Sturm, Ruger & Co., Inc. (RGR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Sturm, Ruger & Co., Inc.

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Malibu Boats, Inc.

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Why is Sturm, Ruger & Co., Inc. ?

High Management Efficiency with a high ROE of 24.59%

Company has a low Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 3.39% and Operating profit at -45.35% over the last 5 years

Negative results in Jun 25

ROCE(HY) Lowest at 1.89%
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
RAW MATERIAL COST(Y) Grown by 86.48% (YoY)

With ROE of 9.72%, it has a very expensive valuation with a 2.60 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -9.10%, its profits have fallen by -23.7%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -9.10% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sturm, Ruger & Co., Inc. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Sturm, Ruger & Co., Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sturm, Ruger & Co., Inc.

13.97%

-0.56

39.25%

S&P 500

22.24%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.82%

EBIT Growth (5y)

-162.77%

EBIT to Interest (avg)

99.51

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.34

Sales to Capital Employed (avg)

1.72

Tax Ratio

18.79%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

72.92%

ROCE (avg)

59.36%

ROE (avg)

24.59%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

3.26

EV to EBIT

-71.74

EV to EBITDA

73.99

EV to Capital Employed

4.34

EV to Sales

1.53

PEG Ratio

Dividend Yield

0.83%

ROCE (Latest)

-6.05%

ROE (Latest)

-1.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 61.91 MM

PRE-TAX PROFIT(Q)

At USD 2.45 MM has Grown at 247.07%

NET PROFIT(Q)

At USD 2.65 MM has Grown at 372.53%

DIVIDEND PAYOUT RATIO(Y)

Highest at 1,012.66%

DEBT-EQUITY RATIO (HY)

Lowest at -36.54 %

INVENTORY TURNOVER RATIO(HY)

Highest at 9.18 times

-14What is not working for the Company

NET PROFIT(HY)

At USD 6.14 MM has Grown at -66.37%

ROCE(HY)

Lowest at -3.98%

RAW MATERIAL COST(Y)

Grown by 10.28% (YoY

CASH AND EQV(HY)

Lowest at USD 197.7 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.86 times

DIVIDEND PER SHARE(HY)

Lowest at USD 7.86

Here's what is working for Sturm, Ruger & Co., Inc.

Pre-Tax Profit

At USD 2.45 MM has Grown at 247.07%

over average net sales of the previous four periods of USD -1.67 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 2.65 MM has Grown at 372.53%

over average net sales of the previous four periods of USD -0.97 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Operating Cash Flow

Highest at USD 61.91 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Lowest at -36.54 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 9.18 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend Payout Ratio

Highest at 1,012.66%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Sturm, Ruger & Co., Inc.

Cash and Eqv

Lowest at USD 197.7 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 7.86 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at USD 7.86

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (USD)

Raw Material Cost

Grown by 10.28% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales