The company's extensive network of Rush Truck Centers creates a barrier to entry for smaller competitors, as establishing a similar nationwide presence requires significant capital investment and time.
The integrated service offerings, including aftermarket parts, service and repair, financing, and leasing, contribute to customer stickiness and recurring revenue streams. Commercial vehicle operators rely on Rush for maintenance and repairs, creating a captive customer base. This integrated approach also allows Rush to capture a larger share of the customer's wallet, compared to competitors that only focus on vehicle sales.
However, the moat is not particularly wide due to the relatively low switching costs for customers. While Rush's service offerings create some stickiness, commercial vehicle operators can easily switch to other dealerships or independent service providers if they offer better prices or service quality. The industry is also characterized by strong manufacturer brands, which can influence customer preferences and reduce the importance of the dealership's brand.
Furthermore, the commercial vehicle market is subject to cyclical fluctuations, which can impact Rush's profitability and reduce the effectiveness of its competitive advantages. During economic downturns, demand for commercial vehicles declines, and customers may defer maintenance and repairs, reducing Rush's revenue and earnings. While Rush's service offerings provide some resilience, the company is still vulnerable to economic cycles.
Financial Health & Profitability
Rush Enterprises' financial health is generally sound, characterized by consistent profitability and a healthy balance sheet. The company has demonstrated a track record of generating positive net income and free cash flow, although recent performance indicates a slight decline. The TTM net income of $266.04 million and free cash flow of $524.29 million are indicative of a profitable business model, but represent a decrease from previous periods.
Analyzing the quarterly financial history reveals a recent trend of declining revenue and net income. Revenue decreased from $7.93 billion in FY2023 to $7.43 billion in FY2025 (TTM), while net income decreased from $348.06 million to $266.04 million over the same period. This decline is likely attributable to the cyclical nature of the commercial vehicle market and potential macroeconomic headwinds.
Rush's gross margin of 19.7% is significantly lower than the sector average of 36.9%, reflecting the lower-margin nature of its retail business compared to other consumer discretionary companies. However, its operating margin of 5.6% and net margin of 3.7% are higher than the sector averages of 3.8% and 2.1%, respectively, indicating efficient operations and cost management.
The company's balance sheet is relatively strong, with total cash of $242.00 million and total debt of $274.80 million, resulting in a low debt-to-equity ratio of 12.00, significantly lower than the sector average of 91.00. The current ratio of 1.40 indicates adequate liquidity to meet short-term obligations. The company's strong balance sheet provides financial flexibility to weather economic downturns and pursue growth opportunities.
ROE of 12.6% is significantly higher than the sector average of 5.8%, indicating efficient use of equity. However, the recent decline in revenue and net income warrants close monitoring to ensure that the company can maintain its profitability and financial health in the face of potential economic challenges.
Valuation Assessment
Rush Enterprises' valuation appears relatively attractive compared to its sector peers, based on several key metrics. The company's P/E ratio of 18.7x is significantly lower than the sector average of 28.0x, suggesting that the stock may be undervalued relative to its earnings potential. Similarly, its EV/EBITDA ratio of 2.8x is substantially lower than the sector average of 5.3x, indicating a potentially undervalued enterprise value.
However, it's crucial to consider the company's recent revenue decline of -7.2% when assessing its valuation. While the lower multiples may appear attractive, they could also reflect investor concerns about the company's growth prospects in the face of economic headwinds and cyclical industry dynamics. A declining revenue stream can quickly erode earnings and cash flow, making seemingly cheap valuations less appealing.
The company's free cash flow yield, while not explicitly provided, can be estimated based on its market capitalization and free cash flow. With a market cap of $4.85 billion and TTM free cash flow of $524.29 million, the estimated FCF yield is approximately 10.8%. This is a relatively high yield, suggesting that the company is generating a significant amount of cash relative to its market value. However, investors should carefully evaluate the sustainability of this free cash flow, given the recent revenue decline and potential for further economic weakness.
Overall, Rush Enterprises' valuation appears to be at a discount to its sector peers, but this discount may be warranted given the company's recent revenue decline and the cyclical nature of its business. While the lower multiples and high FCF yield may attract value investors, it's essential to conduct thorough due diligence and assess the company's long-term growth prospects before making an investment decision. The Hold rating reflects this balanced assessment, acknowledging the potential value while also recognizing the risks associated with the company's cyclicality and recent performance.
Risk & Uncertainty
Rush Enterprises faces several specific risks that could impact its business and financial performance. The most significant risk is the cyclicality of the commercial vehicle market. Demand for commercial vehicles is closely tied to economic growth and freight activity, and downturns in the economy can lead to a significant decline in vehicle sales and service revenue. This cyclicality is inherent in the industry and can be difficult to predict or mitigate.
Another key risk is competition. The commercial vehicle retail industry is highly competitive, with numerous dealerships and service providers vying for market share. Rush faces competition from both national and regional players, as well as independent service providers. Increased competition could lead to price pressure and reduced profitability.
Supply chain disruptions also pose a risk to Rush's business. Disruptions in the supply of commercial vehicles or parts could lead to delays in deliveries and reduced sales. The company's ability to manage its inventory and supply chain effectively is crucial for mitigating this risk.
Regulatory changes could also impact Rush's business. Changes in emissions standards, safety regulations, or transportation policies could increase the cost of commercial vehicles or reduce demand. The company must stay abreast of regulatory developments and adapt its business accordingly.
Finally, the company's reliance on a few key manufacturers, such as Peterbilt and International, creates concentration risk. If one of these manufacturers experiences production problems or loses market share, it could negatively impact Rush's sales and profitability.
Bulls Say / Bears Say
The Bull Case
BULL VIEWRush Enterprises' extensive dealership network and integrated service offerings provide a competitive advantage, allowing it to capture a larger share of the commercial vehicle market.
BULL VIEWThe company's strong balance sheet and consistent free cash flow generation provide financial flexibility to weather economic downturns and pursue growth opportunities.
The Bear Case
BEAR VIEWThe cyclical nature of the commercial vehicle market exposes Rush Enterprises to significant revenue and earnings volatility during economic downturns.
BEAR VIEWDeclining revenue growth and increasing competition could erode the company's profitability and lead to a lower valuation.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score RUSHA and 4,400+ other equities.
RUSH ENTERPRISES INC \TX\ exhibits a 58% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
6.3%
Sector: 2.5%
Gross Margin
Pricing power and cost efficiency
19.7%
Sector: 36.9%
Operating Margin
Core business profitability
5.6%
Sector: 3.8%
Net Margin
Bottom-line profitability
3.7%
Sector: 2.1%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $137 annually in dividends at the current trailing rate.
