TORO CO (TTC) Stock Fundamental Analysis
USA - NYSE:TTC - US8910921084 - Common Stock
74.62 USD
+0.48 (+0.65%)
74.62 USD
0 (0%)
Overall TTC gets a fundamental rating of 6 out of 10. We evaluated TTC 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 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.
TTC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TTC's Return On Assets of 9.46% is fine compared to the rest of the industry. TTC outperforms 78.46% of its industry peers.
Looking at the Return On Equity, with a value of 23.60%, TTC belongs to the top of the industry, outperforming 89.23% of the companies in the same industry.
TTC has a Return On Invested Capital of 16.23%. This is amongst the best in the industry. TTC outperforms 90.77% 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 10.01%.
| 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's Profit Margin of 7.37% is fine compared to the rest of the industry. TTC outperforms 60.77% of its industry peers.
In the last couple of years the Profit Margin of TTC has remained more or less at the same level.
With a Operating Margin value of 11.23%, TTC perfoms like the industry average, outperforming 59.23% of the companies in the same industry.
In the last couple of years the Operating Margin of TTC has grown nicely.
Looking at the Gross Margin, with a value of 33.25%, TTC is in line with its industry, outperforming 56.92% 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 | 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.
TTC has less shares outstanding than it did 1 year ago.
TTC has less shares outstanding than it did 5 years ago.
TTC has a better debt/assets ratio than last year.
2.2 Solvency
TTC has an Altman-Z score of 4.66. This indicates that TTC is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.66, TTC is in the better half of the industry, outperforming 74.62% of the companies in the same industry.
TTC has a debt to FCF ratio of 2.10. This is a good value and a sign of high solvency as TTC would need 2.10 years to pay back of all of its debts.
The Debt to FCF ratio of TTC (2.10) is better than 77.69% 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: 70.00% of the companies in the same industry are doing better.
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 | 4.66 |
ROIC/WACC1.72
WACC9.46%
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.
TTC's Current ratio of 1.88 is in line compared to the rest of the industry. TTC outperforms 43.08% of its industry peers.
A Quick Ratio of 0.79 indicates that TTC may have some problems paying its short term obligations.
TTC has a worse Quick ratio (0.79) than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
TTC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.40%, which is quite good.
Measured over the past 5 years, TTC shows a small growth in Earnings Per Share. The EPS has been growing by 6.88% on average per year.
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
TTC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.88% yearly.
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.
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
The Price/Earnings ratio is 17.52, which indicates a rather expensive current 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 73.08% of the companies listed in the same industry.
TTC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.69.
Based on the Price/Forward Earnings ratio of 15.76, the valuation of TTC can be described as correct.
TTC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TTC is cheaper than 70.77% of the companies in the same industry.
TTC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.52 | ||
| Fwd PE | 15.76 |
4.2 Price Multiples
TTC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TTC is cheaper than 61.54% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TTC indicates a rather cheap valuation: TTC is cheaper than 80.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.84 | ||
| EV/EBITDA | 12.71 |
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)13.57
PEG (5Y)2.55
EPS Next 2Y6.56%
EPS Next 3Y7.67%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.05%, 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 1.80. TTC pays more dividend than 85.38% of the companies in the same industry.
TTC's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
5.2 History
On average, the dividend of TTC grows each year by 9.97%, which is quite nice.
TTC has paid a dividend for at least 10 years, which is 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
45.26% 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.
DP45.26%
EPS Next 2Y6.56%
EPS Next 3Y7.67%
74.62
+0.48 (+0.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.18%
Inst Owner Change0.15%
Ins Owners0.39%
Ins Owner Change1.32%
Market Cap7.30B
Analysts74
Price Target94.45 (26.57%)
Short Float %3%
Short Ratio3.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
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)-1.09%
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 | 17.52 | ||
| Fwd PE | 15.76 | ||
| P/S | 1.62 | ||
| P/FCF | 14.84 | ||
| P/OCF | 12.4 | ||
| P/B | 5.17 | ||
| P/tB | 13 | ||
| EV/EBITDA | 12.71 |
EPS(TTM)4.26
EY5.71%
EPS(NY)4.73
Fwd EY6.35%
FCF(TTM)5.03
FCFY6.74%
OCF(TTM)6.02
OCFY8.07%
SpS46.19
BVpS14.42
TBVpS5.74
PEG (NY)13.57
PEG (5Y)2.55
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%
ROICexcg growth 3Y-18.45%
ROICexcg 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 | 4.66 |
F-Score5
WACC9.46%
ROIC/WACC1.72
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%