Sturm Ruger & Co Inc

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RGR : NYSE : Industrial Goods
$63.3 | %
Today's Range: 62.0 - 63.375
Avg. Daily Volume: 294400.0
05/26/17 - 4:02 PM ET

Financial Analysis


STURM RUGER & CO INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged 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 average liquidity. Currently, the Quick Ratio is 1.44 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, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 6.14% 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.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)167.36173.11
EBITDA ($mil)43.244.55
EBIT ($mil)33.8736.2
Net Income ($mil)22.2223.28


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)35.180.46
Total Assets ($mil)304.13325.42
Total Debt ($mil)0.00.0
Equity ($mil)225.02239.75


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin38.8938.97
EBITDA Margin25.8125.73
Operating Margin20.2420.91
Sales Turnover2.171.8
Return on Assets28.4121.48
Return on Equity38.429.15
Debt Q1 FY17 Q1 FY16
Current Ratio2.182.61
Debt/Capital0.00.0
Interest Expense0.030.04
Interest Coverage996.211034.31


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)17.6618.96
Div / share0.440.35
EPS1.211.21
Book value / share12.7412.64
Institutional Own % n/a n/a
Avg Daily Volume299142.0352480.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 23.57 for the Leisure Equipment & Products industry and a significant discount compared to the S&P 500 average of 25.54. For additional comparison, its price-to-book ratio of 4.91 indicates a significant premium versus the S&P 500 average of 3.06 and a discount versus the industry average of 5.47. The price-to-sales ratio is below both the S&P 500 average and 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 13.71 Peers 23.57   RGR 12.19 Peers 14.32

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 13.51 Peers 18.82   RGR NM Peers 1.13

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 4.91 Peers 5.47   RGR 25.96 Peers 21.21

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.

 

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 exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
RGR 1.68 Peers 1.68   RGR 12.14 Peers 6.10

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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