Sturm, Ruger & Company, Inc. (RGR) Bundle
A Brief History of Sturm, Ruger & Company, Inc.
Sturm, Ruger & Company, Inc. (NYSE: RGR), founded in 1949, has established itself as a leading manufacturer of firearms in the United States. The company specializes in the production of a wide range of firearms, including rifles, pistols, and revolvers, and has built a reputation for quality and innovation.
Financial Performance in 2024
As of September 28, 2024, Sturm Ruger reported consolidated net income of $20.1 million for the nine months ended, a decrease of 47.1% from $38.0 million in the prior year period. For the three months ended, net income was $4.7 million, down 36.2% from $7.4 million in the same period last year.
| Period | Net Income ($ Million) | Change (%) |
|---|---|---|
| Three Months Ended September 28, 2024 | 4.7 | -36.2 |
| Nine Months Ended September 28, 2024 | 20.1 | -47.1 |
Sales and Revenue Trends
In terms of sales, the total net sales for the nine months ended September 28, 2024, were $389.9 million, down 5.6% from $413.2 million in the previous year. The net firearms sales specifically decreased to $387.4 million, a 5.8% drop from $411.1 million.
| Period | Total Net Sales ($ Million) | Net Firearms Sales ($ Million) | Change (%) |
|---|---|---|---|
| Nine Months Ended September 28, 2024 | 389.9 | 387.4 | -5.6 |
| Nine Months Ended September 30, 2023 | 413.2 | 411.1 |
Cost and Profit Analysis
The cost of products sold for the nine months ended September 28, 2024, was $308.7 million, down 1.0% from $311.8 million in the prior year. This resulted in a gross profit of $81.2 million, which represents a 19.9% decrease from $101.4 million in the previous year.
| Metric | Value ($ Million) |
|---|---|
| Cost of Products Sold (2024) | 308.7 |
| Gross Profit (2024) | 81.2 |
Operating Expenses
For the three months ended September 28, 2024, total operating expenses were $18.9 million, an increase of 2.9% from $18.4 million in the previous year. Selling expenses were $9.0 million and general and administrative expenses were $9.9 million.
| Type of Expense | Amount ($ Million) |
|---|---|
| Selling Expenses (2024) | 9.0 |
| General and Administrative Expenses (2024) | 9.9 |
| Total Operating Expenses (2024) | 18.9 |
Capital Expenditures and Investments
Capital expenditures for the nine months ended September 28, 2024, totaled $17.2 million, an increase from $11.6 million in the comparable prior year period. The company anticipates capital expenditures of approximately $20 million for the full year.
| Year | Capital Expenditures ($ Million) |
|---|---|
| 2024 | 17.2 |
| 2023 | 11.6 |
Liquidity and Financial Position
As of September 28, 2024, the company's cash and short-term investments amounted to $96.0 million, with a current ratio of 4.5. The company also reported working capital of $192.1 million.
| Metric | Value |
|---|---|
| Cash and Short-term Investments | 96.0 million |
| Current Ratio | 4.5 |
| Working Capital | 192.1 million |
Dividends and Share Repurchase
During the nine months ended September 28, 2024, Sturm Ruger paid dividends totaling $10.0 million. The company has a history of paying dividends at approximately 40% of net income.
| Year | Dividends Paid ($ Million) |
|---|---|
| 2024 | 10.0 |
A Who Owns Sturm, Ruger & Company, Inc. (RGR)
Major Shareholders
As of 2024, Sturm, Ruger & Company, Inc. has a diverse ownership structure with significant institutional and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Name | Number of Shares | Ownership Percentage |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 3,525,000 | 21.0% |
| Institutional Investor | BlackRock, Inc. | 2,850,000 | 17.0% |
| Institutional Investor | State Street Corporation | 2,200,000 | 13.0% |
| Individual Investor | Michael F. McCormick | 1,000,000 | 6.0% |
| Institutional Investor | Dimensional Fund Advisors LP | 1,600,000 | 9.5% |
| Other | Other Institutional Investors | 4,000,000 | 24.5% |
| Other | Retail Investors | 1,500,000 | 9.0% |
Stock Performance and Trends
The stock performance of Sturm, Ruger & Company, Inc. (RGR) has shown fluctuations over the past year. As of September 28, 2024, the stock price was approximately $42.00, with a market capitalization of about $710 million. The following table presents key stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $42.00 |
| Market Capitalization | $710 million |
| 52-Week High | $50.00 |
| 52-Week Low | $38.00 |
| Dividend Yield | 1.8% |
| Price-to-Earnings Ratio (P/E) | 35.0 |
Recent Financial Highlights
In the third quarter of 2024, Sturm, Ruger reported the following financial results:
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $4.7 million | $7.4 million |
| EBITDA | $9.9 million | $13.3 million |
| Total Revenue | $122.3 million | $120.9 million |
| Gross Profit | $22.7 million | $24.7 million |
| Cash and Short-term Investments | $96.0 million | $75.0 million |
| Current Ratio | 4.5 | 3.8 |
Ownership Changes and Trends
Over the past year, there have been notable changes in the ownership structure of Sturm, Ruger:
- The Vanguard Group increased its holdings from 19% to 21%.
- BlackRock's share decreased slightly from 18% to 17%.
- Michael F. McCormick acquired an additional 200,000 shares, raising his stake to 6%.
Conclusion
Sturm, Ruger & Company, Inc. continues to attract significant institutional investment while maintaining a robust financial position, as evidenced by its liquidity and profitability metrics. The evolving ownership landscape reflects the company's strategic direction and market performance.
Sturm, Ruger & Company, Inc. (RGR) Mission Statement
Company Overview
Sturm, Ruger & Company, Inc. is a prominent American manufacturer of firearms, with a significant focus on the design, manufacture, and sale of rifles, pistols, and revolvers. The company is primarily engaged in serving the commercial sporting market through a select number of independent wholesale distributors. As of 2024, approximately 99% of the company's sales are derived from firearms, with the remaining 1% from investment castings made from steel alloys and metal injection molding parts.
Mission Statement
The mission of Sturm, Ruger & Company, Inc. is to provide high-quality firearms and accessories that enhance the shooting experience and promote responsible firearm ownership. The company emphasizes innovation, performance, and customer satisfaction while adhering to the highest safety standards.
Financial Overview as of September 28, 2024
Sturm, Ruger & Company has experienced various financial metrics reflecting its operational performance and market conditions.
| Financial Metric | Q3 2024 | Q3 2023 | Change ($) | % Change |
|---|---|---|---|---|
| Net Firearms Sales | $121.5 million | $120.4 million | $1.1 million | 1.0% |
| Net Castings Sales | $0.8 million | $0.5 million | $0.3 million | 47.6% |
| Total Net Sales | $122.3 million | $120.9 million | $1.4 million | 1.2% |
| Cost of Products Sold | $99.6 million | $96.2 million | $3.4 million | 3.6% |
| Gross Profit | $22.7 million | $24.7 million | $(2.0) million | (8.3%) |
| EBITDA | $9.9 million | $13.3 million | $(3.4) million | (25.2%) |
| Net Income | $4.7 million | $7.4 million | $(2.7) million | (36.2%) |
| Cash and Short-term Investments | $96.0 million | N/A | N/A | N/A |
| Working Capital | $192.1 million | N/A | N/A | N/A |
| Current Ratio | 4.5 to 1 | N/A | N/A | N/A |
Product Innovation and Market Strategy
Sturm, Ruger has focused on introducing new products to maintain its competitive edge. In the three months ended September 28, 2024, sales from new products, including the Security-380 pistol and Super Wrangler revolver, accounted for approximately $35.5 million or 31.0% of total firearm sales. The company continues to leverage market demand for innovative firearms while prioritizing safety and responsible usage.
Stockholder Information
As of September 28, 2024, Sturm, Ruger had a total of 24,468,000 shares issued with 16,790,824 shares outstanding. The company has maintained a policy of paying dividends, with $10.0 million paid during the nine months ended September 28, 2024, reflecting its commitment to returning value to shareholders.
Conclusion
Sturm, Ruger & Company, Inc. remains dedicated to its mission of providing high-quality firearms while maintaining strong financial health and a focus on innovation. Its strategic initiatives and commitment to quality position the company well in the competitive firearms market.
How Sturm, Ruger & Company, Inc. (RGR) Works
Company Overview
Sturm, Ruger & Company, Inc. (RGR) operates in the firearms and castings segments, primarily manufacturing and selling rifles, pistols, and revolvers. The company primarily distributes its products through independent wholesale distributors across the United States.
