One-glance verdict
Undervalued
$59.98 our estimate vs market $41.90
Wall Street consensus: $43.00 (-28.3% lower than our fair-value estimate)
30% below our estimate, below the bear case
Fundamentals snapshot
Sturm, Ruger & Company, Inc.
RGR · NYQ · Industrials · Aerospace & Defense
Current price
$41.90
52-week range
$28.33 - $48.21
Market cap
$669.49M
Balance sheet
Healthy
-128.85x Concerning
Net cash $115.97M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 5.7% last year.
- Reward Returns 4.2% on equity, ahead of 66% of its peers.
- Risk Stock trades 261.7% above its 5-year average P/E.
- Risk Operating margin compressed from 17.4% to 5.3% over 3 years.
What this company does
Sturm, Ruger & Company, Inc.
Sturm, Ruger & Company is one of America's largest gun manufacturers, making a wide range of rifles, pistols, and shotguns under the Ruger and Marlin brands. The company makes most of its money selling firearms to distributors (the middlemen who sell to gun stores), so its success is often tied to consumer demand, which can be influenced by current events. Ruger also has a smaller business that makes and sells precision metal parts to other industrial companies.
How the company got here
Sturm, Ruger & Company, often called just Ruger, was started in 1949 by Alexander Sturm and William B. Ruger in a small machine shop in Connecticut. Their first product was the Ruger Standard, a .22 caliber pistol that looked a bit like a German Luger and an American Colt Woodsman, which became very popular. This early success allowed the company to grow and introduce new types of firearms, including revolvers and rifles. The company went public (meaning its shares became available for anyone to buy on the stock market) in 1969 and in 2020, it bought the well-known Marlin Firearms brand.
What it actually does
Ruger is one of the largest firearm manufacturers in the United States, known for making rugged and reliable guns for the commercial sporting market. Their products are all made in America and include a wide variety of firearms that an everyday person might recognize from movies or sporting goods stores. They sell hundreds of variations of rifles, pistols, and revolvers under brand names like Ruger and Marlin. The company sells its firearms through independent wholesale distributors (companies that buy in bulk and sell to retailers) rather than directly to individual customers.
Firearms
This is Ruger's main business, making up the vast majority of its sales. This segment designs, manufactures, and sells a wide range of firearms, including rifles, pistols, and revolvers. Their customers are primarily federally-licensed independent wholesale distributors who then sell the firearms to retail stores for the commercial sporting market. Ruger also sells firearms and parts directly to law enforcement agencies and foreign governments.
Castings
This is a much smaller part of the company's business. The Castings segment produces steel investment castings and metal injection molded (MIM) parts. Think of this as a highly precise way of creating complex metal parts, which are used in Ruger's own firearms but are also sold to other manufacturing companies for their products. This part of the business serves a variety of industries, not just firearms.
What management is betting on now
Ruger's leadership is focused on consistently introducing new products to keep customers interested and drive sales. They are also working on re-introducing and expanding the classic Marlin lever-action rifle brand, which they acquired in 2020. The company is also focused on improving its manufacturing efficiency (making things at a lower cost) and making sure the number of firearms they produce matches what their distributors are selling. A key part of their strategy is to maintain a strong financial position with little to no debt, which helps the company weather the ups and downs of the market.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$2.62M
FY2024 Q4
$16.40M
FY2025 Q1
$10.02M
FY2025 Q2
$9.11M
FY2025 Q3
$7.00M
FY2025 Q4
$12.33M
FY2026 Q1
$13.96M
FY2026 Q2
$14.06M
Revenue
$158.06M
Net income
$6.98M
Diluted EPS
0.43
Operating cash flow
$17.32M
Free cash flow
$14.06M
Fetching…
Sources
Revenue
$141.36M
Net income
$128.00K
Diluted EPS
0.01
Operating cash flow
$18.75M
Free cash flow
$13.96M
Fetching…
Sources
Revenue
$151.06M
Net income
$3.48M
Diluted EPS
0.21
Operating cash flow
$15.54M
Free cash flow
$12.33M
Fetching…
Sources
Revenue
$126.77M
Net income
$1.58M
Diluted EPS
0.10
Operating cash flow
$12.89M
Free cash flow
$7.00M
Fetching…
Sources
Revenue
$132.49M
Net income
$-17.23M
Diluted EPS
-1.05
Operating cash flow
$14.73M
Free cash flow
$9.11M
Fetching…
Sources
Revenue
$135.74M
Net income
$7.77M
Diluted EPS
0.46
Operating cash flow
$11.14M
Free cash flow
$10.02M
Fetching…
Sources
Revenue
$145.78M
Net income
$10.48M
Diluted EPS
0.62
Operating cash flow
$20.02M
Free cash flow
$16.40M
Fetching…
Sources
Revenue
$122.29M
Net income
$4.74M
Diluted EPS
0.28
Operating cash flow
$9.40M
Free cash flow
$2.62M
Fetching…
Sources
Is it cheap or expensive?
Fair value $59.98 vs current price $41.90
Wall Street consensus is the average analyst price target: $43.00 (-28.3% lower than our fair-value estimate).
Our most-likely fair value is $59.98 a share — about 43.1% above today's price of $41.90, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $116.0M - more cash than debt. Interest coverage -128.9x.
Net debt
$-115.97M
Interest coverage
-128.85x
Sturm, Ruger & Company, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
RGR
BASELINE
Sturm, Ruger & Company, Inc.
Total debt $1.49M Interest coverage -128.85x This is the baseline the peer rows are being compared against.
Total debt $72.76M Interest coverage 6.07x This peer still has a real interest-payment cushion, while RGR does not.
Total debt $10.88M Interest coverage -3.56x Neither company has much profit cushion over interest right now.
Total debt $3.41B Interest coverage 0.21x This peer still has a real interest-payment cushion, while RGR does not.
Total debt $32.01M Interest coverage -7.32x Neither company has much profit cushion over interest right now.
Total debt $17.15M Interest coverage -3.40x Neither company has much profit cushion over interest right now.
What you should know
The case for and against RGR
3 Rewards
2 Risks
Rewards
-
Revenue grew 5.7% last year.
-
Returns 4.2% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 261.7% above its 5-year average P/E.
-
Operating margin compressed from 17.4% to 5.3% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
56.62x
Forward P/E
20.69x
P/B
2.31x
P/S
1.16x
EV/EBITDA
17.02x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
18.8%
Operating margin
5.3%
Net margin
2.1%
ROE
4.2%
ROA
1.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.01x
Current ratio
3.35x
Quick ratio
2.72x
Total debt
$1.49M
Total cash
$117.46M
Growth
How the business has been compounding
Revenue TTM
$577.24M
Revenue 5Y CAGR
-7.0%
EPS TTM
0.74
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$64.50M
Free CF TTM
$38.46M
FCF margin
6.7%
Dividend
Shareholder payout
Yield
2.0%
Payout ratio
52.7%
Last ex-div date
2026-08-14