TORO CO (TTC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TTC - US8910921084 - Common Stock
79.42 USD
+0.54 (+0.68%)
79.42 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 an average financial health and profitability rating. TTC is valued correctly, but it does not seem to be growing.
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.
In the past 5 years TTC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.19%, TTC is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
TTC has a better Return On Equity (21.75%) than 88.64% of its industry peers.
TTC has a better Return On Invested Capital (16.07%) than 91.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TTC is significantly above the industry average of 10.27%.
| 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
Looking at the Profit Margin, with a value of 7.01%, TTC is in the better half of the industry, outperforming 61.36% of the companies in the same industry.
TTC's Profit Margin has declined in the last couple of years.
TTC's Operating Margin of 10.89% is in line compared to the rest of the industry. TTC outperforms 57.58% of its industry peers.
TTC's Operating Margin has declined in the last couple of years.
TTC has a Gross Margin (33.36%) which is comparable to the rest of the 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 | 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
TTC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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.
Compared to 1 year ago, TTC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.97 indicates that TTC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.97, TTC is in the better half of the industry, outperforming 74.24% of the companies in the same industry.
TTC has a debt to FCF ratio of 1.61. This is a very positive value and a sign of high solvency as it would only need 1.61 years to pay back of 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.
TTC has a Debt/Equity ratio of 0.63. This is a neutral value indicating TTC is somewhat dependend on debt financing.
TTC's Debt to Equity ratio of 0.63 is on the low side compared to the rest of the industry. TTC is outperformed by 62.88% of its industry peers.
Although TTC does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 1.61 | ||
| Altman-Z | 4.97 |
ROIC/WACC1.69
WACC9.51%
2.3 Liquidity
A Current Ratio of 1.87 indicates that TTC should not have too much problems paying its short term obligations.
TTC has a Current ratio (1.87) which is comparable to the rest of the industry.
A Quick Ratio of 0.86 indicates that TTC may have some problems paying 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 70.45% 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.
The Revenue has decreased by -1.60% in the past year.
The Revenue has been growing slightly by 5.95% on average over the past years.
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 5.82% on average over the next years.
The Revenue is expected to grow by 2.32% on average over the next years.
EPS Next Y8%
EPS Next 2Y9.5%
EPS Next 3Y9.3%
EPS Next 5Y5.82%
Revenue Next Year4.52%
Revenue Next 2Y4.16%
Revenue Next 3Y3.46%
Revenue Next 5Y2.32%
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.
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
A Price/Earnings ratio of 18.82 indicates a rather expensive valuation of TTC.
Compared to the rest of the industry, the Price/Earnings ratio of TTC indicates a somewhat cheap valuation: TTC is cheaper than 75.76% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.92. TTC is valued slightly cheaper when compared to this.
TTC is valuated rather expensively with a Price/Forward Earnings ratio of 17.43.
TTC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TTC is cheaper than 70.45% of the companies in the same industry.
TTC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.82 | ||
| Fwd PE | 17.43 |
4.2 Price Multiples
64.39% 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 cheaper than 85.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.54 | ||
| EV/EBITDA | 13.18 |
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)2.35
PEG (5Y)2.72
EPS Next 2Y9.5%
EPS Next 3Y9.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.98%, 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 0.98. TTC pays more dividend than 84.09% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, TTC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
5.2 History
The dividend of TTC is nicely growing with an annual growth rate of 8.56%!
TTC has paid a dividend for at least 10 years, which is 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.
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%
79.42
+0.54 (+0.68%)
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 Change1.37%
Market Cap7.77B
Revenue(TTM)4.51B
Net Income(TTM)316.10M
Analysts75.56
Price Target94.45 (18.92%)
Short Float %2.43%
Short Ratio3.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
Yearly Dividend1.52
Dividend Growth(5Y)8.56%
DP47.8%
Div Incr Years21
Div Non Decr Years34
Ex-Date
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)-19.81%
EPS NY rev (1m)-3.74%
EPS NY rev (3m)-3.74%
Revenue NQ rev (1m)-2.13%
Revenue NQ rev (3m)-2.41%
Revenue NY rev (1m)0.92%
Revenue NY rev (3m)1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.82 | ||
| Fwd PE | 17.43 | ||
| P/S | 1.72 | ||
| P/FCF | 13.54 | ||
| P/OCF | 11.74 | ||
| P/B | 5.35 | ||
| P/tB | 12.7 | ||
| EV/EBITDA | 13.18 |
EPS(TTM)4.22
EY5.31%
EPS(NY)4.56
Fwd EY5.74%
FCF(TTM)5.87
FCFY7.39%
OCF(TTM)6.76
OCFY8.52%
SpS46.09
BVpS14.85
TBVpS6.25
PEG (NY)2.35
PEG (5Y)2.72
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 | 4.97 |
F-Score6
WACC9.51%
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 5Y5.82%
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 5Y2.32%
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 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 6 / 10.
How financially healthy is TORO CO?
The financial health rating of TORO CO (TTC) is 6 / 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 8% in the next year.