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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year RGR was profitable.
RGR had a positive operating cash flow in the past year.
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.
Looking at the Return On Equity, with a value of 9.72%, RGR is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.19%, RGR is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RGR is significantly above the industry average of 8.00%.
The last Return On Invested Capital (8.19%) for RGR is well below the 3 year average (15.60%), which needs to be investigated, but indicates that RGR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.24% | ||
| 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
Looking at the Profit Margin, with a value of 5.85%, RGR is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
RGR's Profit Margin has declined in the last couple of years.
RGR has a better Operating Margin (6.10%) than 66.67% of its industry peers.
RGR's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 21.50%, RGR is doing worse than 73.33% of the companies in the same industry.
In the last couple of years the Gross Margin of RGR has declined.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RGR is creating some value.
The number of shares outstanding for RGR has been reduced compared to 1 year ago.
Compared to 5 years ago, RGR has less shares outstanding
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 10.09 indicates that RGR is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.09, RGR belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
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 | 10.09 |
ROIC/WACC0.9
WACC9.05%
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.
RGR has a Current ratio of 4.62. This is amongst the best in the industry. RGR outperforms 86.67% of its industry peers.
RGR has a Quick Ratio of 3.33. This indicates that RGR is financially healthy and has no problem in meeting its short term obligations.
RGR's Quick ratio of 3.33 is amongst the best of the industry. RGR outperforms 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.62 | ||
| Quick Ratio | 3.33 |
3. Growth
3.1 Past
The earnings per share for RGR have decreased strongly by -20.78% 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.
RGR shows a small growth in Revenue. In the last year, the Revenue has grown by 0.65%.
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)-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
The Earnings Per Share is expected to grow by 13.81% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.09% on average over the next years.
EPS Next Y18.69%
EPS Next 2Y13.81%
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 19.42, which indicates a rather expensive current 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 (26.29), we can say RGR is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.50, RGR is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as RGR.
RGR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.17, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.42 | ||
| Fwd PE | 15.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RGR is valued cheaper than 86.67% of the companies in the same industry.
RGR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.03 | ||
| EV/EBITDA | 7.13 |
4.3 Compensation for Growth
The 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.
RGR's earnings are expected to grow with 13.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.04
PEG (5Y)N/A
EPS Next 2Y13.81%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RGR has a Yearly Dividend Yield of 2.00%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.44, RGR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, RGR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
5.2 History
The dividend of RGR decreases each year by -3.30%.
RGR has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-3.3%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
RGR pays out 37.57% of its income as dividend. This is a sustainable payout ratio.
DP37.57%
EPS Next 2Y13.81%
EPS Next 3YN/A
35.54
-0.66 (-1.82%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners68.58%
Inst Owner Change2.23%
Ins Owners2.86%
Ins Owner Change4.88%
Market Cap588.19M
Analysts80
Price Target41.82 (17.67%)
Short Float %3.17%
Short Ratio2.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
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)-16.39%
EPS NY rev (1m)-17.46%
EPS NY rev (3m)-17.79%
Revenue NQ rev (1m)-3.86%
Revenue NQ rev (3m)-3.86%
Revenue NY rev (1m)-4.73%
Revenue NY rev (3m)-4.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.42 | ||
| Fwd PE | 15.5 | ||
| P/S | 1.1 | ||
| P/FCF | 15.03 | ||
| P/OCF | 9.92 | ||
| P/B | 1.83 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | 7.13 |
EPS(TTM)1.83
EY5.15%
EPS(NY)2.29
Fwd EY6.45%
FCF(TTM)2.37
FCFY6.66%
OCF(TTM)3.58
OCFY10.08%
SpS32.3
BVpS19.42
TBVpS19.42
PEG (NY)1.04
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 | 10.09 |
F-Score6
WACC9.05%
ROIC/WACC0.9
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 Y18.69%
EPS Next 2Y13.81%
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 Year97.47%
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%