TORO CO (TTC) Stock Fundamental Analysis
USA - NYSE:TTC - US8910921084 - Common Stock
79.13 USD
-0.38 (-0.48%)
79.13 USD
0 (0%)
Taking everything into account, TTC scores 6 out of 10 in our fundamental rating. TTC was compared to 128 industry peers in the Machinery industry. TTC scores excellent on profitability, but there are some minor concerns on its financial health. TTC has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
TTC had positive earnings in the past year.
In the past year TTC had a positive cash flow from operations.
In the past 5 years TTC has always been profitable.
In the past 5 years TTC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TTC (9.46%) is better than 78.13% of its industry peers.
Looking at the Return On Equity, with a value of 23.60%, TTC belongs to the top of the industry, outperforming 89.06% of the companies in the same industry.
TTC's Return On Invested Capital of 16.23% is amongst the best of the industry. TTC outperforms 90.63% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TTC is significantly above the industry average of 10.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.46% | ||
| ROE | 23.6% | ||
| ROIC | 16.23% |
ROA(3y)11.07%
ROA(5y)11.74%
ROE(3y)27.2%
ROE(5y)29.36%
ROIC(3y)17.81%
ROIC(5y)18.34%
1.3 Margins
TTC's Profit Margin of 7.37% is fine compared to the rest of the industry. TTC outperforms 60.16% of its industry peers.
In the last couple of years the Profit Margin of TTC has remained more or less at the same level.
TTC has a Operating Margin (11.23%) which is in line with its industry peers.
TTC's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 33.25%, TTC perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
In the last couple of years the Gross Margin of TTC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.23% | ||
| PM (TTM) | 7.37% | ||
| GM | 33.25% |
OM growth 3Y-3.14%
OM growth 5Y2.35%
PM growth 3Y-4.07%
PM growth 5Y0.92%
GM growth 3Y0%
GM growth 5Y0.24%
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.
The number of shares outstanding for TTC has been reduced compared to 1 year ago.
The number of shares outstanding for TTC has been reduced compared to 5 years ago.
TTC has a better debt/assets ratio than last year.
2.2 Solvency
TTC has an Altman-Z score of 4.80. This indicates that TTC is financially healthy and has little risk of bankruptcy at the moment.
TTC has a Altman-Z score of 4.80. This is in the better half of the industry: TTC outperforms 77.34% of its industry peers.
TTC has a debt to FCF ratio of 2.10. This is a good value and a sign of high solvency as TTC would need 2.10 years to pay back of all of its debts.
TTC's Debt to FCF ratio of 2.10 is fine compared to the rest of the industry. TTC outperforms 75.78% of its industry peers.
TTC has a Debt/Equity ratio of 0.72. This is a neutral value indicating TTC is somewhat dependend on debt financing.
TTC has a Debt to Equity ratio of 0.72. This is in the lower half of the industry: TTC underperforms 70.31% 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 | 0.72 | ||
| Debt/FCF | 2.1 | ||
| Altman-Z | 4.8 |
ROIC/WACC1.63
WACC9.94%
2.3 Liquidity
A Current Ratio of 1.88 indicates that TTC should not have too much problems paying its short term obligations.
The Current ratio of TTC (1.88) is comparable to the rest of the industry.
A Quick Ratio of 0.79 indicates that TTC may have some problems paying its short term obligations.
TTC has a Quick ratio of 0.79. This is in the lower half of the industry: TTC underperforms 76.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.40% over the past year.
The Earnings Per Share has been growing slightly by 6.88% on average over the past years.
The Revenue has been growing slightly by 0.65% in the past year.
Measured over the past years, TTC shows a small growth in Revenue. The Revenue has been growing by 7.87% on average per year.
EPS 1Y (TTM)8.4%
EPS 3Y4.83%
EPS 5Y6.88%
EPS Q2Q%5.08%
Revenue 1Y (TTM)0.65%
Revenue growth 3Y5%
Revenue growth 5Y7.87%
Sales Q2Q%-2.21%
3.2 Future
The Earnings Per Share is expected to grow by 4.32% on average over the next years.
TTC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.08% yearly.
EPS Next Y2.4%
EPS Next 2Y5.99%
EPS Next 3Y7.1%
EPS Next 5Y4.32%
Revenue Next Year-2.37%
Revenue Next 2Y0.44%
Revenue Next 3Y1.43%
Revenue Next 5Y1.08%
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 decreasing.
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 18.58, the valuation of TTC can be described as rather expensive.
71.09% of the companies in the same industry are more expensive than TTC, based on the Price/Earnings ratio.
TTC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.20.
Based on the Price/Forward Earnings ratio of 16.89, the valuation of TTC can be described as correct.
Based on the Price/Forward Earnings ratio, TTC is valued a bit cheaper than 67.97% of the companies in the same industry.
TTC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.71, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.58 | ||
| Fwd PE | 16.89 |
4.2 Price Multiples
TTC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TTC is cheaper than 60.16% of the companies in the same industry.
TTC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TTC is cheaper than 78.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.74 | ||
| EV/EBITDA | 13.46 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of TTC may justify a higher PE ratio.
PEG (NY)7.72
PEG (5Y)2.7
EPS Next 2Y5.99%
EPS Next 3Y7.1%
5. Dividend
5.1 Amount
TTC has a Yearly Dividend Yield of 1.90%.
