TORO CO (TTC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TTC - US8910921084 - Common Stock
69.74 USD
-0.64 (-0.91%)
69.74 USD
0 (0%)
Taking everything into account, TTC scores 6 out of 10 in our fundamental rating. TTC was compared to 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
With a decent Return On Assets value of 9.46%, TTC is doing good in the industry, outperforming 80.00% of the companies in the same industry.
TTC has a better Return On Equity (23.60%) than 90.00% of its industry peers.
With an excellent Return On Invested Capital value of 16.23%, TTC belongs to the best of the industry, outperforming 91.54% 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 10.35%.
| 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 has a better Profit Margin (7.37%) than 63.08% of its industry peers.
TTC's Profit Margin has been stable in the last couple of years.
The Operating Margin of TTC (11.23%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TTC has grown nicely.
TTC has a Gross Margin (33.25%) which is comparable to the rest of the 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TTC 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 4.54. This indicates that TTC is financially healthy and has little risk of bankruptcy at the moment.
TTC has a Altman-Z score of 4.54. This is in the better half of the industry: TTC outperforms 72.31% of its industry peers.
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.
TTC's Debt to FCF ratio of 2.10 is fine compared to the rest of the industry. TTC outperforms 76.92% of its industry peers.
TTC has a Debt/Equity ratio of 0.72. This is a neutral value indicating TTC is somewhat dependend on debt financing.
TTC's Debt to Equity ratio of 0.72 is on the low side compared to the rest of the industry. TTC is outperformed by 68.46% 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 | 0.72 | ||
| Debt/FCF | 2.1 | ||
| Altman-Z | 4.54 |
ROIC/WACC1.73
WACC9.4%
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 has a Current ratio (1.88) which is comparable to the rest of the industry.
A Quick Ratio of 0.79 indicates that TTC may have some problems paying its short term obligations.
TTC has a Quick ratio of 0.79. This is in the lower half of the industry: TTC underperforms 76.15% 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.
TTC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.88% yearly.
TTC shows a small growth in Revenue. In the last year, the Revenue has grown by 0.65%.
The Revenue has been growing slightly by 7.87% on average over the past years.
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.
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
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.37, the valuation of TTC can be described as correct.
TTC's Price/Earnings ratio is a bit cheaper when compared to the industry. TTC is cheaper than 80.00% 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 26.31.
A Price/Forward Earnings ratio of 14.73 indicates a correct valuation of TTC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TTC indicates a somewhat cheap valuation: TTC is cheaper than 71.54% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, TTC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.37 | ||
| Fwd PE | 14.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TTC is valued a bit cheaper than 67.69% 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 83.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.87 | ||
| EV/EBITDA | 12.07 |
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)12.68
PEG (5Y)2.38
EPS Next 2Y6.56%
EPS Next 3Y7.67%
5. Dividend
5.1 Amount
TTC has a Yearly Dividend Yield of 2.16%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.90, TTC pays a better dividend. On top of this TTC pays more dividend than 84.62% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, TTC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
5.2 History
On average, the dividend of TTC grows each year by 9.97%, 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 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.
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%
69.74
-0.64 (-0.91%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.18%
Inst Owner Change-1.09%
Ins Owners0.39%
Ins Owner Change1.68%
Market Cap6.82B
Revenue(TTM)4.52B
Net Income(TTM)333.00M
Analysts74
Price Target94.45 (35.43%)
Short Float %2.41%
Short Ratio3.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
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 | 16.37 | ||
| Fwd PE | 14.73 | ||
| P/S | 1.51 | ||
| P/FCF | 13.87 | ||
| P/OCF | 11.59 | ||
| P/B | 4.84 | ||
| P/tB | 12.15 | ||
| EV/EBITDA | 12.07 |
EPS(TTM)4.26
EY6.11%
EPS(NY)4.73
Fwd EY6.79%
FCF(TTM)5.03
FCFY7.21%
OCF(TTM)6.02
OCFY8.63%
SpS46.19
BVpS14.42
TBVpS5.74
PEG (NY)12.68
PEG (5Y)2.38
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 | 4.54 |
F-Score5
WACC9.4%
ROIC/WACC1.73
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.