TORO CO (TTC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TTC - US8910921084 - Common Stock
79.42 USD
+0.54 (+0.68%)
79.42 USD
0 (0%)
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 only an average score on both its financial health and profitability. 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.
TTC had a positive operating cash flow in the past year.
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
TTC has a better Return On Assets (9.19%) than 77.27% of its industry peers.
The Return On Equity of TTC (21.75%) is better than 88.64% of its industry peers.
With an excellent Return On Invested Capital value of 16.07%, TTC belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TTC is significantly above the industry average of 10.27%.
| 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
With a decent Profit Margin value of 7.01%, TTC is doing good in the industry, outperforming 61.36% of the companies in the same industry.
TTC's Profit Margin has declined in the last couple of years.
TTC's Operating Margin of 10.89% is in line compared to the rest of the industry. TTC outperforms 57.58% of its industry peers.
In the last couple of years the Operating Margin of TTC has declined.
The Gross Margin of TTC (33.36%) 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 | 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
TTC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
TTC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TTC has been reduced compared to 5 years ago.
The debt/assets ratio for TTC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.97 indicates that TTC is not in any danger for bankruptcy at the moment.
TTC's Altman-Z score of 4.97 is fine compared to the rest of the industry. TTC outperforms 74.24% of its industry peers.
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.
TTC's Debt to FCF ratio of 1.61 is amongst the best of the industry. TTC outperforms 82.58% of its industry peers.
TTC has a Debt/Equity ratio of 0.63. This is a neutral value indicating TTC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.63, TTC is not doing good in the industry: 62.88% 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 | 0.63 | ||
| Debt/FCF | 1.61 | ||
| Altman-Z | 4.97 |
ROIC/WACC1.68
WACC9.54%
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 in line with its industry peers.
A Quick Ratio of 0.86 indicates that TTC may have some problems paying its short term obligations.
TTC has a Quick ratio of 0.86. This is in the lower half of the industry: TTC underperforms 70.45% 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%.
Measured over the past 5 years, TTC shows a small growth in Earnings Per Share. The EPS has been growing by 6.92% on average per year.
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
The Earnings Per Share is expected to grow by 5.82% on average over the next years.
The Revenue is expected to grow by 2.32% on average over the next years.
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
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
A Price/Earnings ratio of 18.82 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 75.76% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.92. TTC is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 17.43 indicates a rather expensive valuation of TTC.
Based on the Price/Forward Earnings ratio, TTC is valued a bit cheaper than 70.45% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TTC to the average of the S&P500 Index (23.46), we can say TTC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.82 | ||
| Fwd PE | 17.43 |
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 64.39% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TTC is valued cheaply inside the industry as 85.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.54 | ||
| EV/EBITDA | 13.18 |
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)2.35
PEG (5Y)2.72
EPS Next 2Y9.5%
EPS Next 3Y9.3%
5. Dividend
5.1 Amount
TTC has a Yearly Dividend Yield of 1.98%. Purely for dividend investing, there may be better candidates out there.
TTC's Dividend Yield is rather good when compared to the industry average which is at 0.98. TTC pays more dividend than 84.09% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, TTC has a dividend comparable with the average S&P500 company.
| 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 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)8.56%
Div Incr Years21
Div Non Decr Years34
5.3 Sustainability
47.80% of the earnings are spent on dividend by TTC. 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.
DP47.8%
EPS Next 2Y9.5%
EPS Next 3Y9.3%
79.42
+0.54 (+0.68%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.55%
Inst Owner Change-1.09%
Ins Owners0.35%
Ins Owner Change1.37%
Market Cap7.77B
Revenue(TTM)4.51B
Net Income(TTM)316.10M
Analysts75.56
Price Target94.45 (18.92%)
Short Float %2.43%
Short Ratio3.32
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-Date
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)-19.81%
EPS NY rev (1m)-3.74%
EPS NY rev (3m)-3.74%
Revenue NQ rev (1m)-2.13%
Revenue NQ rev (3m)-2.41%
Revenue NY rev (1m)0.92%
Revenue NY rev (3m)1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.82 | ||
| Fwd PE | 17.43 | ||
| P/S | 1.72 | ||
| P/FCF | 13.54 | ||
| P/OCF | 11.74 | ||
| P/B | 5.35 | ||
| P/tB | 12.7 | ||
| EV/EBITDA | 13.18 |
EPS(TTM)4.22
EY5.31%
EPS(NY)4.56
Fwd EY5.74%
FCF(TTM)5.87
FCFY7.39%
OCF(TTM)6.76
OCFY8.52%
SpS46.09
BVpS14.85
TBVpS6.25
PEG (NY)2.35
PEG (5Y)2.72
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 | 4.97 |
F-Score6
WACC9.54%
ROIC/WACC1.68
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 for 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.
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 8% in the next year.