One-glance verdict
Undervalued
$51.96 our estimate vs market $38.89
25% below our estimate, below the bear case
Fundamentals snapshot
Tootsie Roll Industries, Inc.
TR · NYQ · Consumer Defensive · Confectioners
Current price
$38.89
52-week range
$33.44 - $45.06
Market cap
$2.92B
Balance sheet
Healthy
225.81x Strong cushion
Net cash $127.84M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 0.3% last year.
- Reward Returns 10.3% on equity, ahead of 50% of its peers.
- Risk Operating margin compressed from 16.1% to 8.9% over 3 years.
- Risk Stock trades 4.6% above its 5-year average P/E.
What this company does
Tootsie Roll Industries, Inc.
Tootsie Roll is a candy company making iconic treats like Tootsie Rolls, Tootsie Pops, and Junior Mints. It earns money by selling these sweets in bulk to a huge variety of stores, and its extensive supply chain (the whole process of making and delivering candy) ensures its products are available nearly everywhere you can buy snacks.
How the company got here
Tootsie Roll began in 1896 when Austrian immigrant Leo Hirshfield created a chocolatey candy that wouldn't melt easily in the heat. He named it after his daughter Clara, whose nickname was "Tootsie." The company grew significantly by becoming a staple in American soldiers' rations during World War II due to the candy's durability. Over the years, the company expanded by acquiring other well-known candy brands, including Charms, Junior Mints, Dubble Bubble, and Andes Mints, making it one of the largest candy manufacturers in the world.
What it actually does
Tootsie Roll Industries makes and sells a wide variety of candies that you would recognize in almost any grocery or convenience store. Its most famous product is the chewy, chocolate-flavored Tootsie Roll. The company also produces many other popular sweets, including Tootsie Pops, Charms Blow Pops, Dots, Junior Mints, and Andes chocolate mints. It sells these candies to wholesale distributors who then supply them to supermarkets, dollar stores, drug chains, and vending machine operators across the United States, Canada, and Mexico.
Confectionery Products
The company operates as a single business focused on making and selling candy. This means that all of its efforts, from manufacturing to marketing, are centered on its portfolio of well-known confectionery brands. Instead of having separate divisions for different types of candy, Tootsie Roll manages all its products, like lollipops, chewy candies, and mints, as one integrated operation. This single focus on the candy business has been its strategy for over a century.
What management is betting on now
Management's strategy is focused on maintaining the popularity of its classic, well-known brands rather than creating lots of new products. They are concentrating on running the business efficiently by using technology like high-speed, automated machinery to produce and package their candies. The company is also looking to grow by expanding its reach in international markets, particularly in emerging economies where there is an opportunity to introduce its products to new customers. A key part of their plan is to continue producing high-quality candy at affordable prices to encourage repeat purchases from loyal customers.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$55.84M
FY2024 Q4
$64.70M
FY2025 Q1
$750.00K
FY2025 Q2
$-16.05M
FY2025 Q3
$50.67M
FY2025 Q4
$60.98M
FY2026 Q1
$3.29M
FY2026 Q2
$-34.78M
Revenue
$154.22M
Net income
$13.35M
Diluted EPS
—
Operating cash flow
$-22.37M
Free cash flow
$-34.78M
Fetching…
Sources
Revenue
$151.54M
Net income
$17.66M
Diluted EPS
—
Operating cash flow
$11.49M
Free cash flow
$3.29M
Fetching…
Sources
Revenue
$196.28M
Net income
$28.79M
Diluted EPS
—
Operating cash flow
$73.33M
Free cash flow
$60.98M
Fetching…
Sources
Revenue
$232.71M
Net income
$35.66M
Diluted EPS
—
Operating cash flow
$62.22M
Free cash flow
$50.67M
Fetching…
Sources
Revenue
$155.09M
Net income
$17.54M
Diluted EPS
—
Operating cash flow
$-8.54M
Free cash flow
$-16.05M
Fetching…
Sources
Revenue
$148.46M
Net income
$18.06M
Diluted EPS
—
Operating cash flow
$3.60M
Free cash flow
$750.00K
Fetching…
Sources
Revenue
$193.37M
Net income
$22.51M
Diluted EPS
—
Operating cash flow
$68.79M
Free cash flow
$64.70M
Fetching…
Sources
Revenue
$225.93M
Net income
$32.84M
Diluted EPS
—
Operating cash flow
$61.33M
Free cash flow
$55.84M
Fetching…
Sources
Is it cheap or expensive?
Fair value $51.96 vs current price $38.89
Our most-likely fair value is $51.96 a share — about 33.6% above today's price of $38.89, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $127.8M - more cash than debt. Interest coverage 225.8x.
Net debt
$-127.84M
Interest coverage
225.81x
Tootsie Roll Industries, Inc.'s profit covers its interest bill about 225.8 times over. which is stronger than every peer shown here.
Healthy
Worse cushion
Baseline
Better cushion
TR
BASELINE
Tootsie Roll Industries, Inc.
Total debt $13.29M Interest coverage 225.81x This is the baseline the peer rows are being compared against.
Total debt $5.92B Interest coverage 6.50x -97% vs TR Carries about 34.7x less debt cushion than TR.
Total debt $22.06B Interest coverage 6.04x -97% vs TR Carries about 37.4x less debt cushion than TR.
Total debt $191.91M Interest coverage 67.00x -70% vs TR Carries about 3.4x less debt cushion than TR.
Total debt $448.46M Interest coverage 9.40x -96% vs TR Carries about 24.0x less debt cushion than TR.
Total debt $7.63B Interest coverage 2.29x -99% vs TR Carries about 98.4x less debt cushion than TR.
What you should know
The case for and against TR
3 Rewards
2 Risks
Rewards
-
Revenue grew 0.3% last year.
-
Returns 10.3% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Operating margin compressed from 16.1% to 8.9% over 3 years.
-
Stock trades 4.6% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
30.62x
Forward P/E
—
P/B
3.06x
P/S
3.98x
EV/EBITDA
22.04x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
34.5%
Operating margin
8.9%
Net margin
13.0%
ROE
10.3%
ROA
5.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.01x
Current ratio
2.89x
Quick ratio
1.72x
Total debt
$13.29M
Total cash
$141.12M
Growth
How the business has been compounding
Revenue TTM
$734.74M
Revenue 5Y CAGR
6.4%
EPS TTM
1.27
EPS 5Y CAGR
10.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$124.67M
Free CF TTM
$96.35M
FCF margin
13.1%
Dividend
Shareholder payout
Yield
0.9%
Payout ratio
27.9%
Last ex-div date
2026-06-18