Tootsie Roll Industries, Inc., together with its subsidiaries, manufactures and sells confectionery products primarily in the United States, Canada, Mexico, and internationally.
Tootsie Roll Industries Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$31.05|
|52 Week High||US$28.15|
|52 Week Low||US$57.26|
|1 Month Change||-2.73%|
|3 Month Change||-5.74%|
|1 Year Change||5.86%|
|3 Year Change||17.00%|
|5 Year Change||-2.32%|
|Change since IPO||788.41%|
Recent News & Updates
Tootsie Roll: Once Again, The Good News Is Priced In
I think Tootsie Roll is a wonderful business for a host of reasons. It's a steady cash flow generator with a very solid balance sheet. My history with this stock offers further evidence that our returns are a function of the price paid for a given stock. The price is currently not attractive. Just because I don't want to buy now, I'm willing to own the stock at a 20% discount to the current price. Therefore, I think short puts make sense here.
Capital Allocation Trends At Tootsie Roll Industries (NYSE:TR) Aren't Ideal
What underlying fundamental trends can indicate that a company might be in decline? When we see a declining return on...
Tootsie Roll Industries (NYSE:TR) Seems To Use Debt Quite Sensibly
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
Tootsie Roll's Valuation Is Far From Sweet
While Tootsie Roll has a short float of 10.04%, it is unlikely to experience the sort of short squeeze that the stock got in January. It is a Dividend King with a 54-year streak, and has a strong balance sheet that ensures this streak will continue. Low growth prospects, a puny dividend yield, and a 35% premium to fair value do not make this a buy at present.
|TR||US Food||US Market|
Return vs Industry: TR underperformed the US Food industry which returned 11.3% over the past year.
Return vs Market: TR underperformed the US Market which returned 33.8% over the past year.
Stable Share Price: TR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: TR's weekly volatility (3%) has been stable over the past year.
About the Company
Tootsie Roll Industries, Inc., together with its subsidiaries, manufactures and sells confectionery products primarily in the United States, Canada, Mexico, and internationally. The company sells its products under the Tootsie Roll, Tootsie Pops, Child’s Play, Caramel Apple Pops, Charms, Blow-Pop, Charms Mini Pops, Cella’s, Dots, Junior Mints, Charleston Chew, Sugar Daddy, Sugar Babies, Andes, Fluffy Stuff, Dubble Bubble, Razzles, Cry Baby, Nik-L-Nip, and Tutsi Pop trademarks. It sells its products directly to wholesale distributors of candy, food and groceries, supermarkets, variety stores, dollar stores, chain grocers, drug chains, discount chains, cooperative grocery associations, mass merchandisers, warehouse and membership club stores, vending machine operators, the United States military, and fund-raising charitable organizations, as well as through food and grocery brokers.
Is Tootsie Roll Industries undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: TR ($31.05) is trading above our estimate of fair value ($12.71)
Significantly Below Fair Value: TR is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: TR is poor value based on its PE Ratio (34.8x) compared to the US Food industry average (21.1x).
PE vs Market: TR is poor value based on its PE Ratio (34.8x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate TR's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: TR is overvalued based on its PB Ratio (2.8x) compared to the US Food industry average (2.3x).
How is Tootsie Roll Industries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
Forecasted Food, Beverage & Tobacco industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Tootsie Roll Industries has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
How has Tootsie Roll Industries performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TR has high quality earnings.
Growing Profit Margin: TR's current net profit margins (11.9%) are lower than last year (12.7%).
Past Earnings Growth Analysis
Earnings Trend: TR's earnings have declined by 3.9% per year over the past 5 years.
Accelerating Growth: TR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: TR had negative earnings growth (-5.6%) over the past year, making it difficult to compare to the Food industry average (31.7%).
Return on Equity
High ROE: TR's Return on Equity (8%) is considered low.
How is Tootsie Roll Industries's financial position?
Financial Position Analysis
Short Term Liabilities: TR's short term assets ($277.5M) exceed its short term liabilities ($75.6M).
Long Term Liabilities: TR's short term assets ($277.5M) exceed its long term liabilities ($166.8M).
Debt to Equity History and Analysis
Debt Level: TR's debt to equity ratio (1.1%) is considered satisfactory.
Reducing Debt: TR's debt to equity ratio has reduced from 1.2% to 1.1% over the past 5 years.
Debt Coverage: TR's debt is well covered by operating cash flow (879.2%).
Interest Coverage: TR earns more interest than it pays, so coverage of interest payments is not a concern.
What is Tootsie Roll Industries's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TR's dividend (1.16%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: TR's dividend (1.16%) is low compared to the top 25% of dividend payers in the US market (3.6%).
Stability and Growth of Payments
Stable Dividend: TR's dividends per share have been stable in the past 10 years.
Growing Dividend: TR's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (39.5%), TR's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ellen Gordon (89 yo)
Ms. Ellen R. Gordon has been the Chairperson of the Board and Chief Executive Officer of Tootsie Roll Industries, Inc. since January 20, 2015 and has been its Director since 1969. Ms. Gordon serves as the...
CEO Compensation Analysis
Compensation vs Market: Ellen's total compensation ($USD4.88M) is above average for companies of similar size in the US market ($USD3.69M).
Compensation vs Earnings: Ellen's compensation has been consistent with company performance over the past year.
Experienced Management: TR's management team is seasoned and experienced (6.7 years average tenure).
Experienced Board: TR's board of directors are considered experienced (6.7 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: TR insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Tootsie Roll Industries, Inc.'s employee growth, exchange listings and data sources
- Name: Tootsie Roll Industries, Inc.
- Ticker: TR
- Exchange: NYSE
- Founded: 1896
- Industry: Packaged Foods and Meats
- Sector: Food, Beverage & Tobacco
- Market Cap: US$2.110b
- Shares outstanding: 67.52m
- Website: https://www.tootsie.com
Number of Employees
- Tootsie Roll Industries, Inc.
- 7401 South Cicero Avenue
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/19 22:02|
|End of Day Share Price||2021/09/17 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.