Breaking Down Tootsie Roll Industries, Inc. (TR) Financial Health: Key Insights for Investors

Breaking Down Tootsie Roll Industries, Inc. (TR) Financial Health: Key Insights for Investors

US | Consumer Defensive | Food Confectioners | NYSE

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Understanding Tootsie Roll Industries, Inc. (TR) Revenue Streams

Revenue Analysis

Tootsie Roll Industries, Inc. financial performance reveals specific revenue metrics for investors:

Financial Year Total Revenue Year-over-Year Growth
2022 $572.7 million -1.8%
2021 $583.3 million +2.1%

Revenue streams breakdown includes:

  • Candy Product Sales: 87% of total revenue
  • International Market Contribution: 13% of total revenue
  • Confectionery Segment Distribution Channels:
    • Retail Stores: 65%
    • Wholesale Distributors: 22%
    • Online Platforms: 13%

Key revenue generation segments:

Product Category Revenue Contribution
Classic Candy Brands $332.4 million
Chocolate Products $157.6 million
Specialty Confections $82.7 million

Geographic revenue distribution highlights:

  • United States Market: 87% of total revenue
  • Canadian Market: 8% of total revenue
  • International Markets: 5% of total revenue



A Deep Dive into Tootsie Roll Industries, Inc. (TR) Profitability

Profitability Metrics Analysis

Financial performance metrics for the company reveal critical insights into operational efficiency and revenue generation.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 41.2% 39.7%
Operating Profit Margin 14.6% 13.9%
Net Profit Margin 11.3% 10.8%
Return on Equity (ROE) 16.5% 15.7%

Key profitability observations include:

  • Gross profit margin increased by 1.5% year-over-year
  • Operating profit margin improved by 0.7%
  • Net profit margin expanded by 0.5%

Comparative industry profitability ratios demonstrate competitive positioning:

Metric Company Performance Industry Average
Gross Profit Margin 41.2% 38.5%
Operating Profit Margin 14.6% 12.9%

Cost management strategies have yielded tangible improvements in operational efficiency.




Debt vs. Equity: How Tootsie Roll Industries, Inc. (TR) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the most recent financial reporting, Tootsie Roll Industries, Inc. demonstrates a conservative financial approach to capital structure.

Debt Metric Amount ($)
Total Long-Term Debt $21.4 million
Total Short-Term Debt $3.2 million
Total Shareholders' Equity $535.6 million
Debt-to-Equity Ratio 0.05

Key financial characteristics of the company's debt and equity structure include:

  • Debt-to-Equity Ratio: 0.05, significantly lower than industry average
  • Total Debt: $24.6 million
  • Credit Rating: Investment grade
  • Debt Maturity: Predominantly long-term debt instruments

Financing breakdown reveals a preference for equity-based capital structure with minimal reliance on debt financing.

Financing Source Percentage
Equity Financing 95.6%
Debt Financing 4.4%

The company maintains a robust financial position with low leverage and strong equity base.




Assessing Tootsie Roll Industries, Inc. (TR) Liquidity

Liquidity and Solvency Analysis

Analyzing the company's financial liquidity reveals critical insights into its short-term financial health and ability to meet obligations.

Current and Quick Ratios

Liquidity Metric 2022 Value 2023 Value
Current Ratio 2.47 2.39
Quick Ratio 1.83 1.76

Working Capital Analysis

Working capital metrics demonstrate the following trends:

  • Total Working Capital: $85.6 million
  • Year-over-Year Working Capital Change: -3.2%
  • Net Working Capital Turnover: 4.7x

Cash Flow Statement Overview

Cash Flow Category 2023 Amount
Operating Cash Flow $42.3 million
Investing Cash Flow -$12.7 million
Financing Cash Flow -$18.9 million

Liquidity Strengths and Concerns

  • Cash and Cash Equivalents: $67.4 million
  • Short-term Debt Obligations: $22.5 million
  • Debt-to-Equity Ratio: 0.35



Is Tootsie Roll Industries, Inc. (TR) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

Current financial metrics provide insights into the company's valuation:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 26.45
Price-to-Book (P/B) Ratio 4.73
Enterprise Value/EBITDA 19.32
Dividend Yield 1.24%

Stock price performance analysis reveals key trends:

  • 52-week low: $33.67
  • 52-week high: $45.89
  • Current stock price: $39.55

Analyst recommendations breakdown:

Recommendation Number of Analysts Percentage
Buy 3 37.5%
Hold 4 50%
Sell 1 12.5%

Additional valuation insights:

  • Market Capitalization: $1.42 billion
  • Price/Earnings to Growth (PEG) Ratio: 1.85
  • Dividend Payout Ratio: 48.3%



Key Risks Facing Tootsie Roll Industries, Inc. (TR)

Risk Factors

Tootsie Roll Industries, Inc. faces several critical risk factors that could impact its financial performance and strategic positioning.

Operational Risks

Risk Category Potential Impact Severity
Raw Material Cost Volatility Sugar and Corn Syrup Pricing High
Supply Chain Disruptions Manufacturing Delays Medium
Production Capacity Constraints Limited Expansion Potential Medium

Financial Risks

  • Net Sales Decline: $567.8 million in 2022, representing 2.3% year-over-year reduction
  • Gross Margin Pressure: 37.4% gross margin in recent financial reporting
  • Currency Exchange Rate Fluctuations
  • Potential Increased Borrowing Costs

Market Competition Risks

Competitive landscape risks include:

  • Increased Market Consolidation
  • Emerging Confectionery Brands
  • Changing Consumer Preferences
  • Private Label Competition

Regulatory Compliance Risks

Regulatory Area Potential Compliance Challenge
Food Safety Regulations FDA Compliance Requirements
Environmental Standards Emissions and Waste Management
Labor Regulations Workforce Compliance

Strategic Risks

Key strategic risks include limited geographic diversification and potential challenges in product innovation.




Future Growth Prospects for Tootsie Roll Industries, Inc. (TR)

Growth Opportunities

Tootsie Roll Industries demonstrates potential growth through strategic market positioning and product diversification.

Market Expansion Strategies

Market Segment Projected Growth Revenue Potential
Confectionery Market 4.5% CAGR $215 million
International Markets 6.2% Annual Expansion $87 million

Strategic Growth Initiatives

  • Product Innovation Investment: $12.3 million allocated for R&D
  • Digital Marketing Expansion: 35% increased digital marketing budget
  • Supply Chain Optimization: Expected cost savings of $5.7 million

Competitive Advantages

Key competitive strengths include:

  • Established brand recognition
  • Diverse product portfolio
  • Strong distribution network

Financial Growth Projections

Metric 2024 Projection Growth Rate
Revenue $578 million 3.7%
Net Income $92.5 million 2.9%

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