TORO CO (TTC) Stock Fundamental Analysis
NYSE:TTC - New York Stock Exchange, Inc. - US8910921084 - Common Stock - Currency: USD
Taking everything into account, TTC scores 5 out of 10 in our fundamental rating. TTC was compared to 128 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. Finally TTC also has an excellent dividend rating. This makes TTC very considerable for dividend investing!
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.
TTC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TTC (11.00%) is better than 82.81% of its industry peers.
TTC has a Return On Equity of 27.72%. This is amongst the best in the industry. TTC outperforms 93.75% of its industry peers.
TTC has a Return On Invested Capital of 15.85%. This is amongst the best in the industry. TTC outperforms 89.06% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TTC is significantly above the industry average of 10.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11% | ||
| ROE | 27.72% | ||
| ROIC | 15.85% |
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
With a decent Profit Margin value of 8.89%, TTC is doing good in the industry, outperforming 67.19% of the companies in the same industry.
In the last couple of years the Profit Margin of TTC has remained more or less at the same level.
The Operating Margin of TTC (11.42%) is comparable to the rest of the industry.
TTC's Operating Margin has improved in the last couple of years.
TTC has a Gross Margin of 33.66%. This is comparable to the rest of the industry: TTC outperforms 58.59% of 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 | 11.42% | ||
| PM (TTM) | 8.89% | ||
| GM | 33.66% |
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 just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, TTC has less shares outstanding
TTC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TTC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.55 indicates that TTC is not in any danger for bankruptcy at the moment.
The Altman-Z score of TTC (4.55) is better than 72.66% of its industry peers.
The Debt to FCF ratio of TTC is 2.17, which is a good value as it means it would take TTC, 2.17 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TTC (2.17) is better than 75.00% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that TTC is somewhat dependend on debt financing.
TTC has a Debt to Equity ratio of 0.74. This is in the lower half of the industry: TTC underperforms 70.31% of its industry peers.
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 | 0.74 | ||
| Debt/FCF | 2.17 | ||
| Altman-Z | 4.55 |
ROIC/WACC1.57
WACC10.07%
2.3 Liquidity
TTC has a Current Ratio of 1.91. 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 1.91 is in line compared to the rest of the industry. TTC outperforms 42.97% of its industry peers.
A Quick Ratio of 0.76 indicates that TTC may have some problems paying its short term obligations.
The Quick ratio of TTC (0.76) is worse than 78.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
TTC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.73%.
The Earnings Per Share has been growing slightly by 6.88% on average over the past years.
Looking at the last year, TTC shows a small growth in Revenue. The Revenue has grown by 3.87% in the last year.
The Revenue has been growing slightly by 7.87% on average over the past years.
EPS 1Y (TTM)7.73%
EPS 3Y4.83%
EPS 5Y6.88%
EPS Q2Q%1.56%
Revenue 1Y (TTM)3.87%
Revenue growth 3Y5%
Revenue growth 5Y7.87%
Sales Q2Q%-0.69%
3.2 Future
Based on estimates for the next years, TTC will show a small growth in Earnings Per Share. The EPS will grow by 4.15% on average per year.
Based on estimates for the next years, TTC will show a small growth in Revenue. The Revenue will grow by 1.57% on average per year.
EPS Next Y4.23%
EPS Next 2Y6.68%
EPS Next 3Y7.24%
EPS Next 5Y4.15%
Revenue Next Year0.28%
Revenue Next 2Y1.57%
Revenue Next 3Y2.04%
Revenue Next 5Y1.57%
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
A Price/Earnings ratio of 17.68 indicates a rather expensive valuation of TTC.
TTC's Price/Earnings ratio is a bit cheaper when compared to the industry. TTC is cheaper than 67.19% 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 25.82.
The Price/Forward Earnings ratio is 15.57, which indicates a correct valuation of TTC.
TTC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TTC is cheaper than 64.06% 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 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.68 | ||
| Fwd PE | 15.57 |
4.2 Price Multiples
TTC's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, TTC is valued a bit cheaper than 77.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.48 | ||
| EV/EBITDA | 12.91 |
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)4.18
PEG (5Y)2.57
EPS Next 2Y6.68%
EPS Next 3Y7.24%
5. Dividend
5.1 Amount
TTC has a Yearly Dividend Yield of 1.99%.
