STURM RUGER & CO INC (RGR) Stock Fundamental Analysis
USA - NYSE:RGR - US8641591081 - Common Stock
39.32 USD
+1.49 (+3.94%)
39.32 USD
0 (0%)
RGR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 33 industry peers in the Leisure Products industry. While RGR has a great health rating, its profitability is only average at the moment. RGR has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
RGR had positive earnings in the past year.
In the past year RGR had a positive cash flow from operations.
RGR had positive earnings in each of the past 5 years.
RGR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RGR's Return On Assets of 1.65% is fine compared to the rest of the industry. RGR outperforms 63.64% of its industry peers.
RGR has a better Return On Equity (1.99%) than 63.64% of its industry peers.
With a Return On Invested Capital value of 0.81%, RGR perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RGR is significantly above the industry average of 7.78%.
The last Return On Invested Capital (0.81%) for RGR is well below the 3 year average (15.60%), which needs to be investigated, but indicates that RGR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.65% | ||
| ROE | 1.99% | ||
| ROIC | 0.81% |
ROA(3y)12.76%
ROA(5y)19.89%
ROE(3y)17.33%
ROE(5y)25.8%
ROIC(3y)15.6%
ROIC(5y)25.7%
1.3 Margins
RGR's Profit Margin of 1.07% is fine compared to the rest of the industry. RGR outperforms 66.67% of its industry peers.
RGR's Profit Margin has declined in the last couple of years.
RGR's Operating Margin of 0.54% is in line compared to the rest of the industry. RGR outperforms 45.45% of its industry peers.
RGR's Operating Margin has declined in the last couple of years.
The Gross Margin of RGR (16.95%) is worse than 81.82% of its industry peers.
RGR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.54% | ||
| PM (TTM) | 1.07% | ||
| GM | 16.95% |
OM growth 3Y-40.32%
OM growth 5Y-9.24%
PM growth 3Y-35.57%
PM growth 5Y-6.23%
GM growth 3Y-17.66%
GM growth 5Y-2.5%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RGR is creating some value.
RGR has less shares outstanding than it did 1 year ago.
The number of shares outstanding for RGR has been reduced compared to 5 years ago.
There is no outstanding debt for RGR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
RGR has an Altman-Z score of 9.92. This indicates that RGR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of RGR (9.92) is better than 93.94% of its industry peers.
There is no outstanding debt for RGR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 9.92 |
ROIC/WACC0.08
WACC10.65%
2.3 Liquidity
A Current Ratio of 3.96 indicates that RGR has no problem at all paying its short term obligations.
RGR has a Current ratio of 3.96. This is in the better half of the industry: RGR outperforms 78.79% of its industry peers.
RGR has a Quick Ratio of 3.03. This indicates that RGR is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 3.03, RGR belongs to the top of the industry, outperforming 87.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.96 | ||
| Quick Ratio | 3.03 |
3. Growth
3.1 Past
RGR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.35%.
Measured over the past years, RGR shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.56% on average per year.
The Revenue has been growing slightly by 3.31% in the past year.
The Revenue has been growing slightly by 5.47% on average over the past years.
EPS 1Y (TTM)-5.35%
EPS 3Y-41.36%
EPS 5Y-0.56%
EPS Q2Q%-12.77%
Revenue 1Y (TTM)3.31%
Revenue growth 3Y-9.83%
Revenue growth 5Y5.47%
Sales Q2Q%1.32%
3.2 Future
RGR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.08% yearly.
RGR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.90% yearly.
EPS Next Y0.43%
EPS Next 2Y9.08%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.43%
Revenue Next 2Y1.9%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.21 indicates a rather expensive valuation of RGR.
RGR's Price/Earnings ratio is a bit cheaper when compared to the industry. RGR is cheaper than 75.76% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. RGR is around the same levels.
With a Price/Forward Earnings ratio of 18.67, RGR is valued on the expensive side.
Based on the Price/Forward Earnings ratio, RGR is valued a bit cheaper than 72.73% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.71. RGR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.21 | ||
| Fwd PE | 18.67 |
4.2 Price Multiples
RGR's Enterprise Value to EBITDA ratio is in line with the industry average.
RGR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RGR is cheaper than 69.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.66 | ||
| EV/EBITDA | 17.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RGR does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of RGR may justify a higher PE ratio.
PEG (NY)51.74
PEG (5Y)N/A
EPS Next 2Y9.08%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RGR has a Yearly Dividend Yield of 1.86%. Purely for dividend investing, there may be better candidates out there.
RGR's Dividend Yield is a higher than the industry average which is at 3.97.
Compared to the average S&P500 Dividend Yield of 2.38, RGR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
5.2 History
The dividend of RGR decreases each year by -3.30%.
