tiprankstipranks
Trending News
More News >
Rogers Sugar Inc. (TSE:RSI)
TSX:RSI

Rogers Sugar (RSI) AI Stock Analysis

Compare
265 Followers

Top Page

TS

Rogers Sugar

(TSX:RSI)

Rating:72Outperform
Price Target:
C$6.00
▲(5.82%Upside)
Rogers Sugar's stock is moderately attractive, driven by strong revenue growth, strategic corporate moves, and solid valuation metrics. Key strengths include improved profitability and a robust dividend yield. However, high debt levels and cash flow challenges require careful management. Technical indicators suggest positive momentum, but potential risks from tariffs and economic pressures must be monitored.
Positive Factors
Financial Flexibility
The company's recent $100 million convertible debenture offering provides additional financial flexibility.
Financial Performance
Q1/25 results were above forecast, with both Sugar and Maple adj. EBITDA above estimates.
Investment Attraction
The 6.0% yield could be attractive to income-oriented investors.
Negative Factors
Export Uncertainty
Tariff risk looms, as both Sugar and Maple sell product that is exported to the U.S., introducing uncertainty.
Tariff Risk
There is downside risk from potential tariffs affecting the Sugar segment.

Rogers Sugar (RSI) vs. iShares MSCI Canada ETF (EWC)

Rogers Sugar Business Overview & Revenue Model

Company DescriptionRogers Sugar Inc. (RSI) is a prominent Canadian company primarily engaged in the refining, packaging, and marketing of sugar products. Operating through its key subsidiaries, Lantic Inc. and its counterpart, Rogers Sugar is deeply rooted in the sugar industry, serving both the retail and industrial sectors. The company's core products include granulated, liquid, and specialty sugars, catering to a diverse clientele, including food manufacturers, foodservice distributors, and retail consumers across North America.
How the Company Makes MoneyRogers 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 Earnings Call Summary

Earnings Call Date:May 13, 2025
(Q2-2025)
|
% Change Since: 0.00%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While the Maple segment achieved record performance, challenges in the Sugar segment, including a decrease in adjusted EBITDA and potential tariff impacts, balanced the positive aspects.
Q2-2025 Updates
Positive Updates
Maple Segment Record Performance
The Maple segment enjoyed record revenue and profitability this quarter, with a 13% increase in sales volume year-over-year and record gross margins and adjusted EBITDA.
Strong Export Volumes
Export volumes in the Sugar segment increased by about 19,000 tons compared to 2024, contributing to revenue growth despite the tariff situation.
Eastern Expansion Project Progress
Progress continues on the Eastern expansion project to add 100,000 metric tons of sugar refining capacity, with construction advancing in Montreal.
Strong Cash Flow Generation
Consolidated adjusted EBITDA for the first six months increased by 8% to over $74 million, supporting a $26 million increase in free cash flow over the last 12 months.
Negative Updates
Decrease in Adjusted EBITDA
Adjusted EBITDA decreased by 9% to about $35 million in the second quarter compared to 2024, primarily due to lower results in the Sugar segment and higher maintenance costs.
Unexpected Equipment Breakdown
Higher maintenance costs in the Sugar segment were due to an unexpected equipment breakdown at the Montreal refinery.
Potential Impact of U.S. Tariffs
The potential for new U.S. tariffs could significantly impact business depending on their magnitude and duration.
Company Guidance
In the Rogers Sugar Inc. Analyst Call for the second quarter of fiscal 2025, President and CEO Mike Walton provided detailed guidance on the company's performance and future outlook. The company's adjusted EBITDA decreased by 9% to approximately $35 million compared to the same period in 2024, marking the second-highest quarter in its history. Sugar segment revenues rose 7% to $261 million, with export volumes seeing a significant boost, although margins were impacted by maintenance costs and a less favorable product mix. The Maple segment achieved record revenue and profitability, contributing over 20% to consolidated revenues and adjusted EBITDA. The company anticipates sugar sales volumes of 785,000 metric tons for the year, a slight decrease due to factors such as the smaller sugar beet harvest and industrial demand uncertainties. The LEAP Project remains on track for completion by the end of 2026, with expected costs between $280 million and $300 million. However, CapEx spending for 2025 has been adjusted to focus on the Montreal refinery portion of the project. Despite the volatile trade environment, the company maintains confidence in its strategic direction and financial health, reflected in the maintenance of its $0.09 per share dividend.

