STURM RUGER & CO INC (RGR) Stock Fundamental Analysis
NYSE:RGR - New York Stock Exchange, Inc. - US8641591081 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to RGR. RGR was compared to 30 industry peers in the Leisure Products industry. RGR is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. RGR is valued correctly, 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.
Each year in the past 5 years RGR has been profitable.
Each year in the past 5 years RGR had a positive operating cash flow.
1.2 Ratios
RGR has a better Return On Assets (8.24%) than 86.67% of its industry peers.
The Return On Equity of RGR (9.72%) is better than 80.00% of its industry peers.
RGR's Return On Invested Capital of 8.19% is fine compared to the rest of the industry. RGR outperforms 76.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RGR is significantly above the industry average of 8.35%.
The 3 year average ROIC (15.60%) for RGR is well above the current ROIC(8.19%). The reason for the recent decline needs to be investigated.
| 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's Profit Margin of 5.85% is fine compared to the rest of the industry. RGR outperforms 76.67% of its industry peers.
In the last couple of years the Profit Margin of RGR has declined.
RGR has a Operating Margin of 6.10%. This is in the better half of the industry: RGR outperforms 66.67% of its industry peers.
RGR's Operating Margin has declined in the last couple of years.
RGR's Gross Margin of 21.50% is on the low side compared to the rest of the industry. RGR is outperformed by 70.00% of its industry peers.
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
RGR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
RGR has less shares outstanding than it did 1 year ago.
RGR has less shares outstanding than it did 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
An Altman-Z score of 9.99 indicates that RGR is not in any danger for bankruptcy at the moment.
RGR has a Altman-Z score of 9.99. This is amongst the best in the industry. RGR outperforms 93.33% 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 | 9.99 |
ROIC/WACC0.87
WACC9.36%
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 83.33% of its industry peers.
A Quick Ratio of 3.33 indicates that RGR has no problem at all paying 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%.
RGR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.56% yearly.
RGR shows a small growth in Revenue. In the last year, the Revenue has grown by 0.65%.
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
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
RGR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.09% yearly.
EPS Next Y43.8%
EPS Next 2YN/A
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
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
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
With a Price/Earnings ratio of 19.13, RGR is valued on the expensive side.
Based on the Price/Earnings ratio, RGR is valued a bit cheaper than the industry average as 63.33% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 24.21, RGR is valued a bit cheaper.
With a Price/Forward Earnings ratio of 13.75, RGR is valued correctly.
RGR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RGR is cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.44, RGR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.13 | ||
| Fwd PE | 13.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RGR is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RGR indicates a somewhat cheap valuation: RGR is cheaper than 63.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.8 | ||
| EV/EBITDA | 6.96 |
4.3 Compensation for Growth
The 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)0.44
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
RGR has a Yearly Dividend Yield of 2.04%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.61, RGR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, RGR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
5.2 History
The dividend of RGR decreases each year by -3.30%.
RGR has paid a dividend for at least 10 years, which is 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 2YN/A
EPS Next 3YN/A
35
-0.35 (-0.99%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners68.58%
Inst Owner Change0%
Ins Owners2.86%
Ins Owner Change4.88%
Market Cap579.25M
Analysts80
Price Target41.82 (19.49%)
Short Float %3.07%
Short Ratio3.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
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)-10.87%
PT rev (3m)-10.87%
EPS NQ rev (1m)-16.39%
EPS NQ rev (3m)-17.74%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)-4.73%
Revenue NY rev (3m)-4.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.13 | ||
| Fwd PE | 13.75 | ||
| P/S | 1.08 | ||
| P/FCF | 14.8 | ||
| P/OCF | 9.77 | ||
| P/B | 1.8 | ||
| P/tB | 1.8 | ||
| EV/EBITDA | 6.96 |
EPS(TTM)1.83
EY5.23%
EPS(NY)2.55
Fwd EY7.27%
FCF(TTM)2.37
FCFY6.76%
OCF(TTM)3.58
OCFY10.24%
SpS32.3
BVpS19.42
TBVpS19.42
PEG (NY)0.44
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 | 9.99 |
F-Score6
WACC9.36%
ROIC/WACC0.87
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 Y43.8%
EPS Next 2YN/A
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 Year126.78%
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%