Tootsie Roll (TR) AI Stock Analysis

• Market Cap: $2.10B
• Dividend Yield: 1.14%
• Average Volume (3M): 117.16K
• Price to Earnings (P/E): 25.9
• Beta (1Y): 0.11
• Revenue Growth: -6.00%
• EPS Growth: -4.90%
• Country: US
• Employees: 2,300
• Sector: Consumer Defensive
• Sector Strength: 94
• Industry: Food Confectioners
• EPS (TTM): 1.18
• Shares Outstanding: 41,212,288
• 10 Day Avg. Volume: 92,402
• 30 Day Avg. Volume: 117,156
• PEG Ratio: 3.21
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.08
• Price to Cash Flow (P/CF): 9.10
• P/FCF Ratio: 10.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Tootsie Roll maintains a strong financial foundation with consistent revenue and profit growth, robust cash flow, and a conservative balance sheet. Technical analysis indicators suggest a neutral to slightly positive outlook, with stable stock price trends. The valuation reflects moderate growth expectations, with no significant overvaluation concerns. The combination of strong financial performance and stable technical indicators supports a solid overall stock score.

Tootsie Roll Business Overview & Revenue Model

Company Description

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, Inc. was founded in 1896 and is based in Chicago, Illinois.

How the Company Makes Money

Tootsie Roll Industries generates revenue through the manufacture and sale of confectionery products. The company's primary revenue streams include direct sales to retailers such as supermarkets, convenience stores, and mass merchandisers. Additionally, Tootsie Roll sells its products through distributors and wholesalers who supply to various retail outlets. Seasonal sales spikes occur during holidays like Halloween, Easter, and Christmas, contributing significantly to the company's earnings. Tootsie Roll also benefits from brand recognition and consumer loyalty, which help maintain a steady demand for its products. While the company does not rely heavily on partnerships, it does engage in marketing and promotional activities to enhance brand visibility and drive sales.

Tootsie Roll Financial Statement Overview

Summary

Tootsie Roll presents a strong financial position, characterized by consistent revenue and profit growth, robust cash flow generation, and a conservative balance sheet with low leverage. The company shows effective management in maintaining profitability and cash conversion efficiency. While liabilities have increased, the company’s strong equity and cash positions mitigate potential risks, positioning Tootsie Roll well for future growth.

Income Statement

Tootsie Roll has demonstrated robust revenue growth, particularly noticeable from 2020 to 2023, with consistent increases in total revenue. The company maintains solid profitability with a strong gross profit margin and a healthy net profit margin. While the EBIT margin is slightly lower than peak, it remains stable, suggesting effective cost management. Overall, the income statement reflects strong performance with consistent revenue and profit growth.

Balance Sheet

The balance sheet reveals a low debt-to-equity ratio, indicating conservative use of leverage and strong equity backing. Return on equity is healthy, reflecting efficient use of equity to generate profits. However, the equity ratio, while strong, shows a slight decrease due to increasing liabilities. Overall, the balance sheet is solid, with low leverage and a strong equity position, but continued monitoring of liabilities is advisable.

Cash Flow

Tootsie Roll has shown impressive growth in free cash flow, particularly from 2020 to 2023. The operating cash flow to net income ratio is strong, indicating effective cash generation relative to reported profits. Free cash flow to net income ratio is positive, signaling good cash conversion. The cash flow statement highlights strong cash generation capabilities and efficient capital expenditure management, supporting further growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
723.22M	769.37M	681.44M	566.04M	471.06M
	Gross Profit
253.18M	256.84M	227.20M	194.51M	170.36M
	EBIT
100.50M	101.83M	110.75M	67.13M	58.24M
	EBITDA
145.56M	138.47M	112.88M	84.70M	76.43M
	Net Income Common Stockholders
86.83M	91.91M	75.94M	65.33M	58.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
55.79M	171.42M	149.40M	145.81M	208.93M
	Total Assets
1.15B	1.08B	1.02B	1.02B	984.56M
	Total Debt
6.37M	15.89M	13.29M	15.86M	9.19M
	Net Debt
6.37M	-60.02M	-39.98M	-89.98M	-157.65M
	Total Liabilities
276.77M	261.28M	235.90M	249.82M	221.46M
	Stockholders Equity
870.74M	823.42M	783.17M	769.04M	763.33M
Cash Flow		Free Cash Flow
120.89M	67.81M	48.70M	53.87M	56.74M
	Operating Cash Flow
138.89M	94.61M	72.05M	85.30M	74.71M
	Investing Cash Flow
-35.84M	-14.20M	-68.59M	-91.90M	9.50M
	Financing Cash Flow
-39.15M	-58.18M	-56.40M	-54.15M	-55.85M

Tootsie Roll Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.59
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 30.59 is below the 20-day moving average (MA) of 31.48, below the 50-day MA of 30.81, and above the 200-day MA of 29.95, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 53.62 is Neutral, neither overbought nor oversold. The STOCH value of 38.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TR.

Tootsie Roll Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSY	77 Outperform	$32.86B	14.86	50.40%	3.38%	0.33%	20.17%
TR	76 Outperform	$2.10B	25.88	10.25%	1.14%	-6.00%	-4.90%
FIZZ	69 Neutral	$4.00B	21.53	40.81%	―	0.34%	9.48%
STRA	68 Neutral	$2.00B	17.37	6.80%	2.96%	7.68%	61.28%
JJSF	64 Neutral	$2.61B	30.95	9.08%	2.29%	2.14%	5.38%
Sector *	62 Neutral	$20.22B	13.99	-16.14%	3.22%	1.15%	3.41%
SJM	61 Neutral	$12.25B	22.22	-3.55%	3.73%	7.07%	-181.54%

Tootsie Roll Corporate Events

Tootsie Roll Appoints Chodos to Board of Directors

On January 27, Michael Adam Chodos joined the Board of Directors of Tootsie Roll and was appointed to its Audit and Compensation Committees. Chodos brings extensive experience in corporate counsel, entrepreneurship, and board advisory roles from his previous positions at Medsphere Systems Corporation and Notarize, Inc. This appointment follows the resignation of Barre A. Seibert on January 26, who concluded his 20-year tenure on the board.