STURM RUGER & CO INC (RGR) Stock Fundamental Analysis
NYSE:RGR - New York Stock Exchange, Inc. - US8641591081 - Common Stock - Currency: USD
Taking everything into account, RGR scores 5 out of 10 in our fundamental rating. RGR was compared to 30 industry peers in the Leisure Products industry. RGR has an excellent financial health rating, but there are some minor concerns on its profitability. RGR has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Of the past 5 years RGR 4 years were profitable.
Of the past 5 years RGR 4 years had a positive operating cash flow.
1.2 Ratios
RGR's Return On Assets of 8.12% is amongst the best of the industry. RGR outperforms 86.67% of its industry peers.
RGR has a Return On Equity of 9.63%. This is in the better half of the industry: RGR outperforms 73.33% of its industry peers.
RGR's Return On Invested Capital of 7.85% is fine compared to the rest of the industry. RGR outperforms 73.33% of its industry peers.
RGR had an Average Return On Invested Capital over the past 3 years of 28.16%. This is significantly above the industry average of 8.27%.
The last Return On Invested Capital (7.85%) for RGR is well below the 3 year average (28.16%), which needs to be investigated, but indicates that RGR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.12% | ||
| ROE | 9.63% | ||
| ROIC | 7.85% |
ROA(3y)21.85%
ROA(5y)20.15%
ROE(3y)28.43%
ROE(5y)26.15%
ROIC(3y)28.16%
ROIC(5y)26.44%
1.3 Margins
RGR has a Profit Margin of 5.83%. This is amongst the best in the industry. RGR outperforms 83.33% of its industry peers.
RGR's Profit Margin has declined in the last couple of years.
RGR's Operating Margin of 5.87% is fine compared to the rest of the industry. RGR outperforms 70.00% of its industry peers.
In the last couple of years the Operating Margin of RGR has declined.
RGR has a worse Gross Margin (21.80%) than 76.67% of its industry peers.
In the last couple of years the Gross Margin of RGR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.87% | ||
| PM (TTM) | 5.83% | ||
| GM | 21.8% |
OM growth 3Y-22.94%
OM growth 5Y-6.66%
PM growth 3Y-17.67%
PM growth 5Y-2.9%
GM growth 3Y-9.94%
GM growth 5Y-1.95%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RGR is creating value.
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 10.74. This indicates that RGR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of RGR (10.74) is better than 96.67% of its industry peers.
RGR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 10.74 |
ROIC/WACC0.87
WACC9.06%
2.3 Liquidity
A Current Ratio of 4.50 indicates that RGR has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.50, RGR belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
A Quick Ratio of 3.11 indicates that RGR has no problem at all paying its short term obligations.
The Quick ratio of RGR (3.11) is better than 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.5 | ||
| Quick Ratio | 3.11 |
3. Growth
3.1 Past
The earnings per share for RGR have decreased strongly by -34.93% in the last year.
Measured over the past years, RGR shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -41.36% on average per year.
EPS 1Y (TTM)-34.93%
EPS 3Y-41.36%
EPS 5YN/A
EPS Q2Q%6.9%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%11.61%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y44.37%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.81%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.38, which indicates a rather expensive current valuation of RGR.
Compared to the rest of the industry, the Price/Earnings ratio of RGR indicates a somewhat cheap valuation: RGR is cheaper than 63.33% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, RGR is valued a bit cheaper.
RGR is valuated correctly with a Price/Forward Earnings ratio of 15.51.
Based on the Price/Forward Earnings ratio, RGR is valued a bit cheaper than the industry average as 63.33% of the companies are valued more expensively.
RGR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.38 | ||
| Fwd PE | 15.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RGR is valued a bit cheaper than the industry average as 76.67% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as RGR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.65 | ||
| EV/EBITDA | 9.62 |
4.3 Compensation for Growth
RGR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RGR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.5
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
RGR has a Yearly Dividend Yield of 1.76%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.10, RGR pays a bit more dividend than its industry peers.
RGR's Dividend Yield is slightly below the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
5.2 History
The dividend of RGR is nicely growing with an annual growth rate of 41.80%!
RGR has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)41.8%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
42.77% of the earnings are spent on dividend by RGR. This is a bit on the high side, but may be sustainable.
