Rogers Sugar (RSI) AI Stock Analysis

• Market Cap: C$691.56M
• Dividend Yield: 6.67%
• Average Volume (3M): 214.97K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.51
• Revenue Growth: 11.86%
• EPS Growth: -6.28%
• Country: CA
• Employees: 956
• Sector: Consumer Defensive
• Sector Strength: 73
• Industry: Food Confectioners
• EPS (TTM): 0.46
• Shares Outstanding: 128,067,180
• 10 Day Avg. Volume: 196,144
• 30 Day Avg. Volume: 214,973
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.55
• Price to Cash Flow (P/CF): -4.30
• 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: 20.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Rogers Sugar shows strong financial performance with robust revenue growth and profitability, though cash flow management needs attention. The valuation is attractive with a reasonable P/E ratio and a high dividend yield. Technical analysis indicates bearish momentum, but the stock remains fundamentally solid with record-breaking earnings and strategic investments. The company's proactive financial strategies, including debenture offerings, enhance its financial stability and market position.

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

Project Cost Increase

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

Tariff Risk

There is downside risk from potential tariffs, which could affect the company's performance.

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 revenue through the production and sale of sugar and related products. The company's key revenue streams include sales to industrial customers, such as food and beverage manufacturers, who use sugar as a key ingredient in their products. Additionally, RSI supplies sugar to retail markets, where products are sold directly to consumers through grocery stores and other retail outlets. The company also earns revenue from the sale of by-products like beet pulp and molasses, which are used in animal feed and other applications. Strategic partnerships and supply agreements with major food manufacturers also play a significant role in RSI's earnings, ensuring steady demand and long-term contracts.

Rogers Sugar Financial Statement Overview

Summary

Rogers Sugar demonstrates strong financial performance with consistent revenue growth and effective cash flow management. The income statement shows solid gross profit margins and a consistent EBIT margin. The balance sheet reflects a reasonable debt-to-equity ratio, though there's room for improvement in financial stability. Cash flow is robust with positive free cash flow growth.

Income Statement

Rogers Sugar shows a solid gross profit margin and a consistent EBIT margin, indicating stable operational efficiency. The revenue growth rate is healthy, reflecting a positive upward trend over the years. However, net profit margins are moderate, suggesting potential for improvement in managing expenses or enhancing revenue streams.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio, reflecting a balanced approach to leveraging debt financing. The return on equity has improved over the years, indicating better utilization of shareholders' equity to generate profits. However, there is room to enhance the equity ratio to ensure greater financial stability and resilience against liabilities.

Cash Flow

Rogers Sugar's cash flow performance is robust, with positive free cash flow growth and a stable operating cash flow to net income ratio, demonstrating effective cash management. However, the free cash flow to net income ratio indicates potential areas for optimization to convert accounting profits into cash.

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: Negative
• Last Price: 5.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 5.4 is above the 20-day moving average (MA) of 5.38, below the 50-day MA of 5.46, and below the 200-day MA of 5.50, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.67 is Neutral, neither overbought nor oversold. The STOCH value of 16.15 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
RSI	69 Neutral	C$691.56M	11.86	15.13%	6.67%	11.86%	-6.28%
Sector *	63 Neutral	$20.68B	14.36	-12.41%	3.14%	1.24%	2.53%
WJX	62 Neutral	C$376.26M	8.81	8.49%	8.06%	-2.65%	-47.65%

Rogers Sugar Corporate Events

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.

Rogers Sugar Confirms Board of Directors at Annual Meeting

Rogers Sugar Inc. announced the election of its directors during its Annual Meeting of Shareholders. The vote confirmed the positions of all nominated directors, including Dean Bergmame, Shelley Potts, M. Dallas H. Ross, Daniel Lafrance, Gary M. Collins, and Stephanie Wilkes. Additionally, the directors have been instructed to vote in favor of the corporation’s nominees for Lantic Inc.’s board. This decision reinforces the company’s strategic leadership continuity, potentially impacting its operational and market strategies.

Rogers Sugar Reports Strong First Quarter with Increased Revenues and EBITDA

Rogers Sugar Inc. reported a robust start to fiscal 2025, with a 29% increase in consolidated adjusted EBITDA to $39.6 million. The company saw a 12% rise in revenues driven by higher average pricing and increased sales volumes in both its Sugar and Maple segments. Sales volumes in the Sugar segment improved significantly due to the resolution of a past labor disruption, contributing to a $7.9 million rise in adjusted EBITDA. Investments were made to expand refining and logistics capacity, and the company repaid matured debentures, reflecting a strong financial position.

Rogers Sugar Inc. Announces Q1 2025 Results Conference Call

Rogers Sugar Inc. has announced it will hold a conference call on February 6, 2025, to discuss its first quarter results for 2025. This announcement, led by CEO Michael Walton and CFO Jean-Sébastien Couillard, provides an opportunity for stakeholders to gain insights into the company’s performance and strategic direction early in the fiscal year.