TORO CO (TTC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TTC - US8910921084 - Common Stock
89.18 USD
+0.12 (+0.13%)
89.18 USD
0 (0%)
Overall TTC gets a fundamental rating of 5 out of 10. We evaluated TTC against 132 industry peers in the Machinery industry. TTC has only an average score on both its financial health and profitability. TTC is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year TTC was profitable.
In the past year TTC had a positive cash flow from operations.
Each year in the past 5 years TTC has been profitable.
TTC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TTC has a better Return On Assets (9.19%) than 77.27% of its industry peers.
Looking at the Return On Equity, with a value of 21.75%, TTC belongs to the top of the industry, outperforming 89.39% of the companies in the same industry.
TTC has a better Return On Invested Capital (16.07%) than 91.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TTC is significantly above the industry average of 10.25%.
| 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.
TTC's Profit Margin has declined in the last couple of years.
TTC has a Operating Margin (10.89%) which is in line with its industry peers.
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.
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.
Compared to 1 year ago, TTC has less shares outstanding
Compared to 5 years ago, TTC has less shares outstanding
TTC has a worse debt/assets ratio than last year.
2.2 Solvency
TTC has an Altman-Z score of 5.26. This indicates that TTC is financially healthy and has little risk of bankruptcy at the moment.
TTC has a Altman-Z score of 5.26. This is in the better half of the industry: TTC outperforms 75.00% 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.
With an excellent Debt to FCF ratio value of 1.61, TTC belongs to the best of the industry, outperforming 82.58% of the companies in the same industry.
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 62.12% 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 | 5.26 |
ROIC/WACC1.69
WACC9.53%
2.3 Liquidity
A Current Ratio of 1.87 indicates that TTC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.87, TTC perfoms like the industry average, outperforming 40.91% of the companies in the same industry.
A Quick Ratio of 0.86 indicates that TTC may have some problems paying its short term obligations.
The Quick ratio of TTC (0.86) is worse than 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%.
TTC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.92% yearly.
Looking at the last year, TTC shows a decrease in Revenue. The Revenue has decreased by -1.60% in the last year.
The Revenue has been growing slightly by 5.95% on average over the past years.
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 6.82% on average over the next years.
TTC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.09% yearly.
EPS Next Y8%
EPS Next 2Y9.5%
EPS Next 3Y9.3%
EPS Next 5Y6.82%
Revenue Next Year4.52%
Revenue Next 2Y4.16%
Revenue Next 3Y3.46%
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 21.13.
Based on the Price/Earnings ratio, TTC is valued a bit cheaper than 71.21% 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 27.25.
A Price/Forward Earnings ratio of 19.57 indicates a rather expensive valuation of TTC.
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 23.98, TTC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.13 | ||
| Fwd PE | 19.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TTC is valued a bit cheaper than 61.36% 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 84.09% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.2 | ||
| EV/EBITDA | 14.66 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TTC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.64
PEG (5Y)3.05
EPS Next 2Y9.5%
EPS Next 3Y9.3%
5. Dividend
5.1 Amount
TTC has a Yearly Dividend Yield of 1.78%.
Compared to an average industry Dividend Yield of 0.80, TTC pays a better dividend. On top of this TTC pays more dividend than 84.85% of the companies listed in the same industry.
TTC's Dividend Yield is comparable with the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
5.2 History
On average, the dividend of TTC grows each year by 8.56%, 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)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.
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%
89.18
+0.12 (+0.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.81%
Inst Owner Change-0.03%
Ins Owners0.36%
Ins Owner Change1.44%
Market Cap8.73B
Revenue(TTM)4.51B
Net Income(TTM)316.10M
Analysts75.56
Price Target94.45 (5.91%)
Short Float %2.69%
Short Ratio2.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
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 | 21.13 | ||
| Fwd PE | 19.57 | ||
| P/S | 1.93 | ||
| P/FCF | 15.2 | ||
| P/OCF | 13.18 | ||
| P/B | 6.01 | ||
| P/tB | 14.26 | ||
| EV/EBITDA | 14.66 |
EPS(TTM)4.22
EY4.73%
EPS(NY)4.56
Fwd EY5.11%
FCF(TTM)5.87
FCFY6.58%
OCF(TTM)6.76
OCFY7.59%
SpS46.09
BVpS14.85
TBVpS6.25
PEG (NY)2.64
PEG (5Y)3.05
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 | 5.26 |
F-Score6
WACC9.53%
ROIC/WACC1.69
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 5Y6.82%
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 5Y3.09%
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 21.13 and the Price/Book (PB) ratio is 6.01.
What is the financial health of TORO CO (TTC) stock?
The financial health rating of TORO CO (TTC) is 6 / 10.