Toromont Industries Ltd.

TSX:TIH Stock Report

Market Cap: CA$9.8b

Toromont Industries Valuation

Is TIH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of TIH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
CA$161.74
Fair Value
25.1% undervalued intrinsic discount
9
Number of Analysts

Below Fair Value: TIH (CA$121.1) is trading below our estimate of fair value (CA$161.74)

Significantly Below Fair Value: TIH is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TIH?

Key metric: As TIH is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for TIH. This is calculated by dividing TIH's market cap by their current earnings.
What is TIH's PE Ratio?
PE Ratio19.4x
EarningsCA$506.52m
Market CapCA$9.85b

Price to Earnings Ratio vs Peers

How does TIH's PE Ratio compare to its peers?

The above table shows the PE ratio for TIH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.1x
FTT Finning International
11.7x6.7%CA$6.0b
RCH Richelieu Hardware
24.5xn/aCA$2.1b
RUS Russel Metals
15.2x17.0%CA$2.4b
ADEN ADENTRA
12.8x25.1%CA$854.1m
TIH Toromont Industries
19.4x6.0%CA$9.8b

Price-To-Earnings vs Peers: TIH is expensive based on its Price-To-Earnings Ratio (19.4x) compared to the peer average (16.1x).

Price to Earnings Ratio vs Industry

How does TIH's PE Ratio compare vs other companies in the North American Trade Distributors Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TIH 19.4xIndustry Avg. 19.4xNo. of Companies8PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TIH is expensive based on its Price-To-Earnings Ratio (19.4x) compared to the North American Trade Distributors industry average (19.4x).

Price to Earnings Ratio vs Fair Ratio

What is TIH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TIH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.4x
Fair PE Ratio15.8x

Price-To-Earnings vs Fair Ratio: TIH is expensive based on its Price-To-Earnings Ratio (19.4x) compared to the estimated Fair Price-To-Earnings Ratio (15.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst TIH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$121.10
CA$137.17
+13.3%
4.7%CA$150.00CA$130.00n/a9
Feb ’26CA$115.89
CA$134.11
+15.7%
6.4%CA$150.00CA$122.00n/a9
Jan ’26CA$113.64
CA$134.00
+17.9%
6.5%CA$150.00CA$122.00n/a9
Dec ’25CA$115.00
CA$135.22
+17.6%
6.3%CA$150.00CA$122.00n/a9
Nov ’25CA$123.66
CA$138.89
+12.3%
4.7%CA$150.00CA$128.00n/a9
Oct ’25CA$132.01
CA$138.11
+4.6%
4.7%CA$150.00CA$128.00n/a9
Sep ’25CA$120.67
CA$138.11
+14.5%
4.7%CA$150.00CA$128.00n/a9
Aug ’25CA$125.71
CA$138.38
+10.1%
4.9%CA$150.00CA$128.00n/a8
Jul ’25CA$121.13
CA$135.00
+11.5%
3.2%CA$142.00CA$128.00n/a8
Jun ’25CA$119.04
CA$135.00
+13.4%
3.2%CA$142.00CA$128.00n/a8
May ’25CA$125.30
CA$136.67
+9.1%
3.6%CA$145.00CA$130.00n/a9
Apr ’25CA$130.42
CA$136.67
+4.8%
3.6%CA$145.00CA$130.00n/a9
Mar ’25CA$125.30
CA$136.11
+8.6%
3.0%CA$142.00CA$130.00n/a9
Feb ’25CA$119.70
CA$127.11
+6.2%
3.5%CA$135.00CA$123.00CA$115.899
Jan ’25CA$116.10
CA$126.22
+8.7%
4.4%CA$135.00CA$116.00CA$113.649
Dec ’24CA$113.05
CA$124.78
+10.4%
4.7%CA$135.00CA$116.00CA$115.009
Nov ’24CA$108.03
CA$125.11
+15.8%
5.2%CA$138.00CA$116.00CA$123.669
Oct ’24CA$110.62
CA$127.33
+15.1%
4.7%CA$138.00CA$116.00CA$132.019
Sep ’24CA$112.63
CA$127.33
+13.1%
4.7%CA$138.00CA$116.00CA$120.679
Aug ’24CA$113.89
CA$127.33
+11.8%
4.7%CA$138.00CA$116.00CA$125.719
Jul ’24CA$108.83
CA$127.00
+16.7%
4.8%CA$138.00CA$115.00CA$121.139
Jun ’24CA$105.88
CA$127.00
+19.9%
4.8%CA$138.00CA$115.00CA$119.049
May ’24CA$108.39
CA$127.00
+17.2%
4.8%CA$138.00CA$115.00CA$125.309
Apr ’24CA$110.93
CA$125.11
+12.8%
5.3%CA$138.00CA$113.00CA$130.429
Mar ’24CA$113.40
CA$125.11
+10.3%
5.3%CA$138.00CA$113.00CA$125.309
Feb ’24CA$106.47
CA$118.00
+10.8%
5.5%CA$130.00CA$110.00CA$119.708
Analyst Price Target
Consensus Narrative from 9 Analysts
CA$137.17
Fair Value
11.7% undervalued intrinsic discount
9
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/16 08:47
End of Day Share Price 2025/02/14 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Toromont Industries Ltd. is covered by 18 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
David HeasmanAccountability Research Corporation
Devin DodgeBMO Capital Markets Equity Research
null nullBMO Capital Markets Equity Research