Market Cap
US$8.8b
Last Updated
2020/01/23 23:55 UTC
Data Sources
Company Financials +
Executive Summary
The Toro Company designs, manufactures, and markets professional and residential equipment worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet average dividend payer.
Similar Companies
Share Price & News
How has Toro's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TTC has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-1.1%
TTC
-1.7%
US Machinery
-0.09%
US Market
1 Year Return
38.8%
TTC
20.1%
US Machinery
23.9%
US Market
Return vs Industry: TTC exceeded the US Machinery industry which returned 22.4% over the past year.
Return vs Market: TTC exceeded the US Market which returned 24.7% over the past year.
Shareholder returns
| TTC | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.1% | -1.7% | -0.09% |
| 30 Day | 5.2% | -0.9% | 3.1% |
| 90 Day | 12.5% | 5.0% | 10.4% |
| 1 Year | 40.6%38.8% | 22.4%20.1% | 26.6%23.9% |
| 3 Year | 44.5%39.1% | 39.3%30.3% | 50.9%41.2% |
| 5 Year | 169.5%152.4% | 77.6%56.2% | 78.1%58.5% |
Price Volatility Vs. Market
How volatile is Toro's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 hours ago | Simply Wall St
Why The Toro Company’s (NYSE:TTC) Return On Capital Employed Is Impressive1 week ago | Simply Wall St
What Kind Of Shareholders Own The Toro Company (NYSE:TTC)?1 month ago | Simply Wall St
Is It Smart To Buy The Toro Company (NYSE:TTC) Before It Goes Ex-Dividend?Valuation
Is Toro undervalued compared to its fair value and its price relative to the market?
32.28x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: TTC ($83.11) is trading above our estimate of fair value ($53.1)
Significantly Below Fair Value: TTC is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: TTC is poor value based on its PE Ratio (32.4x) compared to the Machinery industry average (23.4x).
PE vs Market: TTC is poor value based on its PE Ratio (32.4x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: TTC is poor value based on its PEG Ratio (2.6x)
Price to Book Ratio
PB vs Industry: TTC is overvalued based on its PB Ratio (10.3x) compared to the US Machinery industry average (2.5x).
Next Steps
Future Growth
How is Toro forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
12.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TTC's forecast earnings growth (12.5% per year) is above the savings rate (1.7%).
Earnings vs Market: TTC's earnings (12.5% per year) are forecast to grow slower than the US market (14.3% per year).
High Growth Earnings: TTC's earnings are forecast to grow, but not significantly.
Revenue vs Market: TTC's revenue (6.2% per year) is forecast to grow slower than the US market (7.5% per year).
High Growth Revenue: TTC's revenue (6.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TTC's Return on Equity is forecast to be high in 3 years time (35.9%)
Next Steps
Past Performance
How has Toro performed over the past 5 years?
9.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TTC has high quality earnings.
Growing Profit Margin: TTC's current net profit margins (8.7%) are lower than last year (10.4%).
Past Earnings Growth Analysis
Earnings Trend: TTC's earnings have grown by 9.9% per year over the past 5 years.
Accelerating Growth: TTC's earnings growth over the past year (0.8%) is below its 5-year average (9.9% per year).
Earnings vs Industry: TTC earnings growth over the past year (0.8%) underperformed the Machinery industry 9.6%.
Return on Equity
High ROE: TTC's Return on Equity (31.9%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Toro's financial position?
Financial Position Analysis
Short Term Liabilities: TTC's short term assets ($1.1B) exceed its short term liabilities ($757.0M).
Long Term Liabilities: TTC's short term assets ($1.1B) exceed its long term liabilities ($714.0M).
Debt to Equity History and Analysis
Debt Level: TTC's debt to equity ratio (81.5%) is considered high.
Reducing Debt: TTC's debt to equity ratio has reduced from 91.8% to 81.5% over the past 5 years.
Debt Coverage: TTC's debt is well covered by operating cash flow (48.1%).
Interest Coverage: TTC's interest payments on its debt are well covered by EBIT (15.2x coverage).
Balance Sheet
Inventory Level: TTC has a high level of physical assets or inventory.
Debt Coverage by Assets: TTC's debt is covered by short term assets (assets are 1.6x debt).
Next Steps
Dividend
What is Toro's current dividend yield, its reliability and sustainability?
1.21%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: TTC's dividend (1.2%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).
High Dividend: TTC's dividend (1.2%) is low compared to the top 25% of dividend payers in the US market (3.66%).
Stability and Growth of Payments
Stable Dividend: TTC's dividends per share have been stable in the past 10 years.
Growing Dividend: TTC's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (35.1%), TTC's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: TTC's dividends in 3 years are forecast to be well covered by earnings (24.7% payout ratio).
Next Steps
Management
What is the CEO of Toro's salary, the management and board of directors tenure and is there insider trading?
5.7yrs
Average management tenure
CEO
Rick Olson (55yo)
3.2yrs
Tenure
US$5,073,126
Compensation
Mr. Richard M. Olson, also known as Rick, has been the Chief Executive Officer of The Toro Company November 1, 2016 and as its President since September 1, 2015. Mr. Olson has been the Chairman of The Toro ...
