Tootsie Roll Industries

Food Confectioners · Consumer Defensive

Price

$39.08

-0.37 (-0.94%)

Market Cap

$2.94B

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Share count falling — buybacks

−1.1% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 73.7M (2021) → 72.9M (2025)

Tootsie Roll Industries makes candy. The company owns some of the most recognized candy brands in the United States, including Tootsie Rolls, Tootsie Pops, Charms lollipops, and Junior Mints. It sells mostly to grocery stores, drug stores, and mass retailers, and its products are especially popular around Halloween.

The company earns money by manufacturing and selling packaged candy directly to retailers and distributors. It operates mainly in the United States, with some international sales, and generates roughly $600–700 million in annual revenue. Its moat comes from decades of brand recognition and low-cost manufacturing, but the company faces real risks from rising sugar and ingredient costs, changing consumer preferences away from sugar, and limited product diversification since nearly all revenue comes from a narrow set of candy products.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+2.1% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-4.0% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (2%)

Research and development spending

Insider Activity

59.3%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$113M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Tootsie Roll Industries is growing revenue at 2% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin

34.5%

Modest — 34.5% gross margin

Operating Margin

16.0%

Healthy — 16.0% operating margin

ROCE

2.5%

Weak — 2.5% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+2.4%

Nearly flat sales (2.4% YoY)

EPS YoY

+8.8%

Earnings growing (8.8% YoY)

Single-digit earnings growth — steady but not exciting.

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion

139%

Turns 139% of profit into real cash

FCF Margin

13.4%

Converts sales into free cash efficiently (13.4%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity

0.01

Conservative — low debt load (0.01)

Interest Cover

232.63x

Comfortably covers interest (232.6x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

28.7x

Growth-priced — P/E 28.7

P/E above the market average. People are paying up for expected growth.

P/E vs Forward

N/A

not available

Data not available

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Dividends

Dividend Yield

0.88%

Small dividend — 0.88% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

+0.0%

Dividend flat

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