TSX:TIH

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Toromont Industries

Executive Summary

Toromont Industries Ltd. provides specialized capital equipment in Canada, the United States, and internationally. More Details


Snowflake Analysis

Adequate balance sheet second-rate dividend payer.


Similar Companies

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.5%

TIH

0.9%

CA Trade Distributors

-0.6%

CA Market


1 Year Return

16.0%

TIH

9.9%

CA Trade Distributors

-7.7%

CA Market

Return vs Industry: TIH exceeded the Canadian Trade Distributors industry which returned 9.9% over the past year.

Return vs Market: TIH exceeded the Canadian Market which returned -7.7% over the past year.


Shareholder returns

TIHIndustryMarket
7 Day-4.5%0.9%-0.6%
30 Day-1.5%1.2%-1.1%
90 Day13.1%15.3%5.6%
1 Year18.0%16.0%13.7%9.9%-4.4%-7.7%
3 Year36.9%30.4%6.8%-2.5%9.1%-1.5%
5 Year145.8%125.8%66.2%41.7%44.6%22.4%

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

Valuation

Is Toromont Industries undervalued compared to its fair value and its price relative to the market?

23.33x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TIH (CA$73.71) is trading above our estimate of fair value (CA$53.31)

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 (23.3x) compared to the CA Trade Distributors industry average (20.5x).

PE vs Market: TIH is poor value based on its PE Ratio (23.3x) compared to the Canadian market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: TIH is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: TIH is overvalued based on its PB Ratio (3.9x) compared to the CA Trade Distributors industry average (1x).


Next Steps

Future Growth

How is Toromont Industries forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

12.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TIH's forecast earnings growth (12.8% per year) is above the savings rate (1.7%).

Earnings vs Market: TIH's earnings (12.8% per year) are forecast to grow slower than the Canadian market (23.6% per year).

High Growth Earnings: TIH's earnings are forecast to grow, but not significantly.

Revenue vs Market: TIH's revenue (7.1% per year) is forecast to grow faster than the Canadian market (5.6% per year).

High Growth Revenue: TIH's revenue (7.1% 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 low in 3 years time (18.6%).


Next Steps

Past Performance

How has Toromont Industries performed over the past 5 years?

16.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TIH has high quality earnings.

Growing Profit Margin: TIH's current net profit margins (7.3%) are lower than last year (7.6%).


Past Earnings Growth Analysis

Earnings Trend: TIH's earnings have grown by 16.6% 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 (-4.3%) over the past year, making it difficult to compare to the Trade Distributors industry average (1.9%).


Return on Equity

High ROE: TIH's Return on Equity (16.6%) is considered low.


Next Steps

Financial Health

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$937.7M).

Long Term Liabilities: TIH's short term assets (CA$1.9B) exceed its long term liabilities (CA$974.7M).


Debt to Equity History and Analysis

Debt Level: TIH's debt to equity ratio (47.2%) is considered high.

Reducing Debt: TIH's debt to equity ratio has increased from 25.9% to 47.2% over the past 5 years.

Debt Coverage: TIH's debt is well covered by operating cash flow (54.9%).

Interest Coverage: TIH's interest payments on its debt are well covered by EBIT (19.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Toromont Industries's current dividend yield, its reliability and sustainability?

1.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TIH's dividend (1.68%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.73%).

High Dividend: TIH's dividend (1.68%) is low compared to the top 25% of dividend payers in the Canadian market (5.73%).


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 (36.7%), 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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average management tenure


CEO

Scott Medhurst (58 yo)

8.5yrs

Tenure

CA$3,632,027

Compensation

Mr. Scott J. Medhurst has been the Chief Executive Officer and President of Toromont Industries Ltd. since March 1, 2012. Mr. Medhurst served as the President of Toromont CAT at Toromont Industries Ltd. si ...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD2.73M) is about average for companies of similar size in the Canadian market ($USD3.00M).

Compensation vs Earnings: Scott's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Scott Medhurst
CEO, President & Director8.5yrsCA$3.63m0.22%
CA$ 13.2m
Michael Cuddy
Chief Information Officer & VP25.67yrsCA$1.32m0.047%
CA$ 2.8m
Paul Jewer
Executive Vice Presidentno dataCA$1.27m0.036%
CA$ 2.2m
Miles Sean Gregg
Senior Vice President of Toromont Catno dataCA$892.25kno data
Michael Stanley McMillan
Executive VP & CFO0.50yrno data0.0037%
CA$ 220.9k
Lynn Korbak
General Counsel & Corporate Secretary2.67yrsno data0.0090%
CA$ 542.2k
David Malinauskas
President of CIMCO Refrigeration5.67yrsCA$862.45k0.020%
CA$ 1.2m
Colin Goheen
President of Battlefield Equipment Rentals1.67yrsno datano data

4.2yrs

Average Tenure

Experienced Management: TIH's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Scott Medhurst
CEO, President & Director8.5yrsCA$3.63m0.22%
CA$ 13.2m
Jeffrey Chisholm
Lead Independent Directorno dataCA$179.00k0.032%
CA$ 2.0m
Peter Blake
Independent Director1.33yrsCA$106.39k0.00061%
CA$ 36.9k
James Gill
Independent Director4.83yrsCA$157.50k0.024%
CA$ 1.5m
Robert Ogilvie
Independent Chairman7.42yrsCA$325.00k1.81%
CA$ 109.7m
Wayne Hill
Independent Director32.67yrsCA$169.50k0.070%
CA$ 4.3m
Richard Roy
Independent Director1.83yrsCA$155.50k0.0037%
CA$ 220.9k
Katherine Rethy
Independent Director7.17yrsCA$166.50k0.0021%
CA$ 125.3k
Cathryn Cranston
Independent Director7.17yrsCA$155.50k0.0069%
CA$ 420.0k
Sharon Hodgson
Independent Director1.33yrsCA$104.39kno data

7.2yrs

Average Tenure

64yo

Average Age

Experienced Board: TIH's board of directors are considered experienced (7.2 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Toromont Industries Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Toromont Industries Ltd.
  • Ticker: TIH
  • Exchange: TSX
  • Founded: 1961
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: CA$6.051b
  • Shares outstanding: 82.10m
  • Website: https://www.toromont.com

Number of Employees


Location

  • Toromont Industries Ltd.
  • 3131 Highway 7 West
  • PO Box 5511
  • Concord
  • Ontario
  • L4K 1B7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TIHTSX (The Toronto Stock Exchange)YesCommon SharesCACADJan 1976
14TDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1976
TMTN.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1976

Biography

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 is inv ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/22 06:18
End of Day Share Price2020/09/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.