TORO CO (TTC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TTC - US8910921084 - Common Stock
89.18 USD
+0.12 (+0.13%)
89.18 USD
0 (0%)
Overall TTC gets a fundamental rating of 5 out of 10. We evaluated TTC against 132 industry peers in the Machinery industry. TTC has only an average score on both its financial health and profitability. TTC has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
TTC had positive earnings in the past year.
TTC had a positive operating cash flow in the past year.
Each year in the past 5 years TTC has been profitable.
In the past 5 years TTC always reported a positive cash flow from operatings.
1.2 Ratios
TTC has a Return On Assets of 9.19%. This is in the better half of the industry: TTC outperforms 77.27% of its industry peers.
TTC has a Return On Equity of 21.75%. This is amongst the best in the industry. TTC outperforms 89.39% of its industry peers.
With an excellent Return On Invested Capital value of 16.07%, TTC belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TTC is significantly above the industry average of 10.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.19% | ||
| ROE | 21.75% | ||
| ROIC | 16.07% |
ROA(3y)9.98%
ROA(5y)11.27%
ROE(3y)23.52%
ROE(5y)27.79%
ROIC(3y)16.95%
ROIC(5y)18.18%
1.3 Margins
TTC has a better Profit Margin (7.01%) than 61.36% of its industry peers.
TTC's Profit Margin has declined in the last couple of years.
TTC has a Operating Margin (10.89%) which is in line with its industry peers.
In the last couple of years the Operating Margin of TTC has declined.
With a Gross Margin value of 33.36%, TTC perfoms like the industry average, outperforming 55.30% of the companies in the same industry.
TTC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.89% | ||
| PM (TTM) | 7.01% | ||
| GM | 33.36% |
OM growth 3Y-5.13%
OM growth 5Y-2.91%
PM growth 3Y-10.64%
PM growth 5Y-6.41%
GM growth 3Y0.04%
GM growth 5Y-1.07%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TTC is still creating some value.
Compared to 1 year ago, TTC has less shares outstanding
TTC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TTC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.26 indicates that TTC is not in any danger for bankruptcy at the moment.
TTC has a better Altman-Z score (5.26) than 75.00% of its industry peers.
The Debt to FCF ratio of TTC is 1.61, which is an excellent value as it means it would take TTC, only 1.61 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.61, TTC belongs to the top of the industry, outperforming 82.58% of the companies in the same industry.
A Debt/Equity ratio of 0.63 indicates that TTC is somewhat dependend on debt financing.
TTC has a Debt to Equity ratio of 0.63. This is in the lower half of the industry: TTC underperforms 62.12% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 1.61 | ||
| Altman-Z | 5.26 |
ROIC/WACC1.69
WACC9.53%
2.3 Liquidity
TTC has a Current Ratio of 1.87. This is a normal value and indicates that TTC is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of TTC (1.87) is comparable to the rest of the industry.
TTC has a Quick Ratio of 1.87. This is a bad value and indicates that TTC is not financially healthy enough and could expect problems in meeting its short term obligations.
TTC's Quick ratio of 0.86 is on the low side compared to the rest of the industry. TTC is outperformed by 71.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.20% over the past year.
The Earnings Per Share has been growing slightly by 6.92% on average over the past years.
Looking at the last year, TTC shows a decrease in Revenue. The Revenue has decreased by -1.60% in the last year.
Measured over the past years, TTC shows a small growth in Revenue. The Revenue has been growing by 5.95% on average per year.
EPS 1Y (TTM)1.2%
EPS 3Y0.16%
EPS 5Y6.92%
EPS Q2Q%-4.21%
Revenue 1Y (TTM)-1.6%
Revenue growth 3Y-0.03%
Revenue growth 5Y5.95%
Sales Q2Q%-0.91%
3.2 Future
The Earnings Per Share is expected to grow by 6.82% on average over the next years.
Based on estimates for the next years, TTC will show a small growth in Revenue. The Revenue will grow by 3.09% on average per year.
EPS Next Y8%
EPS Next 2Y9.5%
EPS Next 3Y9.3%
EPS Next 5Y6.82%
Revenue Next Year4.52%
Revenue Next 2Y4.16%
Revenue Next 3Y3.46%
Revenue Next 5Y3.09%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.13, the valuation of TTC can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TTC indicates a somewhat cheap valuation: TTC is cheaper than 71.21% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.25, TTC is valued a bit cheaper.
A Price/Forward Earnings ratio of 19.57 indicates a rather expensive valuation of TTC.
Based on the Price/Forward Earnings ratio, TTC is valued a bit cheaper than 61.36% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TTC to the average of the S&P500 Index (23.98), we can say TTC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.13 | ||
| Fwd PE | 19.57 |
4.2 Price Multiples
62.12% of the companies in the same industry are more expensive than TTC, based on the Enterprise Value to EBITDA ratio.
TTC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TTC is cheaper than 84.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.2 | ||
| EV/EBITDA | 14.68 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TTC does not grow enough to justify the current Price/Earnings ratio.
TTC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.64
PEG (5Y)3.05
EPS Next 2Y9.5%
EPS Next 3Y9.3%
5. Dividend
5.1 Amount
TTC has a Yearly Dividend Yield of 1.78%.
TTC's Dividend Yield is rather good when compared to the industry average which is at 0.80. TTC pays more dividend than 84.85% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, TTC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
5.2 History
On average, the dividend of TTC grows each year by 8.56%, 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.56%
Div Incr Years21
Div Non Decr Years34
5.3 Sustainability
47.80% of the earnings are spent on dividend by TTC. This is a bit on the high side, but may be sustainable.
