Tootsie Roll (TR) AI Stock Analysis

• Market Cap: $2.96B
• Dividend Yield: 1.05%
• Average Volume (3M): 150.01K
• Price to Earnings (P/E): 27.7
• Beta (1Y): 0.13
• Revenue Growth: -5.52%
• EPS Growth: -5.01%
• Country: US
• Employees: 2,300
• Sector: Consumer Defensive
• Sector Strength: 70
• Industry: Food Confectioners
• EPS (TTM): 0.25
• Shares Outstanding: 41,795,933
• 10 Day Avg. Volume: 160,065
• 30 Day Avg. Volume: 150,009
• PEG Ratio: 2.29
• Price to Book (P/B): 3.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 60.18
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 11.42
• Enterprise Value/Ebitda: 5.29
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: $40.00 ▲(20.12%Upside)

Tootsie Roll's strong financial performance, reflected in consistent growth and robust cash flow, is the primary driver of its stock score. The technical analysis supports a bullish outlook, though high valuation metrics and nearing overbought technical indicators suggest caution. The absence of earnings call and corporate events data does not impact the overall 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 makes money primarily through the manufacturing and sale of confectionery products. The company generates revenue by selling its products to a broad range of customers, including wholesalers, retailers, and distributors, both domestically and internationally. Key revenue streams include retail sales through grocery stores, convenience stores, and mass merchandisers, as well as direct sales to large retail chains. The company's strategic partnerships with distributors and retailers help in expanding its market reach and ensuring product availability in various regions. Additionally, Tootsie Roll Industries benefits from brand loyalty and recognition, which contribute to steady sales and profitability.

Tootsie Roll Financial Statement Overview

Summary

Tootsie Roll shows strong financial performance with consistent revenue and profit growth, robust cash flow, and a conservative balance sheet with low leverage. The company effectively manages profitability and cash conversion.

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	686.97M	570.78M	471.06M
	Gross Profit
253.18M	256.84M	232.73M	199.24M	170.36M
	EBIT
100.50M	101.83M	110.75M	67.13M	58.24M
	EBITDA
145.56M	138.47M	115.91M	103.34M	94.61M
	Net Income Common Stockholders
86.83M	91.91M	75.94M	65.33M	58.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
194.63M	171.42M	149.40M	145.81M	208.93M
	Total Assets
1.15B	1.08B	1.02B	1.02B	984.56M
	Total Debt
14.79M	15.89M	13.29M	15.86M	9.19M
	Net Debt
-124.05M	-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: Neutral
• Last Price: 33.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TR, the sentiment is Neutral. The current price of 33.3 is below the 20-day moving average (MA) of 34.44, above the 50-day MA of 32.89, and above the 200-day MA of 31.03, indicating a neutral trend. The MACD of 0.32 indicates Positive momentum. The RSI at 43.35 is Neutral, neither overbought nor oversold. The STOCH value of 7.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TR.

Tootsie Roll Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FIZZ	77 Outperform	$4.29B	23.06	40.81%	―	0.34%	9.48%
TR	77 Outperform	$2.96B	27.66	10.39%	1.05%	-5.52%	-5.01%
HSY	75 Outperform	$34.05B	20.73	37.48%	3.18%	-5.91%	-19.78%
STRA	73 Outperform	$2.04B	18.10	6.86%	2.84%	5.72%	11.02%
Sector *	65 Neutral	$8.89B	14.91	4.67%	6.16%	3.60%	-2.89%
SJM	60 Neutral	$10.20B	22.22	-17.87%	4.44%	7.07%	-181.54%
JJSF	58 Neutral	$2.26B	29.56	8.20%	2.69%	0.49%	-12.32%

Tootsie Roll Corporate Events

Tootsie Roll Appoints Karen Mills as President

On June 2, 2025, Tootsie Roll Industries appointed Karen Gordon Mills as President and a member of its Board of Directors. Mills, who has a strong background in leadership roles and is the daughter of the current CEO, Ellen Gordon, will serve until the 2026 Annual Meeting of Shareholders. Additionally, the company updated its bylaws to include new procedural requirements for director nominations and shareholder meetings, reflecting changes in corporate governance practices.

Tootsie Roll Elects New Board Members and Auditor

At the Annual Meeting of Shareholders held on May 5, 2025, Tootsie Roll Industries, Inc. successfully elected five nominees to its Board of Directors and ratified the appointment of Grant Thornton LLP as its independent registered public accounting firm for the fiscal year 2025. These decisions reflect the company’s ongoing efforts to maintain strong governance and financial oversight, which are crucial for its operational stability and stakeholder confidence.