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1. Company Snapshot

1.a. Company Description

Sturm, Ruger & Company, Inc., together with its subsidiaries, designs, manufactures, and sells firearms under the Ruger name and trademark in the United States.It operates through two segments, Firearms and Castings.The company provides single-shot, autoloading, bolt-action, and sporting rifles; rimfire and centerfire autoloading pistols; single-action and double-action revolvers; and firearms accessories and replacement parts, as well as manufactures lever-action rifles under the Marlin name and trademark.


The company also manufactures and sells steel investment castings and metal injection molding (MIM) parts.It sells its firearm products through independent wholesale distributors principally to the commercial sporting market; and castings and MIM parts directly or through manufacturers' representatives.The company also exports its firearm products through a network of commercial distributors and directly to foreign customers comprising primarily of law enforcement agencies and foreign governments.


Sturm, Ruger & Company, Inc.was founded in 1949 and is based in Southport, Connecticut.

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1.b. Last Insights on RGR

Sturm, Ruger & Company, Inc.'s recent performance was positively influenced by its adoption of a limited-duration stockholder rights plan, effective October 14, 2025, in response to Beretta Holding S.A.'s public announcement. The company also saw increased demand for its products amid potential gun control discussions following high-profile shooting incidents. However, its Q3 2025 earnings were negatively impacted by $1.9 million of acquisition and operating costs at its new Hebron, KY facility. The company's dividend-paying history is also a draw for investors (ABBV, GD, RGR).

1.c. Company Highlights

2. Ruger's Q3 2025 Earnings: A Mixed Bag

Sturm, Ruger & Company's net sales for the third quarter of 2025 were $126.8 million, a modest increase from $122.3 million in the corresponding period in 2024. However, diluted earnings per share (EPS) declined significantly to $0.10 from $0.28 in Q3 2024. The company's pretax loss of $2.1 million in Q3 2025 was primarily driven by $1.9 million of acquisition and operating costs related to the new Hebron, Kentucky facility. For the nine months ended September 27, 2025, net sales were $395 million, and the company reported a loss of $0.48 per share. On an adjusted basis, excluding non-recurring expenses, diluted EPS was $0.65 per share.

Publication Date: Nov -17

📋 Highlights
  • Q3 2025 Net Sales Growth:: Net sales increased 3.7% to $126.8M compared to $122.3M in Q3 2024, but diluted earnings fell sharply to $0.10/share from $0.28/share.
  • Q3 Pretax Loss:: A $2.1M pretax loss occurred in Q3 2025, primarily due to $1.9M in acquisition and operational costs at the new Hebron facility.
  • Adjusted Earnings Mask Loss:: Year-to-date (9M 2025) adjusted diluted earnings were $0.65/share, masking a $0.48/share loss due to non-recurring expenses.
  • Capital Expenditures:: YTD capital spending reached $28M, including $15M for the Anderson acquisition, with $35M projected for 2025.
  • Shareholder Returns:: $13M returned to shareholders in Q3 (2025) via $3M in dividends and $10M in share repurchases (288,000 shares).

Cash Flow and Capital Allocation

Ruger generated $13 million of cash from operations in Q3 2025 and $39 million in the first nine months. The company returned $13 million to shareholders through dividends and share repurchases during the quarter. Year-to-date capital expenditures totaled $28 million, including $15 million for the Anderson acquisition in Hebron, Kentucky. Ruger expects to spend a total of $35 million on capital expenditures for the year. The company's ability to generate cash and allocate it effectively is a positive sign, with a 'Free Cash Flow Yield' of 7.65%.

Product Line Updates and Growth Prospects

New product sales accounted for 34% of net firearms sales in Q3 2025, with the company introducing new lines such as the Glenfield and Patrol rifles. According to CEO Todd Seyfert, the Glenfield line is a value brand offering American-made rifles at a lower price point, targeting a new segment of the market without cannibalizing existing sales. The company is also reintroducing the Red Label shotgun as part of its effort to become a full-line firearms manufacturer. With a 'P/S Ratio' of 0.93, the market appears to be fairly valuing the company's revenue growth prospects, with analysts estimating 1.0% revenue growth next year.

Valuation and Profitability

Ruger's 'P/E Ratio' stands at 88.89, indicating that the stock may be overvalued relative to its current earnings. However, the company's 'ROE' is 1.85%, and 'ROIC' is 0.66%, suggesting that profitability is a concern. The 'Dividend Yield' of 5.9% is attractive, but the high 'P/E Ratio' and relatively low profitability metrics raise questions about the sustainability of the current valuation.

