Toromont Industries Ltd. provides specialized capital equipment in Canada, the United States, and internationally. More Details
Excellent balance sheet with reasonable growth potential.
Share Price & News
How has Toromont Industries's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TIH is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: TIH's weekly volatility (3%) has been stable over the past year.
7 Day Return
CA Trade Distributors
1 Year Return
CA Trade Distributors
Return vs Industry: TIH underperformed the Canadian Trade Distributors industry which returned 56.3% over the past year.
Return vs Market: TIH exceeded the Canadian Market which returned 28.2% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Toromont Industries's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall StWhat Kind Of Shareholders Hold The Majority In Toromont Industries Ltd.'s (TSE:TIH) Shares?
1 month ago | Simply Wall StHave Insiders Been Selling Toromont Industries Ltd. (TSE:TIH) Shares?
1 month ago | Simply Wall StShould You Buy Toromont Industries Ltd. (TSE:TIH) For Its Upcoming Dividend?
Is Toromont Industries undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: TIH (CA$103.95) is trading above our estimate of fair value (CA$78.94)
Significantly Below Fair Value: TIH is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: TIH is poor value based on its PE Ratio (32.2x) compared to the Canadian Trade Distributors industry average (13.6x).
PE vs Market: TIH is poor value based on its PE Ratio (32.2x) compared to the Canadian market (13.8x).
Price to Earnings Growth Ratio
PEG Ratio: TIH is poor value based on its PEG Ratio (2.1x)
Price to Book Ratio
PB vs Industry: TIH is overvalued based on its PB Ratio (4.9x) compared to the CA Trade Distributors industry average (1.4x).
How is Toromont Industries forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TIH's forecast earnings growth (15% per year) is above the savings rate (1.5%).
Earnings vs Market: TIH's earnings (15% per year) are forecast to grow faster than the Canadian market (14.3% per year).
High Growth Earnings: TIH's earnings are forecast to grow, but not significantly.
Revenue vs Market: TIH's revenue (7.5% per year) is forecast to grow faster than the Canadian market (5.5% per year).
High Growth Revenue: TIH's revenue (7.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TIH's Return on Equity is forecast to be high in 3 years time (20.2%)
How has Toromont Industries performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TIH has high quality earnings.
Growing Profit Margin: TIH's current net profit margins (7.4%) are lower than last year (7.7%).
Past Earnings Growth Analysis
Earnings Trend: TIH's earnings have grown by 14.3% per year over the past 5 years.
Accelerating Growth: TIH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: TIH had negative earnings growth (-6.8%) over the past year, making it difficult to compare to the Trade Distributors industry average (70.6%).
Return on Equity
High ROE: TIH's Return on Equity (15.1%) is considered low.
How is Toromont Industries's financial position?
Financial Position Analysis
Short Term Liabilities: TIH's short term assets (CA$1.9B) exceed its short term liabilities (CA$750.7M).
Long Term Liabilities: TIH's short term assets (CA$1.9B) exceed its long term liabilities (CA$825.9M).
Debt to Equity History and Analysis
Debt Level: TIH's debt to equity ratio (36.2%) is considered satisfactory.
Reducing Debt: TIH's debt to equity ratio has increased from 19.6% to 36.2% over the past 5 years.
Debt Coverage: TIH's debt is well covered by operating cash flow (69.1%).
Interest Coverage: TIH's interest payments on its debt are well covered by EBIT (17.7x coverage).
What is Toromont Industries's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TIH's dividend (1.35%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.61%).
High Dividend: TIH's dividend (1.35%) is low compared to the top 25% of dividend payers in the Canadian market (4.58%).
Stability and Growth of Payments
Stable Dividend: TIH's dividends per share have been stable in the past 10 years.
Growing Dividend: TIH's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (38.4%), TIH's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Scott Medhurst (59 yo)
Mr. Scott J. Medhurst has been the Chief Executive Officer and President of Toromont Industries Ltd. since March 1, 2012. Mr. Medhurst joined Toromont in 1988 as a Management Trainee. He has expertise in H...
CEO Compensation Analysis
Compensation vs Market: Scott's total compensation ($USD2.23M) is below average for companies of similar size in the Canadian market ($USD3.65M).
Compensation vs Earnings: Scott's compensation has been consistent with company performance over the past year.
Experienced Management: TIH's management team is seasoned and experienced (5 years average tenure).
Experienced Board: TIH's board of directors are considered experienced (5.7 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: TIH insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Toromont Industries Ltd.'s company bio, employee growth, exchange listings and data sources
- Name: Toromont Industries Ltd.
- Ticker: TIH
- Exchange: TSX
- Founded: 1961
- Industry: Trading Companies and Distributors
- Sector: Capital Goods
- Market Cap: CA$8.592b
- Shares outstanding: 82.66m
- Website: https://www.toromont.com
Number of Employees
- Toromont Industries Ltd.
- 3131 Highway 7 West
- PO Box 5511
- L4K 1B7
Toromont Industries Ltd. provides specialized capital equipment in Canada, the United States, and internationally. It operates in two segments, Equipment Group and CIMCO. The Equipment Group segment engage...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/07/25 22:10|
|End of Day Share Price||2021/07/23 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.