STURM RUGER & CO INC (RGR) Stock Fundamental Analysis
NYSE:RGR - US8641591081 - Common Stock
34.67 USD
+0.13 (+0.38%)
34.67 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. 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
RGR had positive earnings in the past year.
RGR had a positive operating cash flow in the past year.
In the past 5 years RGR has always been profitable.
Each year in the past 5 years RGR had a positive operating cash flow.
1.2 Ratios
RGR has a Return On Assets of 1.65%. This is in the better half of the industry: RGR outperforms 69.70% of its industry peers.
RGR has a better Return On Equity (1.99%) than 69.70% of its industry peers.
RGR has a Return On Invested Capital (0.81%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for RGR is significantly above the industry average of 8.13%.
The 3 year average ROIC (15.60%) for RGR is well above the current ROIC(0.81%). The reason for the recent decline needs to be investigated.
| 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 has a Profit Margin of 1.07%. This is in the better half of the industry: RGR outperforms 72.73% of its industry peers.
In the last couple of years the Profit Margin of RGR has declined.
The Operating Margin of RGR (0.54%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of RGR has declined.
The Gross Margin of RGR (16.95%) is worse than 78.79% 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
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.
The number of shares outstanding for RGR has been reduced compared to 5 years ago.
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 9.41 indicates that RGR is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 9.41, RGR belongs to the best of the industry, outperforming 96.97% of the companies in the same industry.
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 | 9.41 |
ROIC/WACC0.07
WACC10.83%
2.3 Liquidity
A Current Ratio of 3.96 indicates that RGR has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.96, RGR is doing good in the industry, outperforming 78.79% of the companies in the same industry.
A Quick Ratio of 3.03 indicates that RGR has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 3.03, RGR belongs to the best 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
The earnings per share for RGR have decreased by -5.35% in the last year.
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.
Looking at the last year, RGR shows a small growth in Revenue. The Revenue has grown by 3.31% in the last year.
RGR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.47% yearly.
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
Based on estimates for the next years, RGR will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.08% on average per year.
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.
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
A Price/Earnings ratio of 19.59 indicates a rather expensive valuation of RGR.
RGR's Price/Earnings ratio is rather cheap when compared to the industry. RGR is cheaper than 81.82% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.13, RGR is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.46, the valuation of RGR can be described as correct.
75.76% 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 22.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.59 | ||
| Fwd PE | 16.46 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RGR.
Based on the Price/Free Cash Flow ratio, RGR is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.69 | ||
| EV/EBITDA | 15.25 |
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)45.62
PEG (5Y)N/A
EPS Next 2Y9.08%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RGR has a Yearly Dividend Yield of 2.00%.
RGR's Dividend Yield is a higher than the industry average which is at 4.09.
RGR's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
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
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
34.67
+0.13 (+0.38%)
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 Cap560.27M
Analysts80
Price Target45.39 (30.92%)
Short Float %4.45%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
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)8.54%
PT rev (3m)8.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-34.48%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.38%
Revenue NQ rev (1m)-3.45%
Revenue NQ rev (3m)-9.89%
Revenue NY rev (1m)2.28%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.59 | ||
| Fwd PE | 16.46 | ||
| P/S | 1.04 | ||
| P/FCF | 14.69 | ||
| P/OCF | 10.13 | ||
| P/B | 1.94 | ||
| P/tB | 1.94 | ||
| EV/EBITDA | 15.25 |
EPS(TTM)1.77
EY5.11%
EPS(NY)2.11
Fwd EY6.07%
FCF(TTM)2.36
FCFY6.81%
OCF(TTM)3.42
OCFY9.87%
SpS33.19
BVpS17.9
TBVpS17.9
PEG (NY)45.62
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 | 9.41 |
F-Score6
WACC10.83%
ROIC/WACC0.07
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%