NYSE:TTC

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Solid track record with adequate balance sheet and pays a dividend.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: TTC's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-1.5%

TTC

-3.2%

US Machinery

0.6%

US Market


1 Year Return

17.1%

TTC

20.7%

US Machinery

22.7%

US Market

Return vs Industry: TTC underperformed the US Machinery industry which returned 19.3% over the past year.

Return vs Market: TTC underperformed the US Market which returned 21% over the past year.


Shareholder returns

TTCIndustryMarket
7 Day-1.5%-3.2%0.6%
30 Day10.3%14.1%13.1%
90 Day15.7%11.2%4.5%
1 Year18.8%17.1%23.9%20.7%25.5%22.7%
3 Year44.2%38.5%31.7%22.2%49.0%39.1%
5 Year149.8%134.0%130.4%104.7%98.3%76.5%

Long-Term 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?

32.91x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TTC ($90.59) is trading above our estimate of fair value ($75.15)

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 (32.9x) compared to the US Machinery industry average (29.3x).

PE vs Market: TTC is poor value based on its PE Ratio (32.9x) compared to the US market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: TTC is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: TTC is overvalued based on its PB Ratio (9.2x) compared to the US Machinery industry average (2.7x).


Next Steps

Future Growth

How is Toro forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

14.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TTC's forecast earnings growth (14.8% per year) is above the savings rate (2.2%).

Earnings vs Market: TTC's earnings (14.8% per year) are forecast to grow slower than the US market (21.9% 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 (10.3% 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 (31.1%)


Next Steps

Past Performance

How has Toro performed over the past 5 years?

7.3%

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%) are lower than last year (9.3%).


Past Earnings Growth Analysis

Earnings Trend: TTC's earnings have grown by 7.3% per year over the past 5 years.

Accelerating Growth: TTC's earnings growth over the past year (7.6%) exceeds its 5-year average (7.3% per year).

Earnings vs Industry: TTC earnings growth over the past year (7.6%) exceeded the Machinery industry -15.4%.


Return on Equity

High ROE: TTC's Return on Equity (28.1%) is considered high.


Next Steps

Financial Health

How is Toro's financial position?


Financial Position Analysis

Short Term Liabilities: TTC's short term assets ($1.4B) exceed its short term liabilities ($797.1M).

Long Term Liabilities: TTC's short term assets ($1.4B) exceed its long term liabilities ($962.7M).


Debt to Equity History and Analysis

Debt Level: TTC's debt to equity ratio (84.5%) is considered high.

Reducing Debt: TTC's debt to equity ratio has increased from 83.1% to 84.5% over the past 5 years.

Debt Coverage: TTC's debt is well covered by operating cash flow (43.1%).

Interest Coverage: TTC's interest payments on its debt are well covered by EBIT (12.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Toro current dividend yield, its reliability and sustainability?

1.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TTC's dividend (1.1%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.5%).

High Dividend: TTC's dividend (1.1%) is low compared to the top 25% of dividend payers in the US market (4.18%).


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 (35.4%), 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 (21.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.6yrs

Average management tenure


CEO

Rick Olson (56 yo)

4yrs

Tenure

US$5,267,433

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 ($USD5.27M) is below average for companies of similar size in the US market ($USD10.98M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Richard Olson
Chairman4yrsUS$5.27m0.029%
$ 2.8m
Renee Peterson
VP, Treasurer & CFO9.25yrsUS$1.76m0.061%
$ 5.9m
Blake Grams
Vice President of Global Operations7.42yrsno data0.00018%
$ 17.5k
Kurt Svendsen
Vice President of Information Services7.42yrsno data0.019%
$ 1.8m
Heather Hille
Director of Investor Relations & External Communications5.5yrsno datano data
Amy Dahl
General Counsel0.83yrno data0.018%
$ 1.7m
Thomas Swain
Managing Director of Distributor Development5.58yrsno datano data
Julie Kerekes
Managing Director of Tax & Treasuryno datano datano data
Nicholas Rhoads
Director of Business Development & Strategic Planningno datano datano data
Angie Snavely
Directorno datano datano data

5.6yrs

Average Tenure

55yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Richard Olson
Chairman4yrsUS$5.27m0.029%
$ 2.8m
Gregg Steinhafel
Independent Director21.83yrsUS$208.47k0.049%
$ 4.8m
Jeffrey Ettinger
Independent Director10.33yrsUS$211.87k0.046%
$ 4.5m
Janet Katherine Cooper
Independent Director26.83yrsUS$232.70k0.023%
$ 2.3m
Katherine Harless
Independent Director20.83yrsUS$215.08k0.079%
$ 7.7m
D. Koch
Independent Director4.58yrsUS$209.90k0.0046%
$ 444.2k
Gary Ellis
Lead Independent Director1.67yrsUS$239.22k0.028%
$ 2.8m
Jeffrey Harmening
Independent Director1.67yrsUS$62.89k0.0026%
$ 253.7k
James O'Rourke
Independent Director8.25yrsUS$216.20k0.011%
$ 1.1m
Michael Vale
Independent Director2.83yrsUS$213.65k0%
$ 0
Joyce Mullen
Independent Director1.67yrsUS$58.59kno data

4.6yrs

Average Tenure

59yo

Average Age

Experienced Board: TTC's board of directors are considered experienced (4.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TTC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$9.720b
  • Shares outstanding: 107.30m
  • 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 Analysis2020/12/01 23:25
End of Day Share Price2020/12/01 00:00
Earnings2020/07/31
Annual Earnings2019/10/31


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.