Sturm Ruger & Company (RGR) AI Stock Analysis

• Market Cap: $509.26M
• Dividend Yield: 1.94%
• Average Volume (3M): 282.57K
• Price to Earnings (P/E): 246.8
• Beta (1Y): 0.33
• Revenue Growth: 3.90%
• EPS Growth: -92.10%
• Country: US
• Employees: 1,880
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.11
• Shares Outstanding: 15,944,253
• 10 Day Avg. Volume: 326,189
• 30 Day Avg. Volume: 282,567
• PEG Ratio: -0.59
• Price to Book (P/B): 1.89
• Price to Sales (P/S): 1.13
• P/FCF Ratio: 17.43
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 1.17
• Enterprise Value/Gross Profit: 7.22
• Enterprise Value/Ebitda: 38.65
• 1Y Price Target: $41.00
• Price Target Upside: 28.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: $34.00 ▲(6.45% Upside)

Sturm Ruger & Company's overall stock score reflects a balance of financial stability and strategic initiatives against challenges in profitability and valuation. The company's low leverage and cash generation are positive, but declining margins and high P/E ratio are significant concerns. The earnings call provided a mixed outlook with both achievements and challenges.

Positive Factors

Strong Cash Position

A strong cash position and no debt provide financial flexibility and stability, allowing the company to invest in growth opportunities and weather economic downturns.

Product Innovation

Continued focus on product innovation helps maintain competitive advantage and drives revenue growth by meeting evolving consumer demands.

Strategic Capital Allocation

Returning capital to shareholders demonstrates financial health and commitment to enhancing shareholder value, reinforcing investor confidence.

Negative Factors

Declining Profitability Margins

Declining profitability margins indicate challenges in cost management and pricing power, potentially impacting long-term financial performance.

Market Headwinds

Market headwinds can limit growth opportunities and pressure sales, requiring strategic adjustments to sustain performance in a challenging environment.

Removal from S&P 600

Removal from the S&P 600 may reduce visibility and attractiveness to investors, potentially impacting stock liquidity and institutional interest.

Sturm Ruger & Company Business Overview & Revenue Model

Company Description

Sturm Ruger & Company, Inc. is a leading American firearms manufacturer based in Southport, Connecticut. Founded in 1949, the company specializes in the design, manufacture, and sale of a wide range of firearms, including rifles, pistols, and revolvers. Sturm Ruger operates in the outdoor products sector, catering to various markets including law enforcement, military, and civilian shooting enthusiasts. The company's core product offerings include popular models such as the Ruger 10/22 rifle, the Ruger SR1911 pistol, and the Ruger Mini-14 rifle, among others.

How the Company Makes Money

Sturm Ruger generates revenue primarily through the sale of firearms and related products. The company's revenue model is based on direct sales to distributors, retailers, and consumers, with a significant portion of its earnings coming from the retail market. Key revenue streams include the sale of firearms, ammunition, and accessories. Additionally, Sturm Ruger benefits from a strong brand reputation and a loyal customer base, which drives repeat purchases. The company also engages in strategic partnerships with distributors and retailers to enhance its market reach. Economic factors, such as changes in gun legislation and consumer demand for firearms, significantly influence its earnings. Sturm Ruger's focus on innovation and product development further contributes to its revenue by introducing new models that appeal to a broad audience.

Sturm Ruger & Company Financial Statement Overview

Summary

Sturm Ruger & Company shows financial stability with low leverage and positive cash flow generation. However, declining revenue and profitability margins pose challenges. The company needs to address these issues to improve its financial performance and sustain growth in the competitive Aerospace & Defense industry.

Income Statement

The income statement shows a declining trend in revenue and profitability over the years. The TTM data indicates a significant drop in gross profit margin to 16.95% and net profit margin to 1.07%, reflecting challenges in maintaining profitability. Revenue growth has been negative in recent years, indicating a downward trajectory. However, the company has managed to maintain positive net income, which is a positive aspect.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.0071 in the TTM period, indicating low leverage and financial stability. Return on equity has decreased over time, with the TTM ROE at 1.85%, suggesting reduced profitability from equity. The equity ratio remains healthy, reflecting a solid capital structure.

