Latest news with #RushEnterprises
Yahoo
03-08-2025
- Business
- Yahoo
Rush Enterprises (NASDAQ:RUSH.A) Will Pay A Larger Dividend Than Last Year At $0.19
Rush Enterprises, Inc. (NASDAQ:RUSH.A) will increase its dividend from last year's comparable payment on the 12th of September to $0.19. This takes the annual payment to 1.4% of the current stock price, which is about average for the industry. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Rush Enterprises' Payment Could Potentially Have Solid Earnings Coverage We aren't too impressed by dividend yields unless they can be sustained over time. However, prior to this announcement, Rush Enterprises' dividend was comfortably covered by both cash flow and earnings. This means that most of what the business earns is being used to help it grow. Over the next year, EPS is forecast to expand by 18.2%. If the dividend continues along recent trends, we estimate the payout ratio will be 21%, which is in the range that makes us comfortable with the sustainability of the dividend. Check out our latest analysis for Rush Enterprises Rush Enterprises Doesn't Have A Long Payment History Even though the company has been paying a consistent dividend for a while, we would like to see a few more years before we feel comfortable relying on it. Since 2018, the annual payment back then was $0.213, compared to the most recent full-year payment of $0.76. This works out to be a compound annual growth rate (CAGR) of approximately 20% a year over that time. Rush Enterprises has been growing its dividend quite rapidly, which is exciting. However, the short payment history makes us question whether this performance will persist across a full market cycle. The Dividend Looks Likely To Grow Investors could be attracted to the stock based on the quality of its payment history. It's encouraging to see that Rush Enterprises has been growing its earnings per share at 24% a year over the past five years. Rapid earnings growth and a low payout ratio suggest this company has been effectively reinvesting in its business. Should that continue, this company could have a bright future. Rush Enterprises Looks Like A Great Dividend Stock Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. Earnings are easily covering distributions, and the company is generating plenty of cash. All in all, this checks a lot of the boxes we look for when choosing an income stock. Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. However, there are other things to consider for investors when analysing stock performance. For example, we've picked out 1 warning sign for Rush Enterprises that investors should know about before committing capital to this stock. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-07-2025
- Automotive
- Yahoo
Rush Enterprises (NASDAQ:RUSHA) Beats Q2 Sales Targets
Commercial vehicle retailer Rush Enterprises (NASDAQ:RUSH.A) reported Q2 CY2025 results exceeding the market's revenue expectations , but sales fell by 4.8% year on year to $1.93 billion. Its GAAP profit of $0.90 per share was 12.5% above analysts' consensus estimates. Is now the time to buy Rush Enterprises? Find out in our full research report. Rush Enterprises (RUSHA) Q2 CY2025 Highlights: Revenue: $1.93 billion vs analyst estimates of $1.90 billion (4.8% year-on-year decline, 1.6% beat) EPS (GAAP): $0.90 vs analyst estimates of $0.80 (12.5% beat) Adjusted EBITDA: $127.8 million vs analyst estimates of $156.2 million (6.6% margin, 18.2% miss) Operating Margin: 5.7%, in line with the same quarter last year Market Capitalization: $4.25 billion 'The second quarter of 2025 continued to present challenges for commercial truck operators and the broader industry that supports them. While there have been sporadic signs of recovery from the freight recession that has impacted over-the-road carriers for more than two years, freight rates remain depressed, and overcapacity persists. In addition, ongoing economic uncertainty, particularly around U.S. trade policy and its potential impact on the supply chain and overall economy, combined with a lack of clarity regarding engine emissions regulations, has led many customers to delay vehicle acquisition and maintenance decisions,' said W.M. 'Rusty' Rush, Chairman, Chief Executive Officer and President of Rush Enterprises, Company Overview Headquartered in Texas, Rush Enterprises (NASDAQ:RUSH.A) provides truck-related services and solutions, including sales, leasing, parts, and maintenance for commercial vehicles. Revenue Growth Reviewing a company's long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, Rush Enterprises grew its sales at a decent 8.1% compounded annual growth rate. Its growth was slightly above the average industrials company and shows its offerings resonate with customers. