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.
最近三個月股價下跌了13％，很容易忽略Tootsie Roll Industries（NYSE: TR）。但是，如果您注意到，您可能會發現其強大的財務狀況意味着長期來看，股票的價值可能會有所提高，因爲市場通常會獎勵具有良好財務狀況的公司。具體而言，在本文中，我們決定研究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指股東權益回報率，是一種有用的工具，用於評估公司如何有效地從股東獲得的投資中產生回報。簡單來說，這衡量了一家公司相對於股東權益的盈利能力。
How Do You Calculate Return On Equity?
怎樣計算ROE?
Return on equity can be calculated by using the formula:
股東權益報酬率可以使用以下公式計算：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
淨資產收益率 = 淨利潤（從持續經營中獲得）÷ 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roe爲:
11% = US$94m ÷ US$834m (Based on the trailing twelve months to March 2024).
11% = US＄94m ÷ US＄834m（根據最近十二個月的數據計算，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.
“回報”是稅後在過去十二個月內賺的金額。另一種思考方式是，對於每個1美元的淨資產，公司能夠獲得0.11美元的利潤。
Why Is ROE Important For Earnings Growth?
ROE對於盈利增長的重要性是什麼？
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.
到目前爲止，我們已經了解了roe是公司盈利能力的一種衡量標準。根據公司重新投資或“保留”的利潤數量和效率，我們可以評估公司的盈利增長潛力。假設其他所有因素保持不變，roe和保留的利潤越高，相對於不一定具有這些特徵的公司，公司的增長率就越高。
A Side By Side comparison of Tootsie Roll Industries' Earnings Growth And 11% ROE
Tootsie Roll Industries收益增長11%的roe相比較
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看起來是可以接受的。此外，該公司的roe與行業平均水平相似，爲14％。因此，這很可能爲Tootsie Roll Industries在過去五年中看到的8.9％的良好增長鋪平了道路。
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.
接下來，通過比較Tootsie Roll Industries的淨收入增長和行業的情況，我們發現該公司報告的增長類似於過去幾年行業的平均增長率爲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.
附加價值的基礎很大程度上與其收益增長有關。投資者了解市場是否已經爲公司預期的收益增長（或下降）定價是很重要的。通過這樣做，他們將會有一個判斷股票是進入清澈水域，還是溼地的概念。相比其他公司，Tootsie Roll Industries的估值如何？這3項估值指標可能會幫助您決定。
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％的三年中位數支付比率，這意味着其保留其利潤的其餘65％。這表明其股息有很好的保障，並且鑑於公司所看到的良好增長，看起來管理層正在有效地再投資其收益。
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已經連續支付股息至少十年，這意味着公司非常重視與股東分享其利潤。
Conclusion
結論
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.
總的來說，我們對Tootsie Roll Industries的表現相當滿意。具體而言，我們喜歡公司以高回報率再投資其利潤這一事實。當然，這導致該公司的盈利出現了大幅增長。
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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.
對本文有反饋？關於內容有所顧慮？直接和我們聯繫。或者，發送電子郵件至editorial-team (at) simplywallst.com。
這篇文章是Simply Wall St的一般性文章。我們根據歷史數據和分析師預測提供評論，只使用公正的方法論，我們的文章並不意味着提供任何金融建議。文章不構成買賣任何股票的建議，也不考慮您的目標或您的財務狀況。我們的目標是帶給您基本數據驅動的長期關注分析。請注意，我們的分析可能不考慮最新的價格敏感公司公告或定性材料。Simply Wall St沒有任何股票頭寸。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
對本文有反饋？關於內容有所顧慮？直接和我們聯繫。或者發送電子郵件至editorial-team@simplywallst.com。