Sturm Ruger & Company (RGR) AI Stock Analysis

• Market Cap: $571.65M
• Dividend Yield: 1.95%
• Average Volume (3M): 190.06K
• Price to Earnings (P/E): 114.4
• Beta (1Y): -0.04
• Revenue Growth: 3.31%
• EPS Growth: -82.99%
• Country: US
• Employees: 1,880
• Sector: Industrials
• Sector Strength: 73
• Industry: Aerospace & Defense
• EPS (TTM): 0.41
• Shares Outstanding: 16,162,030
• 10 Day Avg. Volume: 133,930
• 30 Day Avg. Volume: 190,065
• 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: 0.85
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 5.34
• Enterprise Value/Ebitda: 20.29
• 1Y Price Target: $42.33
• Price Target Upside: 19.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 66 Neutral
• Price Target: $38.00 ▲(7.44% Upside)

Sturm Ruger & Company's stock score reflects strong revenue growth and strategic initiatives, tempered by declining profitability and high valuation concerns. The company's robust balance sheet and strategic acquisitions provide long-term potential, but immediate challenges such as inventory write-offs and macroeconomic pressures weigh on the score.

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-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 Money

Sturm Ruger generates revenue primarily through the sale of its firearms and related products. The company's key revenue streams include the sale of handguns, rifles, and shotguns, which are sold through a network of distributors, retailers, and direct sales. Additionally, Ruger earns revenue from the sale of firearm accessories such as scopes, magazines, and other related items. The company benefits from its strong brand reputation and loyal customer base, which drives consistent sales. Economic factors, consumer demand for firearms, and regulatory environments can significantly influence sales, while partnerships with retailers and distributors enhance its market reach. Moreover, Ruger's efficient manufacturing processes and cost management strategies contribute positively to its profitability.

Sturm Ruger & Company Financial Statement Overview

Summary

Sturm Ruger & Company demonstrates financial stability with strong equity support and operational profitability, despite experiencing revenue and profit margin contraction in recent years. The company's prudent financial management is evident through its low leverage and consistent cash flow generation, albeit with some volatility.

Income Statement

Sturm Ruger & Company showed a decrease in total revenue over the years, with a negative revenue growth rate. The gross profit margin is stable but has decreased from its peak in 2021. The net profit margin and EBIT margin have also contracted. Despite these challenges, the company remains profitable, indicating operational efficiency in a challenging market.

Balance Sheet

The company maintains a strong equity base with a low debt-to-equity ratio, indicating financial stability. The return on equity is lower compared to previous years but remains healthy. The equity ratio suggests a solid capital structure with robust shareholder equity supporting the asset base.

Cash Flow

Sturm Ruger & Company has managed to generate consistent free cash flow, although growth has been erratic. The operating cash flow to net income ratio indicates that cash generation aligns well with reported earnings. However, free cash flow growth is inconsistent, reflecting potential volatility in cash-based operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	536.29M	535.64M	543.77M	595.84M	730.74M	568.87M
Gross Profit	90.90M	114.42M	133.62M	180.09M	279.56M	191.44M
EBITDA	23.94M	59.94M	81.41M	134.32M	232.91M	148.75M
Net Income	5.76M	30.56M	48.22M	88.33M	155.90M	90.40M
Balance Sheet
Total Assets	349.54M	384.03M	398.82M	484.76M	442.34M	348.26M
Cash, Cash Equivalents and Short-Term Investments	101.35M	105.48M	117.66M	224.31M	221.01M	141.15M
Total Debt	2.06M	1.75M	2.17M	3.04M	1.48M	1.72M
Total Liabilities	60.20M	68.52M	67.10M	168.03M	78.68M	83.56M
Stockholders Equity	289.33M	319.58M	331.72M	316.74M	363.66M	264.70M
Cash Flow
Free Cash Flow	38.14M	34.68M	18.11M	49.50M	143.56M	119.58M
Operating Cash Flow	55.30M	55.50M	33.90M	77.23M	172.34M	143.81M
Investing Cash Flow	3.26M	-13.79M	40.86M	13.21M	-107.54M	-43.89M
Financing Cash Flow	-42.43M	-46.86M	-124.76M	-46.31M	-63.91M	-115.19M

Sturm Ruger & Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.37
• 50DMA: Positive
• 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 Positive. The current price of 35.37 is above the 20-day moving average (MA) of 34.40, above the 50-day MA of 34.73, and below the 200-day MA of 36.30, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 58.72 is Neutral, neither overbought nor oversold. The STOCH value of 63.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RGR.

Sturm Ruger & Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BYRN	68 Neutral	$445.45M	31.58	28.05%	―	73.56%	―
RGR	66 Neutral	$571.65M	114.39	1.88%	1.95%	3.31%	-82.99%
Sector *	64 Neutral	$10.75B	15.69	7.62%	2.01%	2.75%	-15.14%
SWBI	55 Neutral	$387.55M	32.24	3.27%	5.95%	-7.25%	-63.58%
POWW	53 Neutral	$168.64M	―	-17.71%	―	-11.01%	-279.70%

Sturm Ruger & Company Corporate Events

Sturm Ruger Discusses Q2 2025 Financial Results

On July 31, 2025, Sturm, Ruger & Company held a conference call to discuss their second quarter 2025 financial results, highlighting strategic initiatives aimed at long-term growth. The company reported a net sales figure of $132.5 million but incurred a diluted loss per share of $1.05 due to nonrecurring charges from inventory rationalization and organizational realignment. Despite these challenges, the company remains focused on expanding its product offerings and manufacturing capabilities, as evidenced by the recent acquisition of Anderson Manufacturing. This acquisition is expected to bolster Ruger’s capacity and product innovation, reinforcing its position in the firearms market.

Sturm Ruger Acquires Anderson Manufacturing to Boost Production

On July 1, 2025, Sturm, Ruger & Company, Inc. announced the asset purchase of Anderson Manufacturing, a firearms and accessories manufacturer based in Hebron, Kentucky. This strategic acquisition includes Anderson’s manufacturing facility and machinery, which will enhance Ruger’s production capabilities and expand its product offerings. The move is part of Ruger’s long-term strategy to grow its capacity and reinforce its leadership in the firearms industry, while integrating Anderson’s expertise into Ruger’s operations to launch new products and expand existing lines.

Sturm Ruger Announces Strategic Initiatives Under New CEO

On June 13, 2025, Sturm, Ruger & Company, Inc. communicated its strategic initiatives under CEO Todd Seyfert, marking his first 100 days in the role. The company has realigned its structure into autonomous business units, introduced a strategic framework for profitable expansion, and is undergoing significant changes including leadership transition, organizational realignment, and inventory rationalization. These initiatives are expected to incur costs of approximately $15 million to $20 million in 2025, impacting short-term profitability but positioning the company for long-term growth and stability by 2026.