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Rush Enterprises's recent performance shows its demand has slowed as its revenue was flat over the last two years. We can better understand the company's revenue dynamics by analyzing its most important segments, Vehicles and Aftermarket, which are 61.7% and 33% of revenue. Over the last two years, Rush Enterprises's Vehicles (new and used commercial trucks) and Aftermarket (parts and services) revenues were flat. This quarter, Rush Enterprises's revenue fell by 4.8% year on year to $1.93 billion but beat Wall Street's estimates by 1.6%. Looking ahead, sell-side analysts expect revenue to grow 3.9% over the next 12 months. Although this projection implies its newer products and services will spur better top-line performance, it is still below the sector average. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Operating Margin Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. Rush Enterprises was profitable over the last five years but held back by its large cost base. Its average operating margin of 6.1% was weak for an industrials business. This result isn't too surprising given its low gross margin as a starting point. On the plus side, Rush Enterprises's operating margin rose by 1.1 percentage points over the last five years, as its sales growth gave it operating leverage. This quarter, Rush Enterprises generated an operating margin profit margin of 5.7%, in line with the same quarter last year. This indicates the company's cost structure has recently been stable. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Rush Enterprises's EPS grew at an astounding 23.4% compounded annual growth rate over the last five years, higher than its 8.1% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. We can take a deeper look into Rush Enterprises's earnings quality to better understand the drivers of its performance. As we mentioned earlier, Rush Enterprises's operating margin was flat this quarter but expanded by 1.1 percentage points over the last five years. On top of that, its share count shrank by 3.1%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Rush Enterprises, its two-year annual EPS declines of 11.3% mark a reversal from its (seemingly) healthy five-year trend. We hope Rush Enterprises can return to earnings growth in the future. In Q2, Rush Enterprises reported EPS at $0.90, down from $0.97 in the same quarter last year. Despite falling year on year, this print easily cleared analysts' estimates. We also like to analyze expected EPS growth based on Wall Street analysts' consensus projections, but there is insufficient data. Key Takeaways from Rush Enterprises's Q2 Results We enjoyed seeing Rush Enterprises exceed analysts' Aftermarket revenue expectations this quarter. We were also happy its EPS outperformed Wall Street's estimates. On the other hand, its EBITDA missed. Overall, this was a weaker quarter. The stock remained flat at $53.12 immediately following the results. Is Rush Enterprises an attractive investment opportunity at the current price? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-07-2025
- Business
- Yahoo
1 Cash-Producing Stock with Exciting Potential and 2 We Brush Off
While strong cash flow is a key indicator of stability, it doesn't always translate to superior returns. Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning. Not all companies are created equal, and StockStory is here to surface the ones with real upside. Keeping that in mind, here is one cash-producing company that leverages its financial strength to beat its competitors and two best left off your watchlist. Two Stocks to Sell: Service International (SCI) Trailing 12-Month Free Cash Flow Margin: 15.4% Founded in 1962, Service International (NYSE: SCI) is a leading provider of death care products and services in North America. Why Do We Think Twice About SCI? Performance surrounding its funeral services performed has lagged its peers Estimated sales growth of 2.6% for the next 12 months is soft and implies weaker demand Eroding returns on capital from an already low base indicate that management's recent investments are destroying value At $76.50 per share, Service International trades at 19.5x forward P/E. Check out our free in-depth research report to learn more about why SCI doesn't pass our bar. Rush Enterprises (RUSHA) Trailing 12-Month Free Cash Flow Margin: 9.9% Headquartered in Texas, Rush Enterprises (NASDAQ:RUSH.A) provides truck-related services and solutions, including sales, leasing, parts, and maintenance for commercial vehicles. Why Do We Avoid RUSHA? Sales trends were unexciting over the last two years as its 2.2% annual growth was below the typical industrials company Sales are projected to tank by 1.5% over the next 12 months as demand evaporates Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term Rush Enterprises's stock price of $54 implies a valuation ratio of 8.6x forward EV-to-EBITDA. To fully understand why you should be careful with RUSHA, check out our full research report (it's free). One Stock to Watch: Globalstar (GSAT) Trailing 12-Month Free Cash Flow Margin: 101% Known for powering the emergency SOS feature in newer Apple iPhones, Globalstar (NASDAQ:GSAT) operates a network of low-earth orbit satellites that provide voice and data