TTC

The Toro Company

Fundamental data last updated:August 19, 2026

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company profile

SECTOR

Industrials

industry

Manufacturing - Tools & Accessories

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

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. This segment sells its products primarily through a network of distributors and dealers to professional users engaged in maintaining golf courses, sports fields, municipal properties, agricultural fields, residential and commercial landscapes, and removing snow and ice, as well as directly to government customers, rental companies, and retailers. Its Residential segment provides walk power mowers, zero-turn riding mowers, snow throwers, replacement parts, and home solution products that include grass and hedge trimmers, leaf blowers, blower-vacuums, chainsaws, string trimmers, hoses, and hose-end retail irrigation products. This segment sells its products to homeowners through a network of distributors and dealers; and home centers, hardware retailers, and mass retailers, as well as online. The Toro Company was founded in 1914 and is headquartered in Bloomington, Minnesota.

 


VALUATION

P/E

26.50

Market Cap ($M USD)

$8.73B

Forward P/E

15.60

PEG

0.22

PRICE TO SALES

1.92

PRICE TO BOOK

6.18

EV / EBITDA

14.82

5-Year Average P/E

Free Cash Flow Yield

7.57%

DCF Value

$88.62

Graham Number

$33.18

Price to FCF

13.21

EV to FCF

13.10

Earnings Yield

3.77%

FCF Yield

7.57%

DIVIDEND

Yield

1.72%

Annual Payout

$1.54

Payout Ratio

45.56%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$3.38

Next Year EPS Growth Estimate

$5.74

Next Year Revenue Growth Estimate

$5.29B

Return on Equity (ROE)

23.00%

FREE CASH FLOW

Operating Margin

9.27%

Debt-to-Equity

0.70

Piotroski F-Score

7

Altman Z-Score

4.67

Return on Invested Capital (ROIC)

15.79%

Current Ratio

1.69

Quick Ratio

0.73

Net Debt to EBITDA

-0.13

Interest Coverage

7.24

Gross Profit margin

33.09%

FCF PER SHARE

$6.74

REVENUE PER SHARE

$46.46

Gainseekers Quantitative Analysis

Summary

The Toro Company appears to be a mixed bag in terms of valuation and financial health. Recent pricing has shown the stock trading above its DCF value, suggesting a potential overvaluation. However, the Forward P/E of 16.64 and a robust Altman Z-score of 4.80 indicate a solid growth trajectory and financial stability. The Earnings Yield of 3.54% is modest, hinting at limited immediate returns. Yet, the market seems to be pricing in future growth, possibly justified by the impressive estimated EPS growth.

AI Exposure / Tech Reliance

Operating within the manufacturing sector, The Toro Company is well-positioned to integrate AI and modern technology into its operations. As a player in the tools and accessories industry, automation and smart technology could enhance production efficiency and product innovation. This adaptability could provide a competitive edge in an evolving market landscape.

The Bull Case

For value or GARP investors, The Toro Company offers compelling reasons to buy. With a strong ROIC of 15.79%, the company demonstrates efficient capital allocation, driving shareholder value. The Piotroski F-Score of 7 signals solid financial health, while a Free Cash Flow Yield of 7.10% underscores its ability to generate cash. These metrics suggest robust pricing power and operational efficiency, making it an attractive investment for those seeking growth at a reasonable price.

The Bear Case

Despite its strengths, The Toro Company is not without risks. The Price/Book ratio of 6.59 and Price/Sales ratio of 2.04 suggest a premium valuation, potentially limiting upside. Additionally, the stock's proximity to its 52-week high raises concerns about technical overextension. While debt levels are manageable, the quick ratio of 0.73 indicates potential liquidity constraints, warranting caution for investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$86.00

Institutional Ownership %

1-Year Beta

0.73

Insider Buying % (6 Mo)

Distance to 52-Week High

17.47%

Distance to 52-Week Low

25.13%

EARNINGS SURPRISE %

13.85%

50-DAY SMA

$93.59

200-DAY SMA

$84.88

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.