Rogers Sugar (RSI) AI Stock Analysis

• Market Cap: C$719.74M
• Dividend Yield: 6.38%
• Average Volume (3M): 201.33K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.47
• Revenue Growth: 11.86%
• EPS Growth: -6.28%
• Country: CA
• Employees: 956
• Sector: Consumer Defensive
• Sector Strength: 82
• Industry: Food Confectioners
• EPS (TTM): 0.15
• Shares Outstanding: 128,067,180
• 10 Day Avg. Volume: 132,247
• 30 Day Avg. Volume: 201,326
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$6.50
• Price Target Upside: 15.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Rogers Sugar's overall performance is strong, driven by robust revenue growth and strategic investments, despite some cash flow challenges. The technical indicators suggest positive momentum, although caution is needed due to potential overbought conditions. The company's valuation remains attractive with a solid dividend yield, and recent corporate financing activities have bolstered financial stability. Potential risks from tariffs and economic pressures are balanced by the company's strategic focus and financial resilience.

Positive Factors

Earnings Performance

Q1/25 results were above forecast, with both Sugar and Maple adj. EBITDA above estimates.

Financial Flexibility

The company's recent $100 million convertible debenture offering provides additional financial flexibility.

Investor Appeal

The 6.0% yield could be attractive to income-oriented investors.

Negative Factors

Cost Overruns

LEAP Project costs are moving higher, with a 40-50% increase above the original estimate.

Tariff Risk

There is downside risk from potential tariffs affecting the Sugar segment.

Tariff Uncertainty

Tariff risk looms, as both Sugar and Maple sell product that is exported to the U.S., introducing uncertainty.

Rogers Sugar Business Overview & Revenue Model

Company Description

Rogers Sugar Inc. engages in refining, packaging, and marketing sugar and maple products. The company operates through two segments, Sugar and Maple Products. It offers granulated, plantation raw, yellow, brown, organic, icing, maple, stevia, smart sweetener blend, and coconut sugar; and syrups, jam and jelly mixes, and iced tea mixes. The company markets its products to industrial, consumer, and liquid product markets under the Lantic name in Eastern Canada and Rogers name in Western Canada, as well as in the United States and internationally. Rogers Sugar Inc. is headquartered in Vancouver, Canada.

How the Company Makes Money

Rogers Sugar Inc. generates its revenue primarily through the sale of refined sugar products. The company's revenue streams are diversified across retail and industrial markets. In the retail segment, Rogers Sugar sells packaged sugar products under various brands, providing a steady income from grocery and convenience stores. The industrial segment, however, is the largest revenue contributor, supplying bulk sugar to food and beverage manufacturers. Additionally, Rogers Sugar has ventured into specialty products and by-products, such as maple syrup and agri-products, to further diversify its income. Strategic partnerships with distributors and long-term contracts with major food companies also play a significant role in sustaining and growing its revenue base.

Rogers Sugar Financial Statement Overview

Summary

Rogers Sugar demonstrates robust revenue growth and solid profitability margins, though operational efficiencies could be enhanced. The balance sheet reflects a well-managed leverage profile, but cash flow management poses challenges, particularly with negative free cash flow due to high capital expenditures.

Income Statement

Rogers Sugar shows a strong gross profit margin of 14% and a net profit margin of 4.4% based on TTM data, indicating efficient cost management relative to revenues. The revenue growth rate from 2023 to 2024 was robust at 14.6%, reflecting strong sales performance. However, the EBIT margin of 7.9% and EBITDA margin of 10% suggest moderate operational efficiency, with room for improvement.

Balance Sheet

The debt-to-equity ratio stands at 1.04, indicating a balanced leverage position. Return on equity (ROE) is solid at 12.9% for TTM, showing effective utilization of equity to generate profits. The equity ratio is decent at 37.7%, suggesting a stable asset base, but the company should be cautious of high leverage risks.

Cash Flow

The free cash flow growth rate is negative, which raises concerns about cash management. The operating cash flow to net income ratio is 0.28, indicating some challenges in converting income into cash. The company's free cash flow to net income ratio is negative, pointing to higher capital expenditure impacting cash reserves.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
1.23B	1.10B	1.01B	893.93M	860.80M
	Gross Profit
175.87M	165.73M	130.81M	139.74M	126.20M
	EBIT
97.21M	94.96M	62.07M	84.50M	68.01M
	EBITDA
122.88M	120.73M	42.26M	109.26M	91.69M
	Net Income Common Stockholders
53.73M	51.79M	-16.57M	47.53M	35.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.12M	46.00K	151.00K	15.64M	1.97M
	Total Assets
1.08B	960.90M	937.96M	879.93M	887.14M
	Total Debt
380.88M	438.37M	397.79M	365.02M	363.04M
	Net Debt
361.76M	438.33M	397.64M	349.38M	361.06M
	Total Liabilities
656.33M	654.00M	646.54M	560.97M	616.95M
	Stockholders Equity
422.41M	306.90M	291.42M	318.96M	270.19M
Cash Flow		Free Cash Flow
13.71M	8.92M	-2.18M	53.90M	38.45M
	Operating Cash Flow
79.79M	44.32M	21.55M	78.58M	64.60M
	Investing Cash Flow
-66.08M	-35.40M	-23.73M	-24.68M	-26.15M
	Financing Cash Flow
5.36M	-8.89M	-13.55M	-40.16M	-36.79M

Rogers Sugar Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RSI, the sentiment is Positive. The current price of 5.64 is above the 20-day moving average (MA) of 5.58, above the 50-day MA of 5.46, and above the 200-day MA of 5.52, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 57.58 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:RSI.

