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Sturm Ruger & Company
(NYSE:RGR)
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Rating:65Neutral
Price Target:
$40.00
▲(4.63% Upside)
Action:Reiterated
Date:08/01/26
Overall score is driven by strong financial resilience (no debt and solid free cash flow) and a notably positive recent earnings call showing improving sales, margins, earnings, and cash generation. Offsetting factors are weak technical positioning (price below key moving averages) and a stretched valuation (high P/E with modest yield), which temper the near-term risk/reward.
Positive Factors
Balance Sheet Strength & Liquidity
A debt-free balance sheet with ~$118M cash and a 3.3:1 current ratio gives Ruger durable financial flexibility to fund the $30M capex plan, weather cyclical demand, and prioritize reinvestment or selective capital returns without relying on external financing over the next several quarters.
Negative Factors
Compressed Margins and Earnings Volatility
Material gross-margin compression versus prior years and episodic losses highlight structural pressure on profitability. Sustained margin recovery depends on material-cost control and insourcing; until then earnings remain volatile and fragile to cost or mix shifts over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength & Liquidity
A debt-free balance sheet with ~$118M cash and a 3.3:1 current ratio gives Ruger durable financial flexibility to fund the $30M capex plan, weather cyclical demand, and prioritize reinvestment or selective capital returns without relying on external financing over the next several quarters.
Read all positive factors
Sturm Ruger & Company (RGR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$593.91M
Dividend Yield1.05%
Average Volume (3M)124.30K
Price to Earnings (P/E)48.4
Beta (1Y)0.40
Revenue Growth7.64%
EPS Growth138.23%
CountryUS
Employees1,780
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.77
Shares Outstanding15,978,256
10 Day Avg. Volume87,806
30 Day Avg. Volume124,298
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$46.00Price Target Upside20.32% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.7
Revenue Forecast (FY)$553.07M
Sturm Ruger & Company Business Overview & Revenue Model
Company Description
Sturm, Ruger & Company, Inc., including its affiliated entities, is engaged in the development, production, and distribution of firearms under the Ruger brand, primarily within the United States. The company's business activities are structured in...
How the Company Makes Money
Ruger primarily makes money by manufacturing and selling firearms and related products into the U.S. commercial market. Its main revenue stream is product sales of firearms (typically rifles, pistols, and revolvers), which are produced by Ruger an...
Sturm Ruger & Company Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed strong financial and operational progress: double-digit revenue growth, improved margins, a clear earnings turnaround, robust cash generation, solid liquidity, and the formal rollout of the Ruger Business System to drive consistency. Headwinds were operational (backorders, prior production disruptions), short-term delays to some product launches, and ongoing portfolio rationalization. Overall the positives—particularly revenue growth, margin expansion, cash flow improvement, and improved manufacturing execution—outweigh the lowlights.Positive Updates
Strong Revenue Growth
Net sales of $158 million in Q2, a 19% increase year-over-year; year-to-date net sales of $299 million, up 12% versus prior year.
Negative Updates
Production Constraints and Backorders
Production constraints in Q1 (including facility disruptions from snowstorms) limited ability to fully meet demand; management reported units on back order rose materially and some launches were delayed to prioritize fulfillment of existing demand.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Net sales of $158 million in Q2, a 19% increase year-over-year; year-to-date net sales of $299 million, up 12% versus prior year.
