Sturm, Ruger & Company is one of the nation's leading manufacturers of rugged, reliable firearms for the commercial sporting market. The company was founded in 1949 and is based in Southport, Connecticut.
RGR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for RGR, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Sturm Ruger & Co Inc ranked in the 79th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 467%. In terms of the factors that were most noteworthy in this DCF analysis for RGR, they are:
Interest coverage, a measure of earnings relative to interest payments, is 412.28; that's higher than 99.03% of US stocks in the Industrials sector that have positive free cash flow.
The business' balance sheet reveals debt to be 0% of the company's capital (with equity being the remaining amount). Approximately merely 2.6% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
RGR's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 54.54% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as RGR, try APWC, URI, FELE, GOGL, and USDP.
Sturm, Ruger: Building on a History of Great Management Recent news suggests Sturm, Ruger (RGR) decided to do what they always do… make a big splash with an uncommonly shareholder friendly board, focused on providing future gains for its storied brands. For those who follow me, or have seen past...
SOUTHPORT, Conn.--(BUSINESS WIRE)--Sturm, Ruger and Company, Inc. (NYSE: RGR) announced today that its offer to purchase substantially all of the Marlin Firearms assets was accepted by Remington Outdoor Company, Inc. and approved by the United States Bankruptcy Court for the Northern District of Alabama. The Company will pay the $30 million purchase price from cash on hand at the time of closing, which is expected to occur in October. “The value of Marlin and its 150-year legacy was too great o
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NICS background checks rose 31.6% Y/Y to 3,115,063 in August, according to the monthly update from the FBI. Firearm checks were down from significantly from the record level seen in both June and July. Sector watch: Sturm Ruger ([[RGR]] -1.3%), Smith & Wesson Brands ([[SWBI]] -3.5%), Sportsman's Warehouse ([[SPWH]] -7.0%),...
SOUTHPORT, Conn.--(BUSINESS WIRE)--Sturm, Ruger & Company, Inc. (NYSE-RGR) announced today that for the second quarter of 2020 the Company reported net sales of $130.3 million and diluted earnings of $1.05 per share, compared with net sales of $96.3 million and diluted earnings of 35¢ per share in the second quarter of 2019. For the six months ended June 27, 2020, net sales were $253.9 million and diluted earnings were $1.91 per share. For the corresponding period in 2019, net sales were $2