NYSE:RGR

Stock Analysis Report

Executive Summary

Sturm, Ruger & Company, Inc., together with its subsidiaries, designs, manufactures, and sells firearms under the Ruger name and trademark in the United States.


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has Sturm Ruger's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RGR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.9%

RGR

3.3%

US Leisure

-1.1%

US Market


1 Year Return

-6.1%

RGR

-29.2%

US Leisure

-13.6%

US Market

Return vs Industry: RGR exceeded the US Leisure industry which returned -25.7% over the past year.

Return vs Market: RGR exceeded the US Market which returned -10.7% over the past year.


Shareholder returns

RGRIndustryMarket
7 Day4.9%3.3%-1.1%
30 Day1.0%-14.4%-17.8%
90 Day6.2%-33.4%-22.5%
1 Year-4.6%-6.1%-28.0%-29.2%-11.9%-13.6%
3 Year-5.5%-10.7%-35.3%-38.5%12.1%4.9%
5 Year17.5%5.4%-33.8%-40.1%30.5%16.3%

Price Volatility Vs. Market

How volatile is Sturm Ruger's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sturm Ruger undervalued compared to its fair value and its price relative to the market?

27.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RGR ($50.91) is trading above our estimate of fair value ($15.91)

Significantly Below Fair Value: RGR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RGR is poor value based on its PE Ratio (27.5x) compared to the Leisure industry average (12.1x).

PE vs Market: RGR is poor value based on its PE Ratio (27.5x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RGR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RGR is overvalued based on its PB Ratio (3.1x) compared to the US Leisure industry average (2.1x).


Next Steps

Future Growth

How is Sturm Ruger forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

7.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if RGR's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if RGR's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RGR's revenue (7.7% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: RGR's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RGR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Sturm Ruger performed over the past 5 years?

-2.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RGR has high quality earnings.

Growing Profit Margin: RGR's current net profit margins (7.9%) are lower than last year (10.3%).


Past Earnings Growth Analysis

Earnings Trend: RGR's earnings have declined by -2.2% per year over the past 5 years.

Accelerating Growth: RGR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RGR had negative earnings growth (-36.6%) over the past year, making it difficult to compare to the Leisure industry average (-3.4%).


Return on Equity

High ROE: RGR's Return on Equity (11.3%) is considered low.


Next Steps

Financial Health

How is Sturm Ruger's financial position?


Financial Position Analysis

Short Term Liabilities: RGR's short term assets ($249.3M) exceed its short term liabilities ($61.2M).

Long Term Liabilities: RGR's short term assets ($249.3M) exceed its long term liabilities ($2.3M).


Debt to Equity History and Analysis

Debt Level: RGR is debt free.

Reducing Debt: RGR has not had any debt for past 5 years.

Debt Coverage: RGR has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: RGR has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: RGR has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if RGR's debt is covered by short term assets.


Next Steps

Dividend

What is Sturm Ruger's current dividend yield, its reliability and sustainability?

1.43%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RGR's dividend (1.41%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: RGR's dividend (1.41%) is low compared to the top 25% of dividend payers in the US market (5.37%).


Stability and Growth of Payments

Stable Dividend: RGR's dividend payments have been volatile in the past 10 years.

Growing Dividend: RGR's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.9%), RGR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RGR's dividends in 3 years are forecast to be well covered by earnings (38.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Chris Killoy (60yo)

2.92s

Tenure

US$2,118,508

Compensation

Mr. Christopher J. Killoy, also known as Chris, has been Chief Executive Officer of Sturm, Ruger & Co. Inc., since May 09, 2017. Mr. Killoy has been President of Sturm, Ruger & Co. Inc. since January 1, 20 ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD2.12M) is below average for companies of similar size in the US market ($USD3.17M).

Compensation vs Earnings: Chris's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Killoy
President2.92yrsUS$2.12m0.19% $1.6m
Thomas Dineen
Senior VP16.92yrsUS$1.13m0.37% $3.2m
Thomas Sullivan
Senior Vice President of Operations2.75yrsUS$1.14m0.21% $1.9m
Kevin Reid
VP, General Counsel & Corporate Secretary12yrsUS$868.53k0.25% $2.2m
Shawn Leska
Vice President of Sales4.42yrsUS$775.68k0.024% $209.8k
Sarah Colbert
Vice President of Administration2.83yrsno data0.010% $91.9k
Robert Werkmeister
Vice President of Marketing2.83yrsno data0.094% $826.4k
Patricia Shepard
Associate General Counselno datano datano data

2.9yrs

Average Tenure

58yo

Average Age

Experienced Management: RGR's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christopher Killoy
President2.92yrsUS$2.12m0.19% $1.6m
John Cosentino
Lead Vice Chairman & Lead Director10yrsUS$214.78k0.097% $855.8k
Michael Fifer
Vice Chairman of the Board13.5yrsUS$170.73k0.84% $7.4m
Ronald Whitaker
Independent Chairman of the Boardno dataUS$164.47k0.15% $1.3m
Charles Jacobi
Independent Director13.83yrsUS$224.84k0.19% $1.6m
Amir Rosenthal
Independent Director10.25yrsUS$194.66k0.089% $782.0k
Phillip Widman
Independent Director10.25yrsUS$169.50k0.26% $2.3m
Terrence O'Connor
Independent Director5.58yrsUS$164.47k0.035% $312.6k
Sandra Froman
Independent Director4.33yrsUS$151.39k0.050% $444.3k

10.1yrs

Average Tenure

64yo

Average Age

Experienced Board: RGR's board of directors are seasoned and experienced ( 10.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RGR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sturm, Ruger & Company, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sturm, Ruger & Company, Inc.
  • Ticker: RGR
  • Exchange: NYSE
  • Founded: 1949
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: US$881.675m
  • Shares outstanding: 17.45m
  • Website: https://www.ruger.com

Number of Employees


Location

  • Sturm, Ruger & Company, Inc.
  • 1 Lacey Place
  • Southport
  • Connecticut
  • 6890
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RGRNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1980
ST2DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1980
ST2BRSE (Berne Stock Exchange)YesCommon StockCHCHFJan 1980

Biography

Sturm, Ruger & Company, Inc., together with its subsidiaries, designs, manufactures, and sells firearms under the Ruger name and trademark in the United States. It operates in two segments, Firearms and Castings. The company provides single-shot, autoloading, bolt-action, and sporting rifles; rimfire and centerfire autoloading pistols; single-action and double-action revolvers; and firearms accessories and replacement parts. The company also manufactures and sells steel investment castings and metal injection molding (MIM) parts. It sells its firearm products through independent wholesale distributors principally to the commercial sporting market; and castings and MIM parts directly or through manufacturers’ representatives. The company also exports its firearm products through a network of commercial distributors and directly to foreign customers comprising primarily of law enforcement agencies and foreign governments. Sturm, Ruger & Company, Inc. was founded in 1949 and is based in Southport, Connecticut. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 02:20
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.