communications services in remote areas where traditional cellular networks don't reach. Why Are We Positive On GSAT? Annual revenue growth of 20.7% over the last two years was superb and indicates its market share increased during this cycle Incremental sales over the last two years have been highly profitable as its earnings per share increased by 33.7% annually, topping its revenue gains Strong free cash flow margin of 27.9% enables it to reinvest or return capital consistently, and its rising cash conversion increases its margin of safety Globalstar is trading at $26.22 per share, or 31.9x forward EV-to-EBITDA. Is now the time to initiate a position? Find out in our full research report, it's free. Stocks We Like Even More When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that's already erased most losses. Don't let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
20-07-2025
- Business
- Yahoo
Rush Enterprises (NASDAQ:RUSH.A) Might Have The Makings Of A Multi-Bagger
To find a multi-bagger stock, what are the underlying trends we should look for in a business? In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. With that in mind, we've noticed some promising trends at Rush Enterprises (NASDAQ:RUSH.A) so let's look a bit deeper. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. What Is Return On Capital Employed (ROCE)? For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Analysts use this formula to calculate it for Rush Enterprises: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.15 = US$449m ÷ (US$4.7b - US$1.7b) (Based on the trailing twelve months to March 2025). Thus, Rush Enterprises has an ROCE of 15%. On its own, that's a standard return, however it's much better than the 11% generated by the Trade Distributors industry. See our latest analysis for Rush Enterprises In the above chart we have measured Rush Enterprises' prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our free analyst report for Rush Enterprises . The Trend Of ROCE Rush Enterprises is displaying some positive trends. Over the last five years, returns on capital employed have risen substantially to 15%. The company is effectively making more money per dollar of capital used, and it's worth noting that the amount of capital has increased too, by 58%. This can indicate that there's plenty of opportunities to invest capital internally and at ever higher rates, a combination that's common among multi-baggers. What We Can Learn From Rush Enterprises' ROCE All in all, it's terrific to see that Rush Enterprises is reaping the rewards from prior investments and is growing its capital base. Since the stock has returned a staggering 154% to shareholders over the last five years, it looks like investors are recognizing these changes. With that being said, we still think the promising fundamentals mean the company deserves some further due diligence. On a separate note, we've found 1 warning sign for Rush Enterprises you'll probably want to know about. For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-07-2025
- Automotive
- Yahoo
Rush Enterprises, Inc. Conference Call Advisory for Second Quarter 2025 Earnings Results
NEW BRAUNFELS, Texas, July 08, 2025 (GLOBE NEWSWIRE) -- Rush Enterprises, Inc., (NASDAQ: RUSHA & RUSHB), which operates the largest network of commercial vehicle dealerships in North America will host a conference call to discuss earnings for the second quarter of 2025 on Thursday, July 31 at 10:00 a.m. Eastern/9:00 a.m. Central. Earnings will be reported after the close of market on Wednesday July 30, 2025. The call will be available at on Thursday, July 31 at 10:00 a.m. Eastern/9:00 a.m. Central. Participants may register for the call at: not required, it is recommended that you join the event 10 minutes prior to the start. For those who cannot listen to the live broadcast, the webcast replay will be available at About Rush Enterprises, Enterprises, Inc. is the premier solutions provider to the commercial vehicle industry. The Company owns and operates Rush Truck Centers, the largest network of commercial vehicle dealerships in North America, with more than 150 locations in 23 states and Ontario, Canada. These vehicle centers, strategically located in high traffic areas on or near major highways throughout the United States and Ontario, Canada, represent truck and bus manufacturers, including Peterbilt, International, Hino, Isuzu, Ford, Dennis Eagle, IC Bus and Blue Bird. They offer an integrated approach to meeting customer needs – from sales of new and used vehicles to aftermarket parts, service and body shop operations plus financing, insurance, leasing and rental. Rush Enterprises' operations also provide CNG fuel systems (through its investment in Cummins Clean Fuel Technologies, Inc.), telematics products and other vehicle technologies, as well as vehicle up-fitting, chrome accessories and tires. For more information, please visit us at and on Twitter @rushtruckcenter and Contact:Rush Enterprises, Inc., New Braunfels, TexasSteve Keller (830) 302-5226
