Tootsie Roll Industries, Inc. (TR) AI Stock Analysis

Tootsie Roll Industries, Inc. and its subsidiaries manufacture and distribute confectionery products globally, with core markets in the United States, Canada, and Mexico. Headquartered in Chicago, Illinois, and established in 1896, its brand portfolio includes Tootsie Roll, Tootsie Pops, Child's Play, Caramel Apple Pops, Charms, Blow-Pop, 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. The company sells through supermarkets, variety stores, dollar stores, drug chains, mass merchandisers, club stores, vending operators, e-commerce, the U.S. military, and fundraising groups.

Between FY2021 and FY2025, revenue grew from $570.8M to $732.5M, reflecting a 5-year revenue compound annual growth rate of 9.2%. Over that span, net income rose from $65.3M in FY2021 to $100.1M in FY2025, with EPS increasing from $0.97 to $1.37. Gross margin widened to 35.5% in FY2025, up from 34.9% in FY2021, while operating margin expanded to 14.0%. For the trailing twelve months, revenue was $734.7M with an operating margin of 8.9%. In the latest quarter ended June 30, 2026, quarterly revenue fell 0.6% year-over-year, and quarterly earnings decreased 23.9%.

As of June 30, 2026, Tootsie Roll maintained $141.1M in cash and short-term investments against total debt of $16.2M, resulting in net cash of $125.0M. The current ratio stood at 2.89, with a debt-to-equity ratio of 0.02 across $952.3M in shareholders' equity and $1.27B in total assets. In FY2025, the company generated $130.6M in operating cash flow and $96.4M in free cash flow. Capital expenditures were $34.3M, while cash returned to shareholders included $6.5M in share buybacks and $26.1M in dividends paid.

At $38.23 per share, Tootsie Roll has a market capitalization of $2.87B and an enterprise value of $2.73B. The stock trades at a trailing P/E of 30.3x and a forward P/E of 26.7x, both above the median of its US-listed Consumer Defensive peers at 18.6x and 14.3x, respectively. Its enterprise value-to-EBITDA ratio is 19.0x compared to the peer median of 11.7x. Over the past year, TR shares declined 9.0%, trailing the S&P 500 return of 16.8%. Over five years, the stock gained 48.3% versus 83.0% for the S&P 500.

Tootsie Roll pays a forward annual dividend of $0.36 per share, representing a 0.94% dividend yield with a payout ratio of 24.5%. Dividends are distributed quarterly and have been paid for 43 consecutive years. Over the past five years, the dividend increased at an annualized growth rate of 2.8%, with the most recent ex-dividend date on October 7, 2026.

Wall Street analysts hold a mean price target of $19.00 on the stock, representing a 50.3% decrease from the last close of $38.23. The company demonstrated a track record of earnings outperformance, recording 4 EPS beats over the last 4 quarters. The next earnings announcement date is scheduled for October 28, 2026.

This page is an AI-written research summary of Tootsie Roll Industries, Inc. (TR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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