TTC Stock Overview
The Toro Company engages in the designing, manufacturing, marketing, and selling professional and residential equipment worldwide.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$76.87|
|52 Week High||US$115.68|
|52 Week Low||US$71.86|
|1 Month Change||-7.01%|
|3 Month Change||-11.00%|
|1 Year Change||-29.63%|
|3 Year Change||17.16%|
|5 Year Change||10.30%|
|Change since IPO||4,819.68%|
Recent News & Updates
The Toro Company Looks Attractive At The Current Levels
In the near term, the company's revenue growth is expected to be driven by a strong backlog order and higher price realization. While the cost headwinds are expected to continue, margins should improve sequentially in 2H FY22 vs. 1H FY22, and longer-term margin prospects also look good. Valuations are attractive.
Toro: The Bottom Is In
Toro's sales growth is exceeding expectations and margins continue to recover. The raised EPS guidance of $4.00 to $4.15 still looks conservative when modeling the income statement based on management comments. At around 20 times forward earnings, Toro stock has rarely been this cheap in the last 6 years.
|TTC||US Machinery||US Market|
Return vs Industry: TTC underperformed the US Machinery industry which returned -19.8% over the past year.
Return vs Market: TTC underperformed the US Market which returned -18.8% over the past year.
|TTC Average Weekly Movement||4.9%|
|Machinery Industry Average Movement||6.0%|
|Market Average Movement||8.1%|
|10% most volatile stocks in US Market||16.7%|
|10% least volatile stocks in US Market||3.2%|
Stable Share Price: TTC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: TTC's weekly volatility (5%) has been stable over the past year.
About the Company
The Toro Company engages in the designing, manufacturing, marketing, and selling professional and residential equipment worldwide. The company’s Professional segment offers turf and landscape equipment products, including sports fields and grounds mowing and maintenance equipment, golf course mowing and maintenance equipment, landscape contractor mowing equipment, landscape creation and renovation equipment, and other maintenance equipment; rental, specialty, and underground construction equipment; and snow and ice management equipment, such as snowplows, brush, snow thrower attachment, 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 and lighting products that consist of sprinkler heads, electric and hydraulic valves, controllers, computer irrigation central control systems, coupling systems, and ag-irrigation drip tape and hose products, as well as professionally installed landscape lighting products offered through distributors and landscape contractors.
Toro Fundamentals Summary
|TTC fundamental statistics|
Is TTC overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|TTC income statement (TTM)|
|Cost of Revenue||US$2.79b|
Last Reported Earnings
Apr 29, 2022
Next Earnings Date
|Earnings per share (EPS)||3.41|
|Net Profit Margin||8.67%|
How did TTC perform over the long term?See historical performance and comparison
1.6%Current Dividend Yield
Is TTC undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 2/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for TTC?
Other financial metrics that can be useful for relative valuation.
|What is TTC's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does TTC's PE Ratio compare to its peers?
|TTC PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
CNHI CNH Industrial
TWI Titan International
Price-To-Earnings vs Peers: TTC is expensive based on its Price-To-Earnings Ratio (22.5x) compared to the peer average (16x).
Price to Earnings Ratio vs Industry
How does TTC's PE Ratio compare vs other companies in the US Machinery Industry?
Price-To-Earnings vs Industry: TTC is expensive based on its Price-To-Earnings Ratio (22.5x) compared to the US Machinery industry average (21.5x)
Price to Earnings Ratio vs Fair Ratio
What is TTC'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.
|Current PE Ratio||22.5x|
|Fair PE Ratio||21.1x|
Price-To-Earnings vs Fair Ratio: TTC is expensive based on its Price-To-Earnings Ratio (22.5x) compared to the estimated Fair Price-To-Earnings Ratio (21.1x).
Share Price vs Fair Value
What is the Fair Price of TTC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: TTC ($76.87) is trading below our estimate of fair value ($143.53)
Significantly Below Fair Value: TTC is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: TTC is poor value based on its PEG Ratio (1.7x)
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How is Toro forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TTC's forecast earnings growth (13.5% per year) is above the savings rate (1.9%).
Earnings vs Market: TTC's earnings (13.5% per year) are forecast to grow slower than the US market (13.8% per year).
High Growth Earnings: TTC's earnings are forecast to grow, but not significantly.
Revenue vs Market: TTC's revenue (8.2% per year) is forecast to grow slower than the US market (8.3% per year).
High Growth Revenue: TTC's revenue (8.2% 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 (30.9%)
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How has Toro performed over the past 5 years?
Past Performance Score3/6
Past Performance Score 3/6
Growing Profit Margin
Earnings vs Industry
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 (11.2%).
Past Earnings Growth Analysis
Earnings Trend: TTC's earnings have grown by 10.1% per year over the past 5 years.
Accelerating Growth: TTC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: TTC had negative earnings growth (-13.8%) over the past year, making it difficult to compare to the Machinery industry average (24%).
Return on Equity
High ROE: TTC's Return on Equity (29.2%) is considered high.
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How is Toro's financial position?
Financial Health Score4/6
Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: TTC's short term assets ($1.7B) exceed its short term liabilities ($1.1B).
Long Term Liabilities: TTC's short term assets ($1.7B) exceed its long term liabilities ($1.1B).
Debt to Equity History and Analysis
Debt Level: TTC's net debt to equity ratio (67.7%) is considered high.
Reducing Debt: TTC's debt to equity ratio has increased from 55.8% to 89.2% over the past 5 years.
Debt Coverage: TTC's debt is well covered by operating cash flow (25.6%).
Interest Coverage: TTC's interest payments on its debt are well covered by EBIT (16.1x coverage).
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What is Toro current dividend yield, its reliability and sustainability?
Dividend Score 3/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TTC's dividend (1.56%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).
High Dividend: TTC's dividend (1.56%) is low compared to the top 25% of dividend payers in the US market (4.25%).
Stability and Growth of Payments
Stable Dividend: TTC's dividends per share have been stable in the past 10 years.
Growing Dividend: TTC's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (33.4%), TTC's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its high cash payout ratio (90.4%), TTC's dividend payments are not well covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Rick Olson (57 yo)
Mr. Richard M. Olson, also known as Rick, serves as Director at Donaldson Company, Inc since January 27, 2022. He has been the Chief Executive Officer of The Toro Company since November 1, 2016 and has bee...
CEO Compensation Analysis
Compensation vs Market: Rick's total compensation ($USD8.63M) is about average for companies of similar size in the US market ($USD8.23M).
Compensation vs Earnings: Rick's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Experienced Management: TTC's management team is seasoned and experienced (7.2 years average tenure).
Experienced Board: TTC's board of directors are considered experienced (6.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
The Toro Company's employee growth, exchange listings and data sources
- Name: The Toro Company
- Ticker: TTC
- Exchange: NYSE
- Founded: 1914
- Industry: Agricultural and Farm Machinery
- Sector: Capital Goods
- Implied Market Cap: US$8.216b
- Shares outstanding: 104.57m
- Website: https://www.thetorocompany.com
Number of Employees
- The Toro Company
- 8111 Lyndale Avenue South
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/06/28 00:00|
|End of Day Share Price||2022/06/28 00:00|
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.