Overall RGR gets a fundamental rating of 5 out of 10. We evaluated RGR against 30 industry peers in the Leisure Products industry. No worries on liquidiy or solvency for RGR as it has an excellent financial health rating, but there are worries on the profitability. RGR does not seem to be growing, but still is valued expensively.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year RGR was profitable.
RGR had a positive operating cash flow in the past year.
RGR had positive earnings in each of the past 5 years.
Each year in the past 5 years RGR had a positive operating cash flow.

1.2 Ratios

The Return On Assets of RGR (0.76%) is better than 63.33% of its industry peers.
RGR has a Return On Equity (0.93%) which is in line with its industry peers.

		Industry Rank	Sector Rank
ROA	0.76%
ROE	0.93%
ROIC	N/A

ROA(3y)12.76%

ROA(5y)19.89%

ROE(3y)17.33%

ROE(5y)25.8%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

With a decent Profit Margin value of 0.48%, RGR is doing good in the industry, outperforming 63.33% of the companies in the same industry.
In the last couple of years the Profit Margin of RGR has declined.
RGR's Operating Margin has declined in the last couple of years.
The Gross Margin of RGR (16.16%) is worse than 80.00% of its industry peers.
In the last couple of years the Gross Margin of RGR has declined.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	0.48%
GM	16.16%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

RGR does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, RGR has less shares outstanding
Compared to 5 years ago, RGR has less shares outstanding
RGR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

An Altman-Z score of 9.57 indicates that RGR is not in any danger for bankruptcy at the moment.
RGR's Altman-Z score of 9.57 is amongst the best of the industry. RGR outperforms 100.00% 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	9.57

ROIC/WACCN/A

WACC9.76%

2.3 Liquidity

RGR has a Current Ratio of 3.54. This indicates that RGR is financially healthy and has no problem in meeting its short term obligations.
RGR has a better Current ratio (3.54) than 80.00% of its industry peers.
A Quick Ratio of 2.61 indicates that RGR has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.61, RGR belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	3.54
Quick Ratio	2.61

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

RGR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.51%.
Measured over the past years, RGR shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.01% on average per year.
RGR shows a small growth in Revenue. In the last year, the Revenue has grown by 3.90%.
Measured over the past years, RGR shows a small growth in Revenue. The Revenue has been growing by 5.47% on average per year.

EPS 1Y (TTM)-7.51%

EPS 3Y-41.36%

EPS 5Y21.01%

EPS Q2Q%-60.71%

Revenue 1Y (TTM)3.9%

Revenue growth 3Y-9.83%

Revenue growth 5Y5.47%

Sales Q2Q%3.66%

3.2 Future

The Earnings Per Share is expected to grow by 4.67% on average over the next years.
RGR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.75% yearly.

EPS Next Y-109.13%

EPS Next 2Y4.67%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year1.24%

Revenue Next 2Y1.75%

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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 23.72, which indicates a rather expensive current valuation of RGR.
70.00% of the companies in the same industry are more expensive than RGR, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of RGR to the average of the S&P500 Index (28.82), we can say RGR is valued inline with the index average.
With a Price/Forward Earnings ratio of 19.58, RGR is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RGR indicates a somewhat cheap valuation: RGR is cheaper than 70.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.95. RGR is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	23.73
Fwd PE	19.58

4.2 Price Multiples

63.33% of the companies in the same industry are cheaper than RGR, based on the Enterprise Value to EBITDA ratio.
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	21.99
EV/EBITDA	26.22

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)1.13

EPS Next 2Y4.67%

EPS Next 3YN/A

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.66%, RGR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.27, RGR pays a bit more dividend than its industry peers.
RGR's Dividend Yield is comparable with the S&P500 average which is at 1.82.

		Industry Rank	Sector Rank
Dividend Yield	1.66%

5.2 History

On average, the dividend of RGR grows each year by 17.67%, which is quite nice.
RGR has paid a dividend for at least 10 years, which is a reliable track record.

Dividend Growth(5Y)17.67%

Div Incr Years0

Div Non Decr Years0

5.3 Sustainability

RGR pays out 435.33% of its income as dividend. This is not a sustainable payout ratio.
RGR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.

DP435.33%

EPS Next 2Y4.67%

EPS Next 3YN/A

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STURM RUGER & CO INC / RGR FAQ

What is the ChartMill fundamental rating of STURM RUGER & CO INC (RGR) stock?

ChartMill assigns a fundamental rating of 5 / 10 to RGR.

Can you provide the valuation status for STURM RUGER & CO INC?

ChartMill assigns a valuation rating of 3 / 10 to STURM RUGER & CO INC (RGR). This can be considered as Overvalued.

Can you provide the profitability details for STURM RUGER & CO INC?

STURM RUGER & CO INC (RGR) has a profitability rating of 3 / 10.

Can you provide the PE and PB ratios for RGR stock?

The Price/Earnings (PE) ratio for STURM RUGER & CO INC (RGR) is 23.73 and the Price/Book (PB) ratio is 2.16.

What is the financial health of STURM RUGER & CO INC (RGR) stock?

The financial health rating of STURM RUGER & CO INC (RGR) is 9 / 10.