Sturm Ruger & Company (RGR) AI Stock Analysis

• Market Cap: $591.51M
• Dividend Yield: 2.02%
• Average Volume (3M): 185.01K
• Price to Earnings (P/E): 19.5
• Beta (1Y): -0.11
• Revenue Growth: 0.65%
• EPS Growth: -20.28%
• Country: US
• Employees: 1,880
• Sector: Industrials
• Sector Strength: 87
• Industry: Aerospace & Defense
• EPS (TTM): 0.46
• Shares Outstanding: 16,554,962
• 10 Day Avg. Volume: 239,988
• 30 Day Avg. Volume: 185,015
• PEG Ratio: -0.23
• Price to Book (P/B): 2.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.05
• Enterprise Value/Market Cap: 1.41
• Enterprise Value/Revenue: 0.39
• Enterprise Value/Gross Profit: 7.23
• Enterprise Value/Ebitda: 3.63
• 1Y Price Target: $41.00
• Price Target Upside: 14.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: $40.00 ▲(11.95%Upside)

The overall score reflects a strong financial position and a positive outlook from strategic initiatives, tempered by declining revenue trends and mixed technical signals. The company’s strategic focus on innovation and resilience in sales amidst industry challenges contribute positively, while the valuation indicates limited growth potential.

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 & Company makes money primarily through the manufacturing and sale of firearms and related accessories. The company's revenue model is largely based on the production and distribution of its firearms to wholesalers, retailers, and law enforcement agencies. Key revenue streams include sales of rifles, pistols, and revolvers, each contributing significantly to its overall income. Ruger also generates revenue through its accessory and parts business, which includes the sale of gun parts and related products. Additionally, the company benefits from strong brand recognition and customer loyalty, which are critical factors in maintaining its market presence and driving sales.

Sturm Ruger & Company Financial Statement Overview

Summary

Sturm Ruger & Company has demonstrated financial stability with a strong balance sheet and consistent free cash flow. However, declining revenues and profitability present significant challenges. The company benefits from being debt-free, but its profitability metrics have weakened over time.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	534.56M	535.64M	543.77M	595.84M	730.74M	568.87M
Gross Profit	114.91M	114.42M	133.62M	180.09M	279.56M	191.44M
EBITDA	53.52M	59.94M	81.41M	134.32M	232.91M	148.75M
Net Income	31.25M	30.56M	48.22M	88.33M	155.90M	90.40M
Balance Sheet
Total Assets	0.00	384.03M	398.82M	484.76M	442.34M	348.26M
Cash, Cash Equivalents and Short-Term Investments	0.00	105.48M	117.66M	224.31M	221.01M	141.15M
Total Debt	0.00	1.75M	2.17M	3.04M	1.48M	1.72M
Total Liabilities	57.52M	68.52M	67.10M	168.03M	78.68M	83.56M
Stockholders Equity	321.48M	319.58M	331.72M	316.74M	363.66M	264.70M
Cash Flow
Free Cash Flow	39.15M	34.68M	18.11M	49.50M	143.56M	119.58M
Operating Cash Flow	59.30M	55.50M	33.90M	77.23M	172.34M	143.81M
Investing Cash Flow	-12.83M	-13.79M	40.86M	13.21M	-107.54M	-43.89M
Financing Cash Flow	-46.10M	-46.86M	-124.76M	-46.31M	-63.91M	-115.19M

Sturm Ruger & Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 35.73 is below the 20-day moving average (MA) of 36.61, below the 50-day MA of 36.81, and below the 200-day MA of 37.84, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 42.65 is Neutral, neither overbought nor oversold. The STOCH value of 14.81 is Positive, 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
Sector *	71 Outperform	¥255.65B	12.95	8.49%	3.10%	6.31%	12.92%
RGR	64 Neutral	$591.51M	19.52	9.56%	2.02%	0.65%	-20.28%
SWBI	54 Neutral	$383.72M	28.98	3.48%	6.00%	-11.73%	-64.84%
POWW	43 Neutral	$151.86M	―	-17.71%	―	-11.01%	-279.70%

Sturm Ruger & Company Corporate Events

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.

The most recent analyst rating on (RGR) stock is a Buy with a $54.00 price target. To see the full list of analyst forecasts on Sturm Ruger & Company stock, see the RGR Stock Forecast page.

Sturm Ruger Appoints New General Counsel

Sturm Ruger & Company announced that effective May 29, 2025, Kevin B. Reid, Sr. resigned as General Counsel and Corporate Secretary, with Sarah F. Colbert appointed as his successor. Reid will continue as Vice President until June 30, 2025, and then as Senior Counsel until his retirement in 2026. At the Annual Meeting on May 29, 2025, stockholders elected board members for a one-year term, ratified RSM US LLP as the independent accounting firm, and approved an advisory vote on executive compensation.

The most recent analyst rating on (RGR) stock is a Buy with a $54.00 price target. To see the full list of analyst forecasts on Sturm Ruger & Company stock, see the RGR Stock Forecast page.

Sturm Ruger Amends By-Laws for Shareholder Actions

On May 5, 2025, Sturm, Ruger & Company, Inc. amended its by-laws to allow shareholder actions to be taken without a meeting, prior notice, or a vote, provided written consent is obtained from a sufficient number of shareholders. This change simplifies the process for shareholder decision-making, potentially impacting the company’s governance and stakeholder engagement.

Sturm Ruger Reports Stable Q1 2025 Financial Results

On May 1, 2025, Sturm, Ruger & Company held a post-earnings conference call to discuss its Q1 2025 financial results. Despite challenges in the firearms market, the company reported stable sales and profitability, with net sales of $135.7 million and improved gross margins. The leadership transition to Todd Seyfert as CEO was highlighted, along with a focus on new product innovation and strategic collaborations to drive future growth. The company plans significant capital investments to expand capacity and enhance manufacturing capabilities, aiming for long-term growth despite industry headwinds.