Sturm Ruger & Company (RGR)
NYSE:RGR
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Sturm Ruger & Company
(NYSE:RGR)
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Rating:56Neutral
Price Target:
$40.00
▼(-5.24% Downside)
Action:ReiteratedDate:05/09/26
The score is held back primarily by weak current profitability (losses and margin compression) and bearish technical momentum, plus an extremely high P/E. Offsetting factors include a very strong, low-debt balance sheet, positive cash generation, and an earnings-call backdrop pointing to improving demand/backlog and easing one-time cost headwinds.
Positive Factors
Low leverage / strong balance sheet
Ruger’s minimal leverage and sizable equity position give it durable financial flexibility. A strong balance sheet supports ongoing dividends, the planned $30M capex program, capacity investments under Ruger2030, and the ability to absorb cyclical downturns or short-term operational disruptions without needing external financing.
Negative Factors
Weak profitability
The company has swung from attractive profits in prior upcycles to TTM losses and materially compressed margins. Sustained weak profitability would erode returns on equity, limit reinvestment capacity, strain dividend coverage, and require structural cost or pricing improvements to restore durable earnings power.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
Ruger’s minimal leverage and sizable equity position give it durable financial flexibility. A strong balance sheet supports ongoing dividends, the planned $30M capex program, capacity investments under Ruger2030, and the ability to absorb cyclical downturns or short-term operational disruptions without needing external financing.
Read all positive factors
Sturm Ruger & Company (RGR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$622.46M
Dividend Yield1.92%
Average Volume (3M)176.75K
Price to Earnings (P/E)1271.6
Beta (1Y)0.30
Revenue Growth3.20%
EPS Growth-139.32%
CountryUS
Employees1,880
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)-0.72
Shares Outstanding15,944,253
10 Day Avg. Volume128,813
30 Day Avg. Volume176,749
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 Cap0.96
Enterprise Value/Revenue1.09
Enterprise Value/Gross Profit7.57
Enterprise Value/Ebitda-405.93
Forecast
1Y Price Target
$46.00Price Target Upside8.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.9
Revenue Forecast (FY)$553.50M
Sturm Ruger & Company Business Overview & Revenue Model
Company Description
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 through two segments, Firearms and Castings. The company provides single-s...
How the Company Makes Money
Ruger primarily makes money by manufacturing and selling firearms. Its revenue is generated mainly from the sale of finished firearms—principally rifles, pistols, and revolvers—into the commercial sporting market. The company typically sells produ...
Sturm Ruger & Company Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call portrayed solid underlying demand and improving operational momentum — highlighted by consecutive quarters of sales growth, a 28% increase in units ordered, a 20% larger backlog, and new products contributing 41% of firearm sales. The balance sheet and cash generation are healthy, and strategic developments (new CFO hire and cooperation with Beretta Holding) provide stability. However, near-term profitability was pressured by roughly $7.4 million of one-time charges and weather-related production shortfalls (~30,000 units), driving GAAP EPS down sharply to $0.01. Management expects most one-time costs to subside quickly and is focused on recovering production and rebuilding inventories.Positive Updates
Revenue Growth
Net sales increased 4% year-over-year to $141.0 million from $136.0 million, marking the fourth consecutive quarter of year-over-year top-line growth.
Negative Updates
Sharp GAAP EPS Decline
Reported diluted earnings of $0.01 per share vs $0.46 per share in Q1 2025 — an approximate 98% decline — driven in part by nonrecurring items and disruptions.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Net sales increased 4% year-over-year to $141.0 million from $136.0 million, marking the fourth consecutive quarter of year-over-year top-line growth.
Read all positive updates
Company Guidance
Management's guidance and priorities were clear and metric-driven: Q1 produced $141M in net sales (up 4% from $136M), $19M cash from operations, $5M of year‑to‑date capex with a full‑year capex plan of $30M, $105M in cash and short‑term investments (3/28/26), a 3.5:1 current ratio and no debt; diluted EPS was $0.01 (vs $0.46 prior year) and adjusted diluted EPS was $0.27 after excluding roughly $3.2M for the Beretta agreement, $2.5M for a February reduction in force and $1.7M of retention accruals, and the company returned $1.3M in dividends and declared a $0.11/share quarter dividend (~40% of net income). They reiterated that Q1 was the fourth consecutive quarter of year‑over‑year sales growth, noted sales outpaced the market (Ruger +3.2% vs adjusted NICS +1.6%), units ordered rose 28% to 525,000 (from 410,000), backlog grew 20% to $330M (from $275M), new products generated $51.6M or 41% of firearm sales, and a roughly 30,000‑unit production shortfall from severe weather must be recovered; near‑term priorities are to run off remaining one‑time costs (majority expected to wind down by end of May), recover production shortfalls, rebuild internal and distributor inventories, and meaningfully expand accessory offerings.Sturm Ruger & Company Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
