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Sturm Ruger & Company (RGR)
NYSE:RGR
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Sturm Ruger & Company
(NYSE:RGR)
70Outperform
Sturm Ruger & Company (RGR) vs. S&P 500 (SPY)
Market Cap
$657.56M
Dividend Yield1.76%
Average Volume (3M)136.67K
Price to Earnings (P/E)22.4
Beta (1Y)-0.13
Revenue Growth-1.49%
EPS Growth-34.38%
CountryUS
Employees1,880
SectorIndustrials
Sector Strength66
IndustryAerospace & Defense
Share Statistics
EPS (TTM)1.77
Shares Outstanding16,554,962
10 Day Avg. Volume129,210
30 Day Avg. Volume136,673
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.23
Price to Cash Flow (P/CF)8.30
P/FCF Ratio10.10
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 Upside14.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Sturm Ruger & Company Business Overview & Revenue Model
Company DescriptionSturm, 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-shot, autoloading, bolt-action, and sporting rifles; rimfire and centerfire autoloading pistols; single-action and double-action revolvers; and firearms accessories and replacement parts, as well as manufactures lever-action rifles under the Marlin name and trademark. 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.
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 Financial Statement Overview
Summary
Sturm Ruger & Company exhibits strengths in maintaining low leverage and generating consistent free cash flow, although declining revenues and margins pose challenges. The balance sheet remains strong with zero debt, yet profitability metrics have weakened. Overall, the company demonstrates financial stability but faces growth and profitability hurdles.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 | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 535.64M | 543.77M | 595.84M | 730.74M | 568.87M | Gross Profit |
| 114.42M | 133.62M | 180.09M | 279.56M | 191.44M | EBIT |
| 31.65M | 52.08M | 103.46M | 203.14M | 119.15M | EBITDA |
| 59.94M | 81.41M | 134.32M | 232.91M | 148.75M | Net Income Common Stockholders |
| 30.56M | 48.22M | 88.33M | 155.90M | 90.40M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 105.48M | 117.66M | 224.31M | 221.01M | 141.15M | Total Assets |
| 384.03M | 398.82M | 484.76M | 442.34M | 348.26M | Total Debt |
| 1.75M | 2.17M | 3.04M | 1.48M | 1.72M | Net Debt |
| -8.28M | -13.00M | -62.13M | -19.57M | -18.42M | Total Liabilities |
| 64.45M | 67.10M | 168.03M | 78.68M | 83.56M | Stockholders Equity |
| 319.58M | 331.72M | 316.74M | 363.66M | 264.70M |
| Cash Flow | Free Cash Flow | |||
| 34.68M | 18.11M | 49.50M | 143.56M | 119.58M | Operating Cash Flow |
| 55.50M | 33.90M | 77.23M | 172.34M | 143.81M | Investing Cash Flow |
| -13.79M | 40.86M | 13.21M | -107.54M | -43.89M | Financing Cash Flow |
| -46.86M | -124.76M | -46.31M | -63.91M | -115.19M |
Sturm Ruger & Company Technical Analysis
Positive
40.27
Price Trends
38.95
Positive
37.33
Positive
39.21
Positive
Market Momentum
0.22
Negative
63.17
Neutral
97.62
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 40.27 is above the 20-day moving average (MA) of 38.98, above the 50-day MA of 38.95, and above the 200-day MA of 39.21, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 63.17 is Neutral, neither overbought nor oversold. The STOCH value of 97.62 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 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 0 New Risks
Sturm Ruger & Company Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $657.56M | 22.44 | 9.39% | 1.76% | -1.49% | -34.38% | |
63 Neutral | $4.14B | 11.23 | 5.47% | 215.40% | 4.10% | -8.63% | |
62 Neutral | $424.41M | 14.84 | 8.05% | 5.39% | -5.77% | 14.45% | |
49 Neutral | $213.76M | ― | -4.37% | ― | -14.06% | -102.73% |
* Industrials Sector Average
Performance Comparison
RGR
Sturm Ruger & Company
39.95
-5.50
-12.10%
SWBI
Smith & Wesson Brands
9.57
-6.58
-40.74%
POWW
AMMO
1.86
-0.67
-26.48%
Sturm Ruger & Company Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: 14.24% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant achievements in new product launches and strong quarterly performance, but faced challenges with declining annual financial metrics and gross margins. The company's debt-free balance sheet and proactive shareholder returns are positive indicators, yet there are concerns about consumer demand and market conditions.Highlights
New Product Launch Success
The RXM 9mm pistol, launched in December 2024, was a significant success due to a strategic launch plan with preorders and collaboration with Magpul Industries.
