NYSE
TTC
Last Price
US $92.72
KEY FIGURES
MKT CAP
$8.8B
EPS
TTM
$3.52
PEG
TTM
N/M
P/E
TTM
26.36x
P/S
TTM
1.92x
YIELD
1.67%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
24.05%
Return on equity
ROIC: 14.02%
Valuation History
26.8X
Price to Earnings
EV/EBITDA: 15.9X
Cash flow
Profit margin
5.95%
(FY vs FY)
EBITDA Y/Y
0.63%
(FY vs FY)
Cash flow Y/Y
4.62%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $92.72
-16.44%
Default assumptions
EBITDA Multiple
Fair Value
Market $92.72
-64.71%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
The Toro Company cash flow to debt ratio of 63.59% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.
Financial stability - Healthy cash flow growth.
The Toro Company's free cash flow has increased 23.99% from $466.40M last year to $578.30M, signaling increasing performance
Financial risk - Healthy debt to equity ratio.
The Toro Company's debt to equity ratio is 0.83, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial risk - Healthy debt to equity ratio development.
The Toro Company's debt has increased relative to shareholder equity from 0.67 last year to 0.83 today, signaling weakened financials
Financial stability - Net debt/EBITDA.
The Toro Company has a net debt to EBITDA ratio of 1.27x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
The Toro Company's interest coverage ratio of 7.72 indicates that earnings with good margin can cover interest payments on company debt
Financial risk - Profit margin growth.
The Toro Company's profit margin has decreased (-20.20%) in the last year from 9.14% to 7.29%, signaling decreasing performance
Financial stability - Short term assets vs short term liabilities.
The Toro Company's short-term assets of $1.71G exceed its short-term liabilities of $912.40M
Increasing performance - ROA.
The Toro Company's return on assets of 9.17% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
The Toro Company's return on equity of 24.05%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
The Toro Company's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
The Toro Company had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
The Toro Company has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
The Toro Company has a free cash flow yield of 6.55%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
The Toro Company's yearly earnings has decreased -24.54% since last year from $418.90M to $316.10M, signaling decreasing performance
Decreasing performance - Healthy revenue growth.
The Toro Company's yearly revenue has decreased -1.60% since last year from $4.58G to $4.51G, signaling decreasing performance
Increasing performance - ROIC.
ROIC 14.02% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Decreasing performance - 3-year revenue CAGR.
The Toro Company's 3-year revenue CAGR of -0.03% is negative, indicating declining revenue over the past 3 years
Increasing performance - Revenue consistency.
The Toro Company had revenue growth in 4.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
The Toro Company had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
The Toro Company is overvalued relative to its fair value price of 77.48 based on Discounted Cash Flow model
Overvalued - Earnings yield.
The Toro Company has an earnings yield of 3.79%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings
Overvalued - EBITDA valuation.
The Toro Company is overvalued relative to its fair value price of 32.72 based on EBITDA multiple model
Undervalued - EV/EBITDA.
The Toro Company has an EV/EBITDA ratio of 17.24x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
The Toro Company has no meaningful EPS growth rate; PEG ratio cannot be computed.
Overvalued - P/B ratio.
The Toro Company has a price-to-book ratio of 6.55x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value
Undervalued - P/S ratio.
The Toro Company has a price-to-sales ratio of 1.92x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue