Analyzing TORO CO (NYSE:TTC)'s Dividend Potential.

Our stock screener has spotted TORO CO (NYSE:TTC) as a good dividend stock with solid fundamentals. NYSE:TTC shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

Looking at the Dividend

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:TTC has received a 7 out of 10:

• Compared to an average industry Dividend Yield of 1.75, TTC pays a better dividend. On top of this TTC pays more dividend than 84.25% of the companies listed in the same industry.
• On average, the dividend of TTC grows each year by 9.97%, which is quite nice.
• TTC has been paying a dividend for at least 10 years, so it has a reliable track record.
• TTC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• TTC pays out 35.69% of its income as dividend. This is a sustainable payout ratio.

ChartMill's Evaluation of Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:TTC, the assigned 6 for health provides valuable insights:

• TTC has an Altman-Z score of 4.83. This indicates that TTC is financially healthy and has little risk of bankruptcy at the moment.
• TTC has a Altman-Z score of 4.83. This is in the better half of the industry: TTC outperforms 75.59% of its industry peers.
• The Debt to FCF ratio of TTC is 1.98, which is an excellent value as it means it would take TTC, only 1.98 years of fcf income to pay off all of its debts.
• TTC's Debt to FCF ratio of 1.98 is fine compared to the rest of the industry. TTC outperforms 79.53% of its industry peers.
• Even though the debt/equity ratio score it not favorable for TTC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.

Understanding NYSE:TTC's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:TTC has earned a 7 out of 10:

• The Return On Assets of TTC (11.69%) is better than 84.25% of its industry peers.
• Looking at the Return On Equity, with a value of 26.99%, TTC belongs to the top of the industry, outperforming 89.76% of the companies in the same industry.
• TTC has a better Return On Invested Capital (16.78%) than 89.76% 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 10.85%.
• With a decent Profit Margin value of 9.14%, TTC is doing good in the industry, outperforming 66.93% of the companies in the same industry.
• TTC's Operating Margin has improved in the last couple of years.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of TTC

Keep in mind

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.