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Rogers Sugar Inc. (TSE:RSI)
TSX:RSI
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Rogers Sugar (RSI) AI Stock Analysis

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TSE:RSI

Rogers Sugar

(TSX:RSI)

Rating:70Outperform
Price Target:
C$7.00
▲(10.41% 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
Demand
Volume growth and steady margins are expected in both the Sugar and Maple segments, supported by strong underlying North American demand.
Earnings
Strong Sugar margins outweighed weaker results in Maple, resulting in above expectations for Q3/25 results.
Financial Flexibility
The company's recent $100 million convertible debenture offering provides additional financial flexibility.
Negative Factors
Maple Products Performance
Maple Products adj. EBITDA declined due to lower gross margins and higher admin and selling expenses.
Market Volatility
Market volatility from U.S. tariffs and some softening in industrial demand may temper modest Sugar volume growth.
Tariffs
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 leading Canadian sugar and sweetener company that operates in the food production and processing sector. The company is involved in refining, packaging, and marketing sugar products primarily under the Lantic and Rogers brands. Rogers Sugar serves a diverse range of customers, including industrial, consumer, and food service markets, offering products such as granulated sugar, liquid sugar, specialty syrups, and other sugar-based products.
How the Company Makes MoneyRogers Sugar makes money through the production and sale of sugar and related products. The company's revenue model revolves around refining raw sugar into a variety of forms, including granulated sugar, liquid sugar, and specialty syrups, which are then distributed to industrial clients, retail businesses, and food service providers. Key revenue streams include sales to large food manufacturers who use sugar as an essential ingredient in their products, as well as retail sales to consumers through grocery stores. Additionally, Rogers Sugar may engage in strategic partnerships with suppliers and distributors to enhance its market presence and distribution capabilities. External factors such as sugar price fluctuations, import tariffs, and agricultural conditions can significantly impact the company's earnings.

Rogers Sugar Earnings Call Summary

Earnings Call Date:Aug 12, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Nov 27, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted growth and strong financial performance in both the Sugar and Maple segments, along with significant progress in the LEAP Project. However, there were challenges in revenue and profitability in the Sugar and Maple segments, respectively, as well as increased operational costs and potential risks from U.S. tariffs.
Q3-2025 Updates
Positive Updates
Growth in Sugar and Maple Segments
Sales volumes in the Sugar segment increased by 3% over the same period last year and by more than 5% for the first 9 months of the year. Maple sales volumes increased by 20% in the quarter and 15% for the year-to-date.
Record Adjusted EBITDA Performance
Consolidated adjusted EBITDA for the quarter increased by 8% to almost $37 million, with year-to-date EBITDA at $111 million, a 7% increase over the prior year.
Strong Free Cash Flow
Free cash flow for the trailing 12 months grew by 18% to $88 million, supporting growth and operational improvements.
LEAP Project Progress
The LEAP Project is on track for completion by the end of calendar 2026, with construction progressing as planned and the estimate for total cost remaining consistent at between $280 million and $300 million.
Negative Updates
Decline in Sugar Segment Revenues
Revenues from the Sugar segment were down 2.5% in the quarter due to a lower average commodity price for raw sugar.
Challenges in Maple Segment Profitability
Adjusted gross margin in Maple decreased to 8.2% from 10.4% in the same period last year due to unfavorable customer mix and higher syrup costs.
Increased Administrative and Selling Expenditures
An increase of over $2 million in administrative and selling expenditures in the Sugar segment was noted, associated mainly with nonrecurring severance costs.
Potential Impact of U.S. Tariffs
There is lingering uncertainty around potential U.S. tariffs, which could impact export sales.
Company Guidance
During the Rogers Sugar Inc. Analyst Call held on August 12, 2025, President and CEO Mike Walton provided an optimistic outlook for the remainder of fiscal 2025, emphasizing the company's resilient business model and steady demand for sugar and maple products. The Sugar segment saw a 3% sales volume increase in the quarter and a 5% increase year-to-date, while the Maple segment experienced a 20% quarterly growth and a 15% increase year-to-date. The company's consolidated adjusted EBITDA for the quarter rose by 8% to nearly $37 million, contributing to a year-to-date figure of $111 million, marking a 7% increase from the previous year. Walton also highlighted the progress of the LEAP Project, with a continued focus on the Montreal expansion, and reaffirmed the project's completion cost estimate between $280 million and $300 million. CFO Jean-Sebastien Couillard noted that the company's free cash flow for the trailing 12 months grew by 18% to $88 million, supporting ongoing investments and a stable dividend of $0.09 per share. The call concluded with discussions on sugar market dynamics, including the potential impact of tariff changes and the shift towards natural sweeteners.

