TORO CO (TTC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TTC - US8910921084 - Common Stock
79.25 USD
+0.37 (+0.47%)
We assign a fundamental rating of 5 out of 10 to TTC. TTC was compared to 132 industry peers in the Machinery industry. Both the profitability and the financial health of TTC get a neutral evaluation. Nothing too spectacular is happening here. 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.
TTC had a positive operating cash flow in the past year.
In the past 5 years TTC has always been profitable.
Each year in the past 5 years TTC had a positive operating cash flow.
1.2 Ratios
TTC's Return On Assets of 9.19% is fine compared to the rest of the industry. TTC outperforms 77.27% of its industry peers.
TTC's Return On Equity of 21.75% is amongst the best of the industry. TTC outperforms 88.64% of its industry peers.
The Return On Invested Capital of TTC (16.07%) is better 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 10.27%.
| 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
TTC's Profit Margin of 7.01% is fine compared to the rest 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 comparable to the rest of the industry.
In the last couple of years the Operating Margin of TTC has declined.
TTC has a Gross Margin of 33.36%. This is comparable to the rest of the industry: TTC outperforms 56.06% of 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TTC is still creating some value.
The number of shares outstanding for TTC has been reduced compared to 1 year ago.
TTC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TTC has a worse debt to assets ratio.
2.2 Solvency
TTC has an Altman-Z score of 4.96. 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 4.96, TTC is in the better half of the industry, outperforming 75.00% 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.
TTC has a Debt to FCF ratio of 1.61. This is amongst the best in 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.
The Debt to Equity ratio of TTC (0.63) is worse than 62.88% 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 | 0.63 | ||
| Debt/FCF | 1.61 | ||
| Altman-Z | 4.96 |
ROIC/WACC1.69
WACC9.51%
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.
With a Current ratio value of 1.87, TTC perfoms like the industry average, outperforming 40.15% 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 70.45% 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.
TTC shows a decrease in Revenue. In the last year, the revenue decreased by -1.60%.
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
Based on estimates for the next years, TTC will show a small growth in Earnings Per Share. The EPS will grow by 5.82% on average per year.
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
TTC is valuated rather expensively with a Price/Earnings ratio of 18.78.
TTC's Price/Earnings ratio is a bit cheaper when compared to the industry. TTC is cheaper than 75.76% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.59. TTC is valued slightly cheaper when compared to this.
TTC is valuated rather expensively with a Price/Forward Earnings ratio of 17.39.
Based on the Price/Forward Earnings ratio, TTC is valued a bit cheaper than 71.21% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TTC to the average of the S&P500 Index (24.03), we can say TTC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.78 | ||
| Fwd PE | 17.39 |
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 65.15% 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 | 13.51 | ||
| EV/EBITDA | 13.09 |
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)2.35
PEG (5Y)2.71
EPS Next 2Y9.5%
EPS Next 3Y9.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.98%, TTC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.04, 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 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
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 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 2Y9.5%
EPS Next 3Y9.3%
NYSE:TTC (12/26/2025, 3:50:03 PM)
79.25
+0.37 (+0.47%)
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 Change1.39%
Market Cap7.76B
Revenue(TTM)4.51B
Net Income(TTM)316.10M
Analysts75.56
Price Target94.45 (19.18%)
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)1.75%
EPS NQ rev (3m)1.75%
EPS NY rev (1m)-0.35%
EPS NY rev (3m)-1.43%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.78 | ||
| Fwd PE | 17.39 | ||
| P/S | 1.72 | ||
| P/FCF | 13.51 | ||
| P/OCF | 11.72 | ||
| P/B | 5.34 | ||
| P/tB | 12.67 | ||
| EV/EBITDA | 13.09 |
EPS(TTM)4.22
EY5.32%
EPS(NY)4.56
Fwd EY5.75%
FCF(TTM)5.87
FCFY7.4%
OCF(TTM)6.76
OCFY8.54%
SpS46.09
BVpS14.85
TBVpS6.25
PEG (NY)2.35
PEG (5Y)2.71
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 | 4.96 |
F-Score6
WACC9.51%
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 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 Year37.12%
EBIT Next 3Y16%
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.