Analyzing NYSE:TTC's Dividend Potential.

Last update: Dec 20, 2024

TORO CO (NYSE:TTC) was identified as a stock worth exploring by dividend investors by our stock screener. NYSE:TTC scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

Assessing Dividend for NYSE:TTC

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:TTC has been assigned a 7 for dividend:

TTC's Dividend Yield is rather good when compared to the industry average which is at 1.61. TTC pays more dividend than 88.46% of the companies in the same industry.
The dividend of TTC is nicely growing with an annual growth rate of 9.85%!
TTC has paid a dividend for at least 10 years, which is a reliable track record.
TTC has not decreased their dividend for at least 10 years, which is a reliable track record.
35.69% of the earnings are spent on dividend by TTC. This is a low number and sustainable payout ratio.

Health Assessment of NYSE:TTC

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:TTC has received a 7 out of 10:

An Altman-Z score of 5.08 indicates that TTC is not in any danger for bankruptcy at the moment.
The Altman-Z score of TTC (5.08) is better than 76.92% of its industry peers.
TTC has a debt to FCF ratio of 1.98. This is a very positive value and a sign of high solvency as it would only need 1.98 years to pay back of all of its debts.
TTC's Debt to FCF ratio of 1.98 is amongst the best of the industry. TTC outperforms 83.08% of its industry peers.
Although TTC does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
TTC does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Profitability Insights: NYSE:TTC

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:TTC, the assigned 8 is noteworthy for profitability:

TTC has a better Return On Assets (11.69%) than 85.38% of its industry peers.
The Return On Equity of TTC (26.99%) is better than 90.00% of its industry peers.
TTC's Return On Invested Capital of 16.78% is amongst the best of the industry. TTC outperforms 90.77% of its industry peers.
TTC had an Average Return On Invested Capital over the past 3 years of 17.81%. This is significantly above the industry average of 10.89%.
With a decent Profit Margin value of 9.14%, TTC is doing good in the industry, outperforming 68.46% of the companies in the same industry.
Looking at the Operating Margin, with a value of 11.63%, TTC is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
TTC's Operating Margin has improved in the last couple of years.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Our latest full fundamental report of TTC contains the most current fundamental analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.