TORO CO (TTC) Stock Fundamental Analysis
USA - NYSE:TTC - US8910921084 - Common Stock
69.99 USD
+2 (+2.94%)
69.99 USD
0 (0%)
TTC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. While TTC has a great profitability rating, 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.
In the past 5 years TTC has always been profitable.
In the past 5 years TTC always reported a positive cash flow from operatings.
1.2 Ratios
TTC has a better Return On Assets (9.46%) than 80.00% 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.
The Return On Invested Capital of TTC (16.23%) is better than 91.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TTC is significantly above the industry average of 10.24%.
| 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
The Profit Margin of TTC (7.37%) is better than 61.54% of its industry peers.
In the last couple of years the Profit Margin of TTC has remained more or less at the same level.
TTC has a Operating Margin (11.23%) which is in line with its industry peers.
TTC's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 33.25%, TTC perfoms like the industry average, outperforming 55.38% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TTC is creating value.
Compared to 1 year ago, TTC has less shares outstanding
The number of shares outstanding for TTC has been reduced compared to 5 years ago.
TTC has a better debt/assets ratio than last year.
2.2 Solvency
TTC has an Altman-Z score of 4.48. This indicates that TTC is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.48, TTC is doing good in the industry, outperforming 73.85% of the companies in the same industry.
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.
TTC has a worse Debt to Equity ratio (0.72) than 69.23% 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 | 4.48 |
ROIC/WACC1.71
WACC9.51%
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 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's Quick ratio of 0.79 is on the low side compared to the rest of the industry. TTC is outperformed by 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%.
TTC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.87% yearly.
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
Based on the Price/Earnings ratio of 16.43, the valuation of TTC can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of TTC indicates a somewhat cheap valuation: TTC is cheaper than 77.69% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TTC to the average of the S&P500 Index (25.07), we can say TTC is valued slightly cheaper.
With a Price/Forward Earnings ratio of 14.78, TTC is valued correctly.
Based on the Price/Forward Earnings ratio, TTC is valued a bit cheaper than the industry average as 71.54% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.08. TTC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.43 | ||
| Fwd PE | 14.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TTC is valued a bit cheaper than 66.92% of the companies in the same industry.
TTC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TTC is cheaper than 82.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.92 | ||
| EV/EBITDA | 11.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TTC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)12.73
PEG (5Y)2.39
EPS Next 2Y6.56%
EPS Next 3Y7.67%
5. Dividend
5.1 Amount
TTC has a Yearly Dividend Yield of 2.12%.
TTC's Dividend Yield is rather good when compared to the industry average which is at 1.87. TTC pays more dividend than 84.62% of the companies 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 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%
69.99
+2 (+2.94%)
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 Cap6.85B
Revenue(TTM)4.52B
Net Income(TTM)333.00M
Analysts74
Price Target94.45 (34.95%)
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 | 16.43 | ||
| Fwd PE | 14.78 | ||
| P/S | 1.52 | ||
| P/FCF | 13.92 | ||
| P/OCF | 11.63 | ||
| P/B | 4.85 | ||
| P/tB | 12.19 | ||
| EV/EBITDA | 11.7 |
EPS(TTM)4.26
EY6.09%
EPS(NY)4.73
Fwd EY6.77%
FCF(TTM)5.03
FCFY7.18%
OCF(TTM)6.02
OCFY8.6%
SpS46.19
BVpS14.42
TBVpS5.74
PEG (NY)12.73
PEG (5Y)2.39
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 | 4.48 |
F-Score5
WACC9.51%
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.