CEO Compensation Analysis
Compensation vs Market: Rick's total compensation ($USD5.07M) is about average for companies of similar size in the US market ($USD6.46M).
Compensation vs Earnings: Rick's compensation has been consistent with company performance over the past year.
Management Age and Tenure
5.7yrs
Average Tenure
54yo
Average Age
Experienced Management: TTC's management team is seasoned and experienced (5.7 years average tenure).
Board Age and Tenure
5.6yrs
Average Tenure
59.5yo
Average Age
Experienced Board: TTC's board of directors are considered experienced (5.6 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 1,941 |
| Max Price | US$68.31 |
| Entity | Individual |
| Shares | 2,000 |
| Max Price | US$67.95 |
| Entity | Individual |
| Shares | 9,000 |
| Max Price | US$67.43 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Tom Swain (66yo)
Managing Director of Distributor Development
- Tenure: 4.8yrs
Blake Grams (52yo)
Vice President of Global Operations
- Tenure: 6.6yrs
Kurt Svendsen (53yo)
Vice President of Information Services
- Tenure: 6.6yrs
Renee Peterson (57yo)
VP, Treasurer & CFO
- Tenure: 8.4yrs
- Compensation: US$1.87m
Rick Olson (55yo)
Chairman
- Tenure: 3.2yrs
- Compensation: US$5.07m
Amy Dahl (45yo)
General Counsel
Heather Hille
Director of Investor Relations & External Communications
- Tenure: 4.7yrs
Julie Kerekes
Managing Director of Tax & Treasury
Nick Rhoads
Director of Business Development & Strategic Planning
Board Members
Gregg Steinhafel (64yo)
Independent Director
- Tenure: 21yrs
- Compensation: US$220.31k
Jeffrey Ettinger (61yo)
Independent Director
- Tenure: 9.5yrs
- Compensation: US$206.84k
Janet Katherine Cooper (65yo)
Independent Director
- Tenure: 26yrs
- Compensation: US$234.14k
Kathy Harless (68yo)
Independent Director
- Tenure: 20yrs
- Compensation: US$217.56k
Chris Koch (54yo)
Independent Director
- Tenure: 3.8yrs
- Compensation: US$212.90k
Gary Ellis (61yo)
Lead Director
- Tenure: 0.8yrs
- Compensation: US$224.73k
Jeff Harmening (52yo)
Independent Director
- Tenure: 0.8yrs
Joc O’Rourke (58yo)
Independent Director
- Tenure: 7.4yrs
- Compensation: US$210.66k
Mike Vale (53yo)
Independent Director
- Tenure: 2yrs
- Compensation: US$82.17k
Rick Olson (55yo)
Chairman
- Tenure: 3.2yrs
- Compensation: US$5.07m
Company Information
The Toro Company's company bio, employee growth, exchange listings and data sources
Key Information
- Name: The Toro Company
- Ticker: TTC
- Exchange: NYSE
- Founded: 1914
- Industry: Agricultural and Farm Machinery
- Sector: Capital Goods
- Market Cap: US$8.830b
- Shares outstanding: 106.60m
- Website: https://www.thetorocompany.com
Number of Employees
Location
- The Toro Company
- 8111 Lyndale Avenue South
- Bloomington
- Minnesota
- 55420
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TTC | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Sep 1978 |
| TO2 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Sep 1978 |
Biography
The Toro Company designs, manufactures, and markets professional and residential equipment worldwide. The company’s Professional segment offers turf and landscape equipment products, including sports fields and grounds maintenance equipment, golf course mowing and maintenance equipment, landscape contractor mowing equipment, landscape creation and renovation equipment, rental and specialty construction equipment, and other maintenance equipment; and snow and ice management equipment, such as snowplows, salt and sand spreaders, and related parts and accessories for light and medium duty trucks, utility task vehicles, skid steers, and front-end loaders. It also provides irrigation products comprising sprinkler heads, electric and hydraulic valves, controllers, computer irrigation central control systems, coupling systems, and agricultural irrigation system drip tape and hose products, as well as professionally installed lighting products through distributors and landscape contractors. This segment sells its products primarily through a network of distributors and dealers to professional users engaged in maintaining golf courses, sports fields, municipal properties, agricultural fields, residential and commercial landscapes, and removing snow and ice, as well as directly to government customers, rental companies, and retailers. Its Residential segment provides walk power mowers, riding mowers, snow throwers, replacement parts, and home solution products that include trimmers, blowers, blower-vacuums, and underground and hose-end retail irrigation products. This segment sells its products to homeowners through a network of distributors and dealers; and various home centers, hardware retailers, and mass retailers, as well as online. The Toro Company was founded in 1914 and is headquartered in Bloomington, Minnesota.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/23 23:55 |
| End of Day Share Price | 2020/01/23 00:00 |
| Earnings | 2019/10/31 |
| Annual Earnings | 2019/10/31 |
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.