Rogers Sugar Financial Statement Overview

Summary
Rogers Sugar shows strong revenue growth and improved profitability with stable margins. However, high debt levels and negative free cash flow due to increased capital expenditures pose challenges. The company must enhance cash management to sustain operations, balancing robust growth with careful leverage and cash flow management.
Income Statement
75
Positive
The income statement demonstrates solid revenue growth: a 4.86% increase from 2024 to TTM (Trailing-Twelve-Months) and a 21.37% increase from 2023 to 2024. Gross profit margin is stable at 14.41% for TTM. The net profit margin has improved to 4.82% in TTM, indicating enhanced profitability. EBIT and EBITDA margins are strong at 8.26% and 10.39% respectively, showing operational efficiency. Continued revenue growth and higher margins contribute to a strong financial position.
Balance Sheet
65
Positive
The balance sheet shows a moderate financial position with a debt-to-equity ratio of 1.01 in TTM, indicating balanced leverage. Return on Equity (ROE) improved to 14.13% in TTM, reflecting efficient use of equity. The equity ratio is stable at 39.96%, showing a solid capital structure. While leverage is managed well, the high level of debt requires monitoring.
Cash Flow
60
Neutral
Cash flow analysis reveals challenges in free cash flow, which turned negative in TTM due to increased capital expenditures. However, the operating cash flow to net income ratio stands at 1.13, showing good cash conversion. The free cash flow to net income ratio is negative, indicating potential liquidity issues if capital expenditures continue to rise. Cash management needs improvement to ensure sustainable operations.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
1.29B1.23B1.10B1.01B893.93M860.80M
Gross Profit
186.07M175.87M165.73M130.81M139.74M126.20M
EBIT
106.69M97.21M94.96M62.07M84.50M68.01M
EBITDA
134.20M122.88M120.73M42.26M109.26M91.69M
Net Income Common Stockholders
62.29M53.73M51.79M-16.57M47.53M35.42M
Balance SheetCash, Cash Equivalents and Short-Term Investments
5.19M19.12M46.00K151.00K15.64M1.97M
Total Assets
1.10B1.08B960.90M937.96M879.93M887.14M
Total Debt
446.42M380.88M438.37M397.79M365.02M363.04M
Net Debt
441.23M361.76M438.33M397.64M349.38M361.06M
Total Liabilities
662.18M656.33M654.00M646.54M560.97M616.95M
Stockholders Equity
440.74M422.41M306.90M291.42M318.96M270.19M
Cash FlowFree Cash Flow
-12.05M13.71M8.92M-2.18M53.90M38.45M
Operating Cash Flow
70.11M79.79M44.32M21.55M78.58M64.60M
Investing Cash Flow
-82.15M-66.08M-35.40M-23.73M-24.68M-26.15M
Financing Cash Flow
13.16M5.36M-8.89M-13.55M-40.16M-36.79M

Rogers Sugar Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.67
Price Trends
50DMA
5.54
Positive
100DMA
5.51
Positive
200DMA
5.54
Positive
Market Momentum
MACD
0.03
Negative
RSI
60.14
Neutral
STOCH
74.79
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 5.67 is above the 20-day moving average (MA) of 5.61, above the 50-day MA of 5.54, and above the 200-day MA of 5.54, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 60.14 is Neutral, neither overbought nor oversold. The STOCH value of 74.79 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
C$1.48B12.9011.45%1.91%16.82%21.82%
TSMFI
73
Outperform
C$3.39B35.776.05%3.24%3.16%
TSRSI
72
Outperform
C$722.30M11.5914.43%6.35%11.35%-4.31%
TSHLF
72
Outperform
C$517.75M6.7414.49%3.72%-4.45%90.27%
69
Neutral
C$384.55M14.1914.27%6.94%16.37%25.61%
TSPBH
68
Neutral
C$3.68B30.926.75%4.15%6.29%24.34%
65
Neutral
$8.94B14.994.76%203.76%3.54%-2.49%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:RSI
Rogers Sugar
5.67
0.23
4.23%
TSE:LAS.A
Lassonde
215.21
74.88
53.36%
TSE:MFI
Maple Leaf Foods
27.80
5.71
25.85%
TSE:HLF
High Liner Foods
17.72
5.10
40.41%
TSE:CSW.B
Corby Spirit&Wn B NV
12.91
1.21
10.34%
TSE:PBH
Premium Brands
81.25
-6.13
-7.02%

Rogers Sugar Corporate Events

Business Operations and StrategyFinancial Disclosures
Rogers Sugar Achieves Strong Q2 Results Amid Trade Uncertainty
Positive
May 13, 2025

Rogers Sugar reported strong financial results for the second quarter of fiscal 2025, with a consolidated adjusted EBITDA of $34.7 million. This performance was driven by robust demand in both the sugar and maple segments. Despite a decrease in the sugar segment’s contribution due to product mix and maintenance costs, the maple segment showed record performance with increased sales volumes. The company is actively monitoring the trade situation between Canada and the United States, which has had limited impact so far, and is engaging with stakeholders to mitigate potential future impacts.

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.

Dividends
Rogers Sugar Inc. Declares Quarterly Dividend
Positive
May 13, 2025

Rogers Sugar Inc. has announced a quarterly dividend of $0.09 per share, payable on July 16, 2025, to shareholders on record as of June 27, 2025. This decision reflects the company’s commitment to returning value to its shareholders and may positively impact investor sentiment and the company’s market position.

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.

Business Operations and Strategy
Rogers Sugar Secures Five-Year Supply Agreement with Alberta Sugar Beet Growers
Positive
May 9, 2025

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.

Financial Disclosures
Rogers Sugar to Discuss Q2 2025 Financial Results in Upcoming Conference Call
Neutral
Apr 22, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.