- Name two competitors of Tootsie Roll?
- Compare and contrast the market caps of the two competitors named above with Tootsie Roll
- Consider each expense on Tootsie Rolls income statement. Is this expense mostly fixed, or mostly variable? What assumptions did you make in determining whether the expense was mostly fixed or variable?
- Assume that 20% of Tootsie Rolls operating expenses are fixed. What is the trend in the contribution margin ratio over the last three years? What is the trend in the breakeven point for operations, measured in sales dollars, over the last three years? What is the trend in the margin of safety?
- Assume that 60% of Tootsie Rolls operating expenses are fixed. What is the trend in the contribution margin ratio over the last three years? What is the trend in the breakeven point for operations, measured in sales dollars, over the last three years? What is the trend in the margin of safety?
- Assuming that the total dollar amount of fixed costs remains the same as in your computations for #4 above, how would operating income change if sales decline by 10%? How would operating income change if sales increase by 10%?
- Assuming that the total dollar amount of fixed costs remains the same as in your computations for #5 above, how would operating income change if sales decline by 10%? How would operating income change if sales increase by 10%?
- Prepare a memo to the CEO interpreting the results of the analyses for the most recent year. Discuss your key assumptions and the importance of those assumptions to the analysis.
Investment Detail Report Release date 08-16-2019 Currency USO Industry Confectioners Page 1 of 1 Tootsie Roll Industries Inc TR Fair Value Uncertainty Sales Mill 519 Last Close 3802 Tootsie Roll Industries Inc manufactures and sells candy products. Notable varieties include Tootsie Rolland Tootsie Pops, Charms, Blow.Pops, Dots, Junior Mints, Sugar Daddy and Sugar Babies, Andes, Dubble Bubble, and Razzles. The company sells its products to wholesale distributors and directly to retail stores. Geographically, it generates a majority of its revenue from the United States 21.52 23.67 14.53 18.31 High Low 1000 460 Economie Mont Sector Style Market Cap Mill None Consumer Def Small Core 2,412 24.33 24.33 30.41 2825 31.94 39.26 38.53 35.91 40.82 18.55 18.11 21.71 23.13 25.85 27.37 33.30 27.45 31,06 : 1: 10100 100 108:100 10100 1 100 11 10 Yr Range/High/Low) 40.82.14.53 52 Wk Range/High/Low) 40.82-27.77 Price Volatility I Monthly High/Low - Rel Strength to S&P 500 Split BOOG Trading Volume (Thousand) de resta de Growth Rates Compound Annual) Grade: - 1Y1 Revenue % -0.1 Operating Income % 0.1 Earings/Share % 282 Dividends % Book Value/Share% 3.8 Stock Total Retum 27.5 +/- Industry -11.5 +/- Market 23.7 3Y1 -1.3 8.2 -3.5 4.4 4.4 3.9 -7.8 -8.2 SYI 0.9 0.5 0.3 5.6 4.2 9.8 -1.9 0.6 10 Yr 0.5 0.6 5.5 34.1 8.5 8.6 -6.9 4.9 Profitability Analysis Gradec Return on Equity % Return on Assets % Revenue/Employee SK Fixed Asset Tums Inventory Turns Gross Margin % Operating Margin % Net Margin % Free Cash Flow/Rev % R&D/Rev % Current 8.0 6.3 259.6 2.8 36 36.8 13.2 11.3 15.3 5 Yr Av 9.4 7.3 264.3 2.9 5.5* 37.1 15.4 12.7 12.7 Ind 18.1 7.0 - 3.0 5.4 40.5 16.2 14.7 12.3 Mt 25.5 9.1 923.5 6.4 12.1 424 192 17.4 18.0 2009 2010 11.4 10.2 -151 4.9 35 152 1.2 1.1 1576 1575 2009 2010 499521 36.0 328 76 65 152 124 54 53 0.73 0.74 0.25 0.25 73 72 13.89 14.56 77 83 -21 -13 56 70 2009 2010 6.5 6.3 84 BD 0.60 0.61 108 10.2 1.3 13 2009 2010 8 8 655 669 0.01 0.01 156 179 2009 2010 288 30. 9 0.0 0.0 31 3.2 1.5 1.6 204 20.0 2011 .14.7 .16.8 .408 1.3 869 2011 533 312 58 10.9 44 0.62 0.26 71 14.87 50 16 34 2011 5.1 6.6 0.62 8.3 13 2011 8 666 0.01 153 2011 32.8 2012 163 03 53 1.2 956 2012 550 333 69 126 52 0.75 0.27 70 14.76 101 9 93 2012 6.1 79 0.65 9.5 13 2012 8 650 0.01 136 2012 29.2 0.0 28 1.5 14.9 2013 2014 30.6 2.0 18 -15.7 -9.4 -7.6 1.0 1.0 1212 1919 2013 2014 543 544 352 371 72 84 13.3 15.4 61 63 0.88 093 0.27 0.28 69 68 15.46 16.36 110 89 .16 .11 94 78 2013 2014 7.0 7.0 92 9.2 0.63 0.60 112 11.7 13 13 2013 2014 8 8 680 691 0.01 0.01 180 200 2013 2014 34.5 29.8 0.0 0.0 3.6 3.4 18 17 15.9 24.9 2015 7.3 5.9 -2.5 1.1 1984 2015 540 36. 9 91 16.9 66 0.99 0.32 67 16.85 91 .16 76 2015 7.3 9.5 0.59 12.2 13 2015 8 698 0.01 222 2015 30.1 0.0 3.6 1.7 17.9 2016 2017 2018 YTD Stock Performance 30.8 4.8 .45 144 Total Return% 18.8 26.6 0.1 2.4 +/- Market 26.0 6.5 -0.6 25.4 +/- Industry 0.9 1.0 1.1 1.0 Dividend Yield % 2472 2276 1297 2412 Market Cap $Mil 2016 2017 2018 TTM Financials (USD) 521 519 519 519 Revenue $Mil 38.2 37.0 36.3 36.8 Gross Margin % 91 70 70 69 Oper Income SMil 17.5 13.6 13.6 13.2 Operating Margin % 68 81 57 59 Net Income Mil 1021.24 0.89 0.92 Eamings Per Share $ 0.33 0.34 0.36 0.36 Dividends $ 66 65 64 64 Shares Mil 17.51 18.14 19.24 18.75 Book Value Par Share $ 9943101 106 Oper Cash Row Mil 16 - 17 28 26 Cap Spending Sil 82 26 73 80 Free Cash Flow Mil 2016 2017 2018 TTM Profitability 7.4 8.7 6.1 6.3 Return on Assets % 9.6 11.2 7.7 8.D Return on Equity % 0.57 056 0.55 0.55 Asset Turnover 13.0 15.6 11.0 11.3 Net Margin % 13 13 13 13 Financial Leverage 2016 2017 2018 06-19 Financial Health (USD) 8 8 8 8 Long-Term Debt Mil 711 734 751 743 Total Equity Mil 0.01 0.01 0.01 0.01 Debt/Equity 236 207 243221 Working Capital Mil 2016 2017 2018 TTM Valuation 35.6 34.7 28.0 41.3 Price/Earnings - - 0.0 2.0 P/E vs. Market 4.6 4.5 4.2 4.7 Price/Sales 2.1 1.9 17 20 Price/Book 23. 0 33.0 32.8 23.0 Price/Cash Flow 12-18 SA 06-19 SIA Financial Position (USD) Grade: A Cash Inventories Receivables Current Assets Fixed Assets Intangibles Total Assets Payables Short-Term Debt Current Liabilities Long Term Debt Total Liabilities Total Equity 26 1.3 228 Close Competitors Dec 128.0 26.0 M ar 101.0 101.0 Jun 106.0 106.0 Pfizer Inc The Hershey Co Mkt Cap SMil Rev Mil 191651 53656 325777 851 P/E 15.9 26.9 ROE% 19.6 89.4 Maior Fund Holders Doc 16 