TORO CO (TTC) Stock Fundamental Analysis
USA - NYSE:TTC - US8910921084 - Common Stock
68.45 USD
-0.93 (-1.34%)
We assign a fundamental rating of 6 out of 10 to TTC. TTC was compared to 130 industry peers in the Machinery industry. TTC scores excellent on profitability, 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.
TTC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TTC has a better Return On Assets (9.46%) than 80.00% of its industry peers.
TTC has a better Return On Equity (23.60%) than 90.00% of its industry peers.
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 10.24%.
| 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 of 7.37%. This is in the better half of the industry: TTC outperforms 61.54% of its industry peers.
TTC's Profit Margin has been stable in the last couple of years.
TTC's Operating Margin of 11.23% is in line compared to the rest of the industry. TTC outperforms 58.46% of its industry peers.
TTC's Operating Margin has improved in the last couple of years.
TTC has a Gross Margin (33.25%) 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 | 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.
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 4.51 indicates that TTC is not in any danger for bankruptcy at the moment.
TTC's Altman-Z score of 4.51 is fine compared to the rest of the industry. TTC outperforms 74.62% 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 has a Debt to FCF ratio of 2.10. This is in the better half of the industry: TTC outperforms 76.15% of its industry peers.
A Debt/Equity ratio of 0.72 indicates that TTC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.72, TTC is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
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 | 4.51 |
ROIC/WACC1.7
WACC9.54%
2.3 Liquidity
A Current Ratio of 1.88 indicates that TTC should not have too much problems paying its short term obligations.
The Current ratio of TTC (1.88) is comparable to the rest of the industry.
A Quick Ratio of 0.79 indicates that TTC may have some problems paying its short term obligations.
The Quick ratio of TTC (0.79) is worse than 76.15% 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.
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%.
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
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.
Based on estimates for the next years, TTC will show a small growth in Revenue. The Revenue will grow by 1.38% on average per year.
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
With a Price/Earnings ratio of 16.07, TTC is valued correctly.
76.92% of the companies in the same industry are more expensive than TTC, based on the Price/Earnings ratio.
TTC is valuated rather cheaply when we compare the Price/Earnings ratio to 25.46, which is the current average of the S&P500 Index.
TTC is valuated correctly with a Price/Forward Earnings ratio of 14.46.
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.
The average S&P500 Price/Forward Earnings ratio is at 35.39. TTC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.07 | ||
| Fwd PE | 14.46 |
4.2 Price Multiples
TTC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TTC is cheaper than 64.62% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TTC is valued cheaper than 80.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.61 | ||
| EV/EBITDA | 11.91 |
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)12.45
PEG (5Y)2.34
EPS Next 2Y6.56%
EPS Next 3Y7.67%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.12%, TTC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.87, 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 2.44, TTC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
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 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
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%
NYSE:TTC (11/19/2025, 2:58:08 PM)
68.45
-0.93 (-1.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.18%
Inst Owner Change-1.1%
Ins Owners0.39%
Ins Owner Change7.1%
Market Cap6.70B
Revenue(TTM)4.52B
Net Income(TTM)333.00M
Analysts74
Price Target94.45 (37.98%)
Short Float %2.41%
Short Ratio3.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
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 | 16.07 | ||
| Fwd PE | 14.46 | ||
| P/S | 1.48 | ||
| P/FCF | 13.61 | ||
| P/OCF | 11.37 | ||
| P/B | 4.75 | ||
| P/tB | 11.93 | ||
| EV/EBITDA | 11.91 |
EPS(TTM)4.26
EY6.22%
EPS(NY)4.73
Fwd EY6.92%
FCF(TTM)5.03
FCFY7.35%
OCF(TTM)6.02
OCFY8.79%
SpS46.19
BVpS14.42
TBVpS5.74
PEG (NY)12.45
PEG (5Y)2.34
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 | 4.51 |
F-Score5
WACC9.54%
ROIC/WACC1.7
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.