TRTootsie Roll Industries, Inc.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.9×).
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
A balanced mix of margins, efficiency, and leverage. ROE 10% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is TR?
Tootsie Roll Industries, Inc. earns 8.5% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 0.49 points below what the capital costs: growth destroys value
- Operating margin
- 12%
Operating margin · Consumer Defensive median 7.3% · 12 months to Q2 2026
- Cash conversion
- 1.94×
Cash conversion · 1.71× a year ago · operating cash flow covers the operating profit after tax
- Gross margin
- 34%
Gross margin
| Year | Operating margin |
|---|---|
| FY2020 | 12% |
| FY2021 | 12% |
| FY2022 | 16% |
| FY2023 | 13% |
| FY2024 | 14% |
| FY2025 | 14% |
Details›
- Gross margin12 months to Q2 2026
- 34%
- Operating margin12 months to Q2 2026
- 12%
- Net margin12 months to Q2 2026
- 13%
- Free cash flow margin
- 11%
- Revenue, trailing twelve months
- $735M
- Free cash flow, trailing twelve months
- $80M
- Net income, trailing twelve months
- $95M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.5%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from TR and who it buys from, as the companies report it.
- WMTWalmart22%
Share of revenue · FY2025 10-K
- McLane20%
Share of revenue · FY2025 10-K
- DLTRDollar Tree13%
Share of revenue · FY2025 10-K
None disclosed.
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; TR’s own figures are from its FY2025 10-K. Smaller customers and suppliers go unreported.