Tootsie Roll Industries (TR) Looks Pricey After Earnings Cut Profit But Not Sales

Simply Wall St.08-13

AdvertisementWhat Tootsie Roll Industries’ Latest Earnings Reveal Tootsie Roll Industries (TR) reported second quarter and first half 2026 results on August 7, with stable revenue but lower net income...

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Net income was US$13.35 million compared with US$17.54 million, and basic earnings per share from continuing operations was US$0.18 compared...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"TR":"Tootsie Roll Industries Inc"},"translate_title":"Tootsie Roll Industries (TR) 在盈利削减利润但未削减销售额后看起来价格昂贵","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"TR":1.5},"content_text":"AdvertisementWhat Tootsie Roll Industries’ Latest Earnings Reveal Tootsie Roll Industries (TR) reported second quarter and first half 2026 results on August 7, with stable revenue but lower net income and earnings per share compared with the same periods in 2025. For the second quarter, revenue was US$154.22 million compared with US$155.09 million a year earlier. Net income was US$13.35 million compared with US$17.54 million, and basic earnings per share from continuing operations was US$0.18 compared with US$0.23. Across the first six months of 2026, revenue came in at US$305.76 million compared with US$303.54 million in the prior year period. Net income was US$31.01 million compared with US$35.6 million, with basic earnings per share from continuing operations at US$0.41 compared with US$0.47. See our latest analysis for Tootsie Roll Industries. The latest earnings release appears to have shifted sentiment around Tootsie Roll Industries, with the share price at US$40.53 and a 30 day share price return of 6.6% helping lift the year to date share price return to 17.89%. The 5 year total shareholder return of 48.48% points to a steadier longer term record, despite a more modest 1 year total shareholder return of 6.4%. If Tootsie Roll Industries has you thinking about longer term compounding stories, it can be useful to widen the lens and check out 19 top founder-led companies Tootsie Roll Industries shares have climbed after this earnings update even though profit is lower on broadly stable revenue. Does the current price still offer an appealing balance between risk and potential reward for new buyers? Price-to-Earnings of 31.8x: Is it justified for Tootsie Roll Industries? On a P/E of 31.8x and a last close of $40.53, Tootsie Roll Industries stock looks expensive compared with both its peer group and the broader US Food industry. The P/E ratio compares the current share price with earnings per share. For a business like Tootsie Roll Industries that already reports high quality earnings and positive profit margins, a higher P/E can indicate the market is willing to pay more for each dollar of current earnings. However, the data points to a valuation that is rich relative to alternatives. Tootsie Roll Industries trades on a P/E of 31.8x, while peers on average sit at 13.4x. That is a sizeable gap for a company where recent earnings growth of 5% over the past year is below its 5 year average of 9.6% per year. Compared with the broader US Food industry, which trades at an average P/E of 19.4x, Tootsie Roll Industries again sits at a premium. The stock therefore carries a meaningfully higher earnings multiple than both direct peers and the wider sector, which suggests the market is pricing in stronger resilience or quality than these benchmarks. See what the numbers say about this price — find out in our valuation breakdown. Result: Price-to-Earnings of 31.8x (OVERVALUED) However, Tootsie Roll Industries still carries risks if its current P/E stays high while earnings remain under pressure, or if confectionery demand softens in key markets. Find out about the key risks to this Tootsie Roll Industries narrative. Another View on Tootsie Roll Industries’ Valuation The high P/E ratio paints Tootsie Roll Industries as expensive, and the SWS DCF model points in the same direction. At a share price of $40.53 and an estimated future cash flow value of $33.79, the stock screens as overvalued on cash flows as well. How much of this premium are you comfortable paying? Look into how the SWS DCF model arrives at its fair value. TR Discounted Cash Flow as at Aug 2026Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Tootsie Roll Industries for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 49 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. Next Steps The mixed signals around Tootsie Roll Industries can leave investors split on what comes next, so it helps to move fast and check the underlying data for yourself. To weigh the potential upside that others are watching, review the 1 key reward Looking for more investment ideas beyond Tootsie Roll Industries? If Tootsie Roll Industries has sharpened your focus on quality, do not stop here. Use the Simply Wall St screener to spot other opportunities that fit your style.  Target income potential with steady cash flows by reviewing 9 dividend fortresses that could complement a long term portfolio. Hunt for quality at a sensible price by scanning 49 high quality undervalued stocks that meet your criteria on fundamentals. Prioritise resilience and capital protection by filtering for 85 resilient stocks with low risk scores that may help balance more aggressive positions.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n        and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n        financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n        Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n        Simply Wall St has no position in any stocks mentioned.Valuation is complex, but we're here to simplify it.Discover if Tootsie Roll Industries might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. 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