TSE:RSI

Rogers Sugar Inc (RSI.TO)

7.09
+0.05 (0.71%)
as of Jul 22, 2026, 4:08:30 pm Market Open.
129 watching
0
Investor Insights
star iconJul 22, 2026, 12:00 am

This summary was created by AI, based on 3 opinions in the last 12 months.

Rogers Sugar Inc. operates within an oligopoly, which provides it some level of market stability; however, the emergence of a new competitor raises concerns about potential disruption in the sugar sector. Experts caution that rising inflation or stagflation could negatively impact the company's appeal as investors might search for higher-yield alternatives, particularly since Rogers hasn't increased its dividends recently. Despite these risks, the company has maintained a solid performance with no annual losses since 2001, and its manageable debt with a payout ratio below 30% indicates a certain level of financial resilience. The company benefits from protected sugar quotas that seem secure for now, making it a reasonable option for dividend investors seeking steady returns, though expecting significant growth would be inappropriate.

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Consensus
Cautious
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Valuation
Fair Value
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COMMENT
In the commodity sector which is coming to the end of its period now. Chart shows a descending triangle and it has broken down through it. Getting close to its $5.10 support very fast. Next level would be $4.80.
PAST TOP PICK
(Top Pick Dec 2/09, Up 30%) The crop looks really good in 2011. Converting to corp. and leaving dividend where it is.
TOP PICK
Convertible debenture (RSI.DB.B-T) due June 29/13. Yield of around 4.5%.
COMMENT
Limits on how much beet sugar can be shipped to the US. Key input costs are Nat gas, which is working on their side. Prime market is Canadian.
PAST TOP PICK
(Top Pick Dec 2/09, Up 19% total return) Play on income. Good quality yield, safe play. Have hedged inputs of Natural Gas for the next few years. They convert Nat Gas into sugar. Converting to corp. and cutting distribution to be same after tax. Little bit of upside.
BUY
Slow growth. Manufacture sugar but don't sell it at spot prices. High sugar prices are not good as it encourages customers to switch. Distribution will be cut when they convert but for taxable accounts it doesn't matter since what you lose in distribution yield, you get tax dividend credit for it. Use natural gas, which is currently very cheap.
DON'T BUY
Volatility in distributions through the years. Great performer in the last year because sugar prices have doubled. If you want a holding that gives steady income with some growth there are better places to be.
BUY
Stock hasn't gone anywhere since 2001 but he has got $.40 a share in dividends every year. Sugar prices are at an 11-year high but this doesn't boost their bottom line. Will have to convert in 2011 but the dividend looks pretty safe and he expects a good year in 2010.
TOP PICK
10.8% distribution. Manufactures and distributes sugar. One of only two companies in Canada. Low natural gas prices to cook the sugar and higher sugar prices gave them a record year. Ran a flawless manufacturing this year. Can sustain the payout ratio when it converts to a corporation.
HOLD
Yield of 12%. In a consolidation phase. Difficult to analyze technically. Not a lot of volume and what is there is spotty. Could possibly get up to $4.30. Use $3.60 as a Stop. Better opportunities available.
COMMENT
Primary facility is in Alberta. Basically service domestic markets because of stringent export rules. Key input costs is natural gas. He is interested in looking at this one.
COMMENT
It is now back into support again. Not sure if high input costs caused it to drop. You are probably okay to buy it here. In a market like this, he would prefer a trust that has infrastructure such as pipes, lines and utilities.
BUY
(Market Call Minute.) Excellent small income trust. Distribution has gone up. Their trade protection was renewed. Pretty safe.
COMMENT
(Market Call Minute.) Doesn't think it will go up with other agricultural stocks. No natural gas price has helped the stock.
TOP PICK
He looks on this as a hidden play on agriculture. It's a way to play soft commodities and is overlooked. It is trying to break out. Nice uptrend. Use $4.25 Stop.
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