TSX:TIH

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Toromont Industries

Market Cap

CA$8.6b

Last Updated

2021/07/25 22:10 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


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 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.


Market Performance


7 Day Return

0.8%

TIH

1.0%

CA Trade Distributors

0.07%

CA Market


1 Year Return

42.9%

TIH

56.3%

CA Trade Distributors

28.2%

CA Market

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.


Shareholder returns

TIHIndustryMarket
7 Day0.8%1.0%0.07%
30 Day-2.1%-2.8%-1.7%
90 Day5.3%2.6%2.5%
1 Year45.0%42.9%60.2%56.3%32.1%28.2%
3 Year65.0%57.3%42.6%29.8%29.4%16.9%
5 Year187.1%165.2%111.7%82.4%50.2%28.0%

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

Valuation

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

32.22x

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).


Future Growth

How is Toromont Industries forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

15.0%

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%)


Past Performance

How has Toromont Industries performed over the past 5 years?

14.3%

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.


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$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).


Balance Sheet


Dividend

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

1.35%

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.


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Scott Medhurst (59 yo)

9.33yrs

Tenure

CA$2,799,517

Compensation

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.


Leadership Team

Experienced Management: TIH's management team is seasoned and experienced (5 years average tenure).


Board Members

Experienced Board: TIH's board of directors are considered experienced (5.7 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$8.592b
  • Shares outstanding: 82.66m
  • 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


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 engage...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/25 22:10
End of Day Share Price2021/07/23 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.