-0.99 | -1.96%
STURM RUGER & CO INC's gross profit margin for the first quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth. STURM RUGER & CO INC has average liquidity. Currently, the Quick Ratio is 1.30 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has significantly decreased by 25.46% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 155.91 | 112.34 |
| EBITDA ($mil) | 41.6 | 27.8 |
| EBIT ($mil) | 37.1 | 24.42 |
| Net Income ($mil) | 23.72 | 15.48 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 45.61 | 95.83 |
| Total Assets ($mil) | 211.48 | 221.39 |
| Total Debt ($mil) | 0.0 | 0.0 |
| Equity ($mil) | 111.64 | 149.78 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 42.21 | 40.22 |
| EBITDA Margin | 26.68 | 24.75 |
| Operating Margin | 23.8 | 21.73 |
| Sales Turnover | 2.53 | 1.65 |
| Return on Assets | 37.29 | 21.47 |
| Return on Equity | 70.64 | 31.74 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 1.58 | 3.08 |
| Debt/Capital | 0.0 | 0.0 |
| Interest Expense | 0.02 | 0.0 |
| Interest Coverage | 2318.88 | 0.0 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 19.32 | 19.15 |
| Div / share | 0.4 | 0.21 |
| EPS | 1.2 | 0.79 |
| Book value / share | 5.78 | 7.82 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 455817.0 | 705207.0 |
BUY. This stock's P/E ratio indicates a discount compared to an average of 19.17 for the Leisure Equipment & Products industry and a discount compared to the S&P 500 average of 19.08. For additional comparison, its price-to-book ratio of 8.82 indicates a significant premium versus the S&P 500 average of 2.44 and a significant premium versus the industry average of 6.88. The current price-to-sales ratio is above the S&P 500 average, but below the industry average. The valuation analysis reveals that, STURM RUGER & CO INC seems to be trading at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| RGR 12.77 | Peers 19.17 | RGR 10.28 | Peers 14.57 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. RGR is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. RGR is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| RGR 18.20 | Peers 16.07 | RGR 4.61 | Peers 0.93 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. RGR is trading at a discount to its peers. |
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. RGR trades at a significant premium to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| RGR 8.82 | Peers 6.88 | RGR 62.85 | Peers 2.99 | |||||||||||||||||||||
|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. RGR is trading at a significant premium to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. RGR is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| RGR 1.84 | Peers 1.88 | RGR 46.39 | Peers 7.10 | |||||||||||||||||||||
|
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. RGR is trading at a valuation on par with its industry on this measurement. |
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share. RGR has a sales growth rate that significantly exceeds its peers. |
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