Rush Enterprises Inc. Common Stock Cl A (RUSHA)

FairStock Score: 40/100 — MIXED

Key Financials

Strengths

• Generates $389 million in annual free cash flow (6.6% yield on market cap)
• Solid return on equity of 12.1% above cost of capital

Concerns

• Trades significantly above Graham Number ($46) with negative 63% margin of safety—limited downside protection
• Revenue declining at 11.8% year-over-year signals potential demand weakness or market share loss

AI Analysis

Rush Enterprises Inc. Common Stock Cl A is a small-cap consumer cyclical company valued at $5.9 billion. The business generates $7.4 billion in annual revenue with a 0.9% net margin and $389 million in free cash flow. From a quality standpoint, Rush shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 2.8 in the grey zone. On valuation, the stock is reasonably priced at 22.8x earnings, with trades above its Graham Number with a negative 63% margin. Growth dynamics show revenue growing at -11.8% and profit growth of -13.9%. The 1.0% dividend yield adds an income component for patient holders. Our composite FairStock Score of 40/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $389 million in annual free cash flow (6.6% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer cyclical space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer