TORO CO (TTC)
US8910921084 - Common Stock
Overall TTC gets a fundamental rating of 5 out of 10. We evaluated TTC against 132 industry peers in the Machinery industry. TTC scores excellent on profitability, but there are some minor concerns on its financial health. TTC is valued expensive and 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.
In the past 5 years TTC always reported a positive cash flow from operatings.
1.2 Ratios
TTC has a better Return On Assets (7.57%) than 68.99% of its industry peers.
TTC has a better Return On Equity (18.59%) than 78.29% of its industry peers.
The Return On Invested Capital of TTC (15.08%) is better than 84.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TTC is significantly above the industry average of 10.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 18.59% | ||
| ROIC | 15.08% |
ROA(3y)11.82%
ROA(5y)11.76%
ROE(3y)30.08%
ROE(5y)30.34%
ROIC(3y)18.98%
ROIC(5y)18.22%
1.3 Margins
TTC's Profit Margin of 6.53% is fine compared to the rest of the industry. TTC outperforms 60.47% of its industry peers.
TTC's Profit Margin has declined in the last couple of years.
TTC's Operating Margin of 12.12% is fine compared to the rest of the industry. TTC outperforms 65.12% of its industry peers.
In the last couple of years the Operating Margin of TTC has declined.
TTC has a Gross Margin of 34.64%. This is in the better half of the industry: TTC outperforms 65.89% of its industry peers.
TTC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.12% | ||
| PM (TTM) | 6.53% | ||
| GM | 34.64% |
OM growth 3Y0.43%
OM growth 5Y-2.15%
PM growth 3Y-9.47%
PM growth 5Y-6.95%
GM growth 3Y-0.54%
GM growth 5Y-0.73%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TTC is creating value.
TTC has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, TTC has less shares outstanding
The debt/assets ratio for TTC is higher compared to a year ago.
2.2 Solvency
TTC has an Altman-Z score of 4.94. This indicates that TTC is financially healthy and has little risk of bankruptcy at the moment.
TTC's Altman-Z score of 4.94 is fine compared to the rest of the industry. TTC outperforms 76.74% of its industry peers.
TTC has a debt to FCF ratio of 8.23. This is a slightly negative value and a sign of low solvency as TTC would need 8.23 years to pay back of all of its debts.
TTC has a Debt to FCF ratio (8.23) which is comparable to the rest of the industry.
TTC has a Debt/Equity ratio of 0.76. This is a neutral value indicating TTC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.76, TTC is not doing good in the industry: 72.87% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 8.23 | ||
| Altman-Z | 4.94 |
ROIC/WACC1.65
WACC9.16%
2.3 Liquidity
A Current Ratio of 2.13 indicates that TTC has no problem at all paying its short term obligations.
The Current ratio of TTC (2.13) is comparable to the rest of the industry.
TTC has a Quick Ratio of 2.13. This is a bad value and indicates that TTC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.86, TTC is not doing good in the industry: 72.09% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
TTC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.16%.
Measured over the past years, TTC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.51% on average per year.
Looking at the last year, TTC shows a decrease in Revenue. The Revenue has decreased by -6.86% in the last year.
Measured over the past years, TTC shows a quite strong growth in Revenue. The Revenue has been growing by 11.70% on average per year.
EPS 1Y (TTM)-14.16%
EPS 3Y11.8%
EPS 5Y9.51%
EPS growth Q2Q-34.69%
Revenue 1Y (TTM)-6.86%
Revenue growth 3Y10.45%
Revenue growth 5Y11.7%
Revenue growth Q2Q-12.79%
3.2 Future
TTC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.04% yearly.
The Revenue is expected to grow by 2.20% on average over the next years.
EPS Next Y2.64%
EPS Next 2Y6.51%
EPS Next 3Y6.17%
EPS Next 5Y3.04%
Revenue Next Year2.2%
Revenue Next 2Y3.12%
Revenue Next 3Y2.58%
Revenue Next 5Y2.2%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 22.76, which indicates a rather expensive current valuation of TTC.
TTC's Price/Earnings ratio is in line with the industry average.
TTC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.28.
TTC is valuated rather expensively with a Price/Forward Earnings ratio of 18.45.
61.24% of the companies in the same industry are more expensive than TTC, based on the Price/Forward Earnings ratio.
TTC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.76 | ||
| Fwd PE | 18.45 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TTC.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TTC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 63.95 | ||
| EV/EBITDA | 15.48 |
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)8.64
PEG (5Y)2.39
EPS Next 2Y6.51%
EPS Next 3Y6.17%
5. Dividend
5.1 Amount
TTC has a Yearly Dividend Yield of 1.64%.
TTC's Dividend Yield is rather good when compared to the industry average which is at 1.73. TTC pays more dividend than 81.40% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.41, TTC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
5.2 History
The dividend of TTC is nicely growing with an annual growth rate of 8.96%!
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)8.96%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
TTC pays out 50.04% 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.
DP50.04%
EPS Next 2Y6.51%
EPS Next 3Y6.17%
TORO CO
NYSE:TTC (5/3/2024, 7:23:09 PM)
After market: 88.31 0 (0%)88.31
+0.57 (+0.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.22B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.76 | ||
| Fwd PE | 18.45 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)8.64
PEG (5Y)2.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 18.59% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.12% | ||
| PM (TTM) | 6.53% | ||
| GM | 34.64% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.13 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-14.16%
EPS 3Y11.8%
EPS 5Y
EPS growth Q2Q
EPS Next Y2.64%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.86%
Revenue growth 3Y10.45%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y