Stock fact sheet · data as of
Tootsie Roll Industries, Inc. (TR): fair value, margin of safety and Wheel Score
Consumer Defensive · Food Confectioners · United States · Blend
Is TR undervalued?
At 38.23 (close of 16 Oct 2026), TR trades 81% over the GLS average fair value of 21.15, with 0 of 9 models above the price. The stock earns none of the Wheel Score's Value points at this price. That is a statement about price against trailing fundamentals, not about the company's prospects - the Wall Street View and the Growth tab on the Quote page carry the forward numbers.
The 9 models disagree widely: DDM gives 5.30 while Graham Growth gives 34.67. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files TR under Blend.
Nine valuation models for TR
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 26.28 | -31% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 19.06 | -50% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 34.67 | -9% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 12.32 | -68% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 17.27 | -55% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 34.11 | -11% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 27.25 | -29% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 5.30 | -86% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 14.14 | -63% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 0.1072 | -100% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - TR passes 5 of the nine Piotroski tests, which falls one point short of the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 6.2 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are moderate - ROIC 10.5%, ROE 10.6%, ROA 8.0% - with debt at 0.01 times equity and a free-cash-flow yield of 2.8%.
The dividend yield is 0.94% with a payout ratio of 28% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Product 99%, Rental and Royalty 2% (quarter Q2 FY2026).
Institutional ownership scores 2/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 10.5% |
|---|---|---|---|
| GLS Moat | 6.2 / 10 | ROE | 10.6% |
| Debt / equity | 0.01 | ROA | 8.0% |
| Free-cash-flow yield | 2.8% | Payout ratio | 28% |
| Institutions | 2 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 51: Fair
TR scores 51 out of 100 on the Wheel Score (Fair band, 50-64): a usable but unremarkable fit for the wheel strategy. The parts: Value 0/25, Health 11/20, Moat 9/15, Premium 20/20, Stability 10/20. Value (0/25) is where the points are missing.
Implied volatility is 37% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 1,220 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 128k shares a day on a market cap of $2.9B, with a beta of 0.41 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 10 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -81% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 9 / 15 | moat 6.2/10 | |
| Premium | 20 / 20 | implied volatility 37% | |
| Stability | 10 / 20 | 128k shares/day, $2.9B cap, beta 0.41 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Tootsie Roll Industries, Inc. reports earnings on 21 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Food Confectioners
The 8 companies below are the closest to Tootsie Roll Industries, Inc. by market cap within the Food Confectioners industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| TROLB Tootsie Roll Industries, Inc. | 39.00 | 21.35 | -83% | 30No options | $2.9B |
| CUSI Cuisine Solutions, Inc. | 26.47 | 1.10 | -2315% | 22No options | $465M |
| HSY The Hershey Company | 168.68 | 149.08 | -13% | 71Good | $33.9B |
| MDLZ Mondelez International, Inc. | 63.03 | 46.65 | -35% | 61Fair | $80.4B |
| SOWG Sow Good Inc. | 2.00 | 0.4196 | -377% | 13No options | $40M |
| RMCF Rocky Mountain Chocolate Factory, Inc. | 0.9599 | - | - | 23No options | $9M |
| BABB BAB, Inc. | 0.8000 | 1.85 | +57% | 39No options | $6M |
| CHSN Chanson International Holding | 0.8328 | 118.29 | +99% | 39No options | $2M |
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about TR
Is TR undervalued right now?
No: at 38.23 the stock trades 81% above the GLS average fair value of 21.15 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of TR and what does it mean?
TR scores 51 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for TR?
21.15 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Tootsie Roll Industries, Inc. report earnings next?
The next earnings report is due on 21 Oct 2026 (before the open), 5 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does TR have listed options, and how liquid are they?
Yes. The nightly snapshot found 140 listed contracts with 1,220 open interest across all expiries and implied volatility of 37% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.