TORO CO (TTC)
US8910921084 - Common Stock
We assign a fundamental rating of 6 out of 10 to TTC. TTC was compared to 132 industry peers in the Machinery industry. TTC gets an excellent profitability rating and is at the same time showing great financial health properties. 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. These ratings would make TTC suitable for dividend investing!
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.
In the past 5 years TTC has always been profitable.
Each year in the past 5 years TTC had a positive operating cash flow.
1.2 Ratios
TTC's Return On Assets of 11.69% is amongst the best of the industry. TTC outperforms 85.38% of its industry peers.
With an excellent Return On Equity value of 26.99%, TTC belongs to the best of the industry, outperforming 90.00% 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 90.77% of its industry peers.
TTC had an Average Return On Invested Capital over the past 3 years of 17.81%. This is significantly above the industry average of 10.90%.
| 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
TTC has a Profit Margin of 9.14%. This is in the better half of the industry: TTC outperforms 68.46% 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 better Operating Margin (11.63%) than 61.54% of its industry peers.
In the last couple of years the Operating Margin of TTC has grown nicely.
TTC has a Gross Margin (33.80%) which 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 | 11.63% | ||
| 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.
Compared to 5 years ago, TTC has less shares outstanding
TTC has a better debt/assets ratio than last year.
2.2 Solvency
TTC has an Altman-Z score of 5.08. This indicates that TTC is financially healthy and has little risk of bankruptcy at the moment.
TTC has a better Altman-Z score (5.08) than 76.92% 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.
TTC has a better Debt to FCF ratio (1.98) than 83.08% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that TTC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.59, TTC is not doing good in the industry: 62.31% 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 | 0.59 | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 5.08 |
ROIC/WACC1.87
WACC8.97%
2.3 Liquidity
TTC has a Current Ratio of 1.81. 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 (1.81) is worse than 65.38% 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.
Looking at the Quick ratio, with a value of 0.74, TTC is doing worse than 82.31% of the companies in the same industry.
The current and quick ratio evaluation for TTC is rather negative, while it does have 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
The earnings per share for TTC have decreased by -1.18% in the last year.
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.
The Revenue has been growing slightly by 7.87% on average over the past years.
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
The Earnings Per Share is expected to grow by 4.27% 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 2.04% yearly.
EPS Next Y10.97%
EPS Next 2Y9.77%
EPS Next 3Y4.41%
EPS Next 5Y4.27%
Revenue Next Year3.88%
Revenue Next 2Y3.99%
Revenue Next 3Y1.91%
Revenue Next 5Y2.04%
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
A Price/Earnings ratio of 19.54 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 67.69% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.73, TTC is valued a bit cheaper.
TTC is valuated rather expensively with a Price/Forward Earnings ratio of 17.61.
Based on the Price/Forward Earnings ratio, TTC is valued a bit cheaper than the industry average as 67.69% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TTC to the average of the S&P500 Index (22.83), we can say TTC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.54 | ||
| Fwd PE | 17.61 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TTC.
TTC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TTC is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.96 | ||
| EV/EBITDA | 13.67 |
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 excellent profitability rating of TTC may justify a higher PE ratio.
PEG (NY)1.78
PEG (5Y)2.84
EPS Next 2Y9.77%
EPS Next 3Y4.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.87%, TTC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.69, TTC pays a better dividend. On top of this TTC pays more dividend than 88.46% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, TTC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
5.2 History
The dividend of TTC is nicely growing with an annual growth rate of 9.85%!
TTC has paid a dividend for at least 10 years, which is a reliable track record.
TTC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.85%
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 (12/20/2024, 8:04:00 PM)
After market: 81.48 0 (0%)81.48
+0.39 (+0.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners98.34%
Inst Owner Change-6.18%
Ins Owners0.34%
Ins Owner Change0.59%
Market Cap8.36B
Analysts71.67
Price Target99.96 (22.68%)
Short Float %4.89%
Short Ratio7.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
Dividend Growth(5Y)9.85%
DP35.69%
Div Incr Years20
Div Non Decr Years33
Ex-Date
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)0%
PT rev (3m)-3.79%
EPS NQ rev (1m)0.35%
EPS NQ rev (3m)-9.78%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.2%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-1.96%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.54 | ||
| Fwd PE | 17.61 | ||
| P/S | 1.82 | ||
| P/FCF | 17.96 | ||
| P/OCF | 14.67 | ||
| P/B | 5.39 | ||
| P/tB | 13.87 | ||
| EV/EBITDA | 13.67 |
EPS(TTM)4.17
EY5.12%
EPS(NY)4.63
Fwd EY5.68%
FCF(TTM)4.54
FCFY5.57%
OCF(TTM)5.55
OCFY6.82%
SpS44.67
BVpS15.12
TBVpS5.88
PEG (NY)1.78
PEG (5Y)2.84
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 | 250 | ||
| Cash Conversion | 86.15% | ||
| Profit Quality | 111.15% | ||
| Current Ratio | 1.81 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 5.08 |
F-Score7
WACC8.97%
ROIC/WACC1.87
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 5Y4.27%
Revenue 1Y (TTM)0.67%
Revenue growth 3Y5%
Revenue growth 5Y7.87%
Sales Q2Q%9.44%
Revenue Next Year3.88%
Revenue Next 2Y3.99%
Revenue Next 3Y1.91%
Revenue Next 5Y2.04%
EBIT growth 1Y-8.37%
EBIT growth 3Y1.7%
EBIT growth 5Y10.41%
EBIT Next Year38.06%
EBIT Next 3Y1.37%
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%