TSX:TIH

Stock Analysis Report

Toromont Industries

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet with proven track record.


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


Market Performance


7 Day Return

2.4%

TSX:TIH

3.6%

CA Trade Distributors

1.5%

CA Market


1 Year Return

2.9%

TSX:TIH

-20.1%

CA Trade Distributors

-2.3%

CA Market

TIH outperformed the Trade Distributors industry which returned -20% over the past year.

TIH outperformed the Market in Canada which returned -2% over the past year.


Share holder returns

TIHIndustryMarket
7 Day2.4%3.6%1.5%
30 Day1.6%0.5%-0.2%
90 Day-9.0%-6.0%0.3%
1 Year4.5%2.9%-17.7%-20.1%1.0%-2.3%
3 Year71.6%63.6%24.8%14.7%22.7%11.7%
5 Year158.4%135.9%25.2%5.7%19.7%3.2%

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 based on future cash flows and its price relative to the stock market?

19.08x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Toromont Industries's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Toromont Industries's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Toromont Industries is overvalued based on earnings compared to the CA Trade Distributors industry average.

Toromont Industries is overvalued based on earnings compared to the Canada market.


Price Based on Expected Growth

Toromont Industries is poor value based on expected growth next year.


Price Based on Value of Assets

Toromont Industries is overvalued based on assets compared to the CA Trade Distributors industry average.


Next Steps

Future Growth

How is Toromont Industries expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

13.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Toromont Industries's revenue is expected to grow by 6.3% yearly, however this is not considered high growth (20% yearly).

Toromont Industries's earnings are expected to grow by 13.1% yearly, however this is not considered high growth (20% yearly).

Toromont Industries's revenue growth is expected to exceed the Canada market average.

Toromont Industries's earnings growth is positive but not above the Canada market average.

Toromont Industries's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Toromont Industries is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Toromont Industries performed over the past 5 years?

13.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Toromont Industries's year on year earnings growth rate has been positive over the past 5 years.

Toromont Industries's 1-year earnings growth exceeds its 5-year average (44.9% vs 13.9%)

Toromont Industries's earnings growth has exceeded the CA Trade Distributors industry average in the past year (44.9% vs 12.9%).


Return on Equity

Toromont Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Toromont Industries used its assets more efficiently than the CA Trade Distributors industry average last year based on Return on Assets.


Return on Capital Employed

Toromont Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Toromont Industries's financial position?


Financial Position Analysis

Toromont Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Toromont Industries's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Toromont Industries's level of debt (48.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (22.5% vs 48.3% today).

Debt is well covered by operating cash flow (35.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 19.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.6x debt.


Next Steps

Dividend

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

1.72%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Toromont Industries's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (2.14%).

Toromont Industries's dividend is below the markets top 25% of dividend payers in Canada (5.72%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.3x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Toromont Industries's salary, the management and board of directors tenure and is there insider trading?

10.5yrs

Average management tenure


CEO

Scott Medhurst (56yo)

7.3yrs

Tenure

CA$3,886,773

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

Scott's remuneration is about average for companies of similar size in Canada.

Scott's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

10.5yrs

Average Tenure

The average tenure for the Toromont Industries management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.0yrs

Average Tenure

65.5yo

Average Age

The tenure for the Toromont Industries board of directors is about average.


Insider Trading

More shares have been bought than sold by Toromont Industries insiders in the past 3 months.


Recent Insider Transactions

BuyCA$23,80004 Jun 19
Peter Blake
EntityIndividual
Role
Member of the Board of Directors
Shares400
Max PriceCA$59.50
BuyCA$15,75329 May 19
David Malinauskas
EntityIndividual
Role
President of CIMCO Refrigeration
Shares257
Max PriceCA$61.33
BuyCA$41,70507 May 19
Lynn Korbak
EntityIndividual
Role
General Counsel & Corporate Secretary
Shares663
Max PriceCA$63.95
BuyCA$93522 Mar 19
Lynn Korbak
EntityIndividual
Role
General Counsel & Corporate Secretary
Shares14
Max PriceCA$66.85
SellCA$173,17208 Mar 19
Robert Franklin
EntityIndividual
Role
Member of the Board of Directors
Shares2,500
Max PriceCA$69.37
SellCA$1,301,80725 Feb 19
Robert Ogilvie
EntityIndividual
Role
Chairman of the Board
Shares18,900
Max PriceCA$69.00
BuyCA$208,66725 Feb 19
Richard Roy
EntityIndividual
Role
Member of the Board of Directors
Shares3,000
Max PriceCA$69.60
BuyCA$99,79813 Nov 18
Cathryn Cranston
EntityIndividual
Role
Member of the Board of Directors
Shares1,700
Max PriceCA$58.71
BuyCA$1,77713 Nov 18
Lynn Korbak
EntityIndividual
Role
General Counsel & Corporate Secretary
Shares30
Max PriceCA$59.24
BuyCA$101,66013 Nov 18
Katherine Rethy
EntityIndividual
Role
Member of the Board of Directors
Shares1,700
Max PriceCA$59.80
BuyCA$3,44711 Sep 18
Lynn Korbak
EntityIndividual
Role
General Counsel & Corporate Secretary
Shares55
Max PriceCA$62.68
SellCA$314,31331 Jul 18
Paul Jewer
EntityIndividual
Role
CFO & Executive VP
Shares4,763
Max PriceCA$66.03

Ownership Breakdown


Management Team

  • Paul Jewer (54yo)

    CFO & Executive VP

    • Tenure: 13.7yrs
    • Compensation: CA$1.95m
  • Lynn Korbak

    General Counsel & Corporate Secretary

    • Tenure: 1.4yrs
  • Randy Casson

    President of Battlefield Equipment Rentals

    • Tenure: 18.4yrs
    • Compensation: CA$1.71m
  • Michael Cuddy

    Chief Information Officer & VP

    • Tenure: 24.4yrs
    • Compensation: CA$1.34m
  • Scott Medhurst (56yo)

    CEO, President & Director

    • Tenure: 7.3yrs
    • Compensation: CA$3.89m
  • Dave Malinauskas

    President of CIMCO Refrigeration

    • Tenure: 4.4yrs
    • Compensation: CA$862.45k

Board Members

  • Jim Gill (69yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: CA$315.00k
  • Peter Blake (56yo)

    Corporate Director

    • Tenure: 0.1yrs
  • Scott Medhurst (56yo)

    CEO, President & Director

    • Tenure: 7.3yrs
    • Compensation: CA$3.89m
  • Cathy Cranston (59yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: CA$311.00k
  • Wayne Hill (72yo)

    Independent Director

    • Tenure: 31.4yrs
    • Compensation: CA$234.50k
  • Rob Franklin (71yo)

    Independent Director

    • Tenure: 25.4yrs
    • Compensation: CA$279.25k
  • Robert Ogilvie (73yo)

    Chairman

    • Tenure: 6.2yrs
    • Compensation: CA$485.00k
  • Katherine Rethy (62yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: CA$333.00k
  • Richard Roy (62yo)

    Independent Director

    • Tenure: 0.6yrs
    • Compensation: CA$45.78k
  • Jeffrey Chisholm (69yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: CA$253.25k

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$4.979b
  • Shares outstanding: 81.48m
  • Website: Click here

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 Analysis2019/06/19 23:46
End of Day Share Price2019/06/19 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


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.