NYSE:TTC

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Adequate balance sheet with acceptable track record.


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

2.3%

TTC

2.8%

US Machinery

0.8%

US Market


1 Year Return

37.1%

TTC

22.5%

US Machinery

17.8%

US Market

Return vs Industry: TTC exceeded the US Machinery industry which returned 22.5% over the past year.

Return vs Market: TTC exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

TTCIndustryMarket
7 Day2.3%2.8%0.8%
30 Day3.2%0.2%1.8%
90 Day9.0%7.4%4.1%
1 Year38.9%37.1%24.8%22.5%20.4%17.8%
3 Year51.1%45.5%44.3%35.3%45.9%36.4%
5 Year178.3%160.4%69.7%49.7%68.1%49.6%

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 compared to its fair value and its price relative to the market?

31.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TTC ($80.19) is trading above our estimate of fair value ($53.52)

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 (31.1x) compared to the Machinery industry average (22.6x).

PE vs Market: TTC is poor value based on its PE Ratio (31.1x) compared to the US market (18.4x).


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 (10.1x) compared to the US Machinery industry average (2.4x).


Next Steps

Future Growth

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

11.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TTC's forecast earnings growth (11.8% per year) is above the savings rate (1.7%).

Earnings vs Market: TTC's earnings (11.8% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: TTC's earnings are forecast to grow, but not significantly.

Revenue vs Market: TTC's revenue (6.9% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: TTC's revenue (6.9% 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 (35.2%)


Next Steps

Past Performance

How has Toro performed over the past 5 years?

10.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TTC has high quality earnings.

Growing Profit Margin: TTC's current net profit margins (9.3%) are lower than last year (10.4%).


Past Earnings Growth Analysis

Earnings Trend: TTC's earnings have grown by 10.9% per year over the past 5 years.

Accelerating Growth: TTC's earnings growth over the past year (3%) is below its 5-year average (10.9% per year).

Earnings vs Industry: TTC earnings growth over the past year (3%) underperformed the Machinery industry 13.5%.


Return on Equity

High ROE: TTC's Return on Equity (32.6%) 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 ($756.4M).

Long Term Liabilities: TTC's short term assets ($1.1B) exceed its long term liabilities ($709.5M).


Debt to Equity History and Analysis

Debt Level: TTC's debt to equity ratio (85.4%) is considered high.

Reducing Debt: TTC's debt to equity ratio has increased from 55.3% to 85.4% over the past 5 years.

Debt Coverage: TTC's debt is well covered by operating cash flow (50.6%).

Interest Coverage: TTC's interest payments on its debt are well covered by EBIT (16.8x 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?

1.25%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Toro before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.2%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years1.2%

Current dividend yield vs market & industry

Notable Dividend: TTC's dividend (1.25%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: TTC's dividend (1.25%) is low compared to the top 25% of dividend payers in the US market (3.72%).


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 (33.9%), TTC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

5.6yrs

Average management tenure


CEO

Rick Olson (55yo)

3.1yrs

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 ($USD5.07M) is about average for companies of similar size in the US market ($USD6.70M).

Compensation vs Earnings: Rick's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.6yrs

Average Tenure

55yo

Average Age

Experienced Management: TTC's management team is seasoned and experienced (5.6 years average tenure).


Board Age and Tenure

5.5yrs

Average Tenure

59.5yo

Average Age

Experienced Board: TTC's board of directors are considered experienced (5.5 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

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

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: 4.7yrs
  • Blake Grams (52yo)

    Vice President of Global Operations

    • Tenure: 6.5yrs
  • Tim Dordell (57yo)

    VP, General Counsel & Secretary

    • Tenure: 12.6yrs
    • Compensation: US$1.37m
  • Kurt Svendsen (53yo)

    Vice President of Information Services

    • Tenure: 6.5yrs
  • Renee Peterson (57yo)

    VP, Treasurer & CFO

    • Tenure: 8.3yrs
    • Compensation: US$1.87m
  • Rick Olson (55yo)

    Chairman

    • Tenure: 3.1yrs
    • Compensation: US$5.07m
  • Amy Dahl (45yo)

    Vice President of Human Resources & Distributor Development

    • Tenure: 4.7yrs
  • Heather Hille

    Director of Investor Relations & External Communications

    • Tenure: 4.6yrs
  • 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: 20.9yrs
    • Compensation: US$220.31k
  • Jeffrey Ettinger (61yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: US$206.84k
  • Janet Katherine Cooper (65yo)

    Independent Director

    • Tenure: 25.9yrs
    • Compensation: US$234.14k
  • Kathy Harless (68yo)

    Independent Director

    • Tenure: 19.9yrs
    • Compensation: US$217.56k
  • Chris Koch (54yo)

    Independent Director

    • Tenure: 3.7yrs
    • 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: 7.3yrs
    • Compensation: US$210.66k
  • Mike Vale (53yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$82.17k
  • Rick Olson (55yo)

    Chairman

    • Tenure: 3.1yrs
    • 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$8.439b
  • 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 Analysis2019/12/11 23:46
End of Day Share Price2019/12/11 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.