Vista does not, however, affix any particular percentages to this "No. markets for ammunition, riflescopes" and.
The culmination of a long series of transactions that began with Alliant TechSystems' acquisition of long guns manufacturer Savage Arms and optics specialist Bushnell Group in 2013, then continued when Alliant merged with Orbital Sciences in 2014, and concluded with a spinoff of the firearms business in 2014, Vista Outdoor has become our third stock to watch when investing in guns. 3, we find ourselves outdoors - or more precisely, at Vista Outdoor ( NYSE:VSTO). (On the other hand, no analysts have published growth estimates out for Ruger, which complicates the task of saying whether "11.5 times earnings" is cheap, or expensive).Īnd now for the stock you've been waiting for. While its stock price appears much more expensive at $50, that price works out to just 11.5 times trailing earnings.
Valuation-wise, Sturm, Ruger stock doesn't cost much more than American Outdoor Brands.
If getting a steady income from your investments appeals to you, this alone could make Sturm, Ruger a stock to watch. On top of that, Ruger stock is debt-free, cash-rich, and currently pays a 3.3% dividend. Thus, it appears that Ruger doesn't lag American Outdoor Brands much in the handguns market, and is beating it soundly in long guns. That said, if we take American Outdoor Brands' estimates of market sizes as a given, then the $305.5 million in revenue that Ruger collected from sales of pistols and revolvers (collectively, "handguns") in 2015, and the $208.5 million it took in from rifle sales, imply Ruger has a 14% share of both markets. Unlike its publicly traded archrival, Sturm, Ruger does not publicly claim any particular market share (at least, it discloses none in its 10-K filings with the SEC). As such, it appears undervalued for its growth prospects, with a PEG ratio of 0.6. The stock pays no dividend, but is growing earnings at 14% annually. As for its stock, a share of American Outdoor Brands will set you back about $21 today - roughly 9 times earnings.