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Sturm Ruger & Company (RGR)
NYSE:RGR
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Sturm Ruger & Company
(NYSE:RGR)
Rating:67Neutral
Price Target:
$38.00
▲(6.56%Upside)
Sturm Ruger & Company (RGR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$590.35M
Dividend Yield1.96%
Average Volume (3M)185.65K
Price to Earnings (P/E)19.5
Beta (1Y)-0.10
Revenue Growth0.65%
EPS Growth-20.28%
CountryUS
Employees1,880
SectorIndustrials
Sector Strength93
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.46
Shares Outstanding16,554,962
10 Day Avg. Volume172,083
30 Day Avg. Volume185,646
Financial Highlights & Ratios
PEG Ratio5.44
Price to Book (P/B)1.77
Price to Sales (P/S)0.00
P/FCF Ratio14.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$46.00Price Target Upside29.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Sturm Ruger & Company Business Overview & Revenue Model
Company DescriptionSturm, Ruger & Company, Inc. (RGR) is a leading American manufacturer of firearms, based in Southport, Connecticut. The company operates in the firearms industry and is known for its wide range of rugged, reliable, and reasonably priced firearms. Sturm Ruger produces a variety of products, including rifles, pistols, and revolvers, which are sold under the Ruger brand. The company serves a diverse customer base, including sports shooters, hunters, law enforcement agencies, and individuals seeking personal protection.
How the Company Makes MoneySturm Ruger generates revenue primarily through the design, manufacture, and sale of firearms. Its key revenue streams include the sale of rifles, pistols, and revolvers to wholesalers, independent retailers, and government agencies. The company benefits from a broad distribution network and strong brand recognition, which supports its sales. Additionally, Ruger may engage in licensing agreements and collaborations, although these are not the primary drivers of revenue. The company also focuses on maintaining cost-effective production processes to enhance profitability.
Sturm Ruger & Company Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: -11.86%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
Sturm, Ruger & Company demonstrated strong financial health with increased profitability, significant cash flow, and strategic investments in new products and capacity expansion. Despite industry challenges and a decline in retail firearm sales, the company maintained flat sales and continued to return value to shareholders. The focus on innovation and capitalizing on market opportunities supports a positive outlook.Q1-2025 Updates
Positive Updates
Improved Profitability
Gross margin increased from 21.5% to 22% due to favorable leveraging of fixed costs resulting from increased production.
Strong Financial Position
The company has a debt-free balance sheet with cash and short-term investments totaling $108 million and a current ratio of 4.6 to 1.
Significant Cash Flow
Generated $11.1 million of cash from operations in Q1 2025.
Return to Shareholders
Returned $7 million to shareholders through quarterly dividends of $4 million and repurchase of 79,000 shares.
New Product Sales
New product sales accounted for $40.7 million, representing 31.6% of net sales.
Strategic Investments
Planned capital expenditures may exceed $30 million to expand capacity and invest in new product introductions.
Negative Updates
Flat Sales Amid Industry Decline
Retail firearm unit sales declined 9.6% year over year, with revenue down 11.5%, while Ruger remained flat in sales.
Challenges in Consumer Demand
Acknowledgment of weakening consumer demand, tough financial markets, and uncertainty in supply chain availability and costs.
Company Guidance
During the Q1 2025 earnings call, Sturm, Ruger & Company provided robust guidance, indicating a strategic focus on new product introductions and operational efficiency, despite a challenging firearms market. The company reported net sales of $135.7 million and diluted earnings of $0.46 per share, showing improved profitability with a gross margin increase from 21.5% to 22% compared to the previous year. The company maintained a strong financial foundation with $108 million in cash and short-term investments, no debt, and a stockholders' equity of $321 million. Ruger plans to increase capital expenditures beyond the historical $20 million per year, potentially exceeding $30 million, to support new product launches and capacity expansion. They highlighted a significant contribution from new products, which accounted for 31.6% of net sales, and emphasized maintaining a flexible manufacturing model to align with demand. Despite a 9.6% decline in retail firearm unit sales industry-wide, Ruger remained flat in sales, demonstrating resilience. The company's strategic investments in innovation, operational excellence, and talent development aim to position it for long-term growth and market leadership.Sturm Ruger & Company Financial Statement Overview
Summary