RGR has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-3.3%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
208.01% of the earnings are spent on dividend by RGR. This is not a sustainable payout ratio.
DP208.01%
EPS Next 2Y9.08%
EPS Next 3YN/A
39.32
+1.49 (+3.94%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners68.27%
Inst Owner Change-0.46%
Ins Owners3.77%
Ins Owner Change10.76%
Market Cap635.41M
Analysts76.67
Price Target45.39 (15.44%)
Short Float %6.05%
Short Ratio4.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Yearly Dividend0.69
Dividend Growth(5Y)-3.3%
DP208.01%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-11.55%
Min EPS beat(2)-29.93%
Max EPS beat(2)6.83%
EPS beat(4)1
Avg EPS beat(4)-18.65%
Min EPS beat(4)-50.49%
Max EPS beat(4)6.83%
EPS beat(8)1
Avg EPS beat(8)-29.12%
EPS beat(12)3
Avg EPS beat(12)-20.09%
EPS beat(16)4
Avg EPS beat(16)-16.66%
Revenue beat(2)1
Avg Revenue beat(2)1.02%
Min Revenue beat(2)-9.22%
Max Revenue beat(2)11.26%
Revenue beat(4)2
Avg Revenue beat(4)-1.21%
Min Revenue beat(4)-11.66%
Max Revenue beat(4)11.26%
Revenue beat(8)2
Avg Revenue beat(8)-4.83%
Revenue beat(12)5
Avg Revenue beat(12)-1.9%
Revenue beat(16)6
Avg Revenue beat(16)-3.02%
PT rev (1m)0%
PT rev (3m)8.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-22.45%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.38%
Revenue NQ rev (1m)-1.98%
Revenue NQ rev (3m)-5.9%
Revenue NY rev (1m)2.28%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.21 | ||
| Fwd PE | 18.67 | ||
| P/S | 1.18 | ||
| P/FCF | 16.66 | ||
| P/OCF | 11.49 | ||
| P/B | 2.2 | ||
| P/tB | 2.2 | ||
| EV/EBITDA | 17.29 |
EPS(TTM)1.77
EY4.5%
EPS(NY)2.11
Fwd EY5.36%
FCF(TTM)2.36
FCFY6%
OCF(TTM)3.42
OCFY8.7%
SpS33.19
BVpS17.9
TBVpS17.9
PEG (NY)51.74
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.65% | ||
| ROE | 1.99% | ||
| ROCE | 0.99% | ||
| ROIC | 0.81% | ||
| ROICexc | 1.24% | ||
| ROICexgc | 1.24% | ||
| OM | 0.54% | ||
| PM (TTM) | 1.07% | ||
| GM | 16.95% | ||
| FCFM | 7.11% |
ROA(3y)12.76%
ROA(5y)19.89%
ROE(3y)17.33%
ROE(5y)25.8%
ROIC(3y)15.6%
ROIC(5y)25.7%
ROICexc(3y)39.27%
ROICexc(5y)61.97%
ROICexgc(3y)43.71%
ROICexgc(5y)68.53%
ROCE(3y)19.16%
ROCE(5y)31.56%
ROICexcg growth 3Y-53.76%
ROICexcg growth 5Y-14.15%
ROICexc growth 3Y-53.09%
ROICexc growth 5Y-14.63%
OM growth 3Y-40.32%
OM growth 5Y-9.24%
PM growth 3Y-35.57%
PM growth 5Y-6.23%
GM growth 3Y-17.66%
GM growth 5Y-2.5%
F-Score6
Asset Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 77.72% | ||
| Cap/Sales | 3.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 221.4% | ||
| Profit Quality | 662.55% | ||
| Current Ratio | 3.96 | ||
| Quick Ratio | 3.03 | ||
| Altman-Z | 9.92 |
F-Score6
WACC10.65%
ROIC/WACC0.08
Cap/Depr(3y)90.82%
Cap/Depr(5y)114.54%
Cap/Sales(3y)3.82%
Cap/Sales(5y)4.92%
Profit Quality(3y)69.02%
Profit Quality(5y)80.03%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.35%
EPS 3Y-41.36%
EPS 5Y-0.56%
EPS Q2Q%-12.77%
EPS Next Y0.43%
EPS Next 2Y9.08%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.31%
Revenue growth 3Y-9.83%
Revenue growth 5Y5.47%
Sales Q2Q%1.32%
Revenue Next Year0.43%
Revenue Next 2Y1.9%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-91.23%
EBIT growth 3Y-46.19%
EBIT growth 5Y-4.28%
EBIT Next Year38.05%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-21.18%
FCF growth 3Y-37.72%
FCF growth 5Y3.43%
OCF growth 1Y-17.05%
OCF growth 3Y-31.45%
OCF growth 5Y2.27%