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.
由於其股票在過去三個月中下跌了13％，很容易忽視Tootsie Roll Industries（紐約證券交易所代碼：TR）。但是，如果你密切關注，你可能會發現，鑑於市場通常會獎勵財務狀況良好的公司，其強勁的財務狀況可能意味着該股的長期價值可能會增加。具體而言，我們決定在本文中研究Tootsie Roll Industries的投資回報率。
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.
投資回報率或股本回報率是評估公司如何有效地從股東那裏獲得投資回報的有用工具。簡而言之，它衡量公司相對於股東權益的盈利能力。
How Do You Calculate Return On Equity?
你如何計算股本回報率？
Return on equity can be calculated by using the formula:
股本回報率可以使用以下公式計算：
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$94m ÷ US$834m (Based on the trailing twelve months to March 2024).
11% = 9400萬美元 ÷ 8.34億美元（基於截至2024年3月的過去十二個月）。
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” 是過去十二個月的稅後收入。另一種思考方式是，每持有價值1美元的股權，該公司就能獲得0.11美元的利潤。
Why Is ROE Important For Earnings Growth?
爲什麼投資回報率對收益增長很重要？
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，我們已經了解到，投資回報率是衡量公司盈利能力的指標。然後，我們能夠評估公司的收益增長潛力，具體取決於公司對這些利潤進行再投資或 “保留” 了多少及其有效性。假設其他一切保持不變，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。
A Side By Side comparison of Tootsie Roll Industries' Earnings Growth And 11% ROE
Tootsie Roll Industries的收益增長和11％的投資回報率的並排比較
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的投資回報率似乎可以接受。此外，該公司的投資回報率與行業平均水平的14％相似。因此，這可能爲Tootsie Roll Industries在過去五年中實現8.9％的體面增長奠定了基礎。
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，在將Tootsie Roll Industries的淨收入增長與該行業進行比較時，我們發現該公司報告的增長與過去幾年10％的行業平均增長率相似。
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.
爲公司附加價值的基礎在很大程度上與其收益增長息息相關。對於投資者來說，重要的是要知道市場是否對公司的預期收益增長（或下降）進行了定價。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水域在等着呢。與其他公司相比，Tootsie Roll Industries的估值是否合理？這3種估值指標可能會幫助您做出決定。
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 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的三年派息率中位數爲35％，這意味着它保留了剩餘的65％的利潤。這表明其股息覆蓋範圍良好，鑑於該公司的可觀增長，管理層似乎正在有效地對其收益進行再投資。
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已在至少十年內派發了股息，這意味着該公司非常認真地與股東分享利潤。
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的表現非常滿意。具體而言，我們喜歡該公司以高回報率再投資其利潤的很大一部分。當然，這導致該公司的收益大幅增長。
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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.
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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。
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