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Sturm Ruger & Company
(NYSE:RGR)
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Rating:64Neutral
Price Target:
$43.00
▲(12.01% Upside)
Action:Reiterated
Date:09/18/26
The score is driven primarily by strong financial resilience (no debt and solid free cash flow) and a positive earnings-call backdrop highlighting improving sales, margins, and cash generation. Offsetting factors are weak longer-cycle profitability/margin compression, soft technical momentum (negative MACD and sub-50 RSI), and a high P/E with only a modest dividend yield.
Positive Factors
Revenue Growth and Demand
Recent double-digit sales growth, supported by distributor sell-through rising 19% year over year, indicates healthy underlying demand rather than merely channel loading. Sustained volume and market traction can support operating leverage, production investment, and more consistent revenue over the next several quarters.
Negative Factors
Margin Compression and Earnings Volatility
The sharp decline in gross margin and recent annual loss demonstrate that Ruger’s earnings power remains below its prior cycle and is sensitive to pricing, product mix, and cost conditions. Even with a recent recovery, persistently thin profitability could limit cash available for expansion and returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth and Demand
Recent double-digit sales growth, supported by distributor sell-through rising 19% year over year, indicates healthy underlying demand rather than merely channel loading. Sustained volume and market traction can support operating leverage, production investment, and more consistent revenue over the next several quarters.
Read all positive factors
Sturm Ruger & Company (RGR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$691.22M
Dividend Yield1.02%
Average Volume (3M)214.21K
Price to Earnings (P/E)56.8
Beta (1Y)0.35
Revenue Growth7.64%
EPS Growth138.23%
CountryUS
Employees1,780
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.77
Shares Outstanding15,978,256
10 Day Avg. Volume256,792
30 Day Avg. Volume214,205
Financial Highlights & Ratios
PEG Ratio1.05
Price to Book (P/B)1.87
Price to Sales (P/S)0.97
P/FCF Ratio13.78
Enterprise Value/Market Cap0.73
Enterprise Value/Revenue0.88
Enterprise Value/Gross Profit4.70
Enterprise Value/Ebitda14.83
Forecast
1Y Price Target
$46.00Price Target Upside19.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.6
Revenue Forecast (FY)$583.71M
Sturm Ruger & Company Business Overview & Revenue Model
Company Description
Sturm, Ruger & Company, Inc., including its affiliated entities, is engaged in the development, production, and distribution of firearms under the Ruger brand, primarily within the United States. The company's business activities are structured in...
How the Company Makes Money
Ruger makes money primarily by selling newly manufactured firearms. Its core revenue model is product sales: it designs and produces firearms (notably rifles, pistols, and revolvers) and sells them mainly to independent wholesale distributors, who...
Sturm Ruger & Company Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed strong financial and operational progress: double-digit revenue growth, improved margins, a clear earnings turnaround, robust cash generation, solid liquidity, and the formal rollout of the Ruger Business System to drive consistency. Headwinds were operational (backorders, prior production disruptions), short-term delays to some product launches, and ongoing portfolio rationalization. Overall the positives—particularly revenue growth, margin expansion, cash flow improvement, and improved manufacturing execution—outweigh the lowlights.Positive Updates
Strong Revenue Growth
Net sales of $158 million in Q2, a 19% increase year-over-year; year-to-date net sales of $299 million, up 12% versus prior year.
Negative Updates
Production Constraints and Backorders
Production constraints in Q1 (including facility disruptions from snowstorms) limited ability to fully meet demand; management reported units on back order rose materially and some launches were delayed to prioritize fulfillment of existing demand.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Net sales of $158 million in Q2, a 19% increase year-over-year; year-to-date net sales of $299 million, up 12% versus prior year.