Increased Q4 2024 Financial Performance
Q4 2024 net sales were $146 million, a 19% increase from the previous quarter, and diluted earnings per share increased from $0.58 to $0.62.
Strong Cash Position
As of December 31, 2024, the company had $105 million in cash and short-term investments, with a strong current ratio of 4.2 to 1 and no debt.
75th Anniversary Celebrations and New Product Introductions
Celebrated 75th anniversary with events and launched new products, including American Rifle Generation 2, Marlin models, and 75th anniversary commemorative models, contributing to $159 million in new product sales.
Shareholder Returns
Returned $46 million to shareholders in 2024 through dividends and share repurchases, maintaining a variable dividend strategy.
Lowlights
Decline in Annual Financial Metrics
2024 net sales decreased to $536 million from $544 million in 2023, and diluted earnings per share decreased from $2.71 to $1.77.
Decreased Gross Margin
Gross margin declined from 25% in 2023 to 21% in 2024 due to inflationary cost pressures, unfavorable deleveraging of fixed costs, and a shift in product mix.
Decreased Consumer Demand Indicators
Adjusted NICS background checks decreased, indicating a potential decline in consumer purchase activity.
Company Guidance
During the Q4 2024 earnings call, Sturm, Ruger & Company, Inc. provided detailed financial guidance and metrics. The company reported net sales of $536 million for 2024, with diluted earnings of $1.77 per share, a decline from 2023’s net sales of $544 million and diluted earnings of $2.71 per share. The gross margin decreased from 25% to 21%, primarily due to unfavorable deleveraging of fixed costs, inflationary pressures, and a shift in product mix towards lower-margin products. In Q4 2024, net sales were $146 million, and diluted earnings were $0.62 per share, showing improvement from Q4 2023's $131 million in net sales and $0.58 per share in earnings. The company ended 2024 with $105 million in cash and short-term investments, and a current ratio of 4.2 to 1, maintaining a debt-free balance sheet. Capital expenditures in 2024 were $21 million, with $20 million expected for 2025. The company returned $46 million to shareholders through dividends and the repurchase of 835,000 shares at an average price of $41.19. The board declared a $0.24 per share quarterly dividend for March 2025. New product sales were significant, totaling $159 million or 32% of firearm sales, driven by successful launches such as the RXM 9mm pistol and American Rifle Generation 2. The company’s strategy remains focused on maintaining a strong balance sheet, disciplined pricing, and capitalizing on market opportunities.Sturm Ruger & Company Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Sturm Ruger & Company Announces Leadership Transition
Neutral
Feb 24, 2025
Sturm, Ruger & Company announced a leadership transition with CEO Christopher J. Killoy set to resign on March 1, 2025, and transition to a Special Advisor role until 2028. Todd W. Seyfert will succeed Killoy as CEO, bringing experience from his previous roles at Dometic Group AB and FeraDyne Outdoors, LLC. Additionally, Kevin B. Reid, Sr. will resign as Vice President, General Counsel, and Corporate Secretary on June 30, 2025, and continue as Senior Counsel until his retirement in 2026. These changes are part of a strategic leadership transition aimed at ensuring continuity and leveraging new expertise for the company’s future growth.
Business Operations and StrategyFinancial Disclosures
Sturm Ruger Discusses 2024 Financial Results and Future Plans
Neutral
Feb 21, 2025
On February 20, 2025, Sturm Ruger & Company held a conference call to discuss its financial results for 2024, revealing a decline in profitability due to decreased production and sales, as well as inflationary pressures. Despite these challenges, the company celebrated its 75th anniversary in 2024 with new product launches that contributed significantly to sales, positioning it for continued growth in 2025 with a strong balance sheet and new leadership in place.
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.