Quality Investor

Tootsie Roll Industries, Inc.

Rank #347Value

TR · NYSE · Consumer Defensive

Tootsie Roll Industries, Inc. (TR) — Rank #347 by gross profitability (GP/assets 0.20) · ROE 10.5% · Piotroski F-Score 6 / 9.

As-of 2026-09-15 · CIK 0000098677 · all metrics point-in-time as of the filing date.

About

Tootsie Roll Industries, Inc., together with its subsidiaries, manufactures and sells confectionery products in the United States, Canada, Mexico, and internationally.

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The company sells its products under the Tootsie Roll, Tootsie Fruit Roll, Tootsie Pops, Tootsie Mini 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. It 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, on-line marketplaces, the U.S. military and fund-raising charitable organizations, as well as through food and grocery brokers. Tootsie Roll Industries, Inc.

was founded in 1896 and is headquartered in Chicago, Illinois.

Industry
Confectioners
Sector
Consumer Defensive
State
VA
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Price History

TR+50.3% · +8.5% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and dividend yield are the primary valuation lenses for mature businesses.

Market Cap

$2.84B

P/E (annual)

27.6

P/S (annual)

3.9

P/B

3.0

P/OCF (annual)

21.7

Shareholder Yield

1.6%

Employees

2,100

Industry

Confectioners

Exchange

NYSE

Signal Flags

2 green1 red
Revenue growth acceleratingGrowth rate increasing year over year
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Operating margin decliningOperating margin lower than prior year

Quality Profile

Profitability

1/1 pass
GP / assets
0.20
Return on equity
10.5%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.33
Current ratio
2.89×
Net cash
$572.91M

Cash Flow

2/3 pass
Positive FCF
PASS
Cash-backed earnings
WARN
Accruals healthy
PASS
SBC / revenue

Growth

2/2 pass
Revenue growth
1.3%
Piotroski F-Score
6 / 9
Share dilution
-0.7%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

12.6%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -0.7% — per-share value needs a total required return of 11.8% once share-count change is priced in.

vs. own 6-year median revenue growth: 6.6%

priced above its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

8.0%

r = 10% (base)

12.6%

r = 12%

16.5%

Net debt / market cap: -20.8%

Base FCF: $96.4M3Y mean FCF: $95M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

29.9xFair
22.5xmed 29.5x35.2x

P / S

Price / revenue per share

4.1xExpensive
2.7xmed 3.8x4.1x

P / B

Price / book value per share

3.2xExpensive
2.3xmed 2.6x3.4x

P / GP

Price / gross profit per share

11.6xExpensive
8.1xmed 10.2x11.6x

P / FCF

Price / free cash flow per share

31.0xFair
17.2xmed 30.5x76.8x

Dividend yield and payout ratio are the primary reads at this stage (trailing P/E — see valuation above).

Profitability

Gross profitability (GP / assets)

0.20

Primary signal (Novy-Marx).

11th of 18 SIC 20 peers

Return on equity

10.5%

Gross margin

35.3%

7th of 18 SIC 20 peers

Revenue growth (YoY)

1.3%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

2.2%

Revenue CAGR (5Y)

9.2%

Earnings CAGR (3Y)

9.6%

FCF CAGR (3Y)

25.5%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.33

3rd of 18 SIC 20 peers (best = lowest)

Current ratio

2.89×

10th of 18 SIC 20 peers

Quick ratio

1.67×

Net cash

$572.91M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$96.35M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

-0.04

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

Stock-based comp intensity.

Dividend safety

Composite score

4.2 / 5

Strong
Payout ratio
26.1%5/5 Strong
FCF coverage
3.70×5/5 Strong
Dividend growth streak
10 yr5/5 Strong
Balance-sheet health
D/E 0.33 · IC N/A2/5 Fair

Piotroski F-Score

F-Score

6 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Decline
Op. Leverage
Capital Return
Value