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Rush Enterprises, Inc. (RUSHA)

Company Dividend Discount ModelIndustry: Auto - DealershipsSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$55.60 - $108.96$76.68
Multi-Stage$50.28 - $55.00$52.59
Blended Fair Value$64.64
Current Price$53.47
Upside20.88%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS24.82%0.00%0.680.620.540.500.270.220.110.000.000.00
YoY Growth--9.74%13.52%8.51%82.81%22.62%96.28%0.00%0.00%0.00%0.00%
Dividend Yield--1.27%1.17%1.50%1.48%0.83%1.58%0.61%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)274.20
(-) Cash Dividends Paid (M)58.01
(=) Cash Retained (M)216.20
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)54.8434.2820.57
Cash Retained (M)216.20216.20216.20
(-) Cash Required (M)-54.84-34.28-20.57
(=) Excess Retained (M)161.36181.92195.63
(/) Shares Outstanding (M)81.8681.8681.86
(=) Excess Retained per Share1.972.222.39
LTM Dividend per Share0.710.710.71
(+) Excess Retained per Share1.972.222.39
(=) Adjusted Dividend2.682.933.10
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate4.08%5.08%6.08%
Fair Value$55.60$76.68$108.96
Upside / Downside3.98%43.40%103.77%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)274.20288.14302.78318.16334.33351.32361.86
Payout Ratio21.15%34.92%48.69%62.46%76.23%90.00%92.50%
Projected Dividends (M)58.01100.63147.43198.73254.86316.18334.72

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate4.08%5.08%6.08%
Year 1 PV (M)91.3692.2393.11
Year 2 PV (M)121.52123.87126.23
Year 3 PV (M)148.71153.04157.45
Year 4 PV (M)173.15179.90186.85
Year 5 PV (M)195.03204.58214.50
PV of Terminal Value (M)3,385.653,551.453,723.68
Equity Value (M)4,115.414,305.074,501.83
Shares Outstanding (M)81.8681.8681.86
Fair Value$50.28$52.59$55.00
Upside / Downside-5.98%-1.64%2.85%

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