Sturm Ruger & Company Inc. Common Stock (RGR)

FairStock Score: 31/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham investor, I look for durable earning power and a margin of safety. Sturm Ruger is a known U.S. firearms maker with the Ruger brand and two segments, Firearms and Castings. The numbers show a cyclical, uneven business. In fiscal 2025, the year ended 2025-12-31, revenue was $546.1 million and net income was a loss of $4.4 million, or diluted EPS of -$0.27. That followed net income of $30.6 million in fiscal 2024, the year ended 2024-12-31, and $48.2 million in fiscal 2023, the year ended 2023-12-31. The latest filed quarter, fiscal Q2 2026, the quarter ended 2026-06-27, showed revenue of $158.1 million, net income of $7.0 million, and diluted EPS of $0.43. In fiscal Q1 2026, the quarter ended 2026-03-28, net income was only $128,000. So the recovery is real but young. The balance sheet is a strength: D/E is 0.01, Altman Z-Score is 8.25, Piotroski F-Score is 7/9, and TTM free cash flow is $47.3 million, a 6.9% FCF yield. The dividend yield is 2.05%. But returns are weak: ROE 4.21% and ROCE 1.47%. At the 2026-10-13 close of $43.16, FairStock's P/E is 58.32, P/B is 2.38, EV/EBITDA is 18.58, and Graham Number is $17.38, leaving a negative margin of safety of -148.33%. The PEG of 0.41 only looks attractive if recent profit growth persists. FairStock classifies it as a TURNAROUND because of the latest-year loss after earlier profits, and its score is 31/100. I would need consistent proof that fiscal Q2 2026 profitability is not a one-quarter bounce before the price looks justified.

In plain English: Sturm Ruger makes firearms under the Ruger name for shooters, hunters, and collectors. The business looks mixed: it lost money in fiscal 2025, but recent quarters show a small profit and the company uses very little debt. At the recent price of $43.16, the stock looks expensive compared with its earnings and asset value, so the price seems to depend on a strong recovery.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-27) · fiscal Q1 2026 10-Q (period ended 2026-03-28) · fiscal Q4 2025 10-K (period ended 2025-12-31) · fiscal Q3 2025 10-K (period ended 2025-09-27) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer