Tootsie Roll Industries, Inc.
Tootsie Roll Industries, Inc. Fundamental Analysis
Tootsie Roll Industries, Inc. (TR) shows weak financial fundamentals with a PE ratio of 32.22, profit margin of 12.85%, and ROE of 10.53%. The company generates $0.4B in annual revenue with weak year-over-year growth of -6.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TR's fundamental strength across five key dimensions:
Efficiency Score
WeakTR struggles to generate sufficient returns from assets.
Valuation Score
WeakTR trades at a premium to fair value.
Growth Score
WeakTR faces weak or negative growth trends.
Financial Health Score
ExcellentTR maintains a strong and stable balance sheet.
Profitability Score
WeakTR struggles to sustain strong margins.
Key Financial Metrics
Is TR Expensive or Cheap?
P/E Ratio
TR trades at 32.22 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TR's PEG of 13.64 indicates potential overvaluation.
Price to Book
The market values Tootsie Roll Industries, Inc. at 3.29 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.71 times EBITDA. This signals the market has high growth expectations.
How Well Does TR Make Money?
Net Profit Margin
For every $100 in sales, Tootsie Roll Industries, Inc. keeps $12.85 as profit after all expenses.
Operating Margin
Core operations generate 14.56 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.53 in profit for every $100 of shareholder equity.
ROA
Tootsie Roll Industries, Inc. generates $7.63 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tootsie Roll Industries, Inc. produces operating cash flow of $72.35M, showing steady but balanced cash generation.
Free Cash Flow
Tootsie Roll Industries, Inc. generates strong free cash flow of $57.43M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.37 in free cash annually.
FCF Yield
TR converts 5.78% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
32.22
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
13.64
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.29
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.38
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How TR Stacks Against Its Sector Peers
| Metric | TR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 32.22 | 23.25 | Worse (Expensive) |
| ROE | 10.53% | 1240.00% | Weak |
| Net Margin | 12.85% | -9728.00% (disorted) | Strong |
| Debt/Equity | 0.02 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 2.83 | 2.54 | Strong Liquidity |
| ROA | 7.63% | -203388.00% (disorted) | Weak |
TR outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Tootsie Roll Industries, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
41.77%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
38.19%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
43.19%
Industry Style: Defensive, Dividend, Low Volatility
High Growth