TORO CO (TTC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TTC - US8910921084 - Common Stock
70.99 USD
-0.38 (-0.53%)
TTC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. TTC has an excellent profitability rating, but there are some minor concerns on its financial health. TTC has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years TTC had a positive operating cash flow.
1.2 Ratios
TTC has a Return On Assets of 9.46%. This is in the better half of the industry: TTC outperforms 80.00% of its industry peers.
With an excellent Return On Equity value of 23.60%, 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 16.23% is amongst the best of the industry. TTC outperforms 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 10.34%.
| 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
The Profit Margin of TTC (7.37%) is better than 63.08% of its industry peers.
In the last couple of years the Profit Margin of TTC has remained more or less at the same level.
With a Operating Margin value of 11.23%, TTC perfoms like the industry average, outperforming 58.46% of the companies in the same industry.
In the last couple of years the Operating Margin of TTC has grown nicely.
TTC has a Gross Margin (33.25%) 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 | 11.23% | ||
| 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.
Compared to 1 year ago, TTC has less shares outstanding
Compared to 5 years ago, TTC has less shares outstanding
TTC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.57 indicates that TTC is not in any danger for bankruptcy at the moment.
The Altman-Z score of TTC (4.57) is better than 73.08% 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.
TTC's Debt to FCF ratio of 2.10 is fine compared to the rest of the industry. TTC outperforms 76.92% 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.
TTC has a worse Debt to Equity ratio (0.72) than 68.46% of its industry peers.
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 | 4.57 |
ROIC/WACC1.73
WACC9.4%
2.3 Liquidity
A Current Ratio of 1.88 indicates that TTC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.88, TTC is in line with its industry, outperforming 40.77% 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 has a worse Quick ratio (0.79) than 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.
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 0.65% in the last year.
The Revenue has been growing slightly by 7.87% on average over the past years.
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
The EPS growth rate is decreasing: in the next years the growth will be less 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
Based on the Price/Earnings ratio of 16.66, the valuation of TTC can be described as correct.
79.23% of the companies in the same industry are more expensive than TTC, based on the Price/Earnings ratio.
TTC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
A Price/Forward Earnings ratio of 14.99 indicates a correct valuation of TTC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TTC indicates a somewhat cheap valuation: TTC is cheaper than 71.54% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of TTC to the average of the S&P500 Index (35.79), we can say TTC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.66 | ||
| Fwd PE | 14.99 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TTC indicates a rather cheap valuation: TTC is cheaper than 83.85% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.12 | ||
| EV/EBITDA | 12.22 |
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.
TTC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)12.91
PEG (5Y)2.42
EPS Next 2Y6.56%
EPS Next 3Y7.67%
5. Dividend
5.1 Amount
TTC has a Yearly Dividend Yield of 2.24%. Purely for dividend investing, there may be better candidates out there.
TTC's Dividend Yield is rather good when compared to the industry average which is at 1.97. TTC pays more dividend than 84.62% of the companies in the same industry.
TTC's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
5.2 History
On average, the dividend of TTC grows each year by 9.97%, which is quite nice.
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
TTC pays out 45.26% of its income as dividend. 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%
NYSE:TTC (11/26/2025, 12:03:54 PM)
70.99
-0.38 (-0.53%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.18%
Inst Owner Change-1.09%
Ins Owners0.39%
Ins Owner Change1.68%
Market Cap6.95B
Revenue(TTM)4.52B
Net Income(TTM)333.00M
Analysts74
Price Target94.45 (33.05%)
Short Float %2.41%
Short Ratio3.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
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 | 16.66 | ||
| Fwd PE | 14.99 | ||
| P/S | 1.54 | ||
| P/FCF | 14.12 | ||
| P/OCF | 11.79 | ||
| P/B | 4.92 | ||
| P/tB | 12.37 | ||
| EV/EBITDA | 12.22 |
EPS(TTM)4.26
EY6%
EPS(NY)4.73
Fwd EY6.67%
FCF(TTM)5.03
FCFY7.08%
OCF(TTM)6.02
OCFY8.48%
SpS46.19
BVpS14.42
TBVpS5.74
PEG (NY)12.91
PEG (5Y)2.42
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
WACC9.4%
ROIC/WACC1.73
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.