Rogers Sugar Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSW.B	79 Outperform	C$422.04M	14.62	14.25%	6.40%	26.49%	29.14%
RSI	73 Outperform	C$719.74M	12.32	15.13%	6.38%	11.86%	-6.28%
MFI	71 Outperform	C$3.09B	32.05	6.05%	3.40%	3.16%	―
HLF	71 Outperform	C$496.24M	6.49	15.03%	3.82%	-9.94%	102.18%
PBH	68 Neutral	C$3.36B	27.24	6.75%	4.14%	6.29%	24.34%
Sector *	64 Neutral	$8.81B	14.72	5.05%	174.27%	3.55%	3.81%

Rogers Sugar Corporate Events

Rogers Sugar Secures Five-Year Supply Agreement with Alberta Sugar Beet Growers

Rogers Sugar Inc. has secured a five-year agreement with the Alberta Sugar Beet Growers to supply sugar beets to its Taber refining plant from 2025 to 2029. This agreement ensures the continued production of 100% Canadian sugar at the Taber facility, supporting the needs of customers in Western Canada and maintaining strong ties with approximately 200 Southern Alberta farm families.

Spark’s Take on TSE:RSI Stock

According to Spark, TipRanks’ AI Analyst, TSE:RSI is a Outperform.

Rogers Sugar’s overall performance is strong, driven by robust revenue growth and strategic investments, despite some cash flow challenges. The technical indicators suggest positive momentum, although caution is needed due to potential overbought conditions. The company’s valuation remains attractive with a solid dividend yield, and recent corporate financing activities have bolstered financial stability. Potential risks from tariffs and economic pressures are balanced by the company’s strategic focus and financial resilience.

To see Spark’s full report on TSE:RSI stock, click here.

Rogers Sugar to Discuss Q2 2025 Financial Results in Upcoming Conference Call

Rogers Sugar Inc. announced a conference call to discuss its second quarter 2025 financial results, scheduled for May 13, 2025. This event, led by CEO Michael Walton and CFO Jean-Sébastien Couillard, will provide insights into the company’s financial performance and strategic direction, potentially impacting investor and stakeholder perceptions.

Spark’s Take on TSE:RSI Stock

According to Spark, TipRanks’ AI Analyst, TSE:RSI is a Outperform.

Rogers Sugar’s overall performance is strong, driven by robust revenue growth and strategic investments, despite some cash flow challenges. The technical indicators suggest positive momentum, although caution is needed due to potential overbought conditions. The company’s valuation remains attractive with a solid dividend yield, and recent corporate financing activities have bolstered financial stability. Potential risks from tariffs and economic pressures are balanced by the company’s strategic focus and financial resilience.

To see Spark’s full report on TSE:RSI stock, click here.

Rogers Sugar Raises $115 Million Through Convertible Debenture Offering

Rogers Sugar Inc. has successfully closed an over-allotment option, raising an additional $15 million through the issuance of convertible unsecured subordinated debentures. This brings the total proceeds from the offering to $115 million, which the company plans to use to reduce the outstanding amounts on Lantic Inc.’s credit facility and for general corporate purposes, potentially strengthening its financial position and operational flexibility.

Rogers Sugar Closes $100 Million Convertible Debenture Offering

Rogers Sugar Inc. has successfully closed its $100 million convertible debenture offering, aimed at reducing Lantic Inc.’s credit facility debt and supporting general corporate purposes. The debentures, set to trade on the TSX under RSI.DB.G, bear a 6% interest rate, are convertible into common shares, and mature in 2030, enhancing the company’s financial strategy and market position.

Rogers Sugar Upsizes Convertible Debenture Offering to $100 Million

Rogers Sugar Inc. has announced an increase in its convertible debenture offering to $100 million, indicating strong investor interest and confidence in the company’s financial strategies. This offering, managed by a syndicate of underwriters, provides a convertible option into common shares and is structured to support the company’s long-term financial health, potentially enhancing its market position and shareholder value.

Rogers Sugar Launches $75 Million Debenture Offering

Rogers Sugar Inc. announced a public offering of $75 million in convertible unsecured subordinated debentures, set to mature on June 30, 2030, with a 6% annual interest rate. This move, led by TD Securities Inc. and Scotiabank, aims to strengthen the company’s financial position and potentially enhance its market presence.