Investment Thesis
Rogers Corp faces severe operational distress despite maintaining a fortress balance sheet. Profitability has collapsed 337% YoY with net income of just $4.5M and anemic cash flow generation (0.5% FCF margin), signaling fundamental business challenges. The abnormal 101,250% revenue spike likely represents a one-time event masking underlying operational weakness.
Strengths
- Debt-free balance sheet with zero long-term debt providing financial flexibility
- Strong liquidity position with 4.02x current ratio and $195.8M cash reserves
- Reasonable gross margin of 32.2% indicates underlying product viability
Risks
- Catastrophic profitability decline with net income down 336.8% YoY despite revenue growth
- Critically weak cash flow generation at 0.5% FCF margin indicates operational distress
- Abysmal returns on capital with ROE of 0.4% and ROA of 0.3% suggesting poor capital efficiency
- Suspicious revenue growth pattern (101,250% YoY) likely driven by one-time event, not sustainable operations
- Operating margin compression to 5.3% demonstrates deteriorating unit economics
Key Metrics to Watch
- Operating cash flow sustainability and working capital trends
- Segment profitability breakdown and gross margin stability by division
- Return on invested capital trajectory and organic revenue growth excluding one-time items
Financial Metrics
Revenue
200.5M
Net Income
4.5M
EPS (Diluted)
$0.25
Free Cash Flow
1.1M
Total Assets
1.4B
Cash
195.8M
Profitability Ratios
Gross Margin
32.2%
Operating Margin
5.3%
Net Margin
2.2%
ROE
0.4%
ROA
0.3%
FCF Margin
0.5%
Balance Sheet & Liquidity
Current Ratio
4.02x
Quick Ratio
3.02x
Debt/Equity
0.00x
Debt/Assets
0.0%
Interest Coverage
1.65x
Long-term Debt
0.0
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-06T13:47:54.076114 |
Data as of: 2026-03-31 |
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