Tootsie Roll Industries

Food Confectioners · Consumer Defensive

Price

$40.99

-0.68 (-1.63%)

Market Cap

$3.08B

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Weak

Growth

Mixed

Cash Flow

Exceptional

Stability

Exceptional

Valuation

Weak

Dividends

Weak

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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)

Winston Score History

The full picture

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.

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

-0.6% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-25.0% 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

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$0 cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

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

Revenue declining

Tootsie Roll Industries's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

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

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

33.1%

Modest — 33.1% gross margin

Profit after running costs

Operating Margin

-1.0%

Losing money on operations — -1.0%

Return on the money invested

ROCE

9.4%

Below par — 9.4% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+1.6%

Nearly flat sales (+1.6% YoY)

Profit growth

EPS YoY

+2.4%

Flat earnings

Single-digit earnings growth — steady but not exciting.

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

145%

Turns 145% of profit into real cash

Spare cash per sale

FCF Margin

13.5%

Converts sales into free cash efficiently (13.5%)

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

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Stability

What it owes vs what it owns

Debt / Equity

0.01

Conservative — low debt load (0.01)

Covers its interest

Interest Cover

201.89x

Comfortably covers interest (201.9x)

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

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Valuation

Price vs profit

P/E Ratio (TTM)

31.5x

Pricey — P/E 31.5

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

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Dividend

Dividend Yield

0.92%

Small dividend — 0.92% yield

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

Dividend record

Dividend Growth

+0.0%

Dividend flat

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