NYSE:TR

Stock Analysis Report

Executive Summary

Tootsie Roll Industries, Inc., together with its subsidiaries, manufactures and sells confectionery products primarily in the United States, Canada, and Mexico.

Rewards

Trading at 17.1% below its fair value

Risk Analysis

No risks detected for TR from our risk checks.


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has Tootsie Roll Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.2%

TR

-7.7%

US Food

-10.6%

US Market


1 Year Return

-5.9%

TR

4.3%

US Food

5.2%

US Market

Return vs Industry: TR underperformed the US Food industry which returned 7.8% over the past year.

Return vs Market: TR underperformed the US Market which returned 10.2% over the past year.


Shareholder returns

TRIndustryMarket
7 Day-3.2%-7.7%-10.6%
30 Day0.5%-7.9%-8.5%
90 Day-1.3%-6.7%-4.6%
1 Year-4.9%-5.9%7.0%4.3%7.4%5.2%
3 Year-2.7%-5.5%-9.7%-16.8%31.7%23.2%
5 Year27.4%21.3%32.6%17.1%56.4%39.3%

Price Volatility Vs. Market

How volatile is Tootsie Roll Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tootsie Roll Industries undervalued compared to its fair value and its price relative to the market?

17.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TR ($34.18) is trading below our estimate of fair value ($41.25)

Significantly Below Fair Value: TR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TR is poor value based on its PE Ratio (35.9x) compared to the Food industry average (21.9x).

PE vs Market: TR is poor value based on its PE Ratio (35.9x) compared to the US market (17.1x).


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 (2.9x) compared to the US Food industry average (1.8x).


Next Steps

Future Growth

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

13.0%

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.


Next Steps

Past Performance

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

0.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TR has high quality earnings.

Growing Profit Margin: TR's current net profit margins (12%) are lower than last year (14.8%).


Past Earnings Growth Analysis

Earnings Trend: TR's earnings have grown by 0.6% 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 (-18.5%) over the past year, making it difficult to compare to the Food industry average (-3.8%).


Return on Equity

High ROE: TR's Return on Equity (8.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Tootsie Roll Industries's financial position?


Financial Position Analysis

Short Term Liabilities: TR's short term assets ($332.3M) exceed its short term liabilities ($77.4M).

Long Term Liabilities: TR's short term assets ($332.3M) exceed its long term liabilities ($146.5M).


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 (1162.6%).

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


Balance Sheet

Inventory Level: TR has a high level of physical assets or inventory.

Debt Coverage by Assets: TR's debt is covered by short term assets (assets are 40.2x debt).


Next Steps

Dividend

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

1.06%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Tootsie Roll Industries before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.1%marketbottom25%1.6%markettop25%4.1%industryaverage3.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: TR's dividend (1.05%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.53%).

High Dividend: TR's dividend (1.05%) is low compared to the top 25% of dividend payers in the US market (3.96%).


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 (37.5%), 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.


Next Steps

Management

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

9.9yrs

Average board tenure


CEO

Ellen Gordon (87yo)

5.1yrs

Tenure

US$5,146,692

Compensation

Ms. Ellen R. Gordon has been the Chairperson of the Board and Chief Executive Officer of Tootsie Roll Industries, Inc. since January 20, 2015. Ms. Gordon serves as the President of C G C Corporation. She a ...


CEO Compensation Analysis

Compensation vs Market: Ellen's total compensation ($USD5.15M) is above average for companies of similar size in the US market ($USD3.92M).

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


Board Members

NamePositionTenureCompensationOwnership
Ellen Gordon
Chairman & CEO5.1yrsUS$5.15m64.51% $1.4b
Lana Lewis-Brent
Independent Director32.1yrsUS$118.80k0.046% $1.0m
Paula M. Wardynski
Independent Director4.8yrsUS$118.80kno data
Barre Seibert
Independent Director14.8yrsUS$129.63k0.0051% $113.0k

9.9yrs

Average Tenure

74.5yo

Average Age

Experienced Board: TR's board of directors are considered experienced (9.9 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Tootsie Roll Industries, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tootsie Roll Industries, Inc.
  • Ticker: TR
  • Exchange: NYSE
  • Founded: 1896
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$2.225b
  • Shares outstanding: 65.32m
  • Website: https://www.tootsie.com

Number of Employees


Location

  • Tootsie Roll Industries, Inc.
  • 7401 South Cicero Avenue
  • Chicago
  • Illinois
  • 60629
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TRNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
TZ3DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
TROL.BOTCPK (Pink Sheets LLC)Class B Common StockUSUSDJul 2003

Biography

Tootsie Roll Industries, Inc., together with its subsidiaries, manufactures and sells confectionery products primarily in the United States, Canada, and Mexico. 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. Tootsie Roll Industries, Inc. sells its products directly to wholesale distributors of candy 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 candy and grocery brokers. The company was founded in 1896 and is based in Chicago, Illinois. Tootsie Roll of Canada ULC operates as a subsidiary of Tootsie Roll Industries, Inc. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 00:22
End of Day Share Price2020/02/27 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.