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Sturm, Ruger & Company

RGR
26
Aerospace & Defense · Industrials
Price
$37.85
-0.97 (-2.50%)
Market Cap
$603.5M
Winston Score
26
Winston is worried
Below-average fundamentals — multiple weak pillars.

Share count falling — buybacks

8.6% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 17.8M (2021) → 16.2M (2025)

Sturm, Ruger & Company makes firearms for everyday consumers in the United States. Its main products include pistols, revolvers, rifles, and shotguns sold under the Ruger brand through licensed gun dealers and retailers like Walmart and Bass Pro Shops. The company is one of the largest domestic firearms manufacturers in the U.S. and sells almost entirely to the civilian market.

Ruger makes money by selling guns directly to distributors and retailers, who then sell to individual buyers. The company operates entirely within the United States, with manufacturing facilities in Arizona, New Hampshire, and North Carolina. Its moat comes from strong brand recognition among gun owners and an established dealer network, though it faces intense competition from rivals like Smith & Wesson parent American Outdoor Brands and foreign manufacturers. A key risk is that firearm demand is closely tied to political sentiment around gun legislation — sales tend to spike during periods of uncertainty and fall sharply when that fear fades, making revenue difficult to predict.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+4.1% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-98.3% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$8M/ year

Flat (+2% vs prior year)

1.5% of revenue

Below sector average (4%)

Steady R&D investment year-over-year

Insider Activity

12.2%ownership

Declining

Insider ownership declining — could be dilution or selling

Cash Position

Cash flow positive

$24M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Sturm, Ruger & Company is growing revenue at 4% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
19.9%
Thin — 19.9% gross margin
Operating Margin
0.4%
Thin — 0.4% operating margin
ROCE
0.2%
Weak — 0.2% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+3.2%
Slow sales growth (3.2% YoY)
EPS YoY
-139.0%
Earnings shrinking (-139.0% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
7.7%
Modest free cash flow (7.7%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.00
Conservative — low debt load (0.00)
Interest Cover
N/A
Data not available

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Valuation

P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
P/E vs Forward
N/A
not available
Data not available

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Dividends

Dividend Yield
1.04%
Small dividend — 1.04% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth
-45.8%
Dividend cut (-45.8% YoY) — warning sign

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