TORO CO (TTC) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:TTC • US8910921084
91.5 USD
-0.23 (-0.25%)
At close: Jan 30, 2026
91.5 USD
0 (0%)
After Hours: 1/30/2026, 8:22:10 PM
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. TTC has an average financial health and profitability rating. TTC is valued correctly, 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.
- Each year in the past 5 years TTC has been profitable.
- Each year in the past 5 years TTC had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 9.19%, TTC is doing good in the industry, outperforming 78.03% 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.
- With an excellent Return On Invested Capital value of 16.07%, TTC belongs to the best of the industry, outperforming 92.42% of the companies in the same industry.
- TTC had an Average Return On Invested Capital over the past 3 years of 16.95%. This is significantly above the industry average of 10.18%.
| 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 has a Profit Margin of 7.01%. This is in the better half of the industry: TTC outperforms 61.36% of its industry peers.
- 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.
- In the last couple of years the Operating Margin of TTC has declined.
- TTC has a Gross Margin (33.36%) which is in line with its industry peers.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TTC is creating some value.
- TTC has less shares outstanding than it did 1 year ago.
- TTC has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for TTC is higher compared to a year ago.
2.2 Solvency
- TTC has an Altman-Z score of 5.33. 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 5.33, TTC is in the better half of the industry, outperforming 76.52% of the companies in the same industry.
- 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.
- The Debt to FCF ratio of TTC (1.61) is better than 83.33% of its industry peers.
- A Debt/Equity ratio of 0.63 indicates that 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 62.88% 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 | 5.33 |
ROIC/WACC1.66
WACC9.7%
2.3 Liquidity
- A Current Ratio of 1.87 indicates that TTC should not have too much problems paying its short term obligations.
- TTC has a Current ratio of 1.87. This is comparable to the rest of the industry: TTC outperforms 40.91% of its industry peers.
- A Quick Ratio of 0.86 indicates that TTC may have some problems paying its short term obligations.
- TTC has a worse Quick ratio (0.86) than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 1.20% over the past year.
- The Earnings Per Share has been growing slightly by 6.92% on average over the past years.
- Looking at the last year, TTC shows a decrease in Revenue. The Revenue has decreased by -1.60% in the last 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 6.82% yearly.
- 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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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
- TTC is valuated rather expensively with a Price/Earnings ratio of 21.68.
- TTC's Price/Earnings ratio is a bit cheaper when compared to the industry. TTC is cheaper than 68.94% of the companies in the same industry.
- TTC is valuated rather cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 20.53, which indicates a rather expensive current valuation of TTC.
- The rest of the industry has a similar Price/Forward Earnings ratio as TTC.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, TTC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.68 | ||
| Fwd PE | 20.53 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TTC is on the same level as its industry peers.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TTC indicates a rather cheap valuation: TTC is cheaper than 84.85% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.6 | ||
| EV/EBITDA | 15.04 |
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)3.88
PEG (5Y)3.13
EPS Next 2Y9.39%
EPS Next 3Y9.3%
5. Dividend
5.1 Amount
- TTC has a Yearly Dividend Yield of 1.70%.
- Compared to an average industry Dividend Yield of 1.01, TTC pays a better dividend. On top of this TTC pays more dividend than 84.09% of the companies listed in the same industry.
- TTC's Dividend Yield is comparable with the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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 2Y9.39%
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 4 / 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 21.68 and the Price/Book (PB) ratio is 6.16.
What is the financial health of TORO CO (TTC) stock?
The financial health rating of TORO CO (TTC) is 6 / 10.