While the S&P 500 is up 16% since March 2025, Rogers (currently trading at $79.38 per share) has lagged behind, posting a return of 5.1%. This was partly driven by its softer quarterly results and may have investors wondering how to approach the situation.
Is now the time to buy Rogers, or should you be careful about including it in your portfolio? Get the full breakdown from our expert analysts, it’s free.
Why Do We Think Rogers Will Underperform?
We don't have much confidence in Rogers. Here are three reasons you should be careful with ROG and a stock we'd rather own.
1. Long-Term Revenue Growth Flatter Than a Pancake
A company’s long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Unfortunately, Rogers struggled to consistently increase demand as its $795.8 million of sales for the trailing 12 months was close to its revenue five years ago. This was below our standards and is a sign of poor business quality.
2. EPS Trending Down
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
Sadly for Rogers, its EPS declined by 15.3% annually over the last five years while its revenue was flat. This tells us the company struggled because its fixed cost base made it difficult to adjust to choppy demand.
3. Free Cash Flow Margin Dropping
Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.
As you can see below, Rogers’s margin dropped by 8.7 percentage points over the last five years. Continued declines could signal it is in the middle of an investment cycle. Rogers’s free cash flow margin for the trailing 12 months was 6.4%.
Final Judgment
Rogers falls short of our quality standards. With its shares trailing the market in recent months, the stock trades at 28.2× forward P/E (or $79.38 per share). This multiple tells us a lot of good news is priced in - we think there are better opportunities elsewhere. Let us point you toward our favorite semiconductor picks and shovels play.
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