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
75
Positive
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
65
Positive
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
50
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.30B1.23B1.10B1.01B893.93M860.80M
Gross Profit197.94M175.87M165.73M130.81M139.74M126.20M
EBITDA145.02M122.88M119.50M41.02M108.07M90.50M
Net Income69.34M53.73M51.79M-16.57M47.53M35.42M
Balance Sheet
Total Assets1.13B1.08B960.90M937.96M879.93M887.14M
Cash, Cash Equivalents and Short-Term Investments26.64M19.12M46.00K151.00K15.64M1.97M
Total Debt381.13M380.88M438.37M397.79M365.02M363.04M
Total Liabilities683.31M656.33M654.00M646.54M560.97M616.95M
Stockholders Equity444.21M422.41M306.90M291.42M318.96M270.19M
Cash Flow
Free Cash Flow104.92M13.71M8.92M-2.18M53.90M38.45M
Operating Cash Flow190.42M79.79M44.32M21.55M78.58M64.60M
Investing Cash Flow-85.51M-66.08M-35.40M-23.73M-24.68M-26.15M
Financing Cash Flow-84.03M5.36M-8.89M-13.55M-40.16M-36.79M

Rogers Sugar Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.34
Price Trends
50DMA
5.83
Positive
100DMA
5.67
Positive
200DMA
5.58
Positive
Market Momentum
MACD
0.18
Negative
RSI
71.92
Negative
STOCH
46.28
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 6.34 is above the 20-day moving average (MA) of 6.12, above the 50-day MA of 5.83, and above the 200-day MA of 5.58, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 71.92 is Negative, neither overbought nor oversold. The STOCH value of 46.28 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
C$414.99M14.2715.03%6.55%7.47%14.65%
73
Outperform
C$4.24B45.185.36%3.60%8.42%-17.99%
72
Outperform
C$4.48B25.0211.29%2.55%5.44%1391.43%
70
Outperform
C$812.24M11.7016.09%5.68%7.42%25.60%
63
Neutral
$20.54B14.42-2.84%3.14%2.08%-6.12%
61
Neutral
C$469.20M7.2812.01%4.98%1.05%13.40%
$1.05B12.7811.09%1.98%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:RSI
Rogers Sugar
6.34
1.17
22.63%
TSE:CSW.B
Corby Spirit&Wn B NV
13.75
2.19
18.94%
TSE:HLF
High Liner Foods
16.16
3.32
25.86%
TSE:MFI
Maple Leaf Foods
36.12
14.82
69.58%
TSE:PBH
Premium Brands
94.46
12.07
14.65%
LSDAF
Lassonde
155.48
33.60
27.57%

Rogers Sugar Corporate Events

Business Operations and StrategyFinancial Disclosures
Rogers Sugar Reports Strong Q3 Results Amid Market Volatility
Positive
Aug 12, 2025

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.

Financial Disclosures
Rogers Sugar Schedules Q3 2025 Results Conference Call
Neutral
Jul 22, 2025

Rogers Sugar Inc. announced a conference call scheduled for August 12, 2025, to discuss its third quarter results for the year. The call will be led by CEO Michael Walton and CFO Jean-Sébastien Couillard, offering stakeholders insights into the company’s financial performance and strategic direction.

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 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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 20, 2025