0.7 Mat 02 25 Quarterly Results (USD) Revenues Sep Most Recent 182.0 Previous 183.0 Re Growth Sep Most Recent -0.4 Previous -1.8 Eamings Per Shares Most Recent 041 Previous 0.420 Jun 0 1 10 Valuation Analysis Current 5 Yr Avg Price/Earnings 413 30.9 Forward P/E - Price/Cash Flow 23.0 26.5 Price/Free Cash Flow 30.5 36.5 Dividend Yield % 1.0 1.0 Price/Book 2.0 1.8 Price/Sales 4.7 3.9 PEG Ratio - *3Yr Avg data is displayed in place of 5 Yr Avg of shares Ind 22.5 - 20.1 27.0 1.9 4.1 3.3 - Mat 20.2 23.1 13.2 272 2.0 3.2 4.5 0.19 .50 0.14 0.13 0.18 0.16 Royce Total Return Invmt Vanguard Total Stock Mkt ldx Inv Vanguard US Total Market Shares ETF 0.75 Contact Tootsie Roll Industries Phone: +1 773 838-3400 Website: https://www.tootsie.com 7401 South Cicero Avenue Chicago, IL 60629 Investment Detail Report Release date 08-16-2019 Currency USO Industry Confectioners Page 1 of 1 Tootsie Roll Industries Inc TR Fair Value Uncertainty Sales Mill 519 Last Close 3802 Tootsie Roll Industries Inc manufactures and sells candy products. Notable varieties include Tootsie Rolland Tootsie Pops, Charms, Blow.Pops, Dots, Junior Mints, Sugar Daddy and Sugar Babies, Andes, Dubble Bubble, and Razzles. The company sells its products to wholesale distributors and directly to retail stores. Geographically, it generates a majority of its revenue from the United States 21.52 23.67 14.53 18.31 High Low 1000 460 Economie Mont Sector Style Market Cap Mill None Consumer Def Small Core 2,412 24.33 24.33 30.41 2825 31.94 39.26 38.53 35.91 40.82 18.55 18.11 21.71 23.13 25.85 27.37 33.30 27.45 31,06 : 1: 10100 100 108:100 10100 1 100 11 10 Yr Range/High/Low) 40.82.14.53 52 Wk Range/High/Low) 40.82-27.77 Price Volatility I Monthly High/Low - Rel Strength to S&P 500 Split BOOG Trading Volume (Thousand) de resta de Growth Rates Compound Annual) Grade: - 1Y1 Revenue % -0.1 Operating Income % 0.1 Earings/Share % 282 Dividends % Book Value/Share% 3.8 Stock Total Retum 27.5 +/- Industry -11.5 +/- Market 23.7 3Y1 -1.3 8.2 -3.5 4.4 4.4 3.9 -7.8 -8.2 SYI 0.9 0.5 0.3 5.6 4.2 9.8 -1.9 0.6 10 Yr 0.5 0.6 5.5 34.1 8.5 8.6 -6.9 4.9 Profitability Analysis Gradec Return on Equity % Return on Assets % Revenue/Employee SK Fixed Asset Tums Inventory Turns Gross Margin % Operating Margin % Net Margin % Free Cash Flow/Rev % R&D/Rev % Current 8.0 6.3 259.6 2.8 36 36.8 13.2 11.3 15.3 5 Yr Av 9.4 7.3 264.3 2.9 5.5* 37.1 15.4 12.7 12.7 Ind 18.1 7.0 - 3.0 5.4 40.5 16.2 14.7 12.3 Mt 25.5 9.1 923.5 6.4 12.1 424 192 17.4 18.0 2009 2010 11.4 10.2 -151 4.9 35 152 1.2 1.1 1576 1575 2009 2010 499521 36.0 328 76 65 152 124 54 53 0.73 0.74 0.25 0.25 73 72 13.89 14.56 77 83 -21 -13 56 70 2009 2010 6.5 6.3 84 BD 0.60 0.61 108 10.2 1.3 13 2009 2010 8 8 655 669 0.01 0.01 156 179 2009 2010 288 30. 