TORO CO (TTC) Stock Fundamental Analysis
NYSE:TTC - New York Stock Exchange, Inc. - US8910921084 - Common Stock
TTC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 131 industry peers in the Machinery industry. TTC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. TTC has a valuation in line with the averages, but it does not seem to be growing. Finally TTC also has an excellent dividend rating. This makes TTC very considerable for dividend investing!
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.
Each year in the past 5 years TTC has been profitable.
Each year in the past 5 years TTC had a positive operating cash flow.
1.2 Ratios
TTC has a better Return On Assets (11.69%) than 85.04% of its industry peers.
With an excellent Return On Equity value of 26.99%, TTC belongs to the best of the industry, outperforming 90.55% of the companies in the same industry.
TTC's Return On Invested Capital of 16.78% is amongst the best of the industry. TTC outperforms 89.76% 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 11.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.69% | ||
| ROE | 26.99% | ||
| ROIC | 16.78% |
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
The Profit Margin of TTC (9.14%) is better than 66.93% of its industry peers.
TTC's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 11.63%, TTC is in the better half of the industry, outperforming 60.63% of the companies in the same industry.
TTC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 33.80%, TTC is in line with its industry, outperforming 58.27% 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 | 11.63% | ||
| PM (TTM) | 9.14% | ||
| GM | 33.8% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TTC is creating value.
The number of shares outstanding for TTC has been reduced compared to 1 year ago.
TTC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TTC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.11 indicates that TTC is not in any danger for bankruptcy at the moment.
TTC's Altman-Z score of 5.11 is fine compared to the rest of the industry. TTC outperforms 73.23% 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.
Looking at the Debt to FCF ratio, with a value of 1.98, TTC belongs to the top of the industry, outperforming 82.68% of the companies in the same industry.
TTC has a Debt/Equity ratio of 0.59. This is a neutral value indicating TTC is somewhat dependend on debt financing.
TTC's Debt to Equity ratio of 0.59 is on the low side compared to the rest of the industry. TTC is outperformed by 62.99% 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 | 0.59 | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 5.11 |
ROIC/WACC1.74
WACC9.64%
2.3 Liquidity
A Current Ratio of 1.81 indicates that TTC should not have too much problems paying its short term obligations.
TTC's Current ratio of 1.81 is on the low side compared to the rest of the industry. TTC is outperformed by 66.14% of its industry peers.
TTC has a Quick Ratio of 1.81. This is a bad value and indicates that TTC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of TTC (0.74) is worse than 84.25% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
TTC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.18%.
TTC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.88% yearly.
Looking at the last year, TTC shows a small growth in Revenue. The Revenue has grown by 0.67% in the last year.
TTC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.87% yearly.
EPS 1Y (TTM)-1.18%
EPS 3Y4.83%
EPS 5Y6.88%
EPS Q2Q%33.8%
Revenue 1Y (TTM)0.67%
Revenue growth 3Y5%
Revenue growth 5Y7.87%
Sales Q2Q%9.44%
3.2 Future
TTC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.60% yearly.
Based on estimates for the next years, TTC will show a small growth in Revenue. The Revenue will grow by 1.73% on average per year.
EPS Next Y10.97%
EPS Next 2Y9.77%
EPS Next 3Y4.41%
EPS Next 5Y4.6%
Revenue Next Year0.26%
Revenue Next 2Y1.72%
Revenue Next 3Y2.03%
Revenue Next 5Y1.73%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TTC is valuated rather expensively with a Price/Earnings ratio of 20.25.
66.93% of the companies in the same industry are more expensive than TTC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TTC to the average of the S&P500 Index (28.29), we can say TTC is valued slightly cheaper.
A Price/Forward Earnings ratio of 18.25 indicates a rather expensive valuation of TTC.
67.72% of the companies in the same industry are more expensive than TTC, based on the Price/Forward Earnings ratio.
TTC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.25 | ||
| Fwd PE | 18.25 |
4.2 Price Multiples
TTC's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, TTC is valued cheaply inside the industry as 80.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.35 | ||
| EV/EBITDA | 13.85 |
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.
The excellent profitability rating of TTC may justify a higher PE ratio.
PEG (NY)1.85
PEG (5Y)2.94
EPS Next 2Y9.77%
EPS Next 3Y4.41%
5. Dividend
5.1 Amount
TTC has a Yearly Dividend Yield of 1.84%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.65, TTC pays a better dividend. On top of this TTC pays more dividend than 85.04% of the companies listed in the same industry.