Read all positive updates
Company Guidance
The company reiterated its 2026 guidance to prioritize investing in the business—targeting approximately $30 million of capital expenditures for the year (YTD $8M) with much of the spending back‑loaded into Q3/Q4 to expand capacity, pilot mini‑cells and improve efficiency—while maintaining a strong liquidity and capital allocation stance (cash and short‑term investments $118M as of 6/27/26, current ratio 3.3:1, no debt) and continuing shareholder returns (Q2 dividend $0.21/share; $3M returned YTD). Management highlighted operational goals to improve profitability (focus on direct material cost, insourcing, premiumization), increase output and shifts where needed, and pursue M&A or buybacks only after investing in the business. Key reported metrics supporting the outlook included Q2 net sales of $158M (+19% YoY), adjusted EBITDA margin of 10.5%, GAAP diluted earnings $0.43/share (adjusted $0.52 vs $0.41 prior year), cash from operations >$17M in Q2 and $36M YTD (+39%), YTD net sales $299M (+12%), new product sales $81M (29% of firearm sales), distributor sell‑through +19% YoY versus adjusted NICS ~+5% YoY—trends the company said underpin confidence heading into the fall season.Sturm Ruger & Company Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
90
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 577.24M | 546.06M | 535.64M | 543.77M | 595.84M | 730.74M |
| Gross Profit | 107.93M | 89.55M | 114.42M | 133.62M | 180.09M | 279.56M |
| EBITDA | 34.23M | 15.80M | 59.94M | 81.41M | 134.32M | 232.91M |
| Net Income | 12.18M | -4.39M | 30.56M | 48.22M | 88.33M | 155.90M |
Balance Sheet | ||||||
| Total Assets | 364.29M | 342.00M | 384.03M | 398.82M | 484.76M | 442.34M |
| Cash, Cash Equivalents and Short-Term Investments | 117.46M | 92.53M | 105.48M | 117.66M | 224.31M | 221.01M |
| Total Debt | 1.49M | 1.80M | 1.75M | 2.17M | 3.04M | 1.48M |
| Total Liabilities | 74.49M | 58.24M | 64.45M | 67.10M | 168.03M | 78.68M |
| Stockholders Equity | 289.79M | 283.76M | 319.58M | 331.72M | 316.74M | 363.66M |
Cash Flow | ||||||
| Free Cash Flow | 44.93M | 38.46M | 34.68M | 18.11M | 49.50M | 143.56M |
| Operating Cash Flow | 62.09M | 54.31M | 55.50M | 33.90M | 77.23M | 172.34M |
| Investing Cash Flow | -40.90M | -9.48M | -13.79M | 40.86M | 13.21M | -107.54M |
| Financing Cash Flow | -16.23M | -36.40M | -46.86M | -124.76M | -46.31M | -63.91M |
Sturm Ruger & Company Technical Analysis
Positive
38.39
Price Trends
39.44
Positive
38.98
Positive
38.66
Positive
Market Momentum
1.38
Negative
63.36
Neutral
58.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RGR, the sentiment is Positive. The current price of 38.39 is below the 20-day moving average (MA) of 41.84, below the 50-day MA of 39.44, and below the 200-day MA of 38.66, indicating a bullish trend. The MACD of 1.38 indicates Negative momentum. The RSI at 63.36 is Neutral, neither overbought nor oversold. The STOCH value of 58.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RGR.
Sturm Ruger & Company Risk Analysis
Sturm Ruger & Company disclosed 20 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 0 New Risks
Sturm Ruger & Company Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $258.82M | 87.25 | 2.43% | ― | ― | ― | |
65 Neutral | $626.86M | 25.63 | 6.63% | 3.72% | 16.96% | 100.15% | |
64 Neutral | $691.22M | 56.84 | 4.29% | 1.02% | 7.64% | 138.23% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $105.79M | -11.78 | -14.46% | ― | -13.42% | -154.73% | |
57 Neutral | $70.36M | 18.21 | 0.06% | 4.00% | 0.81% | -24.92% |
* Industrials Sector Average
RGR
Sturm Ruger & Company
43.26
-2.54
-5.54%
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Sturm Ruger & Company Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Sturm Ruger Ends Shareholder Rights Plan After Beretta Deal
Positive
Sep 16, 2026
On September 16, 2026, Sturm Ruger Company and its rights agent Computershare Trust Company amended the firm’s shareholder rights plan, accelerating its expiration from October 13, 2026 to September 16, 2026. As a result, the rights agreeme...
Business Operations and StrategyDividendsFinancial Disclosures
Sturm Ruger Delivers Strong Q2 Growth and Profitability
Positive
Jul 31, 2026
On July 29, 2026, Sturm, Ruger Company reported that its second quarter 2026 marked another step in executing its 2026 plan, with net sales rising 19% year over year to $158 million and adjusted EBITDA margin expanding to 10.5%. The company retur...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.