Opinions
Stockchase Insights
Rogers Sugar Inc
RSI-T
HOLD
Nov 29, 2024
Stock price when the opinion was issued
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EPS of 15c beat estimates of 12C. Revenue of $261M beat estimates of $246M.
EBITDA of $33.5M beat estimates of $28.9M.
Sales volume guidance was increased, with strong sugar demand and pricing.
The Maple segment is expected to do better as unfavourable conditions of last year subside.
These earnings are solid.
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Valuation, dividend, and balance sheet are OK. Too boring for him. If you're a small- to mid-cap dividend player, it's a pretty good and steady name. Less sensitive to the economy. Protected by sugar quotas, which look pretty secure right now (though you never know what the government will do). #2 player in the space, and hard to get into.
Don't expect miracles. Take your 5% dividend, get the dividend tax credit, be happy with that.
RSI beat EPS estimates of 13c coming in at 14c. Revenue also beat estimates of $304.7M coming in at $333.03M increasing 10% year-over-year. Adjusted EBITDA was $141.6M up 28% year-over-year. The quarterly and full-year results look solid, with increasing sales driven by price increases and volume growth. The sales volume expectation for sugar in FY2025 is set at 800,000 metric tonnes. The sales volume for maple is expected to grow moderately by 0.5M pounds. We think the earnings were solid and RSI continues to be an OK value/income stock.
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