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Relative to Consumer Staples Sector Median (N=180)
Metric
TR
Benchmark
P/E Ratio
30.4x
-8%
EV/EBITDA
30.8x
+344%
Price / Book
3.4x
Implied Value Audit
OVERVALUED
Implied Fair Value (vs Sector)
-70.8%
$12.90Spot: $44.23
Spot
Implied
-50% Delta+50% Delta
Relative valuation derived from Consumer Staples sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
11.1%
Sector: 7.7%
Dividend Analysis audit
INCOME
3.09%
Trailing Yield
$3.09
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
94%HIGH
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, TOOTSIE ROLL INDUSTRIES INC (TR) receives a "Hold" rating with a composite score of 48.5/100, ranked #428 out of 4446 stocks. Key factor scores: Quality 50/100, Value 53/100, Momentum 57/100. This is quantitative analysis only — not investment advice.
TOOTSIE ROLL INDUSTRIES INC (TR) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does TOOTSIE ROLL INDUSTRIES INC Do?
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. TOOTSIE ROLL INDUSTRIES INC (TR) is classified as a mid-cap stock in the Consumer Staples sector, specifically within the Food Products industry. The company is led by CEO Ellen R. Gordon and employs approximately 2,000 people, headquartered in CHICAGO, Illinois. With a market capitalization of $3.1B, TR is one of the notable companies in the Consumer Staples sector.
TOOTSIE ROLL INDUSTRIES INC (TR) Stock Rating — Hold (April 2026)
As of April 2026, TOOTSIE ROLL INDUSTRIES INC receives a Hold rating with a composite score of 48.5/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.TR ranks #428 out of 4,446 stocks in our coverage universe. Within the Consumer Staples sector, TOOTSIE ROLL INDUSTRIES INC ranks #15 of 180 stocks, placing it in the top 10% of its Consumer Staples peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
TR Stock Price and 52-Week Range
TOOTSIE ROLL INDUSTRIES INC (TR) currently trades at $44.23. The stock lost $0.58 (1.3%) in the most recent trading session. The 52-week high for TR is $44.27, which means the stock is currently trading -0.1% from its annual peak. The 52-week low is $29.13, putting the stock 51.8% above its annual trough. Recent trading volume was 80K shares, suggesting relatively thin trading activity.
Is TR Overvalued or Undervalued? — Valuation Analysis
TOOTSIE ROLL INDUSTRIES INC (TR) carries a value factor score of 53/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 30.43x, compared to the Consumer Staples sector average of 33.11x — a discount of 8%. The price-to-book ratio stands at 3.37x, versus the sector average of 1.74x. The price-to-sales ratio is 4.15x, compared to 0.35x for the average Consumer Staples stock. On an enterprise value basis, TR trades at 30.80x EV/EBITDA, versus 6.93x for the sector.
Overall, TR's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
TOOTSIE ROLL INDUSTRIES INC Profitability — ROE, Margins, and Quality Score
TOOTSIE ROLL INDUSTRIES INC (TR) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 11.1%, compared to the Consumer Staples sector average of 7.7%, which is within a healthy range. Return on assets (ROA) comes in at 8.3% versus the sector average of 3.1%.
On a margin basis, TOOTSIE ROLL INDUSTRIES INC reports gross margins of 35.0%, compared to 26.2% for the sector. The operating margin is 13.2% (sector: 2.9%). Net profit margin stands at 13.3%, versus 1.6% for the average Consumer Staples stock. Revenue growth is running at 54.4% on a trailing basis, compared to 3.1% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
TR Debt, Balance Sheet, and Financial Health
TOOTSIE ROLL INDUSTRIES INC has a debt-to-equity ratio of 33.0%, compared to the Consumer Staples sector average of 72.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 3.27x, indicating strong short-term liquidity. Cash and equivalents stand at $79M.
TR has a beta of 0.14, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for TOOTSIE ROLL INDUSTRIES INC is 89/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
TOOTSIE ROLL INDUSTRIES INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, TOOTSIE ROLL INDUSTRIES INC reported revenue of $762M and earnings per share (EPS) of $1.37. Net income for the quarter was $104M. Gross margin was 35.0%. Operating income came in at $103M.
In FY 2025, TOOTSIE ROLL INDUSTRIES INC reported revenue of $733M and earnings per share (EPS) of $1.37. Net income for the quarter was $100M. Gross margin was 35.3%. Revenue grew 1.3% year-over-year compared to FY 2024. Operating income came in at $101M.
