Tootsie Roll (TR) AI Stock Analysis

• Market Cap: $2.87B
• Dividend Yield: 0.95%
• Average Volume (3M): 130.80K
• Price to Earnings (P/E): 26.7
• Beta (1Y): 0.10
• Revenue Growth: 0.34%
• EPS Growth: 0.85%
• Country: US
• Employees: 2,300
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): 0.38
• Shares Outstanding: 43,075,596
• 10 Day Avg. Volume: 150,625
• 30 Day Avg. Volume: 130,801
• PEG Ratio: 1.66
• Price to Book (P/B): 2.84
• Price to Sales (P/S): 3.65
• P/FCF Ratio: 27.72
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 4.15
• Enterprise Value/Gross Profit: 11.68
• Enterprise Value/Ebitda: 21.30
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $48.00 ▲(29.48% Upside)
• Action: Upgraded Date: 02/28/26
• Date: Action: Upgraded 02/28/26

The score is driven primarily by strong financial performance (high-quality balance sheet with minimal leverage, solid profitability, and consistently positive cash flow). Technicals add support with a clear uptrend across key moving averages and positive MACD, though momentum appears stretched (RSI/Stoch elevated). Valuation meaningfully restrains the score due to a high P/E and modest dividend yield.

Positive Factors

Balance sheet strength

Exceptionally low leverage and growing equity give Tootsie Roll durable financial flexibility. Minimal debt reduces interest burden, supports capital returns, funds opportunistic M&A or capex, and helps the company weather demand shocks without needing external financing.

Brand and distribution breadth

Longstanding brand equity (Tootsie Roll, Tootsie Pops) and multi-channel distribution produce durable shelf presence and bargaining power with retailers. Diverse channels and retailer partnerships reduce single-channel risk and sustain recurring demand, including seasonal volume spikes.

Consistent cash generation

Operating cash flow that reliably covers earnings and positive annual free cash flow establish a lasting capacity to fund operations, dividends and reinvestment. This cash-generation backbone supports strategic flexibility even when earnings swing.

Negative Factors

Revenue volatility

The company’s revenue shows notable year-to-year variability, with a material 2024 decline and a rebound in 2025. Such cyclicality and sensitivity to consumer/seasonal demand complicate forecasting, pressuring stable margin and cash-flow assumptions over the medium term.

Free cash flow variability

Although FCF is positive, its volatility and a 2025 decline reduce predictability of funds for dividends, capex, or acquisitions. Sub‑optimal conversion versus net income means fewer excess cash buffers in weaker periods, constraining strategic options if trends persist.

Data gaps / margin visibility

Key reporting gaps and an unreliable operating-margin field limit visibility into the current asset base and operating profitability. That lack of transparency complicates medium-term modeling and raises execution risk when assessing sustainable margins and capital efficiency.

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 primarily through the sale of its candy products across multiple distribution channels, including retail, wholesale, and online. The company's revenue model is built on producing and marketing a wide variety of confections that appeal to different consumer segments. Key revenue streams include bulk sales to retailers, sales through convenience and grocery stores, as well as direct-to-consumer sales through e-commerce platforms. Tootsie Roll also benefits from significant partnerships with large retailers and distributors, which help to expand its market reach. Additionally, seasonal sales spikes during holidays, such as Halloween and Valentine's Day, contribute notably to its earnings, as consumers tend to purchase candy in larger quantities during these periods.

Tootsie Roll Financial Statement Overview

Summary

Strong overall financial quality: solid profitability with improving net margin in 2025, exceptionally low leverage, and consistently positive operating cash flow with positive free cash flow. Offsetting this are uneven revenue patterns (notably the 2024 dip), volatility/decline in 2025 free cash flow, and a couple of 2025 data gaps/inconsistencies that reduce clarity on the latest operating trend.

Income Statement

Revenue has expanded strongly over the last several years, with 2025 showing a sharp rebound versus 2024 (after a down year in 2024). Profitability is solid and fairly steady, with gross margin in the mid-30% range and net margin improving in 2025. A key weakness is some inconsistency in operating profitability year-to-year, and the 2025 operating margin field appears unreliable (listed as 0.0), which limits visibility into the latest operating trend.

Balance Sheet

The balance sheet is exceptionally conservative: debt is minimal relative to equity (debt-to-equity around ~0.6% in 2025, and low throughout the period). Equity has grown over time, supporting financial flexibility. Returns on equity are healthy and stable (roughly high-single to low-double digits). The main limitation is that total assets are missing for 2025, reducing transparency on the most recent asset base.

Cash Flow

Cash generation is generally strong, with operating cash flow consistently covering net income (above 1.0x in most years, including 2025). Free cash flow is positive each year, but it has been more volatile than earnings, including a decline in 2025 and prior periods of weakness. Free cash flow conversion to net income is decent but not outstanding (about ~74% in 2025), suggesting some ongoing reinvestment or working-capital variability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	732.52M	723.22M	769.37M	686.97M	570.78M
Gross Profit	260.27M	253.18M	256.84M	232.73M	199.24M
EBITDA	156.75M	145.56M	138.47M	115.91M	103.34M
Net Income	100.05M	86.83M	91.91M	75.94M	65.33M
Balance Sheet
Total Assets	1.25B	1.15B	1.08B	1.02B	1.02B
Cash, Cash Equivalents and Short-Term Investments	177.03M	194.63M	171.42M	149.40M	145.81M
Total Debt	13.88M	14.79M	15.89M	13.29M	15.86M
Total Liabilities	313.41M	276.77M	261.28M	235.90M	249.82M
Stockholders Equity	940.97M	870.74M	823.42M	783.17M	769.04M
Cash Flow
Free Cash Flow	96.35M	120.89M	67.81M	48.70M	53.87M
Operating Cash Flow	130.61M	138.89M	94.61M	72.05M	85.30M
Investing Cash Flow	-110.55M	-35.84M	-14.20M	-68.59M	-91.90M
Financing Cash Flow	-32.55M	-39.15M	-58.18M	-56.40M	-54.15M

Tootsie Roll Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 37.07 is below the 20-day moving average (MA) of 40.12, below the 50-day MA of 37.71, and above the 200-day MA of 37.05, indicating a bullish trend. The MACD of 1.09 indicates Negative momentum. The RSI at 63.73 is Neutral, neither overbought nor oversold. The STOCH value of 56.15 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
TR	76 Outperform	$2.87B	26.69	11.04%	0.95%	0.34%	0.85%
HSY	68 Neutral	$45.93B	41.93	18.89%	3.00%	4.71%	-23.03%
JJSF	64 Neutral	$1.63B	491.43	6.60%	3.53%	0.54%	-24.42%
MDLZ	63 Neutral	$74.58B	26.09	9.29%	3.53%	4.13%	-5.19%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SMPL	62 Neutral	$1.52B	19.23	5.17%	―	8.98%	-26.29%
RMCF	56 Neutral	$24.17M	-21.39	-56.79%	―	8.09%	17.25%