Will Weakness in Tootsie Roll Industries, Inc.'s (NYSE:TR) Stock Prove Temporary Given Strong Fundamentals?
Will Weakness in Tootsie Roll Industries, Inc.'s (NYSE:TR) Stock Prove Temporary Given Strong Fundamentals?
With its stock down 13% over the past three months, it is easy to disregard Tootsie Roll Industries (NYSE:TR). But if you pay close attention, you might gather that its strong financials could mean that the stock could potentially see an increase in value in the long-term, given how markets usually reward companies with good financial health. Specifically, we decided to study Tootsie Roll Industries' ROE in this article.
最近三个月股价下跌了13％，很容易忽略Tootsie Roll Industries（NYSE: TR）。但是，如果您注意到，您可能会发现其强大的财务状况意味着长期来看，股票的价值可能会有所提高，因为市场通常会奖励具有良好财务状况的公司。具体而言，在本文中，我们决定研究Tootsie Roll Industries的roe。
ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
roe指股东权益回报率，是一种有用的工具，用于评估公司如何有效地从股东获得的投资中产生回报。简单来说，这衡量了一家公司相对于股东权益的盈利能力。
How Do You Calculate Return On Equity?
怎样计算ROE?
Return on equity can be calculated by using the formula:
股东权益报酬率可以使用以下公式计算：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
净资产收益率 = 净利润（从持续经营中获得）÷ 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roe为:
11% = US$94m ÷ US$834m (Based on the trailing twelve months to March 2024).
11% = US＄94m ÷ US＄834m（根据最近十二个月的数据计算，截至2024年3月）。
The 'return' is the amount earned after tax over the last twelve months. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.11 in profit.
“回报”是税后在过去十二个月内赚的金额。另一种思考方式是，对于每个1美元的净资产，公司能够获得0.11美元的利润。
Why Is ROE Important For Earnings Growth?
ROE对于盈利增长的重要性是什么？
So far, we've learned that ROE is a measure of a company's profitability. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. 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.
到目前为止，我们已经了解了roe是公司盈利能力的一种衡量标准。根据公司重新投资或“保留”的利润数量和效率，我们可以评估公司的盈利增长潜力。假设其他所有因素保持不变，roe和保留的利润越高，相对于不一定具有这些特征的公司，公司的增长率就越高。
A Side By Side comparison of Tootsie Roll Industries' Earnings Growth And 11% ROE
Tootsie Roll Industries收益增长11%的roe相比较
To start with, Tootsie Roll Industries' ROE looks acceptable. Further, the company's ROE is similar to the industry average of 14%. Consequently, this likely laid the ground for the decent growth of 8.9% seen over the past five years by Tootsie Roll Industries.
首先，Tootsie Roll Industries的roe看起来是可以接受的。此外，该公司的roe与行业平均水平相似，为14％。因此，这很可能为Tootsie Roll Industries在过去五年中看到的8.9％的良好增长铺平了道路。
Next, on comparing Tootsie Roll Industries' net income growth with the industry, we found that the company's reported growth is similar to the industry average growth rate of 10% over the last few years.
接下来，通过比较Tootsie Roll Industries的净收入增长和行业的情况，我们发现该公司报告的增长类似于过去几年行业的平均增长率为10％。
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is Tootsie Roll Industries fairly valued compared to other companies? These 3 valuation measures might help you decide.
附加价值的基础很大程度上与其收益增长有关。投资者了解市场是否已经为公司预期的收益增长（或下降）定价是很重要的。通过这样做，他们将会有一个判断股票是进入清澈水域，还是湿地的概念。相比其他公司，Tootsie Roll Industries的估值如何？这3项估值指标可能会帮助您决定。
Is Tootsie Roll Industries Using Its Retained Earnings Effectively?
Tootsie Roll Industries是否有效地使用其留存收益？
Tootsie Roll Industries has a three-year median payout ratio of 35%, which implies that it retains the remaining 65% of its profits. This suggests that its dividend is well covered, and given the decent growth seen by the company, it looks like management is reinvesting its earnings efficiently.
Tootsie Roll Industries具有35％的三年中位数支付比率，这意味着其保留其利润的其余65％。这表明其股息有很好的保障，并且鉴于公司所看到的良好增长，看起来管理层正在有效地再投资其收益。
Additionally, Tootsie Roll Industries has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders.
此外，Tootsie Roll Industries已经连续支付股息至少十年，这意味着公司非常重视与股东分享其利润。
Conclusion
结论
In total, we are pretty happy with Tootsie Roll Industries' performance. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see substantial growth in its earnings.
总的来说，我们对Tootsie Roll Industries的表现相当满意。具体而言，我们喜欢公司以高回报率再投资其利润这一事实。当然，这导致该公司的盈利出现了大幅增长。
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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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这篇文章是Simply Wall St的一般性文章。我们根据历史数据和分析师预测提供评论，只使用公正的方法论，我们的文章并不意味着提供任何金融建议。文章不构成买卖任何股票的建议，也不考虑您的目标或您的财务状况。我们的目标是带给您基本数据驱动的长期关注分析。请注意，我们的分析可能不考虑最新的价格敏感公司公告或定性材料。Simply Wall St没有任何股票头寸。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
对本文有反馈？关于内容有所顾虑？直接和我们联系。或者发送电子邮件至editorial-team@simplywallst.com。