9 0.0 0.0 31 3.2 1.5 1.6 204 20.0 2011 .14.7 .16.8 .408 1.3 869 2011 533 312 58 10.9 44 0.62 0.26 71 14.87 50 16 34 2011 5.1 6.6 0.62 8.3 13 2011 8 666 0.01 153 2011 32.8 2012 163 03 53 1.2 956 2012 550 333 69 126 52 0.75 0.27 70 14.76 101 9 93 2012 6.1 79 0.65 9.5 13 2012 8 650 0.01 136 2012 29.2 0.0 28 1.5 14.9 2013 2014 30.6 2.0 18 -15.7 -9.4 -7.6 1.0 1.0 1212 1919 2013 2014 543 544 352 371 72 84 13.3 15.4 61 63 0.88 093 0.27 0.28 69 68 15.46 16.36 110 89 .16 .11 94 78 2013 2014 7.0 7.0 92 9.2 0.63 0.60 112 11.7 13 13 2013 2014 8 8 680 691 0.01 0.01 180 200 2013 2014 34.5 29.8 0.0 0.0 3.6 3.4 18 17 15.9 24.9 2015 7.3 5.9 -2.5 1.1 1984 2015 540 36. 9 91 16.9 66 0.99 0.32 67 16.85 91 .16 76 2015 7.3 9.5 0.59 12.2 13 2015 8 698 0.01 222 2015 30.1 0.0 3.6 1.7 17.9 2016 2017 2018 YTD Stock Performance 30.8 4.8 .45 144 Total Return% 18.8 26.6 0.1 2.4 +/- Market 26.0 6.5 -0.6 25.4 +/- Industry 0.9 1.0 1.1 1.0 Dividend Yield % 2472 2276 1297 2412 Market Cap $Mil 2016 2017 2018 TTM Financials (USD) 521 519 519 519 Revenue $Mil 38.2 37.0 36.3 36.8 Gross Margin % 91 70 70 69 Oper Income SMil 17.5 13.6 13.6 13.2 Operating Margin % 68 81 57 59 Net Income Mil 1021.24 0.89 0.92 Eamings Per Share $ 0.33 0.34 0.36 0.36 Dividends $ 66 65 64 64 Shares Mil 17.51 18.14 19.24 18.75 Book Value Par Share $ 9943101 106 Oper Cash Row Mil 16 - 17 28 26 Cap Spending Sil 82 26 73 80 Free Cash Flow Mil 2016 2017 2018 TTM Profitability 7.4 8.7 6.1 6.3 Return on Assets % 9.6 11.2 7.7 8.D Return on Equity % 0.57 056 0.55 0.55 Asset Turnover 13.0 15.6 11.0 11.3 Net Margin % 13 13 13 13 Financial Leverage 2016 2017 2018 06-19 Financial Health (USD) 8 8 8 8 Long-Term Debt Mil 711 734 751 743 Total Equity Mil 0.01 0.01 0.01 0.01 Debt/Equity 236 207 243221 Working Capital Mil 2016 2017 2018 TTM Valuation 35.6 34.7 28.0 41.3 Price/Earnings - - 0.0 2.0 P/E vs. Market 4.6 4.5 4.2 4.7 Price/Sales 2.1 1.9 17 20 Price/Book 23. 0 33.0 32.8 23.0 Price/Cash Flow 12-18 SA 06-19 SIA Financial Position (USD) Grade: A Cash Inventories Receivables Current Assets Fixed Assets Intangibles Total Assets Payables Short-Term Debt Current Liabilities Long Term Debt Total Liabilities Total Equity 26 1.3 228 Close Competitors Dec 128.0 26.0 M ar 101.0 101.0 Jun 106.0 106.0 Pfizer Inc The Hershey Co Mkt Cap SMil Rev Mil 191651 53656 325777 851 P/E 15.9 26.9 ROE% 19.6 89.4 Maior Fund Holders Doc 16 0.7 Mat 02 25 Quarterly Results (USD) Revenues Sep Most Recent 182.0 Previous 183.0 Re Growth Sep Most Recent -0.4 Previous -1.8 Eamings Per Shares Most Recent 041 Previous 0.420 Jun 0 1 10 Valuation Analysis Current 5 Yr Avg Price/Earnings 413 30.9 Forward P/E - Price/Cash Flow 23.0 26.5 Price/Free Cash Flow 30.5 36.5 Dividend Yield % 1.0 1.0 Price/Book 2.0 1.8 Price/Sales 4.7 3.9 PEG Ratio - *3Yr Avg data is displayed in place of 5 Yr Avg of shares Ind 22.5 - 20.1 27.0 1.9 4.1 3.3 - Mat 20.2 23.1 13.2 272 2.0 3.2 4.5 0.19 .50 0.14 0.13 0.18 0.16 Royce Total Return Invmt Vanguard Total Stock Mkt ldx Inv Vanguard US Total Market Shares ETF 0.75 Contact Tootsie Roll Industries Phone: +1 773 838-3400 Website: https://www.tootsie.com 7401 South Cicero Avenue Chicago, IL 60629
