NYSE:TRFood
Tootsie Roll (TR) Stock Rich Valuation Meets Quarterly Profit Pressure
Tootsie Roll Industries came into this quarter priced for comfort. The stock has returned roughly 1.6% over the past week and 3.9% over the past month, while trading on a rich trailing P/E of 31.1x compared with a peer average of 12.7x. Yet the market reaction to the fresh Q2 numbers was muted, with the share price slipping only 0.3% to US$39.63.
The headline is not growth; it is valuation strain. Earnings over the past year grew 5%, but the stock still sits above a discounted cash flow...