STURM RUGER & CO INC (RGR) Stock Fundamental Analysis
NYSE:RGR - New York Stock Exchange, Inc. - US8641591081 - Common Stock - Currency: USD
RGR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 30 industry peers in the Leisure Products industry. RGR has an excellent financial health rating, but there are some minor concerns on its profitability. 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.
RGR had a positive operating cash flow in the past year.
RGR had positive earnings in each of the past 5 years.
RGR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RGR's Return On Assets of 8.24% is amongst the best of the industry. RGR outperforms 86.67% of its industry peers.
RGR's Return On Equity of 9.72% is fine compared to the rest of the industry. RGR outperforms 80.00% of its industry peers.
RGR has a Return On Invested Capital of 8.19%. This is in the better half of the industry: RGR outperforms 76.67% 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 8.00%.
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
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.
In the last couple of years the Profit Margin of RGR has declined.
RGR's Operating Margin of 6.10% is fine compared to the rest of the industry. RGR outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of RGR has declined.
The Gross Margin of RGR (21.50%) is worse than 73.33% 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.
Compared to 1 year ago, RGR has less shares outstanding
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 10.13 indicates that RGR is not in any danger for bankruptcy at the moment.
RGR's Altman-Z score of 10.13 is amongst the best of the industry. RGR outperforms 90.00% 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 | 10.13 |
ROIC/WACC0.92
WACC8.94%
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 better Current ratio (4.62) than 86.67% 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 Quick ratio of 3.33. This is amongst the best in 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%.
RGR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.47% yearly.
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
Based on estimates for the next years, RGR will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.81% on average per year.
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
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.
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
The Price/Earnings ratio is 19.43, which indicates a rather expensive current valuation of RGR.
Based on the Price/Earnings ratio, RGR is valued a bit cheaper than 73.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.69. RGR is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 15.51 indicates a correct valuation of RGR.
63.33% of the companies in the same industry are more expensive than RGR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of RGR to the average of the S&P500 Index (21.29), we can say RGR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.43 | ||
| Fwd PE | 15.51 |
4.2 Price Multiples
RGR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RGR is cheaper than 86.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RGR is valued a bit cheaper than 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.03 | ||
| EV/EBITDA | 7.2 |
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.
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
With a Yearly Dividend Yield of 1.91%, RGR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.38, RGR pays a bit more dividend than its industry peers.
RGR's Dividend Yield is slightly below the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
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
37.57% of the earnings are spent on dividend by RGR. This is a low number and sustainable payout ratio.
DP37.57%
EPS Next 2Y13.81%
EPS Next 3YN/A
35.55
-0.23 (-0.64%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners69.62%
Inst Owner Change2.23%
Ins Owners3.73%
Ins Owner Change9.85%
Market Cap588.35M
Analysts80
Price Target41.82 (17.64%)
Short Float %3.75%
Short Ratio3.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
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)0%
PT rev (3m)-10.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.39%
EPS NY rev (1m)0%
EPS NY rev (3m)-17.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.43 | ||
| Fwd PE | 15.51 | ||
| P/S | 1.1 | ||
| P/FCF | 15.03 | ||
| P/OCF | 9.92 | ||
| P/B | 1.83 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | 7.2 |
EPS(TTM)1.83
EY5.15%
EPS(NY)2.29
Fwd EY6.45%
FCF(TTM)2.37
FCFY6.65%
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 | 10.13 |
F-Score6
WACC8.94%
ROIC/WACC0.92
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%