Sturm Ruger & Co Inc

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RGR : NYSE : Industrial Goods
$63.87 -0.68 | -1.10%
Today's Range: 63.51 - 64.46
Avg. Daily Volume: 298,300
08/24/16 - 3:59 PM ET

Financial Analysis


STURM RUGER & CO INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. STURM RUGER & CO INC is extremely liquid. Currently, the Quick Ratio is 2.13 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 22.51% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)167.94140.87
EBITDA ($mil)44.8335.58
EBIT ($mil)36.4826.69
Net Income ($mil)23.5117.56


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)103.0761.12
Total Assets ($mil)343.71291.67
Total Debt ($mil)0.00.0
Equity ($mil)254.83207.99


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin38.7340.74
EBITDA Margin26.6925.25
Operating Margin21.7218.95
Sales Turnover1.791.71
Return on Assets22.068.6
Return on Equity29.7612.06
Debt Q2 FY16 Q2 FY15
Current Ratio2.782.15
Debt/Capital0.00.0
Interest Expense0.040.04
Interest Coverage1042.37721.43


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)18.9718.7
Div / share0.480.32
EPS1.220.91
Book value / share13.4311.12
Institutional Own % n/a n/a
Avg Daily Volume287911.0315345.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 23.07 for the Leisure Equipment & Products industry and a discount compared to the S&P 500 average of 25.30. To use another comparison, its price-to-book ratio of 4.83 indicates a significant premium versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 7.44. The current price-to-sales ratio is similar to the S&P 500 average, but it is above the industry average, indicating a premium. 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 16.49 Peers 23.07   RGR 12.53 Peers 13.60

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.

 

Average. 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 valuation on par 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 NA Peers 19.49   RGR NA Peers 1.29

Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential.

Ratio not available.

 

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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RGR 4.83 Peers 7.44   RGR 204.65 Peers 27.48

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 significant discount 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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
RGR 2.00 Peers 1.71   RGR 23.16 Peers 7.35

Premium. 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 premium to 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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