TOOTSIE ROLL INDS (TR) Stock Fundamental Analysis
NYSE:TR - New York Stock Exchange, Inc. - US8905161076 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to TR. TR was compared to 90 industry peers in the Food Products industry. TR has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. TR does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
TR had positive earnings in the past year.
TR had a positive operating cash flow in the past year.
Each year in the past 5 years TR has been profitable.
In the past 5 years TR always reported a positive cash flow from operatings.
1.2 Ratios
TR has a Return On Assets of 7.57%. This is in the better half of the industry: TR outperforms 75.56% of its industry peers.
The Return On Equity of TR (9.97%) is better than 65.56% of its industry peers.
TR has a Return On Invested Capital of 6.87%. This is in the better half of the industry: TR outperforms 70.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TR is in line with the industry average of 8.63%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 9.97% | ||
| ROIC | 6.87% |
ROA(3y)7.83%
ROA(5y)7.18%
ROE(3y)10.28%
ROE(5y)9.41%
ROIC(3y)7.66%
ROIC(5y)6.55%
1.3 Margins
TR's Profit Margin of 12.01% is amongst the best of the industry. TR outperforms 92.22% of its industry peers.
TR's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 13.90%, TR belongs to the best of the industry, outperforming 84.44% of the companies in the same industry.
TR's Operating Margin has been stable in the last couple of years.
TR has a Gross Margin of 35.01%. This is in the better half of the industry: TR outperforms 80.00% of its industry peers.
TR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.9% | ||
| PM (TTM) | 12.01% | ||
| GM | 35.01% |
OM growth 3Y5.72%
OM growth 5Y1.14%
PM growth 3Y1.61%
PM growth 5Y-0.51%
GM growth 3Y0.1%
GM growth 5Y-1.3%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TR is destroying value.
The number of shares outstanding for TR has been reduced compared to 1 year ago.
The number of shares outstanding for TR has been reduced compared to 5 years ago.
TR has a better debt/assets ratio than last year.
2.2 Solvency
TR has an Altman-Z score of 6.47. This indicates that TR is financially healthy and has little risk of bankruptcy at the moment.
TR's Altman-Z score of 6.47 is amongst the best of the industry. TR outperforms 93.33% of its industry peers.
TR has a debt to FCF ratio of 0.07. This is a very positive value and a sign of high solvency as it would only need 0.07 years to pay back of all of its debts.
TR has a better Debt to FCF ratio (0.07) than 94.44% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that TR is not too dependend on debt financing.
The Debt to Equity ratio of TR (0.01) is better than 85.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.07 | ||
| Altman-Z | 6.47 |
ROIC/WACC0.75
WACC9.16%
2.3 Liquidity
TR has a Current Ratio of 3.82. This indicates that TR is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.82, TR belongs to the best of the industry, outperforming 91.11% of the companies in the same industry.
A Quick Ratio of 2.93 indicates that TR has no problem at all paying its short term obligations.
TR's Quick ratio of 2.93 is amongst the best of the industry. TR outperforms 92.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.82 | ||
| Quick Ratio | 2.93 |
3. Growth
3.1 Past
The earnings per share for TR have decreased by -4.80% in the last year.
Measured over the past 5 years, TR shows a small growth in Earnings Per Share. The EPS has been growing by 7.29% on average per year.
The Revenue has decreased by -6.00% in the past year.
TR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.53% yearly.
EPS 1Y (TTM)-4.8%
EPS 3Y11.12%
EPS 5Y7.29%
EPS Q2Q%-22.5%
Revenue 1Y (TTM)-6%
Revenue growth 3Y8.21%
Revenue growth 5Y6.53%
Sales Q2Q%-1.98%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 28.45, the valuation of TR can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as TR.
When comparing the Price/Earnings ratio of TR to the average of the S&P500 Index (25.82), we can say TR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.45 | ||
| Fwd PE | N/A |
4.2 Price Multiples
TR's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TR indicates a somewhat cheap valuation: TR is cheaper than 61.11% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.03 | ||
| EV/EBITDA | 18.22 |
4.3 Compensation for Growth
The decent profitability rating of TR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.9
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.08%, TR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.59, TR has a dividend in line with its industry peers.
With a Dividend Yield of 1.08, TR pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
5.2 History
The dividend of TR has a limited annual growth rate of 2.77%.
TR has paid a dividend for at least 10 years, which is a reliable track record.
TR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.77%
Div Incr Years2
Div Non Decr Years33
5.3 Sustainability
29.39% of the earnings are spent on dividend by TR. This is a low number and sustainable payout ratio.
The dividend of TR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP29.39%
EPS Next 2YN/A
EPS Next 3YN/A
33.86
+0.23 (+0.68%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners27.61%
Inst Owner Change4.98%
Ins Owners39.44%
Ins Owner Change0%
Market Cap2.42B
Analysts0
Price TargetN/A
Short Float %8.67%
Short Ratio17.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
Yearly Dividend0.35
Dividend Growth(5Y)2.77%
DP29.39%
Div Incr Years2
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.45 | ||
| Fwd PE | N/A | ||
| P/S | 3.35 | ||
| P/FCF | 20.03 | ||
| P/OCF | 17.44 | ||
| P/B | 2.78 | ||
| P/tB | 3.89 | ||
| EV/EBITDA | 18.22 |
EPS(TTM)1.19
EY3.51%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)1.69
FCFY4.99%
OCF(TTM)1.94
OCFY5.73%
SpS10.11
BVpS12.17
TBVpS8.7
PEG (NY)N/A
PEG (5Y)3.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 9.97% | ||
| ROCE | 9.48% | ||
| ROIC | 6.87% | ||
| ROICexc | 8.42% | ||
| ROICexgc | 11.8% | ||
| OM | 13.9% | ||
| PM (TTM) | 12.01% | ||
| GM | 35.01% | ||
| FCFM | 16.72% |
ROA(3y)7.83%
ROA(5y)7.18%
ROE(3y)10.28%
ROE(5y)9.41%
ROIC(3y)7.66%
ROIC(5y)6.55%
ROICexc(3y)9.24%
ROICexc(5y)7.97%
ROICexgc(3y)13.28%
ROICexgc(5y)11.6%
ROCE(3y)10.57%
ROCE(5y)9.04%
ROICexcg growth 3Y9.74%
ROICexcg growth 5Y-0.67%
ROICexc growth 3Y11.12%
ROICexc growth 5Y2.03%
OM growth 3Y5.72%
OM growth 5Y1.14%
PM growth 3Y1.61%
PM growth 5Y-0.51%
GM growth 3Y0.1%
GM growth 5Y-1.3%
F-Score7
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.07 | ||
| Debt/EBITDA | 0.07 | ||
| Cap/Depr | 99.02% | ||
| Cap/Sales | 2.49% | ||
| Interest Coverage | 375.02 | ||
| Cash Conversion | 117.03% | ||
| Profit Quality | 139.23% | ||
| Current Ratio | 3.82 | ||
| Quick Ratio | 2.93 | ||
| Altman-Z | 6.47 |
F-Score7
WACC9.16%
ROIC/WACC0.75
Cap/Depr(3y)126.03%
Cap/Depr(5y)131.16%
Cap/Sales(3y)3.12%
Cap/Sales(5y)3.74%
Profit Quality(3y)92.38%
Profit Quality(5y)91.16%
High Growth Momentum
Growth
EPS 1Y (TTM)-4.8%
EPS 3Y11.12%
EPS 5Y7.29%
EPS Q2Q%-22.5%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-6%
Revenue growth 3Y8.21%
Revenue growth 5Y6.53%
Sales Q2Q%-1.98%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-1.3%
EBIT growth 3Y14.4%
EBIT growth 5Y7.75%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y78.27%
FCF growth 3Y30.92%
FCF growth 5Y8.62%
OCF growth 1Y46.8%
OCF growth 3Y17.65%
OCF growth 5Y6.74%