📊 RGR Key Takeaways
Is RGR a Good Investment? Thesis Analysis
Sturm Ruger has deteriorated significantly with negative net income (-$4.4M) and operating losses (-$12.3M) despite stable revenue growth of 1.9%, indicating operational challenges in the core business. While the company maintains strong liquidity (3.87x current ratio), zero debt, and positive free cash flow of $38.5M, the gross margin compression to 14.9% and deteriorating profitability trends suggest structural headwinds in the manufacturing segment. The balance sheet provides a buffer, but absent a clear turnaround catalyst, profitability recovery is uncertain.
Why Buy RGR? Key Strengths
- Strong balance sheet with zero leverage and $283.8M stockholders' equity
- Excellent liquidity position with 3.87x current ratio and $18.5M cash
- Positive operating and free cash flow ($54.3M OCF, $38.5M FCF) despite accounting losses
- Conservative capital allocation with low capex relative to operating cash flow
RGR Investment Risks to Consider
- Company currently unprofitable with negative net income and operating margins
- Thin gross margin of 14.9% indicates cost pressures or pricing challenges in manufacturing
- Net income declined 114.4% YoY; operating income deteriorated significantly
- Modest revenue growth of 1.9% YoY insufficient to offset profitability headwinds
- Cyclical industry exposure with uncertain demand recovery trajectory
Key Metrics to Watch
- Gross margin trend and cost structure management
- Operating income recovery path and operating margin expansion
- Year-over-year revenue growth acceleration beyond 1.9%
- Operating cash flow sustainability as profitability improves
RGR Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 3.87x current ratio provides a solid financial cushion.
RGR Profitability Ratios
RGR vs Default Sector
How STURM RUGER & CO INC compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is RGR Overvalued or Undervalued?
Based on fundamental analysis, STURM RUGER & CO INC has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
RGR Balance Sheet & Liquidity
RGR 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: STURM RUGER & CO INC's revenue has declined by 25% over the 5-year period, indicating business contraction. The most recent EPS of $2.71 reflects profitable operations.
RGR Growth Metrics (YoY)
RGR Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $122.3M | $1.6M | $0.10 |
| Q2 2025 | $130.8M | $7.1M | $0.47 |
| Q1 2025 | $135.7M | $7.1M | $0.40 |
| Q3 2024 | $120.9M | $4.7M | $0.28 |
| Q2 2024 | $130.8M | $8.3M | $0.47 |
| Q1 2024 | $136.8M | $7.1M | $0.40 |
| Q3 2023 | $120.9M | $7.4M | $0.42 |
| Q2 2023 | $140.7M | $16.2M | $0.91 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
RGR Capital Allocation
RGR SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for STURM RUGER & CO INC (CIK: 0000095029)
📋 Recent SEC Filings
❓ Frequently Asked Questions about RGR
What is the AI rating for RGR?
STURM RUGER & CO INC (RGR) has an AI rating of SELL with 68% confidence, based on fundamental analysis of SEC EDGAR filings.
What are RGR's key strengths?
Claude: Strong balance sheet with zero leverage and $283.8M stockholders' equity. Excellent liquidity position with 3.87x current ratio and $18.5M cash.
What are the risks of investing in RGR?
Claude: Company currently unprofitable with negative net income and operating margins. Thin gross margin of 14.9% indicates cost pressures or pricing challenges in manufacturing.
What is RGR's revenue and growth?
STURM RUGER & CO INC reported revenue of $546.1M.
Does RGR pay dividends?
STURM RUGER & CO INC pays dividends, with $10.1M distributed to shareholders in the trailing twelve months.
Where can I find RGR SEC filings?
Official SEC filings for STURM RUGER & CO INC (CIK: 0000095029) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is RGR's EPS?
STURM RUGER & CO INC has a diluted EPS of $-0.27.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is RGR a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, STURM RUGER & CO INC has a SELL rating with 68% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is RGR stock overvalued or undervalued?
Valuation metrics for RGR: ROE of -1.5% (sector avg: 15%), net margin of -0.8% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy RGR stock in 2026?
Our dual AI analysis gives STURM RUGER & CO INC a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is RGR's free cash flow?
STURM RUGER & CO INC's operating cash flow is $54.3M, with capital expenditures of $15.8M. FCF margin is 7.0%.
How does RGR compare to other Default stocks?
Vs Default sector averages: Net margin -0.8% (avg: 12%), ROE -1.5% (avg: 15%), current ratio 3.87 (avg: 1.8).