TTC's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
5.2 History
The dividend of TTC is nicely growing with an annual growth rate of 9.97%!
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 Years20
Div Non Decr Years33
5.3 Sustainability
35.69% of the earnings are spent on dividend by TTC. This is a low number and sustainable payout ratio.
TTC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP35.69%
EPS Next 2Y9.77%
EPS Next 3Y4.41%
TORO CO
NYSE:TTC (1/21/2025, 8:04:00 PM)
After market: 84.46 0 (0%)84.46
+1.06 (+1.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners98.34%
Inst Owner Change-0.94%
Ins Owners0.34%
Ins Owner Change1.24%
Market Cap8.55B
Analysts71.67
Price Target95.54 (13.12%)
Short Float %4.85%
Short Ratio6.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
Yearly Dividend1.46
Dividend Growth(5Y)9.97%
DP35.69%
Div Incr Years20
Div Non Decr Years33
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.05%
Min EPS beat(2)-4.45%
Max EPS beat(2)-1.66%
EPS beat(4)1
Avg EPS beat(4)-0.57%
Min EPS beat(4)-4.45%
Max EPS beat(4)7.59%
EPS beat(8)4
Avg EPS beat(8)0.77%
EPS beat(12)7
Avg EPS beat(12)1.37%
EPS beat(16)11
Avg EPS beat(16)3.64%
Revenue beat(2)0
Avg Revenue beat(2)-5.66%
Min Revenue beat(2)-9.05%
Max Revenue beat(2)-2.27%
Revenue beat(4)0
Avg Revenue beat(4)-3.28%
Min Revenue beat(4)-9.05%
Max Revenue beat(4)-0.59%
Revenue beat(8)0
Avg Revenue beat(8)-4.4%
Revenue beat(12)0
Avg Revenue beat(12)-3.85%
Revenue beat(16)3
Avg Revenue beat(16)-2.69%
PT rev (1m)-4.42%
PT rev (3m)-4.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.46%
Revenue NY rev (1m)-3.48%
Revenue NY rev (3m)-3.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.25 | ||
| Fwd PE | 18.25 | ||
| P/S | 1.86 | ||
| P/FCF | 18.35 | ||
| P/OCF | 15 | ||
| P/B | 5.51 | ||
| P/tB | 14.17 | ||
| EV/EBITDA | 13.85 |
EPS(TTM)4.17
EY4.94%
EPS(NY)4.63
Fwd EY5.48%
FCF(TTM)4.6
FCFY5.45%
OCF(TTM)5.63
OCFY6.67%
SpS45.3
BVpS15.34
TBVpS5.96
PEG (NY)1.85
PEG (5Y)2.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.69% | ||
| ROE | 26.99% | ||
| ROCE | 20.46% | ||
| ROIC | 16.78% | ||
| ROICexc | 18.17% | ||
| ROICexgc | 29.99% | ||
| OM | 11.63% | ||
| PM (TTM) | 9.14% | ||
| GM | 33.8% | ||
| FCFM | 10.16% |
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-Score7
Asset Turnover1.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 1.98 | ||
| Debt/EBITDA | 1.38 | ||
| Cap/Depr | 81.36% | ||
| Cap/Sales | 2.28% | ||
| Interest Coverage | 8.47 | ||
| Cash Conversion | 86.15% | ||
| Profit Quality | 111.15% | ||
| Current Ratio | 1.81 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 5.11 |
F-Score7
WACC9.64%
ROIC/WACC1.74
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)-1.18%
EPS 3Y4.83%
EPS 5Y6.88%
EPS Q2Q%33.8%
EPS Next Y10.97%
EPS Next 2Y9.77%
EPS Next 3Y4.41%
EPS Next 5Y4.6%
Revenue 1Y (TTM)0.67%
Revenue growth 3Y5%
Revenue growth 5Y7.87%
Sales Q2Q%9.44%
Revenue Next Year0.26%
Revenue Next 2Y1.72%
Revenue Next 3Y2.03%
Revenue Next 5Y1.73%
EBIT growth 1Y-8.37%
EBIT growth 3Y1.7%
EBIT growth 5Y10.41%
EBIT Next Year68.94%
EBIT Next 3Y13.65%
EBIT Next 5YN/A
FCF growth 1Y196%
FCF growth 3Y3.15%
FCF growth 5Y13.75%
OCF growth 1Y85.76%
OCF growth 3Y0.86%
OCF growth 5Y11.05%