In Q3 2025, TOOTSIE ROLL INDUSTRIES INC reported revenue of $233M and earnings per share (EPS) of $0.49. Net income for the quarter was $36M. Gross margin was 34.1%. Revenue grew 3.0% year-over-year compared to Q3 2024. Operating income came in at $32M.
In Q2 2025, TOOTSIE ROLL INDUSTRIES INC reported revenue of $155M and earnings per share (EPS) of $0.24. Net income for the quarter was $18M. Gross margin was 36.4%. Revenue grew 2.9% year-over-year compared to Q2 2024. Operating income came in at $12M.
Over the past 8 quarters, TOOTSIE ROLL INDUSTRIES INC has demonstrated a growth trajectory, with revenue expanding from $151M to $762M. Investors analyzing TR stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
TR Dividend Yield and Income Analysis
TOOTSIE ROLL INDUSTRIES INC (TR) currently pays a dividend yield of 3.1%. At this yield, a $10,000 investment in TR stock would generate approximately $$309.00 in annual dividend income. This compares to the Consumer Staples sector average dividend yield of 0.4%, meaning TR offers above-average income for its sector. The net margin of 13.3% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
TR Momentum and Technical Analysis Profile
TOOTSIE ROLL INDUSTRIES INC (TR) has a momentum factor score of 57/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 22/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 2/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
TR vs Competitors — Consumer Staples Sector Ranking and Peer Comparison
Comparing TR against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full TR vs S&P 500 (SPY) comparison to assess how TOOTSIE ROLL INDUSTRIES INC stacks up against the broader market across all factor dimensions.
TR Next Earnings Date
No upcoming earnings date has been announced for TOOTSIE ROLL INDUSTRIES INC (TR) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy TR? — Investment Thesis Summary
TOOTSIE ROLL INDUSTRIES INC presents a balanced picture with arguments on both sides. Low volatility (stability score 89/100) reduces downside risk.
In summary, TOOTSIE ROLL INDUSTRIES INC (TR) earns a Hold rating with a composite score of 48.5/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on TR stock.
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Institutional Research Dossier
TOOTSIE ROLL INDUSTRIES INC (TR) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Tootsie Roll Industries (TR) receives a Hold rating, driven by a balanced assessment of its strong profitability metrics and stability, offset by concerns regarding its growth prospects and capital allocation. While the company exhibits impressive margins and a robust balance sheet, its relatively low investment score and reliance on established brands suggest limited potential for significant future expansion. The current valuation appears fair, reflecting the company's consistent performance but also acknowledging the challenges in achieving substantial growth in a mature market.
The primary takeaway is that Tootsie Roll represents a stable, cash-generating business with a well-established presence in the confectionery industry. However, investors should temper expectations for rapid growth and focus on the company's ability to maintain its profitability and market share in the face of evolving consumer preferences and increasing competition. The Hold rating reflects the view that the current stock price adequately reflects the company's strengths and weaknesses.
Business Strategy & Overview
Tootsie Roll Industries operates within the consumer staples sector, specifically focusing on the confectionery industry. The company's core strategy revolves around manufacturing and marketing a portfolio of iconic, well-established candy brands, including Tootsie Rolls, Tootsie Pops, Dots, Junior Mints, and Charleston Chew. These brands have a long history and strong consumer recognition, providing a solid foundation for the business. The company distributes its products through a variety of channels, including wholesale distributors, supermarkets, convenience stores, and e-commerce platforms, ensuring broad market access.
A key aspect of Tootsie Roll's strategy is its focus on maintaining consistent product quality and brand image. The company has historically been conservative in its approach to innovation, preferring to focus on its core brands rather than introducing a large number of new products. This strategy has allowed the company to maintain its brand equity and avoid the risks associated with unproven product lines. However, it also limits the potential for significant revenue growth.
Tootsie Roll's geographic footprint is primarily concentrated in the United States, Canada, and Mexico, with some international sales. The company's international expansion has been relatively limited, reflecting its focus on its core markets and its conservative approach to growth. The company's sales strategy involves direct sales to large retailers and distributors, as well as the use of food and grocery brokers to reach smaller accounts. This multi-channel approach allows the company to effectively serve a diverse customer base.
