Rush Enterprises, Inc.
Rush Enterprises, Inc. Fundamental Analysis
Rush Enterprises, Inc. (RUSHB) shows weak financial fundamentals with a PE ratio of 18.29, profit margin of 3.55%, and ROE of 12.07%. The company generates $7.4B in annual revenue with weak year-over-year growth of -1.52%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RUSHB's fundamental strength across five key dimensions:
Efficiency Score
WeakRUSHB struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRUSHB trades at attractive valuation levels.
Growth Score
WeakRUSHB faces weak or negative growth trends.
Financial Health Score
ExcellentRUSHB maintains a strong and stable balance sheet.
Profitability Score
WeakRUSHB struggles to sustain strong margins.
Key Financial Metrics
Is RUSHB Expensive or Cheap?
P/E Ratio
RUSHB trades at 18.29 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, RUSHB's PEG of -5.77 indicates potential undervaluation.
Price to Book
The market values Rush Enterprises, Inc. at 2.19 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.27 times EBITDA. This is generally considered low.
How Well Does RUSHB Make Money?
Net Profit Margin
For every $100 in sales, Rush Enterprises, Inc. keeps $3.55 as profit after all expenses.
Operating Margin
Core operations generate 5.29 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.07 in profit for every $100 of shareholder equity.
ROA
Rush Enterprises, Inc. generates $5.95 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Rush Enterprises, Inc. produces operating cash flow of $858.84M, showing steady but balanced cash generation.
Free Cash Flow
Rush Enterprises, Inc. generates weak or negative free cash flow of $211.59M, restricting financial flexibility.
FCF Per Share
Each share generates $2.75 in free cash annually.
FCF Yield
RUSHB converts 4.43% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.29
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-5.77
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.19
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.65
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.70
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.40
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How RUSHB Stacks Against Its Sector Peers
| Metric | RUSHB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.29 | 23.49 | Better (Cheaper) |
| ROE | 12.07% | 1160.00% | Weak |
| Net Margin | 3.55% | 672.00% | Weak |
| Debt/Equity | 0.70 | 0.73 | Neutral |
| Current Ratio | 1.40 | 2.56 | Neutral |
| ROA | 5.95% | -8277.00% (disorted) | Weak |
RUSHB outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Rush Enterprises, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-7.11%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
48.55%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
1.69%
Industry Style: Cyclical, Growth, Discretionary
Growing