Rogers Sugar (RSI) AI Stock Analysis

• Market Cap: C$791.75M
• Dividend Yield: 6.09%
• Average Volume (3M): 252.41K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.49
• Revenue Growth: 6.57%
• EPS Growth: 8.61%
• Country: CA
• Employees: 956
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): 0.16
• Shares Outstanding: 128,114,260
• 10 Day Avg. Volume: 229,196
• 30 Day Avg. Volume: 252,409
• PEG Ratio: 6.26
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 0.55
• P/FCF Ratio: 49.01
• 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$7.00
• Price Target Upside: 17.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: C$7.00 ▲(17.45% Upside)

Rogers Sugar's strong revenue growth and improved profitability margins are significant positives. The technical indicators suggest a bullish trend, and the valuation appears attractive with a low P/E ratio and high dividend yield. However, the company's increasing debt levels and declining cash flow, along with potential risks from U.S. tariffs, present challenges that need to be addressed.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand and successful market strategies, enhancing long-term business prospects and competitive positioning.

LEAP Project Progress

The LEAP Project's progress suggests strategic expansion and operational enhancement, potentially boosting capacity and efficiency in the long term.

Free Cash Flow Growth

Improved free cash flow supports ongoing investments and dividend stability, indicating strong cash generation ability and financial health.

Negative Factors

Rising Debt Levels

Higher reliance on debt financing can strain financial flexibility and increase risk, potentially affecting long-term stability and growth.

Declining Cash Flow

Significant decline in cash flow raises concerns about the company's ability to sustain operations and fund future growth without external financing.

Potential U.S. Tariffs Impact

Potential U.S. tariffs pose a risk to export sales, which could affect revenue and market access, challenging the company's international competitiveness.

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 generates revenue primarily through the sale of sugar products to various sectors including food and beverage manufacturers, retail grocery stores, and foodservice operators. The company's revenue model is based on the production and refinement of sugar, which is then sold in bulk or packaged formats. Key revenue streams include the sale of granulated sugar, specialty sugar products, and liquid sweeteners. Additionally, Rogers Sugar benefits from significant long-term contracts with major customers, which provides stability to its earnings. The company also engages in strategic partnerships and collaborations to enhance its distribution capabilities and expand market reach, further contributing to its revenue.

Rogers Sugar Financial Statement Overview

Summary

Rogers Sugar shows strong revenue growth and improved profitability margins, but the increasing debt levels and declining cash flow pose potential risks. The company needs to focus on improving cash generation and managing debt to ensure long-term financial stability.

Income Statement

Rogers Sugar has demonstrated strong revenue growth, with a TTM revenue growth rate of 36.2%, significantly higher than previous years. Gross profit margin and net profit margin have improved slightly, indicating better cost management and profitability. However, the net profit margin remains modest at 4.8%, suggesting room for improvement in profitability.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.01 in the TTM period, indicating a higher reliance on debt financing, which could pose a risk if not managed carefully. Return on equity has improved to 14.6%, reflecting efficient use of equity to generate profits. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Free cash flow has declined significantly, with a negative growth rate of -970.97% in the TTM period, raising concerns about cash generation capabilities. The operating cash flow to net income ratio is relatively low at 0.28, indicating potential challenges in converting income into cash. The negative free cash flow to net income ratio further highlights cash flow issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.30B	1.23B	1.10B	1.01B	893.93M	860.80M
Gross Profit	197.94M	175.87M	165.73M	130.81M	139.74M	126.20M
EBITDA	145.02M	122.88M	119.50M	41.02M	108.07M	90.50M
Net Income	69.34M	53.73M	51.79M	-16.57M	47.53M	35.42M
Balance Sheet
Total Assets	1.13B	1.08B	960.90M	937.96M	879.93M	887.14M
Cash, Cash Equivalents and Short-Term Investments	26.64M	19.12M	46.00K	151.00K	15.64M	1.97M
Total Debt	381.13M	380.88M	438.37M	397.79M	365.02M	363.04M
Total Liabilities	683.31M	656.33M	654.00M	646.54M	560.97M	616.95M
Stockholders Equity	444.21M	422.41M	306.90M	291.42M	318.96M	270.19M
Cash Flow
Free Cash Flow	104.92M	13.71M	8.92M	-2.18M	53.90M	38.45M
Operating Cash Flow	190.42M	79.79M	44.32M	21.55M	78.58M	64.60M
Investing Cash Flow	-85.51M	-66.08M	-35.40M	-23.73M	-24.68M	-26.15M
Financing Cash Flow	-84.03M	5.36M	-8.89M	-13.55M	-40.16M	-36.79M

Rogers Sugar Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RSI, the sentiment is Negative. The current price of 5.96 is below the 20-day moving average (MA) of 6.26, below the 50-day MA of 6.27, and above the 200-day MA of 5.75, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 33.48 is Neutral, neither overbought nor oversold. The STOCH value of 18.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	74 Outperform	C$396.51M	14.32	15.23%	6.73%	8.87%	10.15%
LAS.A	74 Outperform	$1.44B	12.50	11.45%	2.03%	17.69%	13.69%
RSI	70 Outperform	C$791.75M	11.41	14.63%	6.09%	6.57%	8.61%
MFI	67 Neutral	C$3.28B	18.22	11.72%	3.04%	-0.03%	497.79%
PBH	67 Neutral	C$4.27B	45.49	3.86%	3.43%	13.05%	-33.72%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HLF	58 Neutral	C$490.34M	7.63	8.60%	5.07%	6.15%	-36.76%

Rogers Sugar Corporate Events

Rogers Sugar Reports Strong Growth Amid Challenges

Rogers Sugar’s recent earnings call painted a picture of robust growth and financial performance, particularly in its Sugar and Maple segments. The company showcased significant advancements in its LEAP Project, despite facing some challenges in revenue and profitability. Concerns were also raised regarding increased operational costs and potential risks from U.S. tariffs.

Rogers Sugar Reports Strong Q3 Results Amid Market Volatility

Rogers Sugar reported strong financial results for the third quarter of fiscal 2025, with consolidated adjusted EBITDA rising to $36.6 million. This growth was driven by robust demand in both its sugar and maple segments, despite market volatility due to new US tariffs. The company is actively expanding its Eastern sugar refining capacity through the LEAP Project, which is progressing as planned. The company also reported an increase in free cash flow and sales volumes, highlighting its resilience and strategic positioning in the market.

The most recent analyst rating on (TSE:RSI) stock is a Hold with a C$6.50 price target. To see the full list of analyst forecasts on Rogers Sugar stock, see the TSE:RSI Stock Forecast page.