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Tootsie Roll (TR)
NYSE:TR

Tootsie Roll (TR) AI Stock Analysis

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TR

Tootsie Roll

(NYSE:TR)

76Outperform
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 (TR) vs. S&P 500 (SPY)

Tootsie Roll Business Overview & Revenue Model

Company DescriptionTootsie Roll Industries Inc. is an American manufacturer of confectionery products, primarily known for its flagship product, the Tootsie Roll. Founded in 1896 and headquartered in Chicago, Illinois, the company operates in the confectionery sector, producing a wide range of candies including Tootsie Roll, Tootsie Pop, Junior Mints, Charleston Chew, and Dots. Tootsie Roll Industries prides itself on its rich history and tradition of producing high-quality, affordable sweets that appeal to a broad consumer base.
How the Company Makes MoneyTootsie 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
85
Very Positive
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
78
Positive
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
82
Very Positive
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
723.22M769.37M681.44M566.04M471.06M
Gross Profit
253.18M256.84M227.20M194.51M170.36M
EBIT
100.50M101.83M110.75M67.13M58.24M
EBITDA
145.56M138.47M112.88M84.70M76.43M
Net Income Common Stockholders
86.83M91.91M75.94M65.33M58.99M
Balance SheetCash, Cash Equivalents and Short-Term Investments
55.79M171.42M149.40M145.81M208.93M
Total Assets
1.15B1.08B1.02B1.02B984.56M
Total Debt
6.37M15.89M13.29M15.86M9.19M
Net Debt
6.37M-60.02M-39.98M-89.98M-157.65M
Total Liabilities
276.77M261.28M235.90M249.82M221.46M
Stockholders Equity
870.74M823.42M783.17M769.04M763.33M
Cash FlowFree Cash Flow
120.89M67.81M48.70M53.87M56.74M
Operating Cash Flow
138.89M94.61M72.05M85.30M74.71M
Investing Cash Flow
-35.84M-14.20M-68.59M-91.90M9.50M
Financing Cash Flow
-39.15M-58.18M-56.40M-54.15M-55.85M

Tootsie Roll Technical Analysis

Technical Analysis Sentiment
Positive
Last Price31.71
Price Trends
50DMA
31.14
Positive
100DMA
30.89
Positive
200DMA
30.13
Positive
Market Momentum
MACD
0.25
Negative
RSI
53.52
Neutral
STOCH
64.32
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 31.71 is above the 20-day moving average (MA) of 31.27, above the 50-day MA of 31.14, and above the 200-day MA of 30.13, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 53.52 is Neutral, neither overbought nor oversold. The STOCH value of 64.32 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TRTR
76
Outperform
$2.22B26.8310.25%1.10%-6.00%-4.90%
HSHSY
75
Outperform
$33.55B15.1850.40%3.36%0.33%20.17%
74
Outperform
$4.07B21.9440.81%0.34%9.48%
73
Outperform
$1.96B17.336.86%2.96%5.72%11.02%
70
Outperform
$2.50B29.669.08%2.39%2.14%5.38%
64
Neutral
$9.20B14.614.34%185.58%3.95%5.80%
SJSJM
61
Neutral
$12.34B22.22-3.55%3.73%7.07%-181.54%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TR
Tootsie Roll
31.71
3.15
11.03%
HSY
The Hershey Company
163.28
-23.45
-12.56%
JJSF
J & J Snack Foods
128.52
-5.42
-4.05%
SJM
JM Smucker
115.23
4.91
4.45%
FIZZ
National Beverage
43.52
2.72
6.67%
STRA
Strategic Education
80.93
-33.99
-29.58%

Tootsie Roll Corporate Events

Executive/Board Changes
Tootsie Roll Appoints Chodos to Board of Directors
Neutral
Jan 29, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.