TORO CO (TTC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TTC - US8910921084 - Common Stock
78.72 USD
-0.79 (-0.99%)
78.72 USD
0 (0%)
TTC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. Both the profitability and the financial health of TTC get a neutral evaluation. Nothing too spectacular is happening here. 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
TTC has a better Return On Assets (9.19%) than 77.27% of its industry peers.
The Return On Equity of TTC (21.75%) is better than 88.64% of its industry peers.
With an excellent Return On Invested Capital value of 16.07%, TTC belongs to the best 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 10.27%.
| 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
TTC's Profit Margin of 7.01% is fine compared to the rest of the industry. TTC outperforms 61.36% of its industry peers.
In the last couple of years the Profit Margin of TTC has declined.
TTC has a Operating Margin of 10.89%. This is comparable to the rest of the industry: TTC outperforms 57.58% of its industry peers.
In the last couple of years the Operating Margin of TTC has declined.
TTC has a Gross Margin (33.36%) which is in line with its industry peers.
TTC's Gross Margin has been stable in the last couple of years.
| 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
TTC has less shares outstanding than it did 5 years ago.
TTC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.98 indicates that TTC is not in any danger for bankruptcy at the moment.
The Altman-Z score of TTC (4.98) is better than 74.24% of its industry peers.
TTC has a debt to FCF ratio of 1.61. This is a very positive value and a sign of high solvency as it would only need 1.61 years to pay back of all of its debts.
TTC has a better Debt to FCF ratio (1.61) than 82.58% of its industry peers.
TTC has a Debt/Equity ratio of 0.63. This is a neutral value indicating TTC is somewhat dependend on debt financing.
TTC has a Debt to Equity ratio of 0.63. This is in the lower half of the industry: TTC underperforms 62.88% 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 | 0.63 | ||
| Debt/FCF | 1.61 | ||
| Altman-Z | 4.98 |
ROIC/WACC1.69
WACC9.52%
2.3 Liquidity
A Current Ratio of 1.87 indicates that TTC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.87, TTC perfoms like the industry average, outperforming 40.15% of the companies in the same industry.
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 70.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.20% over the past year.
Measured over the past 5 years, TTC shows a small growth in Earnings Per Share. The EPS has been growing by 6.92% on average per year.
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.
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 rather expensively with a Price/Earnings ratio of 18.65.
Based on the Price/Earnings ratio, TTC is valued a bit cheaper than 73.48% of the companies in the same industry.
TTC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.51.
TTC is valuated rather expensively with a Price/Forward Earnings ratio of 17.27.
Based on the Price/Forward Earnings ratio, TTC is valued a bit cheaper than the industry average as 68.18% of the companies are valued more expensively.
TTC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.65 | ||
| Fwd PE | 17.27 |
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 cheaper than 85.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.42 | ||
| EV/EBITDA | 13.19 |
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)2.33
PEG (5Y)2.7
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 0.98. TTC pays more dividend than 84.09% of the companies in the same industry.
TTC's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
5.2 History
On average, the dividend of TTC grows each year by 8.56%, 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.56%
Div Incr Years21
Div Non Decr Years34
5.3 Sustainability
47.80% 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.
DP47.8%
EPS Next 2Y9.5%
EPS Next 3Y9.3%
78.72
-0.79 (-0.99%)
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 Change1.37%
Market Cap7.70B
Revenue(TTM)4.51B
Net Income(TTM)316.10M
Analysts75.56
Price Target94.45 (19.98%)
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)-19.81%
EPS NY rev (1m)-3.74%
EPS NY rev (3m)-3.74%
Revenue NQ rev (1m)-2.13%
Revenue NQ rev (3m)-2.41%
Revenue NY rev (1m)0.92%
Revenue NY rev (3m)1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.65 | ||
| Fwd PE | 17.27 | ||
| P/S | 1.71 | ||
| P/FCF | 13.42 | ||
| P/OCF | 11.64 | ||
| P/B | 5.3 | ||
| P/tB | 12.59 | ||
| EV/EBITDA | 13.19 |
EPS(TTM)4.22
EY5.36%
EPS(NY)4.56
Fwd EY5.79%
FCF(TTM)5.87
FCFY7.45%
OCF(TTM)6.76
OCFY8.59%
SpS46.09
BVpS14.85
TBVpS6.25
PEG (NY)2.33
PEG (5Y)2.7
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 | 4.98 |
F-Score6
WACC9.52%
ROIC/WACC1.69
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 18.65 and the Price/Book (PB) ratio is 5.3.
What is the financial health of TORO CO (TTC) stock?
The financial health rating of TORO CO (TTC) is 6 / 10.