Sturm Ruger & Co Inc

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RGR : NYSE : Industrial Goods
$51.15 up 0.15 | 0.29%
Today's Range: 50.95 - 51.45
Avg. Daily Volume: 304900.0
09/25/17 - 10:36 AM ET

Financial Analysis


STURM RUGER & CO INC's gross profit margin for the second quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. STURM RUGER & CO INC has strong liquidity. Currently, the Quick Ratio is 1.77 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 10.70% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)131.86167.94
EBITDA ($mil)24.6244.83
EBIT ($mil)15.336.48
Net Income ($mil)10.223.51


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)43.95103.07
Total Assets ($mil)284.09343.71
Total Debt ($mil)0.00.0
Equity ($mil)227.56254.83


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin33.5838.73
EBITDA Margin18.6726.69
Operating Margin11.621.72
Sales Turnover2.191.79
Return on Assets25.7322.06
Return on Equity32.1229.76
Debt Q2 FY17 Q2 FY16
Current Ratio2.742.78
Debt/Capital0.00.0
Interest Expense0.030.04
Interest Coverage478.01042.37


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)17.6718.97
Div / share0.480.48
EPS0.571.22
Book value / share12.8813.43
Institutional Own % n/a n/a
Avg Daily Volume303245.0248064.0

Valuation


HOLD. STURM RUGER & CO INC's P/E ratio indicates a significant discount compared to an average of 24.01 for the Leisure Equipment & Products industry and a significant discount compared to the S&P 500 average of 24.93. To use another comparison, its price-to-book ratio of 4.10 indicates a premium versus the S&P 500 average of 3.11 and a discount versus the industry average of 5.21. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, STURM RUGER & CO INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
RGR 13.52 Peers 24.01   RGR 12.06 Peers 14.00

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 discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
RGR 12.52 Peers 19.53   RGR NM Peers 0.99

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.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RGR 4.10 Peers 5.21   RGR -0.51 Peers 5.35

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

RGR is trading at a discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, RGR is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
RGR 1.50 Peers 1.55   RGR 1.32 Peers 13.86

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

RGR significantly trails its peers on the basis of sales growth

 

 

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