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Interested In Rogers Sugar Inc. (TSE:RSI)? Here’s What Its Recent Performance Looks Like

When Rogers Sugar Inc. (TSE:RSI) announced its most recent earnings (29 December 2018), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. Being able to interpret how well Rogers Sugar has done so far requires weighing its performance against a benchmark, rather than looking at a standalone number at a point in time. In this article, I’ve summarized the key takeaways on how I see RSI has performed.

View our latest analysis for Rogers Sugar

How Well Did RSI Perform?

RSI’s trailing twelve-month earnings (from 29 December 2018) of CA$42m has jumped 47% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 7.4%, indicating the rate at which RSI is growing has accelerated. How has it been able to do this? Let’s take a look at whether it is only because of industry tailwinds, or if Rogers Sugar has seen some company-specific growth.

TSX:RSI Income Statement, March 15th 2019
TSX:RSI Income Statement, March 15th 2019

In terms of returns from investment, Rogers Sugar has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. However, its return on assets (ROA) of 6.9% exceeds the CA Food industry of 6.9%, indicating Rogers Sugar has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Rogers Sugar’s debt level, has declined over the past 3 years from 12% to 10%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 73% to 96% over the past 5 years.

What does this mean?

Rogers Sugar’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that have performed well in the past, such as Rogers Sugar gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Rogers Sugar to get a better picture of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for RSI’s future growth? Take a look at our free research report of analyst consensus for RSI’s outlook.

  2. Financial Health: Are RSI’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.

  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

NB: Figures in this article are calculated using data from the trailing twelve months from 29 December 2018. This may not be consistent with full year annual report figures.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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