There are two publicly traded pure firearms companies in the US: $SWBI, $RGR. Both companies trade at single-digit P/Es and single-digit EV/EBITDA. Revenues for both companies are below 2021 peaks as investors and analysts expect revenues to normalize to 2016-2017 levels. Sales are declining. There is no arguing about that. $SWBI 2Q sales (ended 4/30/22) declined 44% from the year-ago period but EPS was still $0.83 for a $13 stock. Both companies have no net debt and cash flow is strong. $RGR paid a $5 special dividend in 2020 when the shares were $70 (a 7% one-time payout). Since then the dividend has been materially increased. $SWBI has increased its quarterly dividend twice since it was spun out in August 2020. These companies are gushing cash and returning it to shareholders.
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