NYSE:RGR

Stock Analysis Report

Executive Summary

Sturm, Ruger & Company, Inc. 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

5.1%

RGR

4.8%

US Leisure

1.1%

US Market


1 Year Return

-12.5%

RGR

14.5%

US Leisure

17.8%

US Market

Return vs Industry: RGR underperformed the US Leisure industry which returned 14.5% over the past year.

Return vs Market: RGR underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

RGRIndustryMarket
7 Day5.1%4.8%1.1%
30 Day3.0%8.7%1.4%
90 Day3.3%-0.6%3.9%
1 Year-11.1%-12.5%16.5%14.5%20.3%17.8%
3 Year-4.8%-10.4%-3.9%-8.7%44.8%35.4%
5 Year51.4%35.9%12.5%0.3%71.3%52.4%

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?

22.26x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RGR ($46.37) is trading above our estimate of fair value ($17.2)

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 (22.3x) compared to the Leisure industry average (20.6x).

PE vs Market: RGR is poor value based on its PE Ratio (22.3x) compared to the US market (18.4x).


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 (2.9x) compared to the US Leisure industry average (2.6x).


Next Steps

Future Growth

How is Sturm Ruger forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

30.2%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Sturm Ruger has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Sturm Ruger performed over the past 5 years?

-2.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RGR has high quality earnings.

Growing Profit Margin: RGR's current net profit margins (8.5%) are lower than last year (9.9%).


Past Earnings Growth Analysis

Earnings Trend: RGR's earnings have declined by -2.4% 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 (-25.8%) over the past year, making it difficult to compare to the Leisure industry average (3.7%).


Return on Equity

High ROE: RGR's Return on Equity (13.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sturm Ruger's financial position?


Financial Position Analysis

Short Term Liabilities: RGR's short term assets ($229.9M) exceed its short term liabilities ($48.7M).

Long Term Liabilities: RGR's short term assets ($229.9M) exceed its long term liabilities ($2.2M).


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?

2.48%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: RGR's dividend (2.48%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: RGR's dividend (2.48%) is low compared to the top 25% of dividend payers in the US market (3.67%).


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 (39.4%), RGR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Sturm Ruger's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

Chris Killoy (60yo)

2.6yrs

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 ($USD2.12M) is about average for companies of similar size in the US market ($USD2.64M).

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


Management Age and Tenure

2.6yrs

Average Tenure

58yo

Average Age

Experienced Management: RGR's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

9.7yrs

Average Tenure

64yo

Average Age

Experienced Board: RGR's board of directors are considered experienced (9.7 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$69,42006 Nov 19
Shawn Leska
EntityIndividual
Role
Head of Sales
Vice President of Sales
Shares1,500
Max PriceUS$46.28
BuyUS$12,75012 Aug 19
Sandra Froman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares300
Max PriceUS$42.50
BuyUS$666,45009 Aug 19
Charles Jacobi
EntityIndividual
Role
Chairman of the Board
Chairman
Shares15,000
Max PriceUS$44.43
BuyUS$8,88609 Aug 19
Sandra Froman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares200
Max PriceUS$44.43

Ownership Breakdown

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


Management Team

  • Thomas Dineen (50yo)

    Senior VP

    • Tenure: 16.6yrs
    • Compensation: US$1.13m
  • Chris Killoy (60yo)

    President

    • Tenure: 2.6yrs
    • Compensation: US$2.12m
  • Tom Sullivan (58yo)

    Senior Vice President of Operations

    • Tenure: 2.4yrs
    • Compensation: US$1.14m
  • Kevin Reid (58yo)

    VP, General Counsel & Corporate Secretary

    • Tenure: 11.7yrs
    • Compensation: US$868.53k
  • Shawn Leska (47yo)

    Vice President of Sales

    • Tenure: 4.1yrs
    • Compensation: US$775.68k
  • Sarah Colbert

    Vice President of Administration

    • Tenure: 2.5yrs
  • Rob Werkmeister

    Vice President of Marketing

    • Tenure: 2.5yrs
  • Patricia Shepard

    Associate General Counsel

    • Tenure: 0yrs

Board Members

  • John Cosentino (69yo)

    Lead Vice Chairman & Lead Director

    • Tenure: 9.7yrs
    • Compensation: US$214.78k
  • Mike Fifer (61yo)

    Director

    • Tenure: 13.2yrs
    • Compensation: US$170.73k
  • Ronald Whitaker (72yo)

    Independent Director

    • Tenure: 13.5yrs
    • Compensation: US$164.47k
  • Charles Jacobi (77yo)

    Chairman

    • Tenure: 9.7yrs
    • Compensation: US$224.84k
  • Amir Rosenthal (57yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$194.66k
  • Phil Widman (64yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$169.50k
  • Chris Killoy (60yo)

    President

    • Tenure: 2.6yrs
    • Compensation: US$2.12m
  • Terry O'Connor (63yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$164.47k
  • Sandy Froman (69yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$151.39k

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$809.059m
  • Shares outstanding: 17.45m
  • Website: https://www.ruger.com

Number of Employees


Location

  • Sturm, Ruger & Company, Inc.
  • One 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

Biography

Sturm, Ruger & Company, Inc. designs, manufactures, and sells firearms under the Ruger name and trademark in the United States. It operates in two segments, Firearms and Castings. It offers single-shot, au ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 23:54
End of Day Share Price2019/12/10 00:00
Earnings2019/09/28
Annual Earnings2018/12/31


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.