TORO CO (TTC) Stock Fundamental Analysis
USA - NYSE:TTC - US8910921084 - Common Stock
71.6 USD
-1.4 (-1.92%)
71.6 USD
0 (0%)
Overall TTC gets a fundamental rating of 6 out of 10. We evaluated TTC 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
In the past year TTC was profitable.
In the past year TTC had a positive cash flow from operations.
TTC had positive earnings in each of the past 5 years.
TTC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TTC (9.46%) is better than 79.23% of its industry peers.
TTC's Return On Equity of 23.60% is amongst the best of the industry. TTC outperforms 90.00% of its industry peers.
TTC has a better Return On Invested Capital (16.23%) than 90.77% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TTC is significantly above the industry average of 10.28%.
| 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
TTC has a Profit Margin (7.37%) which is comparable to the rest of the industry.
TTC's Profit Margin has been stable in the last couple of years.
TTC has a Operating Margin of 11.23%. This is comparable to the rest of the industry: TTC outperforms 58.46% of its industry peers.
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 56.15% of the companies in the same 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 | 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TTC is creating value.
TTC has less shares outstanding than it did 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
TTC has an Altman-Z score of 4.62. This indicates that TTC is financially healthy and has little risk of bankruptcy at the moment.
TTC has a Altman-Z score of 4.62. This is in the better half of the industry: TTC outperforms 73.08% of its industry peers.
TTC has a debt to FCF ratio of 2.10. This is a good value and a sign of high solvency as TTC would need 2.10 years to pay back of all of its debts.
TTC has a better Debt to FCF ratio (2.10) than 76.15% of its industry peers.
TTC has a Debt/Equity ratio of 0.72. This is a neutral value indicating TTC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.72, TTC is doing worse than 69.23% of the companies in the same industry.
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 | 0.72 | ||
| Debt/FCF | 2.1 | ||
| Altman-Z | 4.62 |
ROIC/WACC1.71
WACC9.52%
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.
Looking at the Current ratio, with a value of 1.88, TTC is in line with its industry, outperforming 43.08% of the companies in the same industry.
A Quick Ratio of 0.79 indicates that TTC may have some problems paying 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 75.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.40% over the past year.
TTC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.88% yearly.
The Revenue has been growing slightly by 0.65% in the past year.
Measured over the past years, TTC shows a small growth in Revenue. The Revenue has been growing by 7.87% on average per year.
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
The Earnings Per Share is expected to grow by 4.88% on average over the next years.
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
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 correctly with a Price/Earnings ratio of 16.81.
TTC's Price/Earnings ratio is a bit cheaper when compared to the industry. TTC is cheaper than 74.62% of the companies in the same industry.
TTC is valuated rather cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
TTC is valuated correctly with a Price/Forward Earnings ratio of 15.12.
Based on the Price/Forward Earnings ratio, TTC is valued a bit cheaper than the industry average as 70.77% of the companies are valued more expensively.
TTC is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.81 | ||
| Fwd PE | 15.12 |
4.2 Price Multiples
63.08% 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 cheaply inside the industry as 80.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.24 | ||
| EV/EBITDA | 12.47 |
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)13.02
PEG (5Y)2.44
EPS Next 2Y6.56%
EPS Next 3Y7.67%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.07%, TTC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.86, TTC pays a better dividend. On top of this TTC pays more dividend than 83.85% of the companies listed in the same industry.
TTC's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
5.2 History
On average, the dividend of TTC grows each year by 9.97%, which is quite nice.
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)9.97%
Div Incr Years21
Div Non Decr Years34
5.3 Sustainability
TTC pays out 45.26% 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.
DP45.26%
EPS Next 2Y6.56%
EPS Next 3Y7.67%
71.6
-1.4 (-1.92%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.18%
Inst Owner Change1.25%
Ins Owners0.39%
Ins Owner Change1.68%
Market Cap7.01B
Revenue(TTM)4.52B
Net Income(TTM)333.00M
Analysts74
Price Target94.45 (31.91%)
Short Float %2.38%
Short Ratio3.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
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 | 16.81 | ||
| Fwd PE | 15.12 | ||
| P/S | 1.55 | ||
| P/FCF | 14.24 | ||
| P/OCF | 11.9 | ||
| P/B | 4.97 | ||
| P/tB | 12.47 | ||
| EV/EBITDA | 12.47 |
EPS(TTM)4.26
EY5.95%
EPS(NY)4.73
Fwd EY6.61%
FCF(TTM)5.03
FCFY7.02%
OCF(TTM)6.02
OCFY8.41%
SpS46.19
BVpS14.42
TBVpS5.74
PEG (NY)13.02
PEG (5Y)2.44
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 | 4.62 |
F-Score5
WACC9.52%
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.