Tootsie Roll Industries Inc. Common Stock (TR)

FairStock Score: 47/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses with durable brands, low debt, and a price that leaves room for error. Tootsie Roll fits the first two: it owns a pantry of nostalgic confectionery names, carries debt of only 0.01 times equity, and generated $80.2M of trailing free cash flow. The balance sheet is safe, with an Altman Z-score of 6.38, though the Piotroski F-score of 5/9 is only middling. The trouble is returns and growth. FairStock puts return on equity at 10.34% and return on capital employed at 5.45%; that is not the high-return compounding I prefer. Revenue growth is 2.08% and profit growth is -2.20%. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $154.2M, net income $13.3M, and diluted EPS $0.18, versus $155.1M, $17.5M, and $0.23 in fiscal Q2 2025. Full-year fiscal 2025 was better—revenue $732.5M and net income $100.1M, or $1.37 per diluted share—but fiscal 2023 revenue was higher at $769.4M, so the long-term sales trend is not exciting. FairStock classifies TR as a STALWART, with 11.1% five-year profit growth and 9.2% revenue growth, yet the latest numbers show a slowdown. At the 2026-10-13 close of $37.65, FairStock calculates a P/E of 29.65, P/B of 2.96, EV/EBITDA of 21.95, and FCF yield of just 2.5%. The Graham Number is $19.03, leaving a negative margin of safety of -97.85%. This is a good, conservative company, but the price is full. I want a larger discount before calling it a value opportunity.

In plain English: Tootsie Roll Industries makes and sells familiar candies such as Tootsie Pops, Junior Mints, and Andes. The business is steady and has very little debt, but sales growth is slow and profit slipped in the most recent quarter. At the 2026-10-13 closing price of $37.65, the shares look expensive compared with the company's profits, assets, and cash generation, so the numbers do not show a bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer