TORO CO (TTC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TTC - US8910921084 - Common Stock
83.66 USD
+0.14 (+0.17%)
83.66 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TTC. TTC was compared to 132 industry peers in the Machinery industry. TTC has only an average score on both its financial health and profitability. 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.
TTC had a positive operating cash flow in the past year.
In the past 5 years TTC has always been profitable.
TTC had a positive operating cash flow in each of the past 5 years.
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.
Looking at the Return On Equity, with a value of 21.75%, TTC belongs to the top of the industry, outperforming 89.39% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.07%, TTC belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TTC is significantly above the industry average of 10.21%.
| 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
With a decent Profit Margin value of 7.01%, TTC is doing good in 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 has a Operating Margin (10.89%) which is in line with its industry peers.
TTC's Operating Margin has declined in the last couple of years.
TTC has a Gross Margin (33.36%) which is in line with its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TTC is creating some value.
Compared to 1 year ago, TTC has less shares outstanding
The number of shares outstanding for TTC has been reduced compared to 5 years ago.
TTC has a worse debt/assets ratio than last year.
2.2 Solvency
TTC has an Altman-Z score of 5.10. This indicates that TTC is financially healthy and has little risk of bankruptcy at the moment.
TTC has a Altman-Z score of 5.10. This is in the better half of the industry: TTC outperforms 74.24% of its industry peers.
The Debt to FCF ratio of TTC is 1.61, which is an excellent value as it means it would take TTC, only 1.61 years of fcf income to pay off all of its debts.
TTC has a Debt to FCF ratio of 1.61. This is amongst the best in the industry. TTC outperforms 82.58% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that TTC is somewhat dependend on debt financing.
The Debt to Equity ratio of TTC (0.63) is worse than 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 | 5.1 |
ROIC/WACC1.66
WACC9.7%
2.3 Liquidity
A Current Ratio of 1.87 indicates that TTC should not have too much problems paying its short term obligations.
TTC's Current ratio of 1.87 is in line compared to the rest of the industry. TTC outperforms 40.15% of its industry peers.
TTC has a Quick Ratio of 1.87. 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 0.86 is on the low side compared to the rest of the industry. TTC is outperformed by 71.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 0.86 |
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%.
TTC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.92% yearly.
TTC shows a decrease in Revenue. In the last year, the revenue decreased by -1.60%.
TTC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.95% yearly.
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
TTC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.82% yearly.
Based on estimates for the next years, TTC will show a small growth in Revenue. The Revenue will grow by 2.32% on average per year.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 rather expensively with a Price/Earnings ratio of 19.82.
Compared to the rest of the industry, the Price/Earnings ratio of TTC indicates a somewhat cheap valuation: TTC is cheaper than 74.24% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.17, TTC is valued a bit cheaper.
The Price/Forward Earnings ratio is 18.36, which indicates a rather expensive current valuation of TTC.
Based on the Price/Forward Earnings ratio, TTC is valued a bit cheaper than the industry average as 65.91% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.79, TTC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.82 | ||
| Fwd PE | 18.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TTC is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TTC is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.26 | ||
| EV/EBITDA | 13.81 |
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)2.48
PEG (5Y)2.86
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 0.85. TTC pays more dividend than 85.61% of the companies in the same industry.
TTC's Dividend Yield is comparable with the S&P500 average which is at 1.94.
| 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.56%
Div Incr Years21
Div Non Decr Years34
5.3 Sustainability
TTC pays out 47.80% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of TTC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP47.8%
EPS Next 2Y9.5%
EPS Next 3Y9.3%
83.66
+0.14 (+0.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.81%
Inst Owner Change0%
Ins Owners0.36%
Ins Owner Change1.44%
Market Cap8.19B
Revenue(TTM)4.51B
Net Income(TTM)316.10M
Analysts75.56
Price Target94.45 (12.9%)
Short Float %2.69%
Short Ratio2.97
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-DateN/A
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)-19.31%
EPS NY rev (1m)-4.19%
EPS NY rev (3m)-3.74%
Revenue NQ rev (1m)-2.22%
Revenue NQ rev (3m)-2.13%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.82 | ||
| Fwd PE | 18.36 | ||
| P/S | 1.82 | ||
| P/FCF | 14.26 | ||
| P/OCF | 12.37 | ||
| P/B | 5.63 | ||
| P/tB | 13.38 | ||
| EV/EBITDA | 13.81 |
EPS(TTM)4.22
EY5.04%
EPS(NY)4.56
Fwd EY5.45%
FCF(TTM)5.87
FCFY7.01%
OCF(TTM)6.76
OCFY8.09%
SpS46.09
BVpS14.85
TBVpS6.25
PEG (NY)2.48
PEG (5Y)2.86
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 | 5.1 |
F-Score6
WACC9.7%
ROIC/WACC1.66
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 of TORO CO (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.
What is the valuation of TORO CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TORO CO (TTC) is 19.82 and the Price/Book (PB) ratio is 5.63.
What is the financial health of TORO CO (TTC) stock?
The financial health rating of TORO CO (TTC) is 6 / 10.