Sturm Ruger & Company demonstrates financial stability with no debt and consistent free cash flow generation, though declining revenues and margins pose growth and profitability challenges. The balance sheet remains strong, yet profitability metrics have weakened.Income Statement
The income statement reveals a declining trend in revenue, with a noticeable decrease from 2021 to 2024. Gross and net profit margins have also contracted over the years, indicating reduced profitability. The absence of EBIT and EBITDA in 2024 suggests potential operational challenges. However, the company maintained positive net income until 2023, highlighting resilience in past years.62
Positive
Balance Sheet
The balance sheet showcases a robust financial position with no debt in 2024, marking a strong equity base. The equity ratio is favorable, indicating a healthy reliance on equity financing. However, the return on equity has decreased in recent years, reflecting reduced efficiency in generating profits from equity.75
Positive
Cash Flow
Cash flow analysis shows stable free cash flow generation with positive growth in recent years, though the operating cash flow to net income ratio has fluctuated. The company efficiently manages capital expenditures, yet the decline in operating cash flow in 2024 suggests potential cash generation challenges.68
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 534.56M | 535.64M | 543.77M | 595.84M | 730.74M | 568.87M | Gross Profit |
| 114.91M | 114.42M | 133.62M | 180.09M | 279.56M | 191.44M | EBIT |
| 32.59M | 31.65M | 52.08M | 103.46M | 203.14M | 119.15M | EBITDA |
| 53.52M | 59.94M | 81.41M | 134.32M | 232.91M | 148.75M | Net Income Common Stockholders |
| 31.25M | 30.56M | 48.22M | 88.33M | 155.90M | 90.40M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 0.00 | 105.48M | 117.66M | 224.31M | 221.01M | 141.15M | Total Assets |
| 0.00 | 384.03M | 398.82M | 484.76M | 442.34M | 348.26M | Total Debt |
| 0.00 | 1.75M | 2.17M | 3.04M | 1.48M | 1.72M | Net Debt |
| 0.00 | -8.28M | -13.00M | -62.13M | -19.57M | -18.42M | Total Liabilities |
| 57.52M | 68.52M | 67.10M | 168.03M | 78.68M | 83.56M | Stockholders Equity |
| 321.48M | 319.58M | 331.72M | 316.74M | 363.66M | 264.70M |
| Cash Flow | Free Cash Flow | ||||
| 39.15M | 34.68M | 18.11M | 49.50M | 143.56M | 119.58M | Operating Cash Flow |
| 59.30M | 55.50M | 33.90M | 77.23M | 172.34M | 143.81M | Investing Cash Flow |
| -12.83M | -13.79M | 40.86M | 13.21M | -107.54M | -43.89M | Financing Cash Flow |
| -46.10M | -46.86M | -124.76M | -46.31M | -63.91M | -115.19M |
Sturm Ruger & Company Technical Analysis
Negative
35.66
Price Trends
37.93
Negative
37.22
Negative
38.36
Negative
Market Momentum
-0.52
Negative
42.71
Neutral
25.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RGR, the sentiment is Negative. The current price of 35.66 is below the 20-day moving average (MA) of 36.21, below the 50-day MA of 37.93, and below the 200-day MA of 38.36, indicating a bearish trend. The MACD of -0.52 indicates Negative momentum. The RSI at 42.71 is Neutral, neither overbought nor oversold. The STOCH value of 25.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RGR.
Sturm Ruger & Company Risk Analysis
Sturm Ruger & Company disclosed 17 risk factors in its most recent earnings report. Sturm Ruger & Company reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
The ability to develop and produce new products is important to the Company's success. Q4, 2024
2.
The Company may be impacted by the actions of its competitors. Q4, 2024
Sturm Ruger & Company Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Performance Comparison
RGR
Sturm Ruger & Company
36.28
-5.97
-14.13%
SWBI
Smith & Wesson Brands
9.40
-5.96
-38.80%
POWW
AMMO
1.72
-0.74
-30.08%
Sturm Ruger & Company Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Sturm Ruger Amends By-Laws for Shareholder Actions
Neutral
May 9, 2025
On May 5, 2025, Sturm, Ruger & Company, Inc. amended its by-laws to allow shareholder actions to be taken without a meeting, prior notice, or a vote, provided written consent is obtained from a sufficient number of shareholders. This change simplifies the process for shareholder decision-making, potentially impacting the company’s governance and stakeholder engagement.
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Sturm Ruger Reports Stable Q1 2025 Financial Results
Positive
May 2, 2025
On May 1, 2025, Sturm, Ruger & Company held a post-earnings conference call to discuss its Q1 2025 financial results. Despite challenges in the firearms market, the company reported stable sales and profitability, with net sales of $135.7 million and improved gross margins. The leadership transition to Todd Seyfert as CEO was highlighted, along with a focus on new product innovation and strategic collaborations to drive future growth. The company plans significant capital investments to expand capacity and enhance manufacturing capabilities, aiming for long-term growth despite industry headwinds.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.