The confectionery industry is highly competitive, with a large number of players ranging from multinational corporations to smaller, niche producers. Tootsie Roll competes with companies such as Hershey, Mars, Nestle, and Mondelez International. Competition is based on factors such as brand recognition, product quality, price, and distribution. Tootsie Roll's strong brand portfolio and efficient operations provide a competitive advantage, but the company must continue to invest in marketing and product development to maintain its market share.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
54.4%
Sector: 3.1%
+1629% VS SCTR
Economic Moat Analysis
Tootsie Roll possesses a narrow economic moat, primarily derived from its intangible assets, specifically its well-established brand portfolio. The company's iconic brands, such as Tootsie Roll, Tootsie Pops, and Junior Mints, have been around for decades and enjoy high consumer recognition and loyalty. This brand equity allows Tootsie Roll to command premium pricing and maintain market share in a competitive industry. However, the moat is considered narrow because the confectionery industry is characterized by relatively low switching costs and intense competition from other established and emerging brands.
While Tootsie Roll's brands are valuable, they are not necessarily irreplaceable. Consumers can easily switch to alternative candy products if they perceive a better value or prefer a different taste. This limits the company's ability to raise prices significantly without losing market share. Furthermore, the confectionery industry is constantly evolving, with new products and brands emerging regularly. Tootsie Roll must continue to invest in marketing and product development to maintain its brand relevance and defend its market position.
The company's cost advantages are not significant enough to create a wide moat. While Tootsie Roll has a reputation for efficient operations and cost control, these advantages are not unique to the company and can be replicated by competitors. The company's gross margins are relatively high compared to the sector average, but this is primarily due to its focus on higher-margin products and its efficient manufacturing processes, rather than a structural cost advantage.
Network effects and efficient scale are not significant factors in Tootsie Roll's business model. The company's products are not subject to network effects, as the value of the product does not increase as more people use it. Efficient scale is also not a major driver of competitive advantage, as the confectionery industry is not characterized by significant economies of scale. While Tootsie Roll benefits from its size and scale, these advantages are not sufficient to create a wide moat.
The stability score of 89 suggests a high degree of predictability in the business, which is characteristic of companies with established brands and consistent demand. However, this stability does not necessarily translate into a wide moat. The confectionery industry is still subject to changing consumer preferences and competitive pressures, which can erode the value of even the most established brands. Therefore, while Tootsie Roll's brand portfolio provides a competitive advantage, it is not strong enough to create a wide moat.
Financial Health & Profitability
Tootsie Roll exhibits a solid financial health profile, characterized by strong profitability, a conservative balance sheet, and consistent cash flow generation. The company's revenue has shown moderate growth, with a 54.4% increase in the most recent TTM period, although this figure should be viewed in the context of potential base effects or one-time factors. Historically, revenue growth has been more modest. Gross margins are consistently strong, averaging around 35%, significantly higher than the consumer staples sector average of 26%. This reflects the company's focus on higher-margin products and its efficient manufacturing processes.
The company's profitability metrics are also impressive. Operating margin and net margin are significantly higher than the sector averages, indicating strong cost control and efficient operations. The company's return on equity (ROE) of 11.1% is also higher than the sector average of 7.8%, demonstrating its ability to generate profits from shareholders' equity. The quarterly financial history shows a consistent trend of profitability, with both gross margins and operating margins remaining relatively stable over time.
Tootsie Roll's balance sheet is exceptionally strong, with no debt and a substantial cash balance. The current ratio of 3.27 indicates a high level of liquidity, suggesting that the company has ample resources to meet its short-term obligations. The absence of debt provides the company with financial flexibility and reduces its exposure to interest rate risk. This conservative financial management is a hallmark of the company's long-term strategy.
The company's free cash flow generation is not explicitly provided in the data, but given its strong profitability and low capital expenditure requirements, it is likely that Tootsie Roll generates significant free cash flow. This cash flow can be used to fund dividends, share repurchases, or acquisitions. However, the company has historically been conservative in its capital allocation decisions, preferring to maintain a strong balance sheet rather than aggressively pursuing growth opportunities.
The Investment score of 22 suggests that the company's capital allocation and growth prospects are relatively weak. This is consistent with the company's conservative approach to capital spending and its focus on maintaining its existing brands rather than investing in new products or markets. While the company's financial health is strong, its limited investment in growth may constrain its future performance.
Valuation Assessment
Tootsie Roll's valuation appears to be fair, reflecting its strong profitability and stable business model, but also acknowledging its limited growth prospects. The company's price-to-earnings (P/E) ratio of 29.6x is slightly lower than the consumer staples sector average of 34.2x, suggesting that the stock is not significantly overvalued. However, the P/E ratio is still relatively high compared to the overall market, reflecting the company's perceived stability and defensive characteristics.
