Tootsie Roll Industries (NYSE:TR) - Share price, News & Analysis

Q: What is the Fair Price of TR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

TR ($35.59) is trading above our estimate of [[fair value]] ($16.53)

TR fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	3/6
Financial Health	6/6
Dividends	4/6

TR Stock Overview

Tootsie Roll Industries, Inc., together with its subsidiaries, engages in manufacture and sale of confectionery products in the United States, Canada, Mexico, and internationally.

Rewards

Earnings grew by 14.3% over the past year

Risk Analysis

Earnings have declined by 3.4% per year over past 5 years

Tootsie Roll Industries Competitors

Cal-Maine Foods

NasdaqGS:CALM

US$2.7b

J&J Snack Foods

NasdaqGS:JJSF

US$3.0b

Industrias Bachoco. de

NYSE:IBA

US$2.4b

Nomad Foods

NYSE:NOMD

US$3.2b

Price History & Performance

Summary of all time highs, changes and price drops for Tootsie Roll Industries
Historical stock prices
Current Share Price	US$35.59
52 Week High	US$38.09
52 Week Low	US$29.01
Beta	-0.042
1 Month Change	1.51%
3 Month Change	11.81%
1 Year Change	12.79%
3 Year Change	3.71%
5 Year Change	13.66%
Change since IPO	948.85%

Recent News & Updates

Aug 11

Is Tootsie Roll Industries (NYSE:TR) A Risky Investment?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Jul 21

If EPS Growth Is Important To You, Tootsie Roll Industries (NYSE:TR) Presents An Opportunity

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...

Jun 08

Tootsie Roll Industries (NYSE:TR) Has More To Do To Multiply In Value Going Forward

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

May 02

Tootsie Roll Industries: Opinion Unchanged

In the past, I called Tootsie Roll Industries an expensive stock that made sense as a defensive play for long-term investors. So far, the company has played that role well, even as its fundamentals show continued improvement. Despite getting cheaper for the most part, however, my opinion has not changed on the business as of this writing.

Shareholder Returns

	TR	US Food	US Market
7D	2.4%	1.8%	1.4%
1Y	12.8%	7.6%	-8.4%

Return vs Industry: TR exceeded the US Food industry which returned 7.4% over the past year.

Return vs Market: TR exceeded the US Market which returned -9% over the past year.

Price Volatility

Is TR's price volatile compared to industry and market?
TR volatility
TR Average Weekly Movement	3.0%
Food Industry Average Movement	6.1%
Market Average Movement	7.6%
10% most volatile stocks in US Market	17.1%
10% least volatile stocks in US Market	3.1%

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

Founded	Employees	CEO	Website
1896	2,000	Ellen Gordon	https://www.tootsie.com

Tootsie Roll Industries, Inc., together with its subsidiaries, engages in manufacture and sale of confectionery products in the United States, Canada, Mexico, and internationally. It 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. The company 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, e-commerce merchants, the United States military, and fund-raising charitable organizations, as well as through food and grocery brokers.

Tootsie Roll Industries Fundamentals Summary

How do Tootsie Roll Industries's earnings and revenue compare to its market cap?
TR fundamental statistics
Market Cap	US$2.47b
Earnings (TTM)	US$68.78m
Revenue (TTM)	US$636.17m

35.7x

P/E Ratio

3.9x

P/S Ratio

Is TR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TR income statement (TTM)
Revenue	US$636.17m
Cost of Revenue	US$417.87m
Gross Profit	US$218.30m
Other Expenses	US$149.52m
Earnings	US$68.78m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.00
Gross Margin	34.31%
Net Profit Margin	10.81%
Debt/Equity Ratio	1.1%

How did TR perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

36%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is TR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TR?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for TR. This is calculated by dividing TR's market cap by their current preferred multiple.
What is TR's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$2.47b

TR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3.7x
Enterprise Value/EBITDA	22.6x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does TR's PE Ratio compare to its peers?

TR PE Ratio vs Peers

The above table shows the PE ratio for TR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	26.1x
CALM Cal-Maine Foods	20.7x	-36.6%	US$2.7b
JJSF J&J Snack Foods	61.6x	45.7%	US$3.0b
IBA Industrias Bachoco. de	7.2x	-3.9%	US$2.4b
NOMD Nomad Foods	15x	15.9%	US$3.2b
TR Tootsie Roll Industries	35.7x	n/a	US$2.5b

Price-To-Earnings vs Peers: TR is expensive based on its Price-To-Earnings Ratio (35.7x) compared to the peer average (26.1x).

Price to Earnings Ratio vs Industry

How does TR's PE Ratio compare vs other companies in the US Food Industry?

Price-To-Earnings vs Industry: TR is expensive based on its Price-To-Earnings Ratio (35.7x) compared to the US Food industry average (19x)

Price to Earnings Ratio vs Fair Ratio

What is TR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	35.7x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate TR's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of TR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TR ($35.59) is trading above our estimate of fair value ($16.53)

Significantly Below Fair Value: TR is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Tootsie Roll Industries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

8.5%

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.

Discover growth companies

Examine Tootsie Roll Industries's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
Tootsie Roll Industries competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Tootsie Roll Industries performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-3.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TR has high quality earnings.

Growing Profit Margin: TR's current net profit margins (10.8%) are lower than last year (11.9%).

Past Earnings Growth Analysis

Earnings Trend: TR's earnings have declined by 3.4% per year over the past 5 years.

Accelerating Growth: TR's earnings growth over the past year (14.3%) exceeds its 5-year average (-3.4% per year).

Earnings vs Industry: TR earnings growth over the past year (14.3%) exceeded the Food industry 5.4%.

Return on Equity

High ROE: TR's Return on Equity (8.9%) is considered low.

Discover strong past performing companies

Financial Health

How is Tootsie Roll Industries's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: TR's short term assets ($280.8M) exceed its short term liabilities ($82.5M).

Long Term Liabilities: TR's short term assets ($280.8M) exceed its long term liabilities ($149.6M).

Debt to Equity History and Analysis

Debt Level: TR has more cash than its total debt.

Reducing Debt: TR's debt to equity ratio has reduced from 1.1% to 1.1% over the past 5 years.

Debt Coverage: TR's debt is well covered by operating cash flow (881.9%).

Interest Coverage: TR earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Tootsie Roll Industries's current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

1.01%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: TR's dividend (1.01%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: TR's dividend (1.01%) is low compared to the top 25% of dividend payers in the US market (3.99%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (35.6%), TR's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (54.2%), TR's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

17.3yrs

Average board tenure

CEO

Ellen Gordon (90 yo)

7.58yrs

Tenure

US$5,442,510

Compensation

Mrs. 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. Mrs. Gordon serves as th...

CEO Compensation Analysis

Compensation vs Market: Ellen's total compensation ($USD5.44M) is about average for companies of similar size in the US market ($USD6.64M).

Compensation vs Earnings: Ellen's compensation has been consistent with company performance over the past year.

Board Members

Experienced Board: TR's board of directors are seasoned and experienced ( 17.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/18 00:00
End of Day Share Price	2022/08/18 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31