TTC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP47.8%
EPS Next 2Y9.5%
EPS Next 3Y9.3%
89.18
+0.12 (+0.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.81%
Inst Owner Change-0.03%
Ins Owners0.36%
Ins Owner Change1.44%
Market Cap8.73B
Revenue(TTM)4.51B
Net Income(TTM)316.10M
Analysts75.56
Price Target94.45 (5.91%)
Short Float %2.69%
Short Ratio2.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
Yearly Dividend1.52
Dividend Growth(5Y)8.56%
DP47.8%
Div Incr Years21
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.2%
Min EPS beat(2)0.84%
Max EPS beat(2)3.56%
EPS beat(4)4
Avg EPS beat(4)1.78%
Min EPS beat(4)0.57%
Max EPS beat(4)3.56%
EPS beat(8)5
Avg EPS beat(8)0.61%
EPS beat(12)8
Avg EPS beat(12)1.11%
EPS beat(16)11
Avg EPS beat(16)1.47%
Revenue beat(2)1
Avg Revenue beat(2)-1.35%
Min Revenue beat(2)-3.47%
Max Revenue beat(2)0.78%
Revenue beat(4)1
Avg Revenue beat(4)-2.05%
Min Revenue beat(4)-3.52%
Max Revenue beat(4)0.78%
Revenue beat(8)1
Avg Revenue beat(8)-2.66%
Revenue beat(12)1
Avg Revenue beat(12)-3.61%
Revenue beat(16)1
Avg Revenue beat(16)-3.4%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-19.31%
EPS NQ rev (3m)-19.31%
EPS NY rev (1m)-4.19%
EPS NY rev (3m)-3.74%
Revenue NQ rev (1m)-2.22%
Revenue NQ rev (3m)-2.13%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.13 | ||
| Fwd PE | 19.57 | ||
| P/S | 1.93 | ||
| P/FCF | 15.2 | ||
| P/OCF | 13.18 | ||
| P/B | 6.01 | ||
| P/tB | 14.26 | ||
| EV/EBITDA | 14.68 |
EPS(TTM)4.22
EY4.73%
EPS(NY)4.56
Fwd EY5.11%
FCF(TTM)5.87
FCFY6.58%
OCF(TTM)6.76
OCFY7.59%
SpS46.09
BVpS14.85
TBVpS6.25
PEG (NY)2.64
PEG (5Y)3.05
Graham Number37.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.19% | ||
| ROE | 21.75% | ||
| ROCE | 19.43% | ||
| ROIC | 16.07% | ||
| ROICexc | 18.58% | ||
| ROICexgc | 30.21% | ||
| OM | 10.89% | ||
| PM (TTM) | 7.01% | ||
| GM | 33.36% | ||
| FCFM | 12.73% |
ROA(3y)9.98%
ROA(5y)11.27%
ROE(3y)23.52%
ROE(5y)27.79%
ROIC(3y)16.95%
ROIC(5y)18.18%
ROICexc(3y)18.71%
ROICexc(5y)20.62%
ROICexgc(3y)30.76%
ROICexgc(5y)38%
ROCE(3y)20.49%
ROCE(5y)21.99%
ROICexgc growth 3Y-10.36%
ROICexgc growth 5Y-10.11%
ROICexc growth 3Y-3.48%
ROICexc growth 5Y-4.37%
OM growth 3Y-5.13%
OM growth 5Y-2.91%
PM growth 3Y-10.64%
PM growth 5Y-6.41%
GM growth 3Y0.04%
GM growth 5Y-1.07%
F-Score6
Asset Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 1.61 | ||
| Debt/EBITDA | 1.45 | ||
| Cap/Depr | 61.51% | ||
| Cap/Sales | 1.95% | ||
| Interest Coverage | 7.86 | ||
| Cash Conversion | 104.43% | ||
| Profit Quality | 181.62% | ||
| Current Ratio | 1.87 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 5.26 |
F-Score6
WACC9.53%
ROIC/WACC1.69
Cap/Depr(3y)89.43%
Cap/Depr(5y)107.78%
Cap/Sales(3y)2.5%
Cap/Sales(5y)2.83%
Profit Quality(3y)113.49%
Profit Quality(5y)95.41%
High Growth Momentum
Growth
EPS 1Y (TTM)1.2%
EPS 3Y0.16%
EPS 5Y6.92%
EPS Q2Q%-4.21%
EPS Next Y8%
EPS Next 2Y9.5%
EPS Next 3Y9.3%
EPS Next 5Y6.82%
Revenue 1Y (TTM)-1.6%
Revenue growth 3Y-0.03%
Revenue growth 5Y5.95%
Sales Q2Q%-0.91%
Revenue Next Year4.52%
Revenue Next 2Y4.16%
Revenue Next 3Y3.46%
Revenue Next 5Y3.09%
EBIT growth 1Y-7.93%
EBIT growth 3Y-5.16%
EBIT growth 5Y2.86%
EBIT Next Year32.26%
EBIT Next 3Y17%
EBIT Next 5YN/A
FCF growth 1Y23.3%
FCF growth 3Y57.67%
FCF growth 5Y4.47%
OCF growth 1Y16.16%
OCF growth 3Y30.6%
OCF growth 5Y4.18%
TORO CO / TTC FAQ
What is the ChartMill fundamental rating of TORO CO (TTC) stock?
ChartMill assigns a fundamental rating of 5 / 10 to TTC.
What is the valuation status of TORO CO (TTC) stock?
ChartMill assigns a valuation rating of 5 / 10 to TORO CO (TTC). This can be considered as Fairly Valued.
What is the profitability of TTC stock?
TORO CO (TTC) has a profitability rating of 6 / 10.
What is the valuation of TORO CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TORO CO (TTC) is 21.13 and the Price/Book (PB) ratio is 6.01.
What is the financial health of TORO CO (TTC) stock?
The financial health rating of TORO CO (TTC) is 6 / 10.