STURM RUGER & CO INC (RGR)
US8641591081 - Common Stock
RGR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 32 industry peers in the Leisure Products industry. Both the health and profitability get an excellent rating, making RGR a very profitable company, without any liquidiy or solvency issues. 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.
In the past 5 years RGR has always been profitable.
RGR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 12.09%, RGR belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
With a decent Return On Equity value of 14.53%, RGR is doing good in the industry, outperforming 75.00% of the companies in the same industry.
RGR has a Return On Invested Capital of 12.69%. This is amongst the best in the industry. RGR outperforms 84.38% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RGR is significantly above the industry average of 10.50%.
The last Return On Invested Capital (12.69%) 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 | 12.09% | ||
| ROE | 14.53% | ||
| ROIC | 12.69% |
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
Looking at the Profit Margin, with a value of 8.87%, RGR belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
RGR's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 9.58%, RGR is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Operating Margin of RGR has declined.
RGR's Gross Margin of 24.57% is on the low side compared to the rest of the industry. RGR is outperformed by 75.00% of its industry peers.
RGR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.58% | ||
| PM (TTM) | 8.87% | ||
| GM | 24.57% |
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
RGR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating 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
RGR has an Altman-Z score of 10.59. This indicates that RGR is financially healthy and has little risk of bankruptcy at the moment.
RGR has a Altman-Z score of 10.59. This is amongst the best in the industry. RGR outperforms 93.75% 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 | 10.59 |
ROIC/WACC1.41
WACC9.02%
2.3 Liquidity
A Current Ratio of 4.29 indicates that RGR has no problem at all paying its short term obligations.
RGR has a Current ratio of 4.29. This is in the better half of the industry: RGR outperforms 65.63% of its industry peers.
RGR has a Quick Ratio of 3.03. This indicates that RGR is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 3.03, RGR belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.29 | ||
| Quick Ratio | 3.03 |
3. Growth
3.1 Past
RGR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -43.24%.
Measured over the past years, RGR shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.14% on average per year.
Looking at the last year, RGR shows a decrease in Revenue. The Revenue has decreased by -8.74% in the last year.
Measured over the past years, RGR shows a small growth in Revenue. The Revenue has been growing by 1.87% on average per year.
EPS 1Y (TTM)-43.24%
EPS 3Y-18.85%
EPS 5Y-1.14%
EPS growth Q2Q-50.62%
Revenue 1Y (TTM)-8.74%
Revenue growth 3Y-1.49%
Revenue growth 5Y1.87%
Revenue growth Q2Q-8.45%
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 Y13.25%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.58%
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
A Price/Earnings ratio of 18.64 indicates a rather expensive valuation of RGR.
RGR's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of RGR to the average of the S&P500 Index (28.15), we can say RGR is valued slightly cheaper.
A Price/Forward Earnings ratio of 13.98 indicates a correct valuation of RGR.
RGR's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.20, RGR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.64 | ||
| Fwd PE | 13.98 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RGR indicates a rather cheap valuation: RGR is cheaper than 84.38% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RGR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.37 | ||
| EV/EBITDA | 7.11 |
4.3 Compensation for Growth
RGR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
RGR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.41
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
RGR has a Yearly Dividend Yield of 2.14%.
RGR's Dividend Yield is a higher than the industry average which is at 3.35.
RGR's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
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
229.78% of the earnings are spent on dividend by RGR. This is not a sustainable payout ratio.
RGR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP229.78%
EPS Next 2YN/A
EPS Next 3YN/A
STURM RUGER & CO INC
NYSE:RGR (5/17/2024, 7:23:26 PM)
After market: 43.05 0 (0%)43.05
-0.04 (-0.09%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap749.07M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.64 | ||
| Fwd PE | 13.98 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.41
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.09% | ||
| ROE | 14.53% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.58% | ||
| PM (TTM) | 8.87% | ||
| GM | 24.57% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.29 | ||
| Quick Ratio | 3.03 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-43.24%
EPS 3Y-18.85%
EPS 5Y
EPS growth Q2Q
EPS Next Y13.25%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.74%
Revenue growth 3Y-1.49%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y