Assessing Rogers (ROG) Valuation After Recent Share Price Rebound

Why Rogers (ROG) is Getting Fresh Attention Now

Rogers (ROG) is back on investor radars after recent share price moves, with the stock showing a 12% gain over the past month and a 30% gain over the past 3 months.

See our latest analysis for Rogers.

Those recent gains sit alongside a 15.5% year to date share price return and a 23.5% total shareholder return over the past year. However, longer term total shareholder returns over 3 and 5 years remain negative, hinting at rebuilding confidence rather than a complete turnaround.

If Rogers’ rebound has you thinking about where else growth stories might be forming around critical hardware and infrastructure, it could be worth scanning our 24 power grid technology and infrastructure stocks as a starting list of ideas.

With Rogers still reporting a net loss of $61.8m yet trading at $106.21, and with analysts’ average price target sitting at $124.33, is there still mispricing here, or is the market already assuming stronger growth ahead?

Most Popular Narrative: 14.6% Undervalued

Rogers last closed at $106.21 while the most followed narrative pegs fair value at $124.33, so the story here hinges on whether its future earnings path justifies that gap under an 8.41% discount rate.

Rogers is poised to benefit from long-term growth in electric vehicles and broader electrification trends globally, as evidenced by an expanding customer base in China's rapidly growing EV market and design wins with leading local power module manufacturers. This should drive sustained revenue growth and increase market share over time.

Read the complete narrative.

Curious what earnings path and margin rebuild sit behind that fair value number? The narrative leans heavily on tighter costs, richer mix, and buybacks working together. The exact mix of revenue growth, margin shift, and share count change might surprise you.

Result: Fair Value of $124.33 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, you still need to watch for weaker EV demand and tough Asian competition in power substrates, as these could pressure margins and unsettle that fair value story.

Find out about the key risks to this Rogers narrative.

Another View: Market Ratio Flags Richer Pricing

There is a catch to the 14.6% undervalued fair value story. On P/S, Rogers trades at 2.3x while our fair ratio sits at 1.3x, even though the wider US Electronic group and peers sit higher at 2.8x and 2.7x. That gap hints at less room for error than the narrative suggests, so which signal do you trust more?

See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

If this mix of optimism and caution around Rogers feels finely balanced, take a closer look at the full picture and form your own view with 1 key reward and 1 important warning sign.

Ready to scout your next investment ideas?

Rogers might be on your screen today, but the strongest portfolios usually come from widening the search and weighing several solid, well researched options side by side.

• Target potential mispricing by scanning companies our tools flag as 55 high quality undervalued stocks, then compare their stories with what you see in Rogers.
• Prioritise resilience by running through the 80 resilient stocks with low risk scores, focusing on businesses where risk checks already clear a higher bar.
• Hunt for under the radar opportunities using our screener containing 23 high quality undiscovered gems, so you do not miss ideas that others might only notice later.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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