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（紐約證券交易所代碼：TR）最近的表現，很難感到興奮，當時其股價在過去一週下跌了2.2％。但是，股票價格通常由公司的長期財務業績驅動，在這種情況下，這看起來很有希望。具體而言，我們決定在本文中研究Tootsie Roll Industries的投資回報率。
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.
股本回報率或投資回報率是股東需要考慮的重要因素，因爲它可以告訴他們資本再投資的有效性。簡而言之，它用於評估公司相對於其股權資本的盈利能力。
How To Calculate Return On Equity?
如何計算股本回報率？
The formula for return on equity is:
股本回報率的公式是：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回報率 = 淨利潤（來自持續經營業務）÷ 股東權益
So, based on the above formula, the ROE for Tootsie Roll Industries is:
因此，根據上述公式，Tootsie Roll Industries的投資回報率爲：
11% = US$92m ÷ US$823m (Based on the trailing twelve months to December 2023).
11% = 9200萬美元 ÷ 8.23億美元（基於截至2023年12月的過去十二個月）。
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.
“回報” 是企業在過去一年中獲得的收入。將其概念化的一種方法是，公司每擁有1美元的股東資本，就會獲得0.11美元的利潤。
What Is The Relationship Between ROE And Earnings Growth?
投資回報率與收益增長之間有什麼關係？
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.
我們已經確定，投資回報率是衡量公司未來收益的有效利潤創造指標。我們現在需要評估公司爲未來增長再投資或 “保留” 了多少利潤，這樣我們就可以了解公司的增長潛力。假設其他一切都保持不變，那麼與不一定具有這些特徵的公司相比，投資回報率和利潤保留率越高，公司的增長率就越高。
Tootsie Roll Industries' Earnings Growth And 11% ROE
Tootsie Roll Industries的收益增長和11％的投資回報率
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的投資回報率似乎不錯。與行業相比，我們發現行業的平均投資回報率相似，爲14％。因此，這可能爲Tootsie Roll Industries在過去五年中實現8.0％的體面增長奠定了基礎。
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.
接下來，與行業淨收入增長進行比較時，我們發現Tootsie Roll Industries報告的增長低於過去幾年15％的行業增長，這不是我們希望看到的。
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.
收益增長是股票估值的重要因素。無論情況如何，投資者都應設法確定預期的收益增長或下降是否已計入其中。通過這樣做，他們將知道股票是走向清澈的藍色海水，還是沼澤的水域在等着你。如果你想知道Tootsie Roll Industries的估值，可以看看這個衡量其市盈率與行業相比的指標。
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的三年派息率中位數爲36％（或64％的留存率），再加上我們在上面看到的可觀的收益增長，這意味着該公司一直在有效利用其利潤。
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決心繼續與股東分享利潤，這是我們從其支付股息至少十年的悠久歷史中推斷出來的。
Conclusion
結論
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.
總的來說，我們對Tootsie Roll Industries的表現非常滿意。特別是，很高興看到該公司正在對其業務進行大量投資，再加上高回報率，這爲其收益帶來了可觀的增長。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
對這篇文章有反饋嗎？對內容感到擔憂？直接聯繫我們。 或者，給編輯團隊 (at) simplywallst.com 發送電子郵件。
Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論，我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議，也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意，我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之，華爾街沒有持有任何上述股票的頭寸。