NasdaqGS:RUSH.B

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Rush Enterprises's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RUSH.B is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: RUSH.B's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

1.3%

RUSH.B

2.7%

US Trade Distributors

2.8%

US Market


1 Year Return

16.6%

RUSH.B

20.8%

US Trade Distributors

20.9%

US Market

Return vs Industry: RUSH.B underperformed the US Trade Distributors industry which returned 21.1% over the past year.

Return vs Market: RUSH.B underperformed the US Market which returned 20.7% over the past year.


Shareholder returns

RUSH.BIndustryMarket
7 Day1.3%2.7%2.8%
30 Day10.5%22.3%11.1%
90 Day23.8%14.7%6.5%
1 Year18.3%16.6%23.1%20.8%23.6%20.9%
3 Year19.0%15.2%36.9%30.4%47.3%37.6%
5 Year156.1%148.0%91.2%77.5%94.3%72.9%

Long-Term Price Volatility Vs. Market

How volatile is Rush Enterprises's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Rush Enterprises undervalued compared to its fair value and its price relative to the market?

19.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RUSH.B ($35.45) is trading above our estimate of fair value ($13.74)

Significantly Below Fair Value: RUSH.B is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RUSH.B is good value based on its PE Ratio (19.9x) compared to the US Trade Distributors industry average (21.9x).

PE vs Market: RUSH.B is poor value based on its PE Ratio (19.9x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: RUSH.B is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: RUSH.B is good value based on its PB Ratio (1.6x) compared to the US Trade Distributors industry average (1.8x).


Next Steps

Future Growth

How is Rush Enterprises forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

19.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RUSH.B's forecast earnings growth (19.3% per year) is above the savings rate (2.2%).

Earnings vs Market: RUSH.B's earnings (19.3% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: RUSH.B's earnings are forecast to grow, but not significantly.

Revenue vs Market: RUSH.B's revenue (10.3% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: RUSH.B's revenue (10.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RUSH.B's Return on Equity is forecast to be low in 3 years time (9.8%).


Next Steps

Past Performance

How has Rush Enterprises performed over the past 5 years?

19.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RUSH.B has high quality earnings.

Growing Profit Margin: RUSH.B's current net profit margins (2%) are lower than last year (2.7%).


Past Earnings Growth Analysis

Earnings Trend: RUSH.B's earnings have grown by 19% per year over the past 5 years.

Accelerating Growth: RUSH.B's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RUSH.B had negative earnings growth (-40.7%) over the past year, making it difficult to compare to the Trade Distributors industry average (-6.9%).


Return on Equity

High ROE: RUSH.B's Return on Equity (8%) is considered low.


Next Steps

Financial Health

How is Rush Enterprises's financial position?


Financial Position Analysis

Short Term Liabilities: RUSH.B's short term assets ($1.4B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: RUSH.B's short term assets ($1.4B) exceed its long term liabilities ($694.4M).


Debt to Equity History and Analysis

Debt Level: RUSH.B's debt to equity ratio (96%) is considered high.

Reducing Debt: RUSH.B's debt to equity ratio has reduced from 180.7% to 96% over the past 5 years.

Debt Coverage: RUSH.B's debt is well covered by operating cash flow (67%).

Interest Coverage: RUSH.B's interest payments on its debt are well covered by EBIT (10.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Rush Enterprises's current dividend yield, its reliability and sustainability?

1.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RUSH.B's dividend (1.05%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: RUSH.B's dividend (1.05%) is low compared to the top 25% of dividend payers in the US market (4.08%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, RUSH.B has been paying a dividend for less than 10 years.

Growing Dividend: RUSH.B's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.8%), RUSH.B's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.3yrs

Average management tenure


CEO

Rusty Rush (62 yo)

14.83yrs

Tenure

US$7,170,518

Compensation

Mr. W. Marvin Rush III, also known as Rusty, serves as Chief Executive Officer of Rush Enterprises, Inc. since February 24, 2006 and President since November 1995. Mr. Rush serves as the President of Rush ...


CEO Compensation Analysis

Compensation vs Market: Rusty's total compensation ($USD7.17M) is above average for companies of similar size in the US market ($USD4.17M).

Compensation vs Earnings: Rusty's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
W. Rush
Chairman of the Board14.83yrsUS$7.17m1.48%
$ 30.8m
Steven Keller
CFO & Treasurer13.67yrsUS$1.62m0.34%
$ 7.0m
Michael McRoberts
Chief Operating Officer4.33yrsUS$1.99m0.25%
$ 5.1m
James Thor
Senior Vice President of Truck Sales & Marketing16.42yrsUS$1.50m0.27%
$ 5.7m
Derrek Weaver
Executive Vice President10.58yrsUS$1.62m0.27%
$ 5.6m
Michael Goldstone
VP, General Counsel & Corporate Secretary3.67yrsno datano data
Karen Konecny
Vice President of Marketing & Communications10.25yrsno datano data
Scott Anderson
Senior Vice President of Finance14.75yrsno data0.20%
$ 4.1m
Corey Lowe
Senior Vice President of Peterbilt Dealerships9.5yrsno datano data
Jody Pollard
Senior Vice President of Operations3.67yrsno datano data
Jason Wilder
Senior Vice President of Navistar Dealerships1.5yrsno datano data
Martin Naegelin
Executiveno dataUS$1.00mno data

10.3yrs

Average Tenure

58.5yo

Average Age

Experienced Management: RUSH.B's management team is seasoned and experienced (10.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
W. Rush
Chairman of the Board14.83yrsUS$7.17m1.48%
$ 30.8m
William Cary
Independent Director5.83yrsUS$215.00k0.040%
$ 840.9k
Thomas Akin
Independent Director16.25yrsUS$229.97k0.37%
$ 7.7m
Elaine Mendoza
Independent Director1.08yrsUS$102.49k0.0086%
$ 179.7k
James Underwood
Independent Director12.75yrsUS$209.97k0.088%
$ 1.8m
Kennon Guglielmo
Independent Director5.83yrsUS$209.97k0.065%
$ 1.4m
Raymond Chess
Independent Director6.83yrsUS$215.00k0.052%
$ 1.1m

6.8yrs

Average Tenure

62yo

Average Age

Experienced Board: RUSH.B's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Rush Enterprises, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rush Enterprises, Inc.
  • Ticker: RUSH.B
  • Exchange: NasdaqGS
  • Founded: 1965
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: US$2.079b
  • Shares outstanding: 54.74m
  • Website: https://www.rushenterprises.com

Number of Employees


Location

  • Rush Enterprises, Inc.
  • 555 IH 35 South
  • Suite 500
  • New Braunfels
  • Texas
  • 78130
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RUSH.BNasdaqGS (Nasdaq Global Select)YesClass B SharesUSUSDJun 1996
RUSH.ANasdaqGS (Nasdaq Global Select)Class A SharesUSUSDJul 2002
RUNADB (Deutsche Boerse AG)Class A SharesDEEURJul 2002

Biography

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 d...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/28 23:56
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.