Sturm Ruger & Co Inc (RGR) stock analysis

P/E above its 5-year median

Sturm Ruger's P/E of 52.3 is above its own 5-year median of 15.8.

P/E above the industry

Sturm Ruger's P/E of 52.3 is above the Fabricated Metal Products, except Machinery and Transportation Equipment median of 22.3.

EV/EBITDA above its 5-year median

Sturm Ruger's EV/EBITDA of 19.0 is above its 5-year median of 8.9.

P/B above the industry

Sturm Ruger's price-to-book of 2.88 is above the Fabricated Metal Products, except Machinery and Transportation Equipment median of 2.80.

Trading above fair value

The share price of $52.81 is above our fair value estimate of $27.73.

Margin of safety under 20%

The price is 90.5% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -2.9% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 10.6% over the last twelve months; the Fabricated Metal Products, except Machinery and Transportation Equipment median is 10.2%.

Guidance unchanged

The latest outlook (the year capital expenditures, Jul 29, 2026) was maintained, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 19.9% over the last twelve months, against 16.2% a year earlier.

Return on equity under 15%

Return on equity was 5.7% over the last twelve months and averaged 19.7% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 6.0%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Sturm Ruger's return on equity of 5.7% is below the Fabricated Metal Products, except Machinery and Transportation Equipment median of 9.0%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 2.7% over the last twelve months, against a 5-year average of 10.0%.

Net margin below the industry

Sturm Ruger's net margin of 2.7% is below the Fabricated Metal Products, except Machinery and Transportation Equipment median of 4.5%.

No debt

Sturm Ruger has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

Operating income covers interest expense 75.1 times.

Short-term assets cover short-term debts

Current assets are 3.02 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 9.53; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Sturm Ruger paid dividends worth 0.8% of the share price over the last twelve months.

Yield below Treasuries

The 0.8% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Sturm Ruger yields 0.8%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 42.8% of net income.

Covered by free cash flow

Dividends take 25.4% of free cash flow.