Tootsie Roll Industries, Inc. (NYSE:TR) Stock Has Shown Weakness Lately But Financials Look Strong: Should Prospective Shareholders Make The Leap?
Tootsie Roll Industries, Inc. (NYSE:TR) Stock Has Shown Weakness Lately But Financials Look Strong: Should Prospective Shareholders Make The Leap?
It is hard to get excited after looking at Tootsie Roll Industries' (NYSE:TR) recent performance, when its stock has declined 2.2% over the past week. However, stock prices are usually driven by a company's financial performance over the long term, which in this case looks quite promising. Specifically, we decided to study Tootsie Roll Industries' ROE in this article.
看了Tootsie Roll Industries（纽约证券交易所代码：TR）最近的表现，很难感到兴奋，当时其股价在过去一周下跌了2.2％。但是，股票价格通常由公司的长期财务业绩驱动，在这种情况下，这看起来很有希望。具体而言，我们决定在本文中研究Tootsie Roll Industries的投资回报率。
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
股本回报率或投资回报率是股东需要考虑的重要因素，因为它可以告诉他们资本再投资的有效性。简而言之，它用于评估公司相对于其股权资本的盈利能力。
How To Calculate Return On Equity?
如何计算股本回报率？
The formula for return on equity is:
股本回报率的公式是：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回报率 = 净利润（来自持续经营业务）÷ 股东权益
So, based on the above formula, the ROE for Tootsie Roll Industries is:
因此，根据上述公式，Tootsie Roll Industries的投资回报率为：
11% = US$92m ÷ US$823m (Based on the trailing twelve months to December 2023).
11% = 9200万美元 ÷ 8.23亿美元（基于截至2023年12月的过去十二个月）。
The 'return' is the income the business earned over the last year. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.11 in profit.
“回报” 是企业在过去一年中获得的收入。将其概念化的一种方法是，公司每拥有1美元的股东资本，就会获得0.11美元的利润。
What Is The Relationship Between ROE And Earnings Growth?
投资回报率与收益增长之间有什么关系？
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.
我们已经确定，投资回报率是衡量公司未来收益的有效利润创造指标。我们现在需要评估公司为未来增长再投资或 “保留” 了多少利润，这样我们就可以了解公司的增长潜力。假设其他一切都保持不变，那么与不一定具有这些特征的公司相比，投资回报率和利润保留率越高，公司的增长率就越高。
Tootsie Roll Industries' Earnings Growth And 11% ROE
Tootsie Roll Industries的收益增长和11％的投资回报率
To begin with, Tootsie Roll Industries seems to have a respectable ROE. And on comparing with the industry, we found that the the average industry ROE is similar at 14%. Consequently, this likely laid the ground for the decent growth of 8.0% seen over the past five years by Tootsie Roll Industries.
首先，Tootsie Roll Industries的投资回报率似乎不错。与行业相比，我们发现行业的平均投资回报率相似，为14％。因此，这可能为Tootsie Roll Industries在过去五年中实现8.0％的体面增长奠定了基础。
Next, on comparing with the industry net income growth, we found that Tootsie Roll Industries' reported growth was lower than the industry growth of 15% over the last few years, which is not something we like to see.
接下来，与行业净收入增长进行比较时，我们发现Tootsie Roll Industries报告的增长低于过去几年15％的行业增长，这不是我们希望看到的。
Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. If you're wondering about Tootsie Roll Industries''s valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
收益增长是股票估值的重要因素。无论情况如何，投资者都应设法确定预期的收益增长或下降是否已计入其中。通过这样做，他们将知道股票是走向清澈的蓝色海水，还是沼泽的水域在等着你。如果你想知道Tootsie Roll Industries的估值，可以看看这个衡量其市盈率与行业相比的指标。
Is Tootsie Roll Industries Using Its Retained Earnings Effectively?
Tootsie Roll Industries 是否在有效使用其留存收益？
Tootsie Roll Industries has a healthy combination of a moderate three-year median payout ratio of 36% (or a retention ratio of 64%) and a respectable amount of growth in earnings as we saw above, meaning that the company has been making efficient use of its profits.
Tootsie Roll Industries的三年派息率中位数为36％（或64％的留存率），再加上我们在上面看到的可观的收益增长，这意味着该公司一直在有效利用其利润。
Moreover, Tootsie Roll Industries is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years.
此外，Tootsie Roll Industries决心继续与股东分享利润，这是我们从其支付股息至少十年的悠久历史中推断出来的。
Conclusion
结论
In total, we are pretty happy with Tootsie Roll Industries' performance. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a respectable growth in its earnings.
总的来说，我们对Tootsie Roll Industries的表现非常满意。特别是，很高兴看到该公司正在对其业务进行大量投资，再加上高回报率，这为其收益带来了可观的增长。
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Simply Wall St的这篇文章本质上是笼统的。我们仅使用公正的方法根据历史数据和分析师的预测提供评论，我们的文章无意作为财务建议。它不构成买入或卖出任何股票的建议，也没有考虑到您的目标或财务状况。我们的目标是为您提供由基本数据驱动的长期重点分析。请注意，我们的分析可能不考虑最新的价格敏感型公司公告或定性材料。简而言之，华尔街没有持有任何上述股票的头寸。