TTC's Dividend Yield is rather good when compared to the industry average which is at 1.74. TTC pays more dividend than 84.38% of the companies in the same industry.
TTC's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
5.2 History
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.97%
Div Incr Years21
Div Non Decr Years34
5.3 Sustainability
45.26% 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.
DP45.26%
EPS Next 2Y5.99%
EPS Next 3Y7.1%
79.13
-0.38 (-0.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners94.89%
Inst Owner Change0.76%
Ins Owners0.38%
Ins Owner Change0.88%
Market Cap7.74B
Analysts74
Price Target94.45 (19.36%)
Short Float %3.17%
Short Ratio4.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
Yearly Dividend1.46
Dividend Growth(5Y)9.97%
DP45.26%
Div Incr Years21
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.7%
Min EPS beat(2)0.57%
Max EPS beat(2)0.84%
EPS beat(4)3
Avg EPS beat(4)0.47%
Min EPS beat(4)-1.66%
Max EPS beat(4)2.15%
EPS beat(8)5
Avg EPS beat(8)3.45%
EPS beat(12)8
Avg EPS beat(12)0.9%
EPS beat(16)11
Avg EPS beat(16)1.59%
Revenue beat(2)0
Avg Revenue beat(2)-3.5%
Min Revenue beat(2)-3.52%
Max Revenue beat(2)-3.47%
Revenue beat(4)0
Avg Revenue beat(4)-2.81%
Min Revenue beat(4)-3.52%
Max Revenue beat(4)-1.97%
Revenue beat(8)0
Avg Revenue beat(8)-2.76%
Revenue beat(12)0
Avg Revenue beat(12)-3.78%
Revenue beat(16)0
Avg Revenue beat(16)-3.48%
PT rev (1m)12.93%
PT rev (3m)3.18%
EPS NQ rev (1m)-11.14%
EPS NQ rev (3m)-11.14%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.75%
Revenue NQ rev (1m)-1.22%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)-0.85%
Revenue NY rev (3m)-2.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.58 | ||
| Fwd PE | 16.89 | ||
| P/S | 1.71 | ||
| P/FCF | 15.74 | ||
| P/OCF | 13.15 | ||
| P/B | 5.49 | ||
| P/tB | 13.79 | ||
| EV/EBITDA | 13.46 |
EPS(TTM)4.26
EY5.38%
EPS(NY)4.68
Fwd EY5.92%
FCF(TTM)5.03
FCFY6.35%
OCF(TTM)6.02
OCFY7.61%
SpS46.19
BVpS14.42
TBVpS5.74
PEG (NY)7.72
PEG (5Y)2.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.46% | ||
| ROE | 23.6% | ||
| ROCE | 19.79% | ||
| ROIC | 16.23% | ||
| ROICexc | 17.61% | ||
| ROICexgc | 27.5% | ||
| OM | 11.23% | ||
| PM (TTM) | 7.37% | ||
| GM | 33.25% | ||
| FCFM | 10.89% |
ROA(3y)11.07%
ROA(5y)11.74%
ROE(3y)27.2%
ROE(5y)29.36%
ROIC(3y)17.81%
ROIC(5y)18.34%
ROICexc(3y)19.24%
ROICexc(5y)21.37%
ROICexgc(3y)34.38%
ROICexgc(5y)41.9%
ROCE(3y)21.71%
ROCE(5y)22.37%
ROICexcg growth 3Y-18.45%
ROICexcg growth 5Y-4.48%
ROICexc growth 3Y-11.36%
ROICexc growth 5Y-0.63%
OM growth 3Y-3.14%
OM growth 5Y2.35%
PM growth 3Y-4.07%
PM growth 5Y0.92%
GM growth 3Y0%
GM growth 5Y0.24%
F-Score5
Asset Turnover1.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 2.1 | ||
| Debt/EBITDA | 1.58 | ||
| Cap/Depr | 73.3% | ||
| Cap/Sales | 2.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.07% | ||
| Profit Quality | 147.78% | ||
| Current Ratio | 1.88 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 4.8 |
F-Score5
WACC9.94%
ROIC/WACC1.63
Cap/Depr(3y)115.09%
Cap/Depr(5y)111.81%
Cap/Sales(3y)2.97%
Cap/Sales(5y)2.9%
Profit Quality(3y)63.97%
Profit Quality(5y)87.06%
High Growth Momentum
Growth
EPS 1Y (TTM)8.4%
EPS 3Y4.83%
EPS 5Y6.88%
EPS Q2Q%5.08%
EPS Next Y2.4%
EPS Next 2Y5.99%
EPS Next 3Y7.1%
EPS Next 5Y4.32%
Revenue 1Y (TTM)0.65%
Revenue growth 3Y5%
Revenue growth 5Y7.87%
Sales Q2Q%-2.21%
Revenue Next Year-2.37%
Revenue Next 2Y0.44%
Revenue Next 3Y1.43%
Revenue Next 5Y1.08%
EBIT growth 1Y-2.19%
EBIT growth 3Y1.7%
EBIT growth 5Y10.41%
EBIT Next Year23.31%
EBIT Next 3Y13.08%
EBIT Next 5YN/A
FCF growth 1Y297.28%
FCF growth 3Y3.15%
FCF growth 5Y13.75%
OCF growth 1Y98.13%
OCF growth 3Y0.86%
OCF growth 5Y11.05%