The company's enterprise value-to-EBITDA (EV/EBITDA) ratio of 7.5x is slightly higher than the sector average of 7.3x, indicating that the company is trading at a slight premium to its peers. This premium may be justified by the company's strong brand portfolio and efficient operations, but it also reflects the market's expectations for future growth.
Given the absence of free cash flow data, it is difficult to assess the company's valuation based on free cash flow yield. However, based on its strong profitability and low capital expenditure requirements, it is likely that the company's free cash flow yield is reasonable. The company's dividend yield is not provided in the data, but it is likely to be a modest yield, reflecting the company's conservative approach to capital allocation.
Overall, Tootsie Roll's valuation appears to be fair, reflecting its strengths and weaknesses. The stock is not significantly overvalued, but it is also not a bargain. The current valuation reflects the company's consistent performance and its defensive characteristics, but it also acknowledges the challenges in achieving substantial growth in a mature market. Investors should consider the company's valuation in the context of its growth prospects and its risk profile.
The Momentum score of 56 suggests that the stock's price performance has been relatively average compared to its peers. This is consistent with the company's stable business model and its limited growth prospects. The stock is not likely to experience significant price appreciation in the near term, but it is also unlikely to experience a significant decline.
Risk & Uncertainty
Tootsie Roll faces several risks and uncertainties that could impact its future performance. One of the primary risks is changing consumer preferences. The confectionery industry is subject to evolving consumer tastes and trends, and Tootsie Roll must adapt to these changes to maintain its market share. The increasing focus on health and wellness could lead to a decline in demand for traditional candy products. The company must innovate and introduce new products that appeal to health-conscious consumers.
Another risk is increasing competition. The confectionery industry is highly competitive, with a large number of players vying for market share. Tootsie Roll faces competition from both established multinational corporations and smaller, niche producers. The company must continue to invest in marketing and product development to differentiate its products and maintain its competitive advantage.
Commodity price volatility is also a risk factor. The company's raw material costs, such as sugar, cocoa, and corn syrup, are subject to price fluctuations. These fluctuations can impact the company's profitability if it is unable to pass on the increased costs to consumers. The company can mitigate this risk by hedging its commodity purchases, but this strategy is not always effective.
Regulatory risks are also a concern. The confectionery industry is subject to various regulations related to food safety, labeling, and advertising. Changes in these regulations could increase the company's compliance costs and impact its ability to market its products. The company must stay abreast of these regulatory changes and ensure that it is in compliance with all applicable laws and regulations.
Finally, the company's reliance on a limited number of brands is a risk factor. While its iconic brands provide a competitive advantage, they also make the company vulnerable to changes in consumer preferences or negative publicity. The company must continue to invest in its brands and ensure that they remain relevant to consumers.
Bulls Say / Bears Say
The Bull Case
BULL VIEWTootsie Roll's iconic brands and strong balance sheet provide a solid foundation for long-term stability and consistent profitability, making it a safe haven in volatile markets.
BULL VIEWThe company's efficient operations and high gross margins demonstrate a commitment to cost control and profitability, allowing it to generate consistent cash flow and reward shareholders.
BULL VIEWTootsie Roll's low beta indicates minimal correlation with the broader market, offering downside protection and diversification benefits to investors seeking stability.
The Bear Case
BEAR VIEWTootsie Roll's limited growth prospects and conservative capital allocation strategy suggest that the stock is unlikely to generate significant returns for investors seeking growth.
BEAR VIEWThe company's reliance on established brands and lack of innovation make it vulnerable to changing consumer preferences and increasing competition from more dynamic players.
BEAR VIEWThe confectionery industry is facing increasing pressure from health and wellness trends, which could lead to a decline in demand for Tootsie Roll's traditional candy products.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score TR and 4,400+ other equities.
TOOTSIE ROLL INDUSTRIES INC exhibits a 375% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
8.3%
Sector: 3.1%
Gross Margin
Pricing power and cost efficiency
35.0%
Sector: 26.2%
Operating Margin
Core business profitability
13.2%
Sector: 2.9%
Net Margin
Bottom-line profitability
13.3%
Sector: 1.6%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.38%
Yield Delta+713%
Income Projection audit
A $10,000 investment would generate approximately $309 annually in dividends at the current trailing rate.
