TORO CO (TTC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TTC - US8910921084 - Common Stock
89.96 USD
+0.7 (+0.78%)
89.96 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.
- TTC had positive earnings in each of the past 5 years.
- In the past 5 years TTC always reported a positive cash flow from operatings.
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.
- With an excellent Return On Equity value of 21.75%, TTC belongs to the best 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 10.24%.
| 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.
- In the last couple of years the Profit Margin of TTC has declined.
- With a Operating Margin value of 10.89%, TTC perfoms like the industry average, outperforming 56.82% of the companies in the same industry.
- TTC's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 33.36%, TTC perfoms like the industry average, outperforming 55.30% of the companies in the same industry.
- 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
- TTC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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
- The debt/assets ratio for TTC is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 5.27 indicates that TTC is not in any danger for bankruptcy at the moment.
- TTC has a Altman-Z score of 5.27. This is in the better half of the industry: TTC outperforms 75.00% 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 83.33% 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 62.12% 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 | 5.27 |
ROIC/WACC1.66
WACC9.66%
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 40.91% 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 71.97% 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%.
- The Revenue has been growing slightly by 5.95% on average over the past years.
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
- The Earnings Per Share is expected to grow by 6.82% on average over the next years.
- TTC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.09% yearly.
EPS Next Y5.6%
EPS Next 2Y9.39%
EPS Next 3Y9.3%
EPS Next 5Y6.82%
Revenue Next Year3.72%
Revenue Next 2Y4.15%
Revenue Next 3Y3.47%
Revenue Next 5Y3.09%
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
- Based on the Price/Earnings ratio of 21.32, the valuation of TTC can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of TTC indicates a somewhat cheap valuation: TTC is cheaper than 71.97% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.87. TTC is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 20.19 indicates a rather expensive valuation of TTC.
- TTC's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of TTC to the average of the S&P500 Index (25.96), we can say TTC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.32 | ||
| Fwd PE | 20.19 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TTC is valued a bit cheaper than the industry average as 60.61% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TTC indicates a rather cheap valuation: TTC is cheaper than 85.61% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.33 | ||
| EV/EBITDA | 14.7 |
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)3.81
PEG (5Y)3.08
EPS Next 2Y9.39%
EPS Next 3Y9.3%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.72%, 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 1.01. TTC pays more dividend than 84.09% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, TTC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
5.2 History
- On average, the dividend of TTC grows each year by 8.56%, 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)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.
- The dividend of TTC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP47.8%
EPS Next 2Y9.39%
EPS Next 3Y9.3%
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 21.32 and the Price/Book (PB) ratio is 6.06.
What is the financial health of TORO CO (TTC) stock?
The financial health rating of TORO CO (TTC) is 6 / 10.