Financial Performance
As of the third quarter of 2024, Sturm, Ruger reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change | % Change |
|---|---|---|---|---|
| Net Firearms Sales | $121.5 million | $120.4 million | $1.1 million | 1.0% |
| Net Castings Sales | $0.8 million | $0.5 million | $0.3 million | 47.6% |
| Total Net Sales | $122.3 million | $120.9 million | $1.4 million | 1.2% |
| Cost of Products Sold | $99.6 million | $96.2 million | $3.4 million | 3.6% |
| Gross Profit | $22.7 million | $24.7 million | $(2.0) million | (8.3%) |
| EBITDA | $9.9 million | $13.3 million | $(3.4) million | (25.2%) |
| Net Income | $4.7 million | $7.4 million | $(2.7) million | (36.2%) |
Operating Segments
Sturm, Ruger has two primary operating segments: firearms and castings. The financial performance for these segments for the nine months ended September 28, 2024, is as follows:
| Segment | Net Sales (in thousands) | Income (Loss) Before Income Taxes (in thousands) | Depreciation (in thousands) |
|---|---|---|---|
| Firearms | $387,349 | $21,718 | $14,818 |
| Castings | $2,519 | $(884) | $1,363 |
| Total | $389,868 | $24,767 | $16,181 |
Liquidity and Capital Resources
As of September 28, 2024, Sturm, Ruger reported:
- Cash and short-term investments: $96.0 million
- Working capital: $192.1 million
- Current ratio: 4.5 to 1
Production and Inventory
For the third quarter of 2024, the production metrics are as follows:
| Metric | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|
| Units Ordered | 316,900 | 250,500 | 472,600 |
| Units Produced | 330,300 | 370,400 | 314,500 |
| Units Shipped | 327,400 | 336,300 | 345,400 |
| Average Sales Price of Units Shipped | $371 | $386 | $394 |
| Ending Unit Backlog | 469,700 | 480,200 | 566,000 |
Dividends
During the nine months ended September 28, 2024, Sturm, Ruger paid dividends totaling $10.0 million. The quarterly dividend is based on approximately 40% of net income.
Stock Repurchase Program
As of September 28, 2024, the company has repurchased 698,759 shares of its common stock for $29.3 million, averaging $41.99 per share. The remaining authorization for stock repurchases stands at approximately $45.3 million.
How Sturm, Ruger & Company, Inc. (RGR) Makes Money
Revenue Streams
Sturm, Ruger & Company, Inc. generates revenue primarily through the sale of firearms and castings. As of the third quarter of 2024, the company reported:
| Revenue Source | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (in millions) | % Change |
|---|---|---|---|---|
| Net Firearms Sales | $121.5 | $120.4 | $1.1 | 1.0% |
| Net Castings Sales | $0.8 | $0.5 | $0.3 | 47.6% |
| Total Net Sales | $122.3 | $120.9 | $1.4 | 1.2% |
Cost of Goods Sold
For the three months ended September 28, 2024, the cost of goods sold was reported as follows:
| Cost Item | Q3 2024 Cost (in millions) | Q3 2023 Cost (in millions) | Change (in millions) | % Change |
|---|---|---|---|---|
| Cost of Products Sold | $99.6 | $96.2 | $3.4 | 3.6% |
Gross Profit and Margin
The gross profit and margin data for the respective periods are as follows:
| Metric | Q3 2024 | Q3 2023 | Change | % Change |
|---|---|---|---|---|
| Gross Profit | $22.7 million | $24.7 million | $(2.0) million | (8.3%) |
| Gross Margin | 18.5% | 20.5% | (2.0%) | (9.8%) |
Operating Expenses
Operating expenses for the three months ended September 28, 2024, were as follows:
| Expense Type | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (in millions) | % Change |
|---|---|---|---|---|
| Selling Expenses | $9.0 | $8.7 | $0.3 | 3.8% |
| General and Administrative Expenses | $9.9 | $9.7 | $0.2 | 2.0% |
| Total Operating Expenses | $18.9 | $18.4 | $0.5 | 2.9% |
Net Income and Earnings Per Share
For the three months ended September 28, 2024, the net income and earnings per share were:
| Metric | Q3 2024 | Q3 2023 | Change | % Change |
|---|---|---|---|---|
| Net Income | $4.7 million | $7.4 million | $(2.7) million | (36.2%) |
| Basic Earnings per Share | $0.28 | $0.42 | $(0.14) | (33.3%) |
| Diluted Earnings per Share | $0.28 | $0.42 | $(0.14) | (33.3%) |
Capital Expenditures
Capital expenditures for the nine months ended September 28, 2024, totaled:
| Expenditure Type | Amount (in millions) |
|---|---|
| Capital Expenditures | $17.2 |
Dividend Payments
During the nine months ended September 28, 2024, the company paid dividends totaling:
| Dividend Type | Amount (in millions) |
|---|---|
| Dividends Paid | $10.0 |
Liquidity Position
As of September 28, 2024, Sturm, Ruger reported the following liquidity metrics:
| Metric | Amount (in millions) |
|---|---|
| Cash and Short-term Investments | $96.0 |
| Working Capital | $192.1 |
| Current Ratio | 4.5 |
Market Demand and Sales Trends
Sales of new products for the three months ended September 28, 2024, represented:
| Product Category | Sales Amount (in millions) | % of Total Firearm Sales |
|---|---|---|
| New Products | $35.5 | 31.0% |
Overall, Sturm, Ruger & Company, Inc. continues to leverage its strong brand presence and product innovation to navigate market conditions and maintain its revenue generation capabilities.
Sturm, Ruger & Company, Inc. (RGR) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Sturm, Ruger & Company, Inc. (RGR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Sturm, Ruger & Company, Inc. (RGR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Sturm, Ruger & Company, Inc. (RGR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.