Compass Verdict

Is Sturm, Ruger & Company, Inc. (NYSE:RGR) a buy in 2026?

Yes. Sturm, Ruger & Company, Inc. is one of Alexandria's highest-conviction calls right now.

Ruger is printing cash at a 2.2x EV/EBITDA with zero debt — the market is asleep at the wheel.

Compass Score 65/100Favorable$40.04

Where RGR is headed

Something extraordinary is happening at Ruger that the market hasn't caught up to. A company generating $105M in free cash flow against a $621M market cap — with zero debt — is trading at an EV/EBITDA of 2.2x. By late 2027, Ruger will have returned a massive chunk of that FCF to shareholders through dividends and buybacks (their historical playbook), shrinking the float and compressing the multiple even further. Revenue will have modestly plateaued after the 53.6% TTM surge — likely settling into a $750-800M run-rate as the demand normalization cycle plays out — but profitability will remain structurally elevated thanks to the Marlin lever-action integration, MIM/castings vertical integration, and a leaner manufacturing footprint post-COVID restructuring.

Read the full Compass Direction on RGR

The complete destination call, the overlooked angle, milestones, and bull, base, and bear price scenarios (around $40.04).

See the full RGR analysis

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Frequently asked questions

Is Sturm, Ruger & Company, Inc. (NYSE:RGR) a buy in 2026?

Yes. Sturm, Ruger & Company, Inc. is one of Alexandria's highest-conviction calls right now. Ruger is printing cash at a 2.2x EV/EBITDA with zero debt — the market is asleep at the wheel.

What is RGR's Compass Score?

Sturm, Ruger & Company, Inc. scores 65/100 on Alexandria's Compass, placing it in the "Favorable" tier. Scores blend eight factors and update weekly.

What is the price target for RGR?

Alexandria's full Compass Direction includes bull, base, and bear price scenarios with the valuation math behind each. Read the full breakdown on the RGR page.

Compass verdicts are AI-generated, forward-looking editorial research from publicly available data, not investment advice or a recommendation regarding any security. Scores and verdicts update as the data changes.