Is the business good?
How good a business is TR?
Tootsie Roll Industries, Inc. earns 10% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
10%
Return on invested capital · cost of capital 9.0% · 1.3 points above what the capital costs: growth creates value
- Operating margin
- 14%
Operating margin · Consumer Defensive median 9.0% · 12 months to Q1 2026
- Cash conversion
- 0.99×
Cash conversion · 1.18× a year ago · some of the reported profit has not turned into cash yet
- Gross margin
- 35%
Gross margin
| Year | Operating margin |
|---|---|
| FY2020 | 12% |
| FY2021 | 12% |
| FY2022 | 16% |
| FY2023 | 13% |
| FY2024 | 14% |
| FY2025 | 14% |
Details›
- Gross margin12 months to Q1 2026
- 35%
- Operating margin12 months to Q1 2026
- 14%
- Net margin12 months to Q1 2026
- 14%
- Free cash flow margin
- 13%
- Revenue, trailing twelve months
- $736M
- Free cash flow, trailing twelve months
- $99M
- Net income, trailing twelve months
- $100M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 10%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Consumer Defensive
Ranks #40 of 106 by Smart Score