3. NewsRoom

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The Most Expensive Rifle You Can Buy Costs $250,000

Nov -29

Source: 247wallst.com

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Head-To-Head Review: Simulated Environment Concepts (OTCMKTS:SMEV) and Sturm, Ruger & Company, Inc. (NYSE:RGR)

Nov -17

Source: defenseworld.net

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Sturm, Ruger & Company, Inc. (RGR) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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Sturm, Ruger & Company, Inc. Reports Third Quarter Results

Nov -05

Source: businesswire.com

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Sturm, Ruger & Company, Inc. to Report Third Quarter Results and File Quarterly Report on Form 10-Q on Wednesday, November 5

Oct -22

Source: businesswire.com

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Reviewing Sturm, Ruger & Company, Inc. (NYSE:RGR) and Bollinger Industries (OTCMKTS:BOLL)

Oct -20

Source: defenseworld.net

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Sturm, Ruger & Company Adopts Limited Duration Stockholder Rights Plan

Oct -14

Source: businesswire.com

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Top Dividend Stocks Poised for Explosive Growth in 2026 (ABBV, GD, RGR)

Oct -04

Source: 247wallst.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.51%)

6. Segments

Firearms

Expected Growth: 4.5%

Strong demand for firearms, particularly handguns, driven by increasing concerns about personal safety and recreational shooting. Ruger's product innovation, expanded distribution channels, and strategic pricing also contribute to growth. Additionally, the company's strong brand reputation, loyal customer base, and limited competition in the industry further support the 4.5% growth rate.

Castings

Expected Growth: 5.5%

Strong demand for firearms, particularly handguns, driven by increasing popularity of outdoor activities and self-defense concerns. Ruger's innovative products, such as the LCP and Mark IV, have contributed to market share gains. Additionally, the company's strategic pricing and inventory management have helped to maintain profitability.

7. Detailed Products

Ruger Firearms

A wide range of rifles, pistols, and revolvers for hunting, self-defense, and recreational shooting

Marlin Firearms

Bolt-action rifles, lever-action rifles, and rimfire rifles for hunting and target shooting

Silencer Products

Suppressors for firearms, designed to reduce noise and recoil

Accessories

Holsters, magazines, scopes, and other accessories for firearms

8. Sturm, Ruger & Company, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Sturm, Ruger & Company, Inc. is medium due to the presence of alternative products in the market, but the company's strong brand reputation and product quality help to mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low for Sturm, Ruger & Company, Inc. due to the company's strong brand reputation and the lack of price sensitivity among its customer base.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for Sturm, Ruger & Company, Inc. due to the presence of multiple suppliers in the market, but the company's large scale of operations and strong relationships with suppliers help to mitigate this threat.

Threat Of New Entrants

The threat of new entrants is low for Sturm, Ruger & Company, Inc. due to the high barriers to entry in the firearms industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high for Sturm, Ruger & Company, Inc. due to the presence of several established competitors in the market, leading to a highly competitive environment.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 13.88%
Debt Cost 6.12%
Equity Weight 86.12%
Equity Cost 6.12%
WACC 6.12%
Leverage 16.12%

11. Quality Control: Sturm, Ruger & Company, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Sturm Ruger

A-Score: 5.6/10

Value: 2.9

Growth: 2.8

Quality: 5.0

Yield: 8.0

Momentum: 7.5

Volatility: 7.7

1-Year Total Return ->

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Innovative Solutions and Support

A-Score: 5.3/10

Value: 4.3

Growth: 7.7

Quality: 7.2

Yield: 1.0

Momentum: 9.5

Volatility: 2.3

1-Year Total Return ->

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Cadre Holdings

A-Score: 4.1/10

Value: 1.5

Growth: 6.4

Quality: 5.6

Yield: 2.0

Momentum: 4.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
AMMO

A-Score: 4.1/10

Value: 7.8

Growth: 2.3

Quality: 4.9

Yield: 0.0

Momentum: 7.0

Volatility: 2.7

1-Year Total Return ->

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Smith & Wesson Brands

A-Score: 4.0/10

Value: 4.1

Growth: 1.9

Quality: 4.3

Yield: 7.0

Momentum: 1.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
VSE

A-Score: 3.7/10

Value: 1.2

Growth: 2.4

Quality: 4.9

Yield: 0.0

Momentum: 9.5

Volatility: 4.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

33.55$

Current Price

33.55$

Potential

-0.00%

Expected Cash-Flows