88
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 551.67M | 546.06M | 535.64M | 543.77M | 595.84M | 730.74M |
| Gross Profit | 79.33M | 89.55M | 114.42M | 133.62M | 180.09M | 279.56M |
| EBITDA | -1.48M | 11.26M | 59.94M | 81.41M | 134.32M | 232.91M |
| Net Income | -12.03M | -4.39M | 30.56M | 48.22M | 88.33M | 155.90M |
Balance Sheet | ||||||
| Total Assets | 349.11M | 342.00M | 384.03M | 398.82M | 484.76M | 442.34M |
| Cash, Cash Equivalents and Short-Term Investments | 105.17M | 92.53M | 105.48M | 117.66M | 224.31M | 221.01M |
| Total Debt | 1.65M | 1.80M | 1.75M | 2.17M | 3.04M | 1.48M |
| Total Liabilities | 65.81M | 58.24M | 64.45M | 67.10M | 168.03M | 78.68M |
| Stockholders Equity | 283.30M | 283.76M | 319.58M | 331.72M | 316.74M | 363.66M |
Cash Flow | ||||||
| Free Cash Flow | 42.40M | 38.46M | 34.68M | 18.11M | 49.50M | 143.56M |
| Operating Cash Flow | 61.91M | 54.31M | 55.50M | 33.90M | 77.23M | 172.34M |
| Investing Cash Flow | -23.78M | -9.48M | -13.79M | 40.86M | 13.21M | -107.54M |
| Financing Cash Flow | -30.56M | -36.40M | -46.86M | -124.76M | -46.31M | -63.91M |
Sturm Ruger & Company Technical Analysis
Positive
42.21
Price Trends
39.24
Positive
36.65
Positive
37.17
Positive
Market Momentum
0.84
Negative
62.07
Neutral
88.46
Negative
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 42.21 is above the 20-day moving average (MA) of 41.14, above the 50-day MA of 39.24, and above the 200-day MA of 37.17, indicating a bullish trend. The MACD of 0.84 indicates Negative momentum. The RSI at 62.07 is Neutral, neither overbought nor oversold. The STOCH value of 88.46 is Negative, 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 |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $646.94M | 32.29 | 3.28% | 5.10% | -1.05% | -58.70% | |
57 Neutral | $236.92M | 22.47 | -35.04% | ― | ― | ― | |
56 Neutral | $622.46M | 1,271.58 | -4.24% | 1.92% | 3.20% | -139.32% | |
51 Neutral | $120.91M | 90.42 | 13.82% | ― | 26.96% | -39.19% |
* Industrials Sector Average
RGR
Sturm Ruger & Company
39.04
3.12
8.67%
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14.54
5.34
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Sturm Ruger & Company Corporate Events
Business Operations and StrategyExecutive/Board ChangesDividendsFinancial Disclosures
Sturm Ruger Reports Mixed Q1 Results, Raises Backlog
Neutral
May 8, 2026
On May 6, 2026, Sturm, Ruger Company reported first-quarter 2026 results showing 4% net sales growth to $141 million, but a sharp decline in diluted earnings to $0.01 per share, or $0.27 on an adjusted basis, as nonrecurring expenses and weather-...
Dividends
Sturm Ruger Announces Quarterly Dividend After Early NYSE Leak
Positive
May 4, 2026
On May 4, 2026, Sturm, Ruger Company, Inc. announced that its board of directors had authorized and declared a cash dividend of 11 cents per share for stockholders of record as of May 14, 2026, payable on May 29, 2026. The dividend declaration be...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Sturm Ruger, Beretta Forge Long-Term Governance Partnership
Positive
May 4, 2026
On May 2, 2026, Sturm, Ruger Co. and its largest shareholder Beretta Holding S.A. signed a strategic cooperation agreement that reshapes governance, ownership limits and voting arrangements at the U.S. gunmaker. Beretta withdrew its rival board s...
Business Operations and StrategyExecutive/Board Changes
Sturm Ruger Appoints Andrew Wieland as New CFO
Positive
Mar 27, 2026
Sturm, Ruger Co., Inc. announced a planned leadership transition in its finance organization, with long-serving Chief Financial Officer Tom Dineen stepping down from his role on March 31, 2026, and remaining with the company until April 30, 2026 ...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Sturm Ruger Launches Proxy Site to Boost Engagement
Positive
Mar 24, 2026
On March 24, 2026, Sturm, Ruger Co., Inc. launched ruger.com/proxy2026, a dedicated website for materials related to its 2026 Annual Meeting of Shareholders, highlighting a recently refreshed board with five new directors added over the past year...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Sturm Ruger Challenges Beretta’s Board Nomination, Defends Independence
Negative
Mar 9, 2026
On February 24, 2026, Sturm, Ruger Co. disclosed that competitor Beretta Holding intends to nominate four directors to Ruger’s board at the 2026 annual meeting, prompting Ruger on March 9, 2026, to publicly rebut what it calls Beretta’...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Sturm Ruger Outlines 2026 Strategy After Tough 2025
Neutral
Mar 4, 2026
Sturm, Ruger Company reported that 2025 was a difficult year for the firearms and broader consumer durables industries, but the company managed modest top-line growth and market share gains, with estimated sell-through up 4.5% despite a 4.1% decl...
Executive/Board Changes
Sturm Ruger Refreshes Board With Three Independent Directors
Neutral
Feb 23, 2026
On February 22, 2026, long-serving directors Sandra Froman, Christopher Killoy, and Rebecca Halstead retired from the Board of Sturm, Ruger Company, Inc., with the company noting their departures were not due to any disagreements over operations,...
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.