One-glance verdict
Undervalued
$59.80 our estimate vs market $34.54
42% below our estimate, below the bear case
Fundamentals snapshot
Tootsie Roll Industries, Inc.
TR · NYQ · Consumer Defensive · Confectioners
Current price
$34.54
52-week range
$33.44 - $45.06
Market cap
$2.60B
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
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 0.3% last year.
- Reward Returns 10.3% on equity, ahead of 80% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Operating margin compressed from 16.1% to 8.9% over 3 years.
What this company does
Tootsie Roll Industries, Inc.
Tootsie Roll Industries makes and sells candy like Tootsie Rolls and Dots, with most of their money coming from selling these treats to many different types of stores. This focus on a well-known product makes their sales pretty steady.
What it actually does
Tootsie Roll Industries is a company that makes and sells candy. They offer a wide variety of sweet treats, including chewy candies, lollipops, chocolates, and chewing gum. These products are sold under many different brand names that you might recognize from your local store. The company sells its candies through various channels, such as wholesale distributors, supermarkets, convenience stores, and even online.
Tootsie Rolls and Related Chewy Candies
This is the original business line that started it all. It includes the iconic Tootsie Roll, a chewy, chocolate-flavored candy, as well as other chewy confections like Tootsie Fruit Rolls and Charleston Chew. These products are made with a unique recipe that gives them their signature texture and ability to withstand different temperatures. They are a significant part of the company's overall sales, appealing to consumers who enjoy a classic, long-lasting chew.
Lollipops and Hard Candies
This segment focuses on lollipops and other hard candies, with Tootsie Pops being a flagship product. Tootsie Pops are known for their hard candy shell and chewy Tootsie Roll center. Other popular items in this category include Charms, Blow Pops, and Caramel Apple Pops. These products are often sold individually or in multi-packs and are a popular choice for both children and adults, contributing a substantial portion to the company's revenue.
Mints and Chocolate Confections
This part of the business includes well-known brands like Andes Chocolate Mints and Junior Mints. Andes are thin, layered chocolate mints, often enjoyed after meals, while Junior Mints are small, chocolate-covered mints. These products cater to consumers looking for minty or chocolatey treats and represent a key part of Tootsie Roll's diverse offerings, adding to the company's overall sales volume.
Chewing Gum and Novelty Candies
This segment encompasses a range of chewing gums, such as Dubble Bubble and Razzles, as well as other novelty candies like Dots and Cella's chocolate-covered cherries. Dubble Bubble is a classic bubble gum, while Dots are fruit-flavored gumdrops. These products appeal to a broad audience, especially children, and contribute to the company's revenue stream through their widespread availability in various retail outlets.
What management is betting on now
Tootsie Roll Industries is focused on a conservative strategy that emphasizes the durability of its well-known candy brands and maintaining broad distribution across various retail channels. Management prioritizes operational control and generating consistent cash flow, rather than pursuing rapid growth through acquisitions. They are also investing in advanced manufacturing equipment and efficient operations to manage costs and maintain profitability in a competitive market. The company aims to continue delivering high-quality products at competitive prices to its 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 $59.80 vs current price $34.54
Our most-likely fair value is $59.80 a share — about 73.1% above today's price of $34.54, 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 $7.63B Interest coverage 2.29x -99% vs TR Carries about 98.4x less debt cushion than TR.
Total debt $7.45B Interest coverage 3.17x -99% vs TR Carries about 71.3x less debt cushion than TR.
Total debt $2.01B Interest coverage 4.25x -98% vs TR Carries about 53.1x less debt cushion than TR.
Total debt $6.94B Interest coverage 3.52x -98% vs TR Carries about 64.1x less debt cushion than TR.
What you should know
The case for and against TR
3 Rewards
1 Risk
Rewards
-
Revenue grew 0.3% last year.
-
Returns 10.3% on equity, ahead of 80% 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.
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)
27.41x
Forward P/E
—
P/B
2.72x
P/S
3.53x
EV/EBITDA
19.46x
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
1.26
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
1.0%
Payout ratio
28.5%
Last ex-div date
2026-10-07