Cash Flow

Cash flow analysis shows a positive free cash flow growth rate of 11.49% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is close to 1, suggesting efficient cash conversion. However, the free cash flow to net income ratio is below 1, indicating potential constraints in cash available for reinvestment or distribution.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	540.77M	535.64M	543.77M	595.84M	730.74M	568.87M
Gross Profit	87.38M	114.42M	133.62M	180.09M	279.56M	191.44M
EBITDA	16.32M	59.94M	81.41M	134.32M	232.91M	148.75M
Net Income	2.60M	30.56M	48.22M	88.33M	155.90M	90.40M
Balance Sheet
Total Assets	342.32M	384.03M	398.82M	484.76M	442.34M	348.26M
Cash, Cash Equivalents and Short-Term Investments	80.84M	105.48M	117.66M	224.31M	221.01M	141.15M
Total Debt	1.91M	1.75M	2.17M	3.04M	1.48M	1.72M
Total Liabilities	62.69M	64.45M	67.10M	168.03M	78.68M	83.56M
Stockholders Equity	279.63M	319.58M	331.72M	316.74M	363.66M	264.70M
Cash Flow
Free Cash Flow	42.52M	34.68M	18.11M	49.50M	143.56M	119.58M
Operating Cash Flow	58.79M	55.50M	33.90M	77.23M	172.34M	143.81M
Investing Cash Flow	-7.58M	-13.79M	40.86M	13.21M	-107.54M	-43.89M
Financing Cash Flow	-42.65M	-46.86M	-124.76M	-46.31M	-63.91M	-115.19M

Sturm Ruger & Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 31.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RGR, the sentiment is Negative. The current price of 31.94 is above the 20-day moving average (MA) of 31.20, below the 50-day MA of 37.44, and below the 200-day MA of 37.13, indicating a neutral trend. The MACD of -0.88 indicates Negative momentum. The RSI at 43.18 is Neutral, neither overbought nor oversold. The STOCH value of 54.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RGR.

Sturm Ruger & Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BYRN	66 Neutral	$397.01M	26.06	29.71%	―	50.99%	612.36%
SWBI	64 Neutral	$476.08M	48.20	2.71%	5.84%	-9.08%	-71.62%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RGR	60 Neutral	$509.26M	246.83	0.87%	1.94%	3.90%	-92.10%
POWW	49 Neutral	$237.73M	-3.88	―	―	-11.01%	-279.70%

Sturm Ruger & Company Corporate Events

Sturm Ruger Reports Q3 2025 Sales Growth Amid Challenges

On November 6, 2025, Sturm, Ruger & Company held a conference call to discuss its Q3 2025 financial results, highlighting a challenging market environment with pressures from tariffs, interest rates, and inflation. Despite a 10-15% decline in the firearms market, the company achieved year-over-year sales growth, driven by strategic operational initiatives and product innovation. The company reported net sales of $126.8 million and diluted earnings of $0.10 per share, with significant investments in new facilities and product lines. The acquisition of a facility in Hebron, Kentucky, and the focus on new product introductions are part of the company’s strategy to enhance efficiency and profitability.

Sturm Ruger Adopts Stockholder Rights Plan Amid Beretta Move

On October 14, 2025, Sturm, Ruger & Company’s Board of Directors adopted a limited-duration stockholder rights plan in response to Beretta Holding S.A.’s significant accumulation of Ruger’s common stock. The plan, effective immediately and expiring on October 13, 2026, aims to protect stockholder value by preventing Beretta from gaining control without fair compensation and ensuring the Board can fulfill its fiduciary duties. The Rights Plan allows stockholders to purchase additional shares at a discount if any entity acquires 10% or more of the company’s stock, with certain exceptions for passive institutional investors.