A Business at a Glance
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TORO CO
TTC
$9.3B
Mkt Cap
$93.76
+2.38%
TORO CO (TTC) has a current P/E ratio of 16.4, compared to its historical median P/E of 23.5. The stock is currently considered Cheap based on its historical valuation range.
TORO CO (TTC) has a 5-year average return on invested capital (ROIC) of 21.4%. This indicates strong capital allocation and a potential competitive advantage.
TORO CO (TTC) has a market capitalization of $9.1B. It is classified as a mid-cap stock.
Yes, TORO CO (TTC) pays a dividend with a trailing twelve-month yield of 1.66%. The company also returns capital through share buybacks, with a buyback yield of 3.13%.
Based on historical P/E analysis, TORO CO (TTC) appears cheap. The current P/E of 16.4 is 30% below its historical median of 23.5. The estimated fair value CAGR (P/E method) is 10.8%.
TORO CO (TTC) operates in the Lawn & Garden Tractors & Home Lawn & Gardens Equip industry, within the Industrials sector.
TORO CO (TTC) reported annual revenue of $4.5 billion in its most recent fiscal year, based on SEC EDGAR filings.
The Toro Company designs, manufactures, and sells professional turf maintenance equipment, irrigation systems, landscaping and lighting products, snow and ice management equipment, agricultural irrigation systems, rental and specialty construction equipment, and residential yard and snow products under brands including Toro, Ditch Witch, eXmark, Spartan, BOSS, Ventrac, American Augers, Subsite, HammerHead, Radius, Perrot, Hayter, Unique Lighting Systems, Irritrol, and Lawn-Boy. The company operates through two reportable segments—Professional (80.3% of fiscal 2025 net sales) and Residential (19.0%)—distributing products worldwide through a network of distributors, dealers, mass retailers, hardware retailers, equipment rental centers, home centers, and direct-to-end-user channels. The Professional segment serves golf courses, sports fields, municipal properties, landscape contractors, underground construction companies, and agricultural operations, while the Residential segment targets homeowners. The company emphasizes innovation and quality, with a significant portion of net sales historically attributable to new and enhanced products introduced in the current and prior two fiscal years, and pursues strategic acquisitions to complement existing brands and enhance product portfolios, as exemplified by the December 2025 acquisition of Tornado Infrastructure Equipment Ltd. for hydrovac excavation solutions. The business model combines equipment sales with service and parts revenue streams, supported by an extensive dealer and service network, and the company has committed to disciplined portfolio management and capital allocation strategies.
【Strong professional momentum continuing】 Management expects the Professional segment to drive mid-single-digit growth in fiscal 2026, with particular strength in underground construction, golf and grounds, and snow and ice management businesses, supported by multi-year secular growth trends and record golf participation. The Residential segment is expected to remain challenged by consumer confidence and inflation pressures, though management has improved its outlook to approximately flat for the full year after strong first-half performance. The company is raising its full-year adjusted EPS guidance to $4.50–$4.62, reflecting outperformance in the first half of 2026 and confidence in delivering strong results despite a dynamic external environment, while continuing to execute on its AMP operational excellence initiative targeting $125 million in run-rate savings by the end of 2026. Management remains cautious about macro factors including tariff impacts and inflation but is positioned to capitalize on continued strong demand in professional markets and the long pipeline of irrigation and underground construction projects ahead.
| Metric | Target | Period |
|---|---|---|
| Net sales growth | 4%-6.5% | FY2026 |
| Professional segment net sales growth | 5%-7% | FY2026 |
| Residential segment net sales growth | approximately flat | FY2026 |
| Q3 FY2026 total company net sales growth | mid-single digits | Q3 FY2026 |
| Q3 FY2026 professional segment net sales growth | mid-single digits | Q3 FY2026 |
| Q3 FY2026 residential segment net sales growth | low single digits | Q3 FY2026 |
| Q3 FY2026 adjusted EPS growth | mid-single digits | Q3 FY2026 |
| Free cash flow conversion | at least 120% | FY2026 |
| Tariff refund | $20 million | FY2026 |
Net sales growth (FY2026): “We now expect full-year sales growth in the range of 4%-6.5%”
Professional segment net sales growth (FY2026): “This reflects strength in our professional segment, which we now expect to grow in the range of 5%-7% for the year.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 4.6B | 4.5B | 4.6B | 4.6B | 4.5B | 4.0B |
| Net Income | 331M | 316M | 419M | 330M | 443M | 410M |
| EPS | $3.37 | $3.17 | $4.01 | $3.13 | $4.20 | $3.78 |
| Free Cash Flow | 661M | 578M | 466M | 157M | 154M | 452M |
| ROIC | 15.1% | 16.0% | 18.8% | 15.7% | 25.7% | 30.8% |
| Gross Margin | 33.1% | 33.4% | 33.8% | 34.6% | 33.3% | 33.8% |
| Debt/Equity | 0.76 | 0.63 | 0.59 | 0.68 | 0.73 | 0.60 |
| Dividends/Share | $1.56 | $1.52 | $1.44 | $1.36 | $1.20 | $1.05 |
| Operating Income | 419M | 410M | 533M | 431M | 576M | 518M |
| Operating Margin | 9.2% | 9.1% | 11.6% | 9.5% | 12.8% | 13.1% |
| ROE | 23.3% | 21.0% | 27.4% | 23.0% | 35.4% | 36.2% |
| Shares Outstanding | 97M | 100M | 104M | 105M | 106M | 108M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 2.2B | 2.4B | 2.4B | 2.5B | 2.6B | 3.1B | 3.4B | 4.0B | 4.5B | 4.6B | 4.6B | 4.5B | 4.6B |
| Gross Margin | 35.6% | 35.0% | 36.6% | 36.8% | 35.9% | 33.4% | 35.2% | 33.8% | 33.3% | 34.6% | 33.8% | 33.4% | 33.1% |
| R&D | N/A | N/A | 77M | 80M | 84M | 109M | 124M | 141M | 156M | 174M | 173M | 162M | 162M |
| SG&A | 510M | 537M | 540M | 566M | 568M | 723M | 763M | 820M | 929M | 996M | 1.0B | 1.0B | 1.0B |
| EBIT | 263M | 299M | 334M | 355M | 373M | 325M | 426M | 518M | 576M | 431M | 533M | 410M | 419M |
| Op. Margin | 12.1% | 12.5% | 14.0% | 14.2% | 14.2% | 10.4% | 12.6% | 13.1% | 12.8% | 9.5% | 11.6% | 9.1% | 9.2% |
| Net Income | 174M | 202M | 231M | 268M | 272M | 274M | 330M | 410M | 443M | 330M | 419M | 316M | 331M |
| Net Margin | 8.0% | 8.4% | 9.7% | 10.7% | 10.4% | 8.7% | 9.8% | 10.4% | 9.8% | 7.2% | 9.1% | 7.0% | 7.3% |
| Non-Recurring | 0 | 1.4M | 340K | 0 | 0