Sturm, Ruger & Company, Inc. Fundamental Analysis (NYSE: RGR)
Sturm, Ruger & Company, Inc. (NYSE: RGR) shows weak financial fundamentals with a PE ratio of 50.07, profit margin of 2.11%, and ROE of 4.29%. The company generates $0.6B in annual revenue with weak year-over-year growth of 1.94%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RGR's fundamental strength across five key dimensions:
Efficiency Score
WeakRGR struggles to generate sufficient returns from assets.
Valuation Score
ModerateRGR shows balanced valuation metrics.
Growth Score
WeakRGR faces weak or negative growth trends.
Financial Health Score
ExcellentRGR maintains a strong and stable balance sheet.
Profitability Score
WeakRGR struggles to sustain strong margins.
Key Financial Metrics
Is RGR Expensive or Cheap?
P/E Ratio
RGR trades at 50.07 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RGR's PEG of 0.55 indicates potential undervaluation.
Price to Book
The market values Sturm, Ruger & Company, Inc. at 2.12 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 23.11 times EBITDA. This signals the market has high growth expectations.
How Well Does RGR Make Money?
Net Profit Margin
For every $100 in sales, Sturm, Ruger & Company, Inc. keeps $2.11 as profit after all expenses.
Operating Margin
Core operations generate 1.44 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.29 in profit for every $100 of shareholder equity.
ROA
Sturm, Ruger & Company, Inc. generates $3.34 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sturm, Ruger & Company, Inc. produces operating cash flow of $62.17M, showing steady but balanced cash generation.
Free Cash Flow
Sturm, Ruger & Company, Inc. produces free cash flow of $44.99M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.82 in free cash annually.
FCF Yield
RGR converts 7.34% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
50.07
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.55
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.06
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.005
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.35
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How RGR Stacks Against Its Sector Peers
| Metric | RGR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 50.07 | 31.41 | Worse (Expensive) |
| ROE | 4.29% | 1114.00% | Weak |
| Net Margin | 2.11% | -21308.00% (disorted) | Weak |
| Debt/Equity | 0.01 | 0.49 | Strong (Low Leverage) |
| Current Ratio | 3.35 | 21.99 | Strong Liquidity |
| ROA | 3.34% | -1339931.00% (disorted) | Weak |
RGR outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sturm, Ruger & Company, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
3.38%
Industry Style: Cyclical, Value, Infrastructure
GrowingEPS CAGR
-105.23%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-59.33%
Industry Style: Cyclical, Value, Infrastructure
Declining