NYSE:TTC

Stock Analysis Report

Executive Summary

The Toro Company designs, manufactures, and markets professional and residential equipment worldwide.

Snowflake

Fundamentals

Adequate balance sheet with moderate growth potential.


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


Market Performance


7 Day Return

0.6%

NYSE:TTC

6.0%

US Machinery

1.2%

US Market


1 Year Return

19.0%

NYSE:TTC

-2.1%

US Machinery

1.7%

US Market

TTC outperformed the Machinery industry which returned -2.1% over the past year.

TTC outperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

TTCIndustryMarket
7 Day0.6%6.0%1.2%
30 Day5.1%11.3%4.9%
90 Day8.9%4.1%3.7%
1 Year20.6%19.0%-0.06%-2.1%3.9%1.7%
3 Year63.7%57.7%54.6%44.5%47.2%37.7%
5 Year175.0%157.2%54.3%35.2%60.0%42.4%

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

Valuation

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

28.74x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

Toro is overvalued based on earnings compared to the US Machinery industry average.

Toro is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Toro is poor value based on expected growth next year.


Price Based on Value of Assets

Toro is overvalued based on assets compared to the US Machinery industry average.


Next Steps

Future Growth

How is Toro expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

11.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Toro's revenue is expected to grow by 7.9% yearly, however this is not considered high growth (20% yearly).

Toro's earnings are expected to grow by 11.7% yearly, however this is not considered high growth (20% yearly).

Toro's revenue growth is expected to exceed the United States of America market average.

Toro's earnings growth is positive but not above the United States of America market average.

Toro's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Toro performed over the past 5 years?

10.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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

Toro's 1-year earnings growth is less than its 5-year average (3% vs 10.9%)

Toro's earnings growth has not exceeded the US Machinery industry average in the past year (3% vs 18.7%).


Return on Equity

Toro has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Toro used its assets more efficiently than the US Machinery industry average last year based on Return on Assets.


Return on Capital Employed

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


Next Steps

Financial Health

How is Toro's financial position?


Financial Position Analysis

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

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


Debt to Equity History and Analysis

Toro's level of debt (85.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (55.3% vs 85.4% today).

Debt is well covered by operating cash flow (50.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 16.8x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

1.23%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Toro's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Toro's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

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 (2.9x 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 Toro's salary, the management and board of directors tenure and is there insider trading?

5.3yrs

Average management tenure


CEO

Rick Olson (55yo)

2.8yrs

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

Rick's remuneration is about average for companies of similar size in United States of America.

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


Management Age and Tenure

5.3yrs

Average Tenure

55yo

Average Age

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


Board Age and Tenure

5.3yrs

Average Tenure

59.5yo

Average Age

The tenure for the Toro board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$132,58027 Mar 19
Janet Katherine Cooper
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,941
Max PriceUS$68.31
SellUS$135,89020 Mar 19
Robert Buhrmaster
EntityIndividual
Shares2,000
Max PriceUS$67.95
SellUS$605,46214 Mar 19
Robert Buhrmaster
EntityIndividual
Shares9,000
Max PriceUS$67.43
SellUS$213,70120 Dec 18
Richard Rodier
EntityIndividual
Shares3,727
Max PriceUS$57.45
SellUS$144,11813 Dec 18
Blake Grams
EntityIndividual
Role
Chief Operating Officer
Vice President of Global Operations
Shares2,456
Max PriceUS$58.68
SellUS$360,55821 Sep 18
William Brown
EntityIndividual
Shares5,768
Max PriceUS$62.51

Ownership Breakdown


Management Team

  • Tom Swain (66yo)

    Managing Director of Distributor Development

    • Tenure: 4.4yrs
  • Blake Grams (52yo)

    Vice President of Global Operations

    • Tenure: 6.3yrs
  • Tim Dordell (57yo)

    VP, General Counsel & Secretary

    • Tenure: 12.3yrs
    • Compensation: US$1.37m
  • Kurt Svendsen (53yo)

    Vice President of Information Services

    • Tenure: 6.3yrs
  • Renee Peterson (57yo)

    VP, Treasurer & CFO

    • Tenure: 8.1yrs
    • Compensation: US$1.87m
  • Rick Olson (55yo)

    Chairman

    • Tenure: 2.8yrs
    • Compensation: US$5.07m
  • Amy Dahl (45yo)

    Vice President of Human Resources & Distributor Development

    • Tenure: 4.4yrs
  • Heather Hille

    Director of Investor Relations & External Communications

    • Tenure: 4.3yrs
  • Julie Kerekes

    Managing Director of Tax & Treasury

    • Tenure: 0yrs
  • Nick Rhoads

    Director of Business Development & Strategic Planning

    • Tenure: 0yrs

Board Members

  • Gregg Steinhafel (64yo)

    Independent Director

    • Tenure: 20.7yrs
    • Compensation: US$220.31k
  • Jeffrey Ettinger (61yo)

    Independent Director

    • Tenure: 9.2yrs
    • Compensation: US$206.84k
  • Janet Katherine Cooper (65yo)

    Independent Director

    • Tenure: 25.7yrs
    • Compensation: US$234.14k
  • Kathy Harless (68yo)

    Independent Director

    • Tenure: 19.7yrs
    • Compensation: US$217.56k
  • Chris Koch (54yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$212.90k
  • Gary Ellis (61yo)

    Lead Director

    • Tenure: 0.5yrs
    • Compensation: US$224.73k
  • Jeff Harmening (52yo)

    Independent Director

    • Tenure: 0.5yrs
  • Joc O’Rourke (58yo)

    Independent Director

    • Tenure: 7.1yrs
    • Compensation: US$210.66k
  • Mike Vale (53yo)

    Director

    • Tenure: 1.7yrs
    • Compensation: US$82.17k
  • Rick Olson (55yo)

    Chairman

    • Tenure: 2.8yrs
    • 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$7.906b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TTCNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 1978
TO2DB (Deutsche Boerse AG)YesCommon StockDEEURSep 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 field ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/14 23:42
End of Day Share Price2019/09/13 00:00
Earnings2019/08/02
Annual Earnings2018/10/31


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.