STURM RUGER & CO INC (RGR) Stock Fundamental Analysis
NYSE:RGR - New York Stock Exchange, Inc. - US8641591081 - Common Stock - Currency: USD
RGR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 30 industry peers in the Leisure Products industry. While RGR has a great health rating, its profitability is only average at the moment. RGR is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year RGR was profitable.
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
Looking at the Return On Assets, with a value of 8.24%, RGR belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
RGR has a Return On Equity of 9.72%. This is in the better half of the industry: RGR outperforms 80.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.19%, RGR is in the better half of the industry, outperforming 76.67% 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 7.91%.
The last Return On Invested Capital (8.19%) 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 | 8.24% | ||
| ROE | 9.72% | ||
| ROIC | 8.19% |
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 has a better Profit Margin (5.85%) than 80.00% of its industry peers.
RGR's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 6.10%, RGR is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
In the last couple of years the Operating Margin of RGR has declined.
With a Gross Margin value of 21.50%, RGR is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
RGR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.1% | ||
| PM (TTM) | 5.85% | ||
| GM | 21.5% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RGR is still creating some value.
RGR has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, RGR has less shares outstanding
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
An Altman-Z score of 10.12 indicates that RGR is not in any danger for bankruptcy at the moment.
RGR has a better Altman-Z score (10.12) than 90.00% 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 | 10.12 |
ROIC/WACC0.92
WACC8.93%
2.3 Liquidity
RGR has a Current Ratio of 4.62. This indicates that RGR is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of RGR (4.62) is better than 90.00% of its industry peers.
RGR has a Quick Ratio of 3.33. This indicates that RGR is financially healthy and has no problem in meeting its short term obligations.
RGR has a better Quick ratio (3.33) than 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.62 | ||
| Quick Ratio | 3.33 |
3. Growth
3.1 Past
RGR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.78%.
The Earnings Per Share has been decreasing by -0.56% on average over the past years.
The Revenue has been growing slightly by 0.65% in the past year.
The Revenue has been growing slightly by 5.47% on average over the past years.
EPS 1Y (TTM)-20.78%
EPS 3Y-41.36%
EPS 5Y-0.56%
EPS Q2Q%15%
Revenue 1Y (TTM)0.65%
Revenue growth 3Y-9.83%
Revenue growth 5Y5.47%
Sales Q2Q%-0.79%
3.2 Future
The Earnings Per Share is expected to grow by 13.81% on average over the next years. This is quite good.
Based on estimates for the next years, RGR will show a small growth in Revenue. The Revenue will grow by 1.09% on average per year.
EPS Next Y18.69%
EPS Next 2Y13.81%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.29%
Revenue Next 2Y1.09%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.60, which indicates a rather expensive current valuation of RGR.
73.33% of the companies in the same industry are more expensive than RGR, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.98, RGR is valued a bit cheaper.
RGR is valuated correctly with a Price/Forward Earnings ratio of 15.64.
66.67% of the companies in the same industry are more expensive than RGR, based on the Price/Forward Earnings ratio.
RGR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.6 | ||
| Fwd PE | 15.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RGR is valued cheaply inside the industry as 86.67% of the companies are valued more expensively.
63.33% of the companies in the same industry are more expensive than RGR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.16 | ||
| EV/EBITDA | 7.18 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of RGR may justify a higher PE ratio.
RGR's earnings are expected to grow with 13.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.05
PEG (5Y)N/A
EPS Next 2Y13.81%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.99%, RGR has a reasonable but not impressive dividend return.
RGR's Dividend Yield is a higher than the industry average which is at 4.42.
RGR's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
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
37.57% of the earnings are spent on dividend by RGR. This is a low number and sustainable payout ratio.
DP37.57%
EPS Next 2Y13.81%
EPS Next 3YN/A
NYSE:RGR (6/30/2025, 2:32:41 PM)
35.86
+0.13 (+0.36%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners69.62%
Inst Owner Change2.23%
Ins Owners3.73%
Ins Owner Change9.85%
Market Cap593.48M
Analysts80
Price Target41.82 (16.62%)
Short Float %3.75%
Short Ratio3.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
Yearly Dividend0.69
Dividend Growth(5Y)-3.3%
DP37.57%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-15.46%
Min EPS beat(2)-29.93%
Max EPS beat(2)-0.99%
EPS beat(4)0
Avg EPS beat(4)-30.05%
Min EPS beat(4)-50.49%
Max EPS beat(4)-0.99%
EPS beat(8)1
Avg EPS beat(8)-28.4%
EPS beat(12)2
Avg EPS beat(12)-22.54%
EPS beat(16)4
Avg EPS beat(16)-14.37%
Revenue beat(2)1
Avg Revenue beat(2)-2.23%
Min Revenue beat(2)-9.22%
Max Revenue beat(2)4.76%
Revenue beat(4)1
Avg Revenue beat(4)-5.51%
Min Revenue beat(4)-11.66%
Max Revenue beat(4)4.76%
Revenue beat(8)2
Avg Revenue beat(8)-5.93%
Revenue beat(12)4
Avg Revenue beat(12)-3.75%
Revenue beat(16)6
Avg Revenue beat(16)-2.94%
PT rev (1m)0%
PT rev (3m)-10.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.39%
EPS NY rev (1m)0%
EPS NY rev (3m)-17.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.6 | ||
| Fwd PE | 15.64 | ||
| P/S | 1.11 | ||
| P/FCF | 15.16 | ||
| P/OCF | 10.01 | ||
| P/B | 1.85 | ||
| P/tB | 1.85 | ||
| EV/EBITDA | 7.18 |
EPS(TTM)1.83
EY5.1%
EPS(NY)2.29
Fwd EY6.39%
FCF(TTM)2.37
FCFY6.6%
OCF(TTM)3.58
OCFY9.99%
SpS32.3
BVpS19.42
TBVpS19.42
PEG (NY)1.05
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.24% | ||
| ROE | 9.72% | ||
| ROCE | 10.05% | ||
| ROIC | 8.19% | ||
| ROICexc | 12.3% | ||
| ROICexgc | 12.3% | ||
| OM | 6.1% | ||
| PM (TTM) | 5.85% | ||
| GM | 21.5% | ||
| FCFM | 7.32% |
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 Turnover1.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 92.46% | ||
| Cap/Sales | 3.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 109.02% | ||
| Profit Quality | 125.28% | ||
| Current Ratio | 4.62 | ||
| Quick Ratio | 3.33 | ||
| Altman-Z | 10.12 |
F-Score6
WACC8.93%
ROIC/WACC0.92
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)-20.78%
EPS 3Y-41.36%
EPS 5Y-0.56%
EPS Q2Q%15%
EPS Next Y18.69%
EPS Next 2Y13.81%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.65%
Revenue growth 3Y-9.83%
Revenue growth 5Y5.47%
Sales Q2Q%-0.79%
Revenue Next Year0.29%
Revenue Next 2Y1.09%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-23.48%
EBIT growth 3Y-46.19%
EBIT growth 5Y-4.28%
EBIT Next Year97.47%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-13.49%
FCF growth 3Y-37.72%
FCF growth 5Y3.43%
OCF growth 1Y-6.98%
OCF growth 3Y-31.45%
OCF growth 5Y2.27%