Read all positive updates
Company Guidance
The company reiterated its 2026 guidance to prioritize investing in the business—targeting approximately $30 million of capital expenditures for the year (YTD $8M) with much of the spending back‑loaded into Q3/Q4 to expand capacity, pilot mini‑cells and improve efficiency—while maintaining a strong liquidity and capital allocation stance (cash and short‑term investments $118M as of 6/27/26, current ratio 3.3:1, no debt) and continuing shareholder returns (Q2 dividend $0.21/share; $3M returned YTD). Management highlighted operational goals to improve profitability (focus on direct material cost, insourcing, premiumization), increase output and shifts where needed, and pursue M&A or buybacks only after investing in the business. Key reported metrics supporting the outlook included Q2 net sales of $158M (+19% YoY), adjusted EBITDA margin of 10.5%, GAAP diluted earnings $0.43/share (adjusted $0.52 vs $0.41 prior year), cash from operations >$17M in Q2 and $36M YTD (+39%), YTD net sales $299M (+12%), new product sales $81M (29% of firearm sales), distributor sell‑through +19% YoY versus adjusted NICS ~+5% YoY—trends the company said underpin confidence heading into the fall season.Sturm Ruger & Company Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
90
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 577.24M | 546.06M | 535.64M | 543.77M | 595.84M | 730.74M |
| Gross Profit | 107.93M | 89.55M | 114.42M | 133.62M | 180.09M | 279.56M |
| EBITDA | 27.85M | 15.80M | 59.94M | 81.41M | 134.32M | 232.91M |
| Net Income | 12.18M | -4.39M | 30.56M | 48.22M | 88.33M | 155.90M |
Balance Sheet | ||||||
| Total Assets | 364.29M | 342.00M | 384.03M | 398.82M | 484.76M | 442.34M |
| Cash, Cash Equivalents and Short-Term Investments | 117.46M | 92.53M | 105.48M | 117.66M | 224.31M | 221.01M |
| Total Debt | 1.49M | 1.80M | 1.75M | 2.17M | 3.04M | 1.48M |
| Total Liabilities | 74.49M | 58.24M | 64.45M | 67.10M | 168.03M | 78.68M |
| Stockholders Equity | 289.79M | 283.76M | 319.58M | 331.72M | 316.74M | 363.66M |
Cash Flow | ||||||
| Free Cash Flow | 44.93M | 38.46M | 34.68M | 18.11M | 49.50M | 143.56M |
| Operating Cash Flow | 62.09M | 54.31M | 55.50M | 33.90M | 77.23M | 172.34M |
| Investing Cash Flow | -40.90M | -9.48M | -13.79M | 40.86M | 13.21M | -107.54M |
| Financing Cash Flow | -16.23M | -36.40M | -46.86M | -124.76M | -46.31M | -63.91M |
Sturm Ruger & Company Technical Analysis
Positive
38.23
Price Trends
38.68
Negative
39.65
Negative
37.91
Positive
Market Momentum
-0.13
Negative
50.79
Neutral
33.98
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 38.23 is below the 20-day moving average (MA) of 38.32, below the 50-day MA of 38.68, and above the 200-day MA of 37.91, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 50.79 is Neutral, neither overbought nor oversold. The STOCH value of 33.98 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $593.91M | 48.40 | 4.29% | 1.02% | 7.64% | 138.23% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $248.59M | -37.94 | -1.52% | ― | ― | ― | |
56 Neutral | $650.78M | 35.44 | 5.04% | 3.55% | 10.75% | 35.88% | |
53 Neutral | $78.58M | 18.97 | 0.06% | ― | 10.02% | -16.48% | |
52 Neutral | $103.25M | -30.03 | -5.85% | ― | 5.15% | -124.82% |
* Industrials Sector Average
RGR
Sturm Ruger & Company
38.55
6.16
19.03%
SWBI
Smith & Wesson Brands
14.76
7.23
96.07%
OPXS
Optex Systems Holdings
11.01
-0.94
-7.87%
POWW
AMMO
2.18
1.06
94.64%
DFNS
T3 Defense
61.50
-619.75
-90.97%
BYRN
Byrna Technologies
4.90
-16.96
-77.58%
Sturm Ruger & Company Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Sturm Ruger Delivers Strong Q2 Growth and Profitability
Positive
Jul 31, 2026
On July 29, 2026, Sturm, Ruger Company reported that its second quarter 2026 marked another step in executing its 2026 plan, with net sales rising 19% year over year to $158 million and adjusted EBITDA margin expanding to 10.5%. The company retur...
Executive/Board Changes
Sturm Ruger Board Enhances CEO Performance-Based Compensation Package
Positive
Jun 4, 2026
On June 1, 2026, the Board of Directors of Sturm, Ruger Company, Inc. approved a significant adjustment to the compensation package of President and CEO Todd W. Seyfert, setting his annual base salary at $800,000 and his target cash bonus at 100%...
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
Sturm Ruger Expands Authorized Share Capital for Flexibility
Positive
May 28, 2026
On May 27, 2026, stockholders of Sturm Ruger Company approved an amendment to the firm’s Certificate of Incorporation to increase the number of authorized common shares to 60 million, a change that became effective upon filing in Delaware o...
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...
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.