TORO CO (TTC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TTC - US8910921084 - Common Stock
88.68 USD
+0.81 (+0.92%)
Taking everything into account, TTC scores 5 out of 10 in our fundamental rating. TTC was compared to 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
TTC had positive earnings in the past year.
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 Return On Assets of 9.19%. This is in the better half of the industry: TTC outperforms 77.27% of its industry peers.
The Return On Equity of TTC (21.75%) is better than 89.39% of its industry peers.
TTC has a Return On Invested Capital of 16.07%. This is amongst the best in the industry. TTC outperforms 91.67% 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 10.21%.
| 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.
TTC's Profit Margin has declined in the last couple of years.
The Operating Margin of TTC (10.89%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TTC has declined.
TTC's Gross Margin of 33.36% is in line compared to the rest of the industry. TTC outperforms 56.06% of 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 | 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.
The number of shares outstanding for TTC has been reduced compared to 1 year ago.
TTC has less shares outstanding than it did 5 years ago.
TTC has a worse debt/assets ratio than last year.
2.2 Solvency
TTC has an Altman-Z score of 5.22. This indicates that TTC is financially healthy and has little risk of bankruptcy at the moment.
TTC's Altman-Z score of 5.22 is fine compared to the rest of the industry. TTC outperforms 75.00% 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.
A Debt/Equity ratio of 0.63 indicates that TTC is somewhat dependend on debt financing.
TTC has a worse Debt to Equity ratio (0.63) than 62.88% of its industry peers.
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 | 0.63 | ||
| Debt/FCF | 1.61 | ||
| Altman-Z | 5.22 |
ROIC/WACC1.65
WACC9.72%
2.3 Liquidity
TTC has a Current Ratio of 1.87. This is a normal value and indicates that TTC is financially healthy and should not expect problems in meeting its short term obligations.
TTC has a Current ratio (1.87) which is comparable to the rest of the 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 has a Quick ratio of 0.86. This is in the lower half of the industry: TTC underperforms 71.21% 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%.
The Earnings Per Share has been growing slightly by 6.92% on average over the past years.
The Revenue has decreased by -1.60% in the past year.
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.
TTC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.32% yearly.
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
A Price/Earnings ratio of 21.01 indicates a rather expensive valuation of TTC.
Compared to the rest of the industry, the Price/Earnings ratio of TTC indicates a somewhat cheap valuation: TTC is cheaper than 72.73% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.00, TTC is valued a bit cheaper.
With a Price/Forward Earnings ratio of 19.46, TTC is valued on the expensive side.
61.36% of the companies in the same industry are more expensive than TTC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.70, TTC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.01 | ||
| Fwd PE | 19.46 |
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 62.12% of the companies listed in the same industry.
TTC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TTC is cheaper than 84.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.12 | ||
| EV/EBITDA | 14.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of TTC may justify a higher PE ratio.
PEG (NY)2.63
PEG (5Y)3.04
EPS Next 2Y9.5%
EPS Next 3Y9.3%
5. Dividend
5.1 Amount
TTC has a Yearly Dividend Yield of 1.98%.
Compared to an average industry Dividend Yield of 0.85, TTC pays a better dividend. On top of this TTC pays more dividend than 85.61% of the companies listed in the same industry.
TTC's Dividend Yield is comparable with the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
5.2 History
The dividend of TTC is nicely growing with an annual growth rate of 8.56%!
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
TTC pays out 47.80% of its income as dividend. 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 2Y9.5%
EPS Next 3Y9.3%
NYSE:TTC (1/9/2026, 11:16:05 AM)
88.68
+0.81 (+0.92%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.81%
Inst Owner Change0%
Ins Owners0.36%
Ins Owner Change1.44%
Market Cap8.68B
Revenue(TTM)4.51B
Net Income(TTM)316.10M
Analysts75.56
Price Target94.45 (6.51%)
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)-19.31%
EPS NY rev (1m)-4.19%
EPS NY rev (3m)-3.74%
Revenue NQ rev (1m)-2.22%
Revenue NQ rev (3m)-2.13%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.01 | ||
| Fwd PE | 19.46 | ||
| P/S | 1.92 | ||
| P/FCF | 15.12 | ||
| P/OCF | 13.11 | ||
| P/B | 5.97 | ||
| P/tB | 14.18 | ||
| EV/EBITDA | 14.48 |
EPS(TTM)4.22
EY4.76%
EPS(NY)4.56
Fwd EY5.14%
FCF(TTM)5.87
FCFY6.62%
OCF(TTM)6.76
OCFY7.63%
SpS46.09
BVpS14.85
TBVpS6.25
PEG (NY)2.63
PEG (5Y)3.04
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 | 5.22 |
F-Score6
WACC9.72%
ROIC/WACC1.65
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 21.01 and the Price/Book (PB) ratio is 5.97.
What is the financial health of TORO CO (TTC) stock?
The financial health rating of TORO CO (TTC) is 6 / 10.