STURM RUGER & CO INC (RGR) Stock Fundamental Analysis
USA - NYSE:RGR - US8641591081 - Common Stock
44.66 USD
-1.28 (-2.79%)
44.66 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. While RGR has a great health rating, its profitability is only average at the moment. 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.
RGR had positive earnings in each of the past 5 years.
Each year in the past 5 years RGR had a positive operating cash flow.
1.2 Ratios
The Return On Assets of RGR (1.65%) is better than 63.64% of its industry peers.
RGR's Return On Equity of 1.99% is fine compared to the rest of the industry. RGR outperforms 63.64% of its industry peers.
RGR has a Return On Invested Capital (0.81%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for RGR is significantly above the industry average of 7.26%.
The last Return On Invested Capital (0.81%) 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 | 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 better Profit Margin (1.07%) than 66.67% of its industry peers.
In the last couple of years the Profit Margin of RGR has declined.
RGR has a Operating Margin of 0.54%. This is comparable to the rest of the industry: RGR outperforms 42.42% of its industry peers.
RGR's Operating Margin has declined in the last couple of years.
RGR has a Gross Margin of 16.95%. This is amonst the worse of the industry: RGR underperforms 81.82% 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
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 11.23 indicates that RGR is not in any danger for bankruptcy at the moment.
RGR has a better Altman-Z score (11.23) than 93.94% 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 | 11.23 |
ROIC/WACC0.06
WACC14.52%
2.3 Liquidity
RGR has a Current Ratio of 3.96. This indicates that RGR is financially healthy and has no problem in meeting its short term obligations.
RGR has a Current ratio of 3.96. This is amongst the best in the industry. RGR outperforms 81.82% of its industry peers.
A Quick Ratio of 3.03 indicates that RGR has no problem at all paying its short term obligations.
The Quick ratio of RGR (3.03) is better than 87.88% of its industry peers.
| 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.
The Earnings Per Share has been decreasing by -0.56% on average over the past years.
The Revenue has been growing slightly by 3.31% in the past year.
The Revenue has been growing slightly by 5.47% on average over the past years.
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
RGR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.94% yearly.
The Revenue is expected to grow by 1.90% on average over the next years.
EPS Next Y0.43%
EPS Next 2Y8.94%
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
The Price/Earnings ratio is 25.23, which means the current valuation is very expensive for RGR.
63.64% of the companies in the same industry are more expensive than RGR, based on the Price/Earnings ratio.
RGR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 21.26 indicates a rather expensive valuation of RGR.
RGR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RGR is cheaper than 60.61% of the companies in the same industry.
RGR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.23 | ||
| Fwd PE | 21.26 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RGR.
RGR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RGR is cheaper than 69.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.92 | ||
| EV/EBITDA | 22.54 |
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)58.76
PEG (5Y)N/A
EPS Next 2Y8.94%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.50%, RGR has a reasonable but not impressive dividend return.
RGR's Dividend Yield is a higher than the industry average which is at 3.98.
Compared to the average S&P500 Dividend Yield of 2.38, RGR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
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
208.01% of the earnings are spent on dividend by RGR. This is not a sustainable payout ratio.
DP208.01%
EPS Next 2Y8.94%
EPS Next 3YN/A
44.66
-1.28 (-2.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners70.7%
Inst Owner Change0.39%
Ins Owners3.87%
Ins Owner Change10.76%
Market Cap721.71M
Analysts76.67
Price Target45.39 (1.63%)
Short Float %6.41%
Short Ratio4.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
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)0%
PT rev (3m)8.54%
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)-3.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.23 | ||
| Fwd PE | 21.26 | ||
| P/S | 1.35 | ||
| P/FCF | 18.92 | ||
| P/OCF | 13.05 | ||
| P/B | 2.49 | ||
| P/tB | 2.49 | ||
| EV/EBITDA | 22.54 |
EPS(TTM)1.77
EY3.96%
EPS(NY)2.1
Fwd EY4.7%
FCF(TTM)2.36
FCFY5.29%
OCF(TTM)3.42
OCFY7.66%
SpS33.19
BVpS17.9
TBVpS17.9
PEG (NY)58.76
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 | 11.23 |
F-Score6
WACC14.52%
ROIC/WACC0.06
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 2Y8.94%
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%