The dividend of RGR is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP42.77%
EPS Next 2YN/A
EPS Next 3YN/A
39.62
-0.19 (-0.48%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners68.58%
Inst Owner Change-0.89%
Ins Owners2.86%
Ins Owner Change0.66%
Market Cap665.22M
Analysts80
Price Target46.92 (18.43%)
Short Float %3.93%
Short Ratio3.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
Yearly Dividend6.31
Dividend Growth(5Y)41.8%
DP42.77%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-44.63%
Min EPS beat(2)-50.49%
Max EPS beat(2)-38.77%
EPS beat(4)0
Avg EPS beat(4)-39.1%
Min EPS beat(4)-52.85%
Max EPS beat(4)-14.29%
EPS beat(8)2
Avg EPS beat(8)-25.81%
EPS beat(12)3
Avg EPS beat(12)-19.37%
EPS beat(16)6
Avg EPS beat(16)-6.37%
Revenue beat(2)0
Avg Revenue beat(2)-8.78%
Min Revenue beat(2)-11.66%
Max Revenue beat(2)-5.91%
Revenue beat(4)0
Avg Revenue beat(4)-8.14%
Min Revenue beat(4)-11.69%
Max Revenue beat(4)-3.31%
Revenue beat(8)3
Avg Revenue beat(8)-3.35%
Revenue beat(12)4
Avg Revenue beat(12)-3.96%
Revenue beat(16)7
Avg Revenue beat(16)-0.67%
PT rev (1m)0%
PT rev (3m)-9.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.38 | ||
| Fwd PE | 15.51 | ||
| P/S | 1.28 | ||
| P/FCF | 21.65 | ||
| P/OCF | 12.77 | ||
| P/B | 2.11 | ||
| P/tB | 2.11 | ||
| EV/EBITDA | 9.62 |
EPS(TTM)1.77
EY4.47%
EPS(NY)2.56
Fwd EY6.45%
FCF(TTM)1.83
FCFY4.62%
OCF(TTM)3.1
OCFY7.83%
SpS31
BVpS18.76
TBVpS18.76
PEG (NY)0.5
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.12% | ||
| ROE | 9.63% | ||
| ROCE | 9.6% | ||
| ROIC | 7.85% | ||
| ROICexc | 11.23% | ||
| ROICexgc | 11.23% | ||
| OM | 5.87% | ||
| PM (TTM) | 5.83% | ||
| GM | 21.8% | ||
| FCFM | 5.9% |
ROA(3y)21.85%
ROA(5y)20.15%
ROE(3y)28.43%
ROE(5y)26.15%
ROIC(3y)28.16%
ROIC(5y)26.44%
ROICexc(3y)73.86%
ROICexc(5y)65.09%
ROICexgc(3y)81.75%
ROICexgc(5y)71.67%
ROCE(3y)34.43%
ROCE(5y)32.34%
ROICexcg growth 3Y-38.01%
ROICexcg growth 5Y-16.36%
ROICexc growth 3Y-36.87%
ROICexc growth 5Y-16.84%
OM growth 3Y-22.94%
OM growth 5Y-6.66%
PM growth 3Y-17.67%
PM growth 5Y-2.9%
GM growth 3Y-9.94%
GM growth 5Y-1.95%
F-Score6
Asset Turnover1.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 108.14% | ||
| Cap/Sales | 4.1% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.52% | ||
| Profit Quality | 101.31% | ||
| Current Ratio | 4.5 | ||
| Quick Ratio | 3.11 | ||
| Altman-Z | 10.74 |
F-Score6
WACC9.06%
ROIC/WACC0.87
Cap/Depr(3y)96.04%
Cap/Depr(5y)109.53%
Cap/Sales(3y)3.83%
Cap/Sales(5y)5.13%
Profit Quality(3y)61.89%
Profit Quality(5y)75.48%
High Growth Momentum
Growth
EPS 1Y (TTM)-34.93%
EPS 3Y-41.36%
EPS 5YN/A
EPS Q2Q%6.9%
EPS Next Y44.37%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%11.61%
Revenue Next Year4.81%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-50.25%
EBIT growth 3Y-24.1%
EBIT growth 5Y-4.91%
EBIT Next Year1.98%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-59.15%
FCF growth 3Y-41.69%
FCF growth 5Y-30.2%
OCF growth 1Y-50.68%
OCF growth 3Y-38.22%
OCF growth 5Y-22.31%