TORO CO (TTC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TTC - US8910921084 - Common Stock
77.67 USD
-0.52 (-0.67%)
77.67 USD
0 (0%)
Overall TTC gets a fundamental rating of 5 out of 10. We evaluated TTC against 131 industry peers in the Machinery industry. While TTC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TTC has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year TTC was profitable.
In the past year TTC had a positive cash flow from operations.
TTC had positive earnings in 4 of the past 5 years.
Of the past 5 years TTC 4 years had a positive operating cash flow.
1.2 Ratios
TTC's Return On Assets of 9.46% is fine compared to the rest of the industry. TTC outperforms 77.69% of its industry peers.
TTC has a better Return On Equity (23.60%) than 90.77% of its industry peers.
TTC's Return On Invested Capital of 16.23% is amongst the best of the industry. TTC outperforms 91.54% 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 10.32%.
| 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
Looking at the Profit Margin, with a value of 7.37%, TTC is in the better half of the industry, outperforming 63.08% of the companies in the same industry.
In the last couple of years the Profit Margin of TTC has remained more or less at the same level.
Looking at the Operating Margin, with a value of 11.23%, TTC is in line with its industry, outperforming 57.69% of the companies in the same industry.
TTC's Operating Margin has improved in the last couple of years.
The Gross Margin of TTC (33.25%) is comparable to the rest of the industry.
TTC's Gross Margin has been stable in the last couple of years.
| 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 well above the Cost of Capital (WACC), so TTC is creating value.
TTC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
TTC has an Altman-Z score of 4.76. This indicates that TTC is financially healthy and has little risk of bankruptcy at the moment.
TTC has a Altman-Z score of 4.76. This is in the better half of the industry: TTC outperforms 74.62% of its industry peers.
The Debt to FCF ratio of TTC is 2.10, which is a good value as it means it would take TTC, 2.10 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.10, TTC is doing good in the industry, outperforming 76.15% of the companies in the same industry.
TTC has a Debt/Equity ratio of 0.72. This is a neutral value indicating TTC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.72, TTC is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
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 | 4.76 |
ROIC/WACC1.68
WACC9.64%
2.3 Liquidity
TTC has a Current Ratio of 1.88. This is a normal value and indicates that TTC is financially healthy and should not expect problems in meeting its short term obligations.
TTC has a Current ratio (1.88) which is comparable to the rest of the industry.
TTC has a Quick Ratio of 1.88. This is a bad value and indicates that TTC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.79, TTC is not doing good in the industry: 77.69% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
TTC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.20%.
The Earnings Per Share has been growing slightly by 6.92% on average over the past years.
EPS 1Y (TTM)1.2%
EPS 3Y0.16%
EPS 5Y6.92%
EPS Q2Q%-4.21%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.91%
3.2 Future
The Earnings Per Share is expected to grow by 5.82% 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 2.32% yearly.
EPS Next Y12.73%
EPS Next 2Y11.08%
EPS Next 3Y9.3%
EPS Next 5Y5.82%
Revenue Next Year3.81%
Revenue Next 2Y3.52%
Revenue Next 3Y2.58%
Revenue Next 5Y2.32%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.41, the valuation of TTC can be described as rather expensive.
75.38% 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 26.38.
With a Price/Forward Earnings ratio of 16.33, TTC is valued correctly.
TTC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TTC is cheaper than 73.08% of the companies in the same industry.
TTC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.41 | ||
| Fwd PE | 16.33 |
4.2 Price Multiples
61.54% of the companies in the same industry are more expensive than TTC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TTC is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.45 | ||
| EV/EBITDA | 13.26 |
4.3 Compensation for Growth
TTC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of TTC may justify a higher PE ratio.
PEG (NY)1.45
PEG (5Y)2.66
EPS Next 2Y11.08%
EPS Next 3Y9.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.00%, TTC has a reasonable but not impressive dividend return.
TTC's Dividend Yield is rather good when compared to the industry average which is at 1.04. TTC pays more dividend than 83.85% of the companies in the same industry.
TTC's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
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 2Y11.08%
EPS Next 3Y9.3%
77.67
-0.52 (-0.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.55%
Inst Owner Change-1.09%
Ins Owners0.35%
Ins Owner Change1.67%
Market Cap7.60B
Revenue(TTM)N/A
Net Income(TTM)333.00M
Analysts75.56
Price Target94.45 (21.6%)
Short Float %2.43%
Short Ratio3.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
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)0%
PT rev (3m)0%
EPS NQ rev (1m)1.75%
EPS NQ rev (3m)1.75%
EPS NY rev (1m)-0.35%
EPS NY rev (3m)-1.43%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.41 | ||
| Fwd PE | 16.33 | ||
| P/S | 1.68 | ||
| P/FCF | 15.45 | ||
| P/OCF | 12.9 | ||
| P/B | 5.39 | ||
| P/tB | 13.53 | ||
| EV/EBITDA | 13.26 |
EPS(TTM)4.22
EY5.43%
EPS(NY)4.76
Fwd EY6.12%
FCF(TTM)5.03
FCFY6.47%
OCF(TTM)6.02
OCFY7.75%
SpS46.19
BVpS14.42
TBVpS5.74
PEG (NY)1.45
PEG (5Y)2.66
Graham Number37
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%
ROICexgc growth 3Y-18.45%
ROICexgc 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 | 4.76 |
F-Score5
WACC9.64%
ROIC/WACC1.68
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)1.2%
EPS 3Y0.16%
EPS 5Y6.92%
EPS Q2Q%-4.21%
EPS Next Y12.73%
EPS Next 2Y11.08%
EPS Next 3Y9.3%
EPS Next 5Y5.82%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.91%
Revenue Next Year3.81%
Revenue Next 2Y3.52%
Revenue Next 3Y2.58%
Revenue Next 5Y2.32%
EBIT growth 1Y-2.19%
EBIT growth 3Y1.7%
EBIT growth 5Y10.41%
EBIT Next Year21.02%
EBIT Next 3Y12.58%
EBIT Next 5Y11.08%
FCF growth 1Y297.28%
FCF growth 3Y3.15%
FCF growth 5Y13.75%
OCF growth 1Y98.13%
OCF growth 3Y0.86%
OCF growth 5Y11.05%
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 for 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 7 / 10.
How financially healthy is TORO CO?
The financial health rating of TORO CO (TTC) is 5 / 10.
What is the expected EPS growth for TORO CO (TTC) stock?
The Earnings per Share (EPS) of TORO CO (TTC) is expected to grow by 12.73% in the next year.