TORO CO (TTC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TTC - US8910921084 - Common Stock
71.19 USD
-0.13 (-0.18%)
71.19 USD
0 (0%)
TTC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 130 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 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.
TTC had a positive operating cash flow in the past year.
TTC had positive earnings in each of the past 5 years.
Each year in the past 5 years TTC 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 80.00% 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 90.00% of the companies in the same industry.
The Return On Invested Capital of TTC (16.23%) is better than 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 10.39%.
| 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
With a decent Profit Margin value of 7.37%, TTC is doing good in 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.
TTC has a Operating Margin (11.23%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TTC has grown nicely.
Looking at the Gross Margin, with a value of 33.25%, TTC is in line with its industry, outperforming 55.38% 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 | 11.23% | ||
| 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
TTC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
TTC has a better debt/assets ratio than last year.
2.2 Solvency
TTC has an Altman-Z score of 4.57. This indicates that TTC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TTC (4.57) is better than 72.31% 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 76.92% of the companies in the same industry.
A Debt/Equity ratio of 0.72 indicates that TTC is somewhat dependend on debt financing.
TTC's Debt to Equity ratio of 0.72 is on the low side compared to the rest of the industry. TTC is outperformed by 68.46% 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 | 0.72 | ||
| Debt/FCF | 2.1 | ||
| Altman-Z | 4.57 |
ROIC/WACC1.71
WACC9.51%
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's Current ratio of 1.88 is in line compared to the rest of the industry. TTC outperforms 40.77% of its industry peers.
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.
TTC's Quick ratio of 0.79 is on the low side compared to the rest of the industry. TTC is outperformed by 76.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
TTC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.40%, which is quite good.
The Earnings Per Share has been growing slightly by 6.88% on average over the past years.
TTC shows a small growth in Revenue. In the last year, the Revenue has grown by 0.65%.
TTC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.87% yearly.
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
Based on estimates for the next years, TTC will show a small growth in Earnings Per Share. The EPS will grow by 4.88% on average per year.
The Revenue is expected to grow by 1.38% on average over the next years.
EPS Next Y1.29%
EPS Next 2Y6.56%
EPS Next 3Y7.67%
EPS Next 5Y4.88%
Revenue Next Year-2.37%
Revenue Next 2Y0.59%
Revenue Next 3Y1.43%
Revenue Next 5Y1.38%
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
TTC is valuated correctly with a Price/Earnings ratio of 16.71.
Based on the Price/Earnings ratio, TTC is valued a bit cheaper than 79.23% of the companies in the same industry.
TTC is valuated rather cheaply when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
TTC is valuated correctly with a Price/Forward Earnings ratio of 15.04.
73.85% of the companies in the same industry are more expensive than TTC, based on the Price/Forward Earnings ratio.
TTC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.71 | ||
| Fwd PE | 15.04 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TTC indicates a somewhat cheap valuation: TTC is cheaper than 67.69% of the companies listed in the same industry.
TTC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TTC is cheaper than 83.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.16 | ||
| EV/EBITDA | 12.21 |
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 decent profitability rating of TTC may justify a higher PE ratio.
PEG (NY)12.95
PEG (5Y)2.43
EPS Next 2Y6.56%
EPS Next 3Y7.67%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.13%, TTC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.90, TTC pays a better dividend. On top of this TTC pays more dividend than 84.62% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, TTC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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 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 2Y6.56%
EPS Next 3Y7.67%
71.19
-0.13 (-0.18%)
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 Change1.68%
Market Cap6.97B
Revenue(TTM)4.52B
Net Income(TTM)333.00M
Analysts75.56
Price Target94.45 (32.67%)
Short Float %2.43%
Short Ratio3.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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)12.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.14%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.71 | ||
| Fwd PE | 15.04 | ||
| P/S | 1.54 | ||
| P/FCF | 14.16 | ||
| P/OCF | 11.83 | ||
| P/B | 4.94 | ||
| P/tB | 12.4 | ||
| EV/EBITDA | 12.21 |
EPS(TTM)4.26
EY5.98%
EPS(NY)4.73
Fwd EY6.65%
FCF(TTM)5.03
FCFY7.06%
OCF(TTM)6.02
OCFY8.45%
SpS46.19
BVpS14.42
TBVpS5.74
PEG (NY)12.95
PEG (5Y)2.43
Graham Number37.18
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 | 4.57 |
F-Score5
WACC9.51%
ROIC/WACC1.71
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 Y1.29%
EPS Next 2Y6.56%
EPS Next 3Y7.67%
EPS Next 5Y4.88%
Revenue 1Y (TTM)0.65%
Revenue growth 3Y5%
Revenue growth 5Y7.87%
Sales Q2Q%-2.21%
Revenue Next Year-2.37%
Revenue Next 2Y0.59%
Revenue Next 3Y1.43%
Revenue Next 5Y1.38%
EBIT growth 1Y-2.19%
EBIT growth 3Y1.7%
EBIT growth 5Y10.41%
EBIT Next Year20.61%
EBIT Next 3Y12.72%
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 6 / 10 to TTC.
What is the valuation status for TTC stock?
ChartMill assigns a valuation rating of 6 / 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 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 1.29% in the next year.