Tootsie Roll (TR) AI Stock Analysis

• Market Cap: $2.63B
• Dividend Yield: 0.95%
• Average Volume (3M): 113.73K
• Price to Earnings (P/E): 28.6
• Beta (1Y): 0.13
• Revenue Growth: 0.34%
• EPS Growth: 0.85%
• Country: US
• Employees: 2,300
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): 0.49
• Shares Outstanding: 41,820,835
• 10 Day Avg. Volume: 105,068
• 30 Day Avg. Volume: 113,735
• 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: 1.12
• Enterprise Value/Revenue: 4.04
• Enterprise Value/Gross Profit: 11.24
• Enterprise Value/Ebitda: 17.56
• 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: 66 Neutral
• Price Target: $41.00 ▲(5.92% Upside)

Tootsie Roll's strong financial performance is the primary driver of its stock score, supported by robust profitability and a solid balance sheet. However, technical indicators suggest bearish momentum, and the valuation indicates potential overvaluation, which dampens the overall score.

Positive Factors

Strong Brand Presence

A strong brand presence and customer loyalty provide Tootsie Roll with a competitive advantage, ensuring sustained demand and market share stability.

Solid Balance Sheet

A solid balance sheet with low leverage enhances financial stability, allowing Tootsie Roll to invest in growth opportunities and weather economic downturns.

Revenue Growth

Strong revenue growth reflects effective market strategies and product demand, supporting long-term business expansion and profitability.

Negative Factors

Decline in Free Cash Flow Growth

Declining free cash flow growth may limit Tootsie Roll's ability to fund new projects or return capital to shareholders, impacting future growth potential.

Revenue Volatility

Revenue volatility can create uncertainty in financial planning and may affect investor confidence, posing challenges to consistent growth.

Free Cash Flow Concerns

Negative free cash flow growth suggests potential constraints on capital allocation, which could hinder strategic investments and operational flexibility.

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

Tootsie Roll demonstrates robust financial health with strong profitability and a solid balance sheet. The company benefits from low leverage and effective equity utilization. While cash flow generation is strong, recent declines in free cash flow growth warrant attention.

Income Statement

Tootsie Roll shows strong profitability with consistent gross and net profit margins. The TTM (Trailing-Twelve-Months) data indicates a significant revenue growth rate of 93.7%, highlighting robust sales performance. EBIT and EBITDA margins are healthy, reflecting efficient operations. However, the previous year's revenue growth was negative, indicating some volatility.

Balance Sheet

The company maintains a solid financial position with a low debt-to-equity ratio, indicating minimal leverage and financial risk. Return on Equity (ROE) is strong, showcasing effective use of equity to generate profits. The equity ratio is stable, reflecting a strong asset base supported by equity.

Cash Flow

Operating cash flow is strong relative to net income, indicating good cash generation from operations. However, free cash flow growth has been negative in recent periods, which could be a concern for future investments. The free cash flow to net income ratio is healthy, suggesting efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	729.62M	723.22M	769.37M	686.97M	570.78M	471.06M
Gross Profit	262.41M	253.18M	256.84M	232.73M	199.24M	170.36M
EBITDA	167.88M	145.56M	138.47M	115.91M	103.34M	94.61M
Net Income	93.77M	86.83M	91.91M	75.94M	65.33M	58.99M
Balance Sheet
Total Assets	1.23B	1.15B	1.08B	1.02B	1.02B	984.56M
Cash, Cash Equivalents and Short-Term Investments	119.83M	194.63M	171.42M	149.40M	145.81M	208.93M
Total Debt	14.16M	14.79M	15.89M	13.29M	15.86M	9.19M
Total Liabilities	310.09M	276.77M	261.28M	235.90M	249.82M	221.46M
Stockholders Equity	918.85M	870.74M	823.42M	783.17M	769.04M	763.33M
Cash Flow
Free Cash Flow	100.08M	120.89M	67.81M	48.70M	53.87M	56.74M
Operating Cash Flow	126.08M	138.89M	94.61M	72.05M	85.30M	74.71M
Investing Cash Flow	-95.51M	-35.84M	-14.20M	-68.59M	-91.90M	9.50M
Financing Cash Flow	-43.85M	-39.15M	-58.18M	-56.40M	-54.15M	-55.85M

Tootsie Roll Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 38.71
• 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 Neutral. The current price of 38.71 is above the 20-day moving average (MA) of 37.07, above the 50-day MA of 37.50, and above the 200-day MA of 36.71, indicating a neutral trend. The MACD of -0.51 indicates Positive momentum. The RSI at 46.98 is Neutral, neither overbought nor oversold. The STOCH value of 40.39 is Neutral, 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
HSY	76 Outperform	$38.34B	28.28	31.01%	3.00%	4.71%	-23.03%
JJSF	69 Neutral	$1.78B	28.27	6.82%	3.53%	0.54%	-24.42%
TR	66 Neutral	$2.63B	28.56	10.48%	0.95%	0.34%	0.85%
SMPL	65 Neutral	$1.98B	23.01	5.17%	―	8.98%	-26.29%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
MDLZ	62 Neutral	$69.67B	20.58	13.07%	3.53%	4.13%	-5.19%
RMCF	43 Neutral	$15.60M	-3.25	-56.79%	―	8.09%	17.25%