Quality Investor

Rush Enterprises, Inc.

Rank #214Value

RUSHA · Nasdaq · Consumer Cyclical

Rush Enterprises, Inc. (RUSHA) — Rank #214 by gross profitability (GP/assets 0.31) · ROE 11.3% · Piotroski F-Score 6 / 9.

As-of 2026-09-15 · CIK 0001012019 · all metrics point-in-time as of the filing date.

About

Rush Enterprises, Inc., through its subsidiaries, operates as an integrated retailer of commercial vehicles and related services in the United States and Canada.

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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, Blue Bird, Blue Arc and Battle Motors. The company also engages in the retail sale of new and used commercial vehicles, and aftermarket parts, as well as provision of 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 products. 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; parts and collision repair; CNG fuel systems; and vehicle telematics products, as well as sells new and used trailers, and tires for commercial vehicles. The company serves regional and national fleets, local and state governments, corporations, and owner-operators. Rush Enterprises, Inc.

was incorporated in 1965 and is headquartered in New Braunfels, Texas.

Industry
Auto & Truck Dealerships
Sector
Consumer Cyclical
State
TX
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Price History

RUSHA+168.4% · +21.8% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and dividend yield are the primary valuation lenses for mature businesses.

Market Cap

$5.70B

P/E (annual)

14.9

P/S (annual)

0.8

P/B

2.4

P/OCF (annual)

6.6

Shareholder Yield

2.4%

Employees

7,858

Industry

Auto & Truck Dealerships

Exchange

Nasdaq

Signal Flags

1 green2 red
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Revenue declining YoYRevenue contracted year over year
Operating margin decliningOperating margin lower than prior year

Quality Profile

Profitability

1/1 pass
GP / assets
0.31
Return on equity
11.3%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.98
Current ratio
1.45×
Net cash
-$17.78M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.4%

Growth

1/2 pass
Revenue growth
-4.7%
Piotroski F-Score
6 / 9
Share dilution
-1.3%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

What Growth Is Priced In

Implied revenue growth (10Y)

-4.1%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -1.3% — per-share value needs a total required return of -5.4% once share-count change is priced in.

vs. own 6-year median revenue growth: 3.4%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

-7.7%

r = 10% (base)

-4.1%

r = 12%

-1.0%

Net debt / market cap: 0.5%

Base FCF: $462M3Y mean FCF: $191.8M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

14.5xExpensive
3.0xmed 6.4x14.5x

P / S

Price / revenue per share

0.5xExpensive
0.1xmed 0.2x0.5x

P / B

Price / book value per share

1.7xExpensive
0.4xmed 0.9x1.7x

P / GP

Price / gross profit per share

2.6xExpensive
0.5xmed 1.1x2.6x

P / FCF

Price / free cash flow per share

8.3xFair
1.3xmed 5.0x28.3x

Dividend yield and payout ratio are the primary reads at this stage (trailing P/E — see valuation above).

Profitability

Gross profitability (GP / assets)

0.31

Primary signal (Novy-Marx).

Return on equity

11.3%

Gross margin

19.6%

Revenue growth (YoY)

-4.7%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

1.5%

Revenue CAGR (5Y)

9.4%

Earnings CAGR (3Y)

-12.3%

FCF CAGR (3Y)

108.0%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.98

Current ratio

1.45×

Quick ratio

0.36×

Net cash

-$17.78M

Cash & equivalents minus total debt.

Recession resistance

Revenue through recessions

Worst single-year YoY revenue decline, 17 years of history

Weak
2008-2009 (GFC)
N/AN/A
2020 (COVID)
-18.5%Significant decline
Worst year on record(any fiscal year, not recession-limited)
-18.5%Significant decline

Cash-flow health

Free cash flow

$462.01M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.75

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.4%

Stock-based comp intensity.

Dividend safety

Composite score

4.5 / 5

Strong
Payout ratio
22.1%5/5 Strong
FCF coverage
7.92×5/5 Strong
Dividend growth streak
7 yr4/5 Strong
Balance-sheet health
D/E 0.98 · IC 8.18×4/5 Strong

Piotroski F-Score

F-Score

6 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Decline
Capital Return
Hypergrowth
Value