TR - Tootsie Roll: Overvalued And Little Growth
Overview and Thesis
In this article I discuss Tootsie Roll Industries, Inc. (TR), which owns its namesake candy as well numerous other well-known brands. The company is a small cap stock but has tremendous name recognition in the U.S. The company has generated solid returns for many investors in the past and importantly it had comparatively stable performance during the Great Recession. But Tootsie Roll is not growing revenue, costs are rising, and the company is trading at a very high P/E ratio. In addition, the company’s regular dividend yield is low and