Tootsie Roll Industries Inc.Find Ratings Reports
TOOTSIE ROLL INDUSTRIES INC's gross profit margin for the first quarter of its fiscal year 2018 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not. TOOTSIE ROLL INDUSTRIES INC is extremely liquid. Currently, the Quick Ratio is 3.17 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.80% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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|Income Statement||Q1 FY18||Q1 FY17|
|Net Sales ($mil)||101.8||104.46|
|Net Income ($mil)||8.13||10.05|
|Balance Sheet||Q1 FY18||Q1 FY17|
|Cash & Equiv. ($mil)||110.61||145.95|
|Total Assets ($mil)||914.97||910.73|
|Total Debt ($mil)||7.93||7.83|
|Profitability||Q1 FY18||Q1 FY17|
|Gross Profit Margin||39.56||41.52|
|Return on Assets||8.62||7.42|
|Return on Equity||10.86||9.57|
|Debt||Q1 FY18||Q1 FY17|
|Share Data||Q1 FY18||Q1 FY17|
|Shares outstanding (mil)||64.27||65.33|
|Div / share||0.09||0.08|
|Book value / share||11.3||10.82|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||107920.0||92309.0|
HOLD. The current P/E ratio indicates a premium compared to an average of 19.59 for the Food Products industry and a value on par with the S&P 500 average of 25.32. For additional comparison, its price-to-book ratio of 2.59 indicates a discount versus the S&P 500 average of 3.29 and a discount versus the industry average of 3.46. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, TOOTSIE ROLL INDUSTRIES INC seems to be trading at a premium to investment alternatives within the industry.
|TR 23.88||Peers 19.59||TR 46.25||Peers 20.75|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
TR is trading at a premium to its peers.
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
TR is trading at a significant premium to its peers.
|TR NA||Peers 16.47||TR NA||Peers 0.80|
Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential.
Ratio not available.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
Ratio not available.
|TR 2.59||Peers 3.46||TR 21.14||Peers 97.60|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
TR is trading at a significant discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, TR is expected to significantly trail its peers on the basis of its earnings growth rate.
|TR 3.65||Peers 1.83||TR -0.87||Peers 5.21|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
TR is trading at a significant premium to its industry.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
TR significantly trails its peers on the basis of sales growth