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Tootsie Roll Industries, Inc. – Nonchocolate Confectionery Manufacturing
Launched in 1896 by the popularity of a single product, the iconic oblong piece of chewy, chocolate candy - Tootsie Roll Industries has grown to become one of the country's largest candy companies, with a lineup that includes some of the world's most popular candy, chocolate, and bubble gum brands.
Analysis Results
Intrinsic Value $24.38
Latest Price $36.04
Relative Value 48% overvalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of -5.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 2.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -5.1%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 39.4 38.4
2023 37.4 35.5
2024 35.5 32.8
2025 33.7 30.3
2026 32.0 28.0
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 960 million. This corresponds to a present value of 819 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 165 million. Adding in the terminal value gives a total present value of 984 million.

There are presently 40.4 million outstanding shares, so the intrinsic value per share is 24.38.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 268,301,000
Current Cash 145,808,000
Current Liabilities 79,968,000
Current Debt 939,000
Non-Cash Working Capital (NCWC) 43,464,000
Change in NCWC 712,000
EBIT 67,133,000
Tax Provision 20,421,000
Depreciation and Amortization 17,570,000
Capital Expenditure -31,426,000
Unlevered Free Cash Flow 37,997,643
Current Assets 320,872,000
Current Cash 208,931,000
Current Liabilities 70,021,000
Current Debt 832,000
Non-Cash Working Capital (NCWC) 42,752,000
Change in NCWC 7,623,000
EBIT 58,244,000
Tax Provision 17,288,000
Depreciation and Amortization 18,184,000
Capital Expenditure -17,970,000
Unlevered Free Cash Flow 52,877,539
Current Assets 353,330,000
Current Cash 239,404,000
Current Liabilities 79,544,000
Current Debt 747,000
Non-Cash Working Capital (NCWC) 35,129,000
Change in NCWC -21,860,000
EBIT 69,214,000
Tax Provision 20,565,000
Depreciation and Amortization 18,779,000
Capital Expenditure -20,258,000
Unlevered Free Cash Flow 29,208,498
Current Assets 304,046,000
Current Cash 186,039,000
Current Liabilities 61,391,000
Current Debt 373,000
Non-Cash Working Capital (NCWC) 56,989,000
Change in NCWC -12,663,000
EBIT 70,482,000
Tax Provision 16,401,000
Depreciation and Amortization 18,669,000
Capital Expenditure -27,612,000
Unlevered Free Cash Flow 33,085,282
Current Assets 270,920,000
Current Cash 137,920,000
Current Liabilities 63,788,000
Current Debt 440,000
Non-Cash Working Capital (NCWC) 69,652,000
Change in NCWC 20,235,000
EBIT 71,416,000
Tax Provision 3,907,000
Depreciation and Amortization 18,991,000
Capital Expenditure -16,673,000
Unlevered Free Cash Flow 90,669,342
Current Assets 299,300,000
Current Cash 186,658,000
Current Liabilities 63,561,000
Current Debt 336,000
Non-Cash Working Capital (NCWC) 49,417,000
Change in NCWC -4,258,000
EBIT 92,414,000
Tax Provision 30,593,000
Depreciation and Amortization 19,627,000
Capital Expenditure -16,090,000
Unlevered Free Cash Flow 62,817,872
Current Assets 293,806,000
Current Cash 168,300,000
Current Liabilities 72,062,000
Current Debt 231,000
Non-Cash Working Capital (NCWC) 53,675,000
Change in NCWC -7,053,000
EBIT 91,082,000
Tax Provision 26,451,000
Depreciation and Amortization 20,388,000
Capital Expenditure -15,534,000
Unlevered Free Cash Flow 62,859,430
Current Assets 264,621,000
Current Cash 139,558,000
Current Liabilities 64,459,000
Current Debt 124,000
Non-Cash Working Capital (NCWC) 60,728,000
Change in NCWC 2,593,000
EBIT 83,923,000
Tax Provision 28,434,000
Depreciation and Amortization 20,758,000
Capital Expenditure -10,704,000
Unlevered Free Cash Flow 70,431,737
Current Assets 240,111,000
Current Cash 121,855,000
Current Liabilities 60,121,000
Current Debt 0
Non-Cash Working Capital (NCWC) 58,135,000
Change in NCWC 4,267,000
EBIT 71,386,000
Tax Provision 23,634,000
Depreciation and Amortization 20,050,000
Capital Expenditure -15,752,000
Unlevered Free Cash Flow 59,980,867
Current Assets 197,241,000
Current Cash 82,608,000
Current Liabilities 60,765,000
Current Debt 0
Non-Cash Working Capital (NCWC) 53,868,000
Change in NCWC -10,471,000
EBIT 68,460,000
Tax Provision 22,160,000
Depreciation and Amortization 19,925,000
Capital Expenditure -8,886,000
Unlevered Free Cash Flow 48,572,339

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