Full year 2025 earnings snapshot
Tootsie Roll Industries (TR) reported full year 2025 results that showed higher sales, revenue, and net income compared with 2024, giving investors fresh insight into how the candy maker’s operations and profitability are holding up.
See our latest analysis for Tootsie Roll Industries.
The latest move in Tootsie Roll Industries’ share price, finishing at $42.34, sits alongside a 30 day share price return of 11.0% and a 23.16% year to date share price return. The 1 year total shareholder return of 33.99% points to momentum that has been building rather than fading over both shorter and longer horizons.
If this steady progress has you thinking about what else could be working in your portfolio, it might be a good time to broaden your search with 20 top founder-led companies.
With revenue at US$732.52 million, net income at US$100.05 million, and the stock up 34% over 1 year, investors may ask whether Tootsie Roll is still undervalued or if the market is already pricing in future growth.
Preferred P/E of 31.4x: Is it justified?
Tootsie Roll Industries is trading on a P/E of 31.4x, which sits against a last close of $42.34 and makes the stock look expensive compared with peers.
The P/E ratio compares the current share price to earnings per share, so a higher P/E usually means investors are willing to pay more today for each dollar of current earnings. For a mature confectionery business like Tootsie Roll, that kind of multiple often reflects what the market expects from future earnings and margins rather than just where profits are today.
Here, the SWS DCF model estimates future cash flow value at $32.65 while the current price is $42.34. In other words, the market price is above that model output. In addition, the 31.4x P/E sits well above the US Food industry average of 23.4x and also above the peer average of 20.7x, which points to investors assigning a clear premium compared with similar companies.
See what the numbers say about this price — find out in our valuation breakdown.
Result: Price-to-Earnings of 31.4x (OVERVALUED)
However, you still need to weigh risks such as a rich 31.4x P/E, especially in light of any potential slowdown in confectionery demand or shifts in consumer preferences.
Find out about the key risks to this Tootsie Roll Industries narrative.
Another way to look at value
Our DCF model already suggests Tootsie Roll Industries is trading above an estimated future cash flow value of $32.65, with the current price at $42.34. That kind of gap can be read as a valuation premium, but it can also reflect what the market thinks about future cash generation. Which side of that trade do you think you are on?
Look into how the SWS DCF model arrives at its fair value.
Simply 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 46 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
Curious whether the upbeat tone here lines up with your own view of Tootsie Roll Industries? Take a close look at the facts and move quickly to form your own stance, starting with 1 key reward.
Looking for more investment ideas?
If Tootsie Roll has sharpened your focus, do not stop here. The market offers many other opportunities that could fit your style and goals.
- Spot potential bargains early by scanning companies that screen as attractively priced and financially sound through our 46 high quality undervalued stocks.
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- Prioritise resilience by searching for companies with robust finances using the solid balance sheet and fundamentals stocks screener (41 results) to identify businesses that may better handle pressure.
This article by Simply Wall St is general in nature. We provide commentary based on historical data 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 financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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