Tootsie Roll (TR) AI Stock Analysis

• Market Cap: $3.34B
• Dividend Yield: 0.84%
• Average Volume (3M): 212.57K
• Price to Earnings (P/E): 34.4
• Beta (1Y): 0.21
• Revenue Growth: -3.75%
• EPS Growth: -3.91%
• Country: US
• Employees: 2,300
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): N/A
• Shares Outstanding: 41,807,520
• 10 Day Avg. Volume: 161,894
• 30 Day Avg. Volume: 212,567
• PEG Ratio: -5.49
• Price to Book (P/B): 2.65
• Price to Sales (P/S): 3.19
• P/FCF Ratio: 19.07
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 3.16
• Enterprise Value/Gross Profit: 8.72
• Enterprise Value/Ebitda: 14.79
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: $48.00 ▲(12.46% Upside)

Tootsie Roll's overall stock score is driven primarily by its strong financial performance, characterized by robust profitability, low leverage, and effective cash flow management. Technical analysis supports a neutral to slightly positive outlook, while valuation metrics suggest the stock may be overvalued, limiting upside potential.

Tootsie Roll Business Overview & Revenue Model

Company Description

Tootsie Roll Industries, Inc. is a leading American confectionery company known for its production of a variety of candy products, most notably the iconic Tootsie Roll, Tootsie Pops, and other chocolate and non-chocolate confections. Founded in 1896, Tootsie Roll operates primarily within the food and beverage sector, focusing on the manufacturing, marketing, and distribution of sweet treats. The company's core product offerings cater to a wide demographic, ensuring a strong presence in both retail and wholesale markets.

How the Company Makes Money

Tootsie Roll Industries generates revenue primarily through the sale of its confectionery products. The company sells its candies through various channels, including supermarkets, convenience stores, and specialty retailers, both domestically and internationally. Key revenue streams include direct sales of Tootsie Rolls, Tootsie Pops, and other candy products, as well as seasonal items and promotional merchandise. Tootsie Roll has established partnerships with major retailers and distributors, enhancing its market reach and ensuring consistent product availability. Additionally, the company benefits from brand loyalty and recognition, which contribute to stable sales and the ability to introduce new products successfully.

Tootsie Roll Financial Statement Overview

Summary

Tootsie Roll's financial statements reflect strong profitability, low leverage, and effective cash flow management. The company has demonstrated significant revenue growth and maintains a stable financial position, making it well-positioned for future growth. While there are minor fluctuations in cash flow, the overall financial health is robust, indicating a promising outlook for the company.

Income Statement

Tootsie Roll demonstrates strong profitability with a consistent gross profit margin around 36% in the TTM and improving net profit margin at 12.58%. The company has shown resilience with a significant revenue growth rate of 60.6% in the TTM, recovering from a slight decline in the previous period. EBIT and EBITDA margins have improved, indicating efficient operational management. Overall, the income statement reflects robust financial health and growth potential.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.016, indicating minimal leverage and financial risk. Return on equity remains healthy at 10.36%, showcasing effective use of shareholder funds. The equity ratio is strong, reflecting a stable financial structure. The company maintains a conservative financial position, which is favorable for long-term stability.

Cash Flow

Cash flow analysis reveals a positive trajectory with a 48% growth in free cash flow in the TTM, although operating cash flow has slightly decreased. The operating cash flow to net income ratio is strong at 1.37, indicating efficient cash generation relative to net income. The free cash flow to net income ratio of 0.84 suggests good cash conversion. Overall, cash flow management is commendable, supporting operational and strategic initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	722.85M	723.22M	769.37M	686.97M	570.78M	471.06M
Gross Profit	261.61M	253.18M	256.84M	232.73M	199.24M	170.36M
EBITDA	154.22M	145.56M	138.47M	115.91M	103.34M	94.61M
Net Income	90.95M	86.83M	91.91M	75.94M	65.33M	58.99M
Balance Sheet
Total Assets	1.18B	1.15B	1.08B	1.02B	1.02B	984.56M
Cash, Cash Equivalents and Short-Term Investments	170.53M	194.63M	171.42M	149.40M	145.81M	208.93M
Total Debt	14.42M	14.79M	15.89M	13.29M	15.86M	9.19M
Total Liabilities	288.69M	276.77M	261.28M	235.90M	249.82M	221.46M
Stockholders Equity	893.13M	870.74M	823.42M	783.17M	769.04M	763.33M
Cash Flow
Free Cash Flow	105.24M	120.89M	67.81M	48.70M	53.87M	56.74M
Operating Cash Flow	125.18M	138.89M	94.61M	72.05M	85.30M	74.71M
Investing Cash Flow	-4.25M	-35.84M	-14.20M	-68.59M	-91.90M	9.50M
Financing Cash Flow	-45.94M	-39.15M	-58.18M	-56.40M	-54.15M	-55.85M

Tootsie Roll Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TR, the sentiment is Positive. The current price of 42.68 is above the 20-day moving average (MA) of 42.50, above the 50-day MA of 41.10, and above the 200-day MA of 34.89, indicating a neutral trend. The MACD of 0.50 indicates Positive momentum. The RSI at 53.08 is Neutral, neither overbought nor oversold. The STOCH value of 27.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TR.

Tootsie Roll Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSY	76 Outperform	$37.73B	24.73	35.89%	2.98%	2.55%	-16.52%
TR	75 Outperform	$3.34B	34.36	10.49%	0.84%	-3.75%	-3.91%
MDLZ	74 Outperform	$81.27B	22.94	13.51%	3.08%	3.14%	-5.80%
SMPL	71 Outperform	$2.53B	17.79	8.22%	―	14.22%	-1.81%
JJSF	67 Neutral	$1.81B	21.71	8.79%	3.34%	0.50%	-4.46%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
RMCF	47 Neutral	$12.75M	―	-56.79%	―	8.09%	17.25%

Tootsie Roll Corporate Events

Tootsie Roll Industries Reports Strong Earnings Growth

Tootsie Roll Industries, Inc. is a renowned confectionery company based in Chicago, Illinois, known for producing iconic candies such as Tootsie Rolls and Tootsie Pops. Operating primarily in the consumer products sector, the company has a long-standing reputation for its classic sweets.