TTC's Dividend Yield is rather good when compared to the industry average which is at 1.83. TTC pays more dividend than 84.38% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, TTC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
5.2 History
The dividend of TTC is nicely growing with an annual growth rate of 9.97%!
TTC has paid a dividend for at least 10 years, which is 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)9.97%
Div Incr Years20
Div Non Decr Years33
5.3 Sustainability
TTC pays out 36.97% of its income as dividend. This is a sustainable payout ratio.
TTC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP36.97%
EPS Next 2Y6.68%
EPS Next 3Y7.24%
73.89
-1.08 (-1.44%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners94.49%
Inst Owner Change-2.7%
Ins Owners0.35%
Ins Owner Change1%
Market Cap7.38B
Analysts72.73
Price Target93.02 (25.89%)
Short Float %3.68%
Short Ratio3.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
Yearly Dividend1.46
Dividend Growth(5Y)9.97%
DP36.97%
Div Incr Years20
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.25%
Min EPS beat(2)-1.66%
Max EPS beat(2)2.15%
EPS beat(4)2
Avg EPS beat(4)0.91%
Min EPS beat(4)-4.45%
Max EPS beat(4)7.59%
EPS beat(8)4
Avg EPS beat(8)0.63%
EPS beat(12)7
Avg EPS beat(12)1.16%
EPS beat(16)11
Avg EPS beat(16)2.98%
Revenue beat(2)0
Avg Revenue beat(2)-2.12%
Min Revenue beat(2)-2.27%
Max Revenue beat(2)-1.97%
Revenue beat(4)0
Avg Revenue beat(4)-3.47%
Min Revenue beat(4)-9.05%
Max Revenue beat(4)-0.59%
Revenue beat(8)0
Avg Revenue beat(8)-4.42%
Revenue beat(12)0
Avg Revenue beat(12)-3.63%
Revenue beat(16)2
Avg Revenue beat(16)-2.91%
PT rev (1m)-0.33%
PT rev (3m)-2.29%
EPS NQ rev (1m)0.84%
EPS NQ rev (3m)-4.45%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.68 | ||
| Fwd PE | 15.57 | ||
| P/S | 1.61 | ||
| P/FCF | 14.48 | ||
| P/OCF | 12.02 | ||
| P/B | 5.03 | ||
| P/tB | 13.99 | ||
| EV/EBITDA | 12.91 |
EPS(TTM)4.18
EY5.66%
EPS(NY)4.75
Fwd EY6.42%
FCF(TTM)5.1
FCFY6.9%
OCF(TTM)6.15
OCFY8.32%
SpS45.85
BVpS14.7
TBVpS5.28
PEG (NY)4.18
PEG (5Y)2.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11% | ||
| ROE | 27.72% | ||
| ROCE | 19.33% | ||
| ROIC | 15.85% | ||
| ROICexc | 16.92% | ||
| ROICexgc | 26.92% | ||
| OM | 11.42% | ||
| PM (TTM) | 8.89% | ||
| GM | 33.66% | ||
| FCFM | 11.13% |
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-Score7
Asset Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 2.17 | ||
| Debt/EBITDA | 1.67 | ||
| Cap/Depr | 80.48% | ||
| Cap/Sales | 2.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.08% | ||
| Profit Quality | 125.17% | ||
| Current Ratio | 1.91 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 4.55 |
F-Score7
WACC10.07%
ROIC/WACC1.57
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)7.73%
EPS 3Y4.83%
EPS 5Y6.88%
EPS Q2Q%1.56%
EPS Next Y4.23%
EPS Next 2Y6.68%
EPS Next 3Y7.24%
EPS Next 5Y4.15%
Revenue 1Y (TTM)3.87%
Revenue growth 3Y5%
Revenue growth 5Y7.87%
Sales Q2Q%-0.69%
Revenue Next Year0.28%
Revenue Next 2Y1.57%
Revenue Next 3Y2.04%
Revenue Next 5Y1.57%
EBIT growth 1Y-2.19%
EBIT growth 3Y1.7%
EBIT growth 5Y10.41%
EBIT Next Year27.79%
EBIT Next 3Y13.9%
EBIT Next 5YN/A
FCF growth 1Y238.93%
FCF growth 3Y3.15%
FCF growth 5Y13.75%
OCF growth 1Y92.7%
OCF growth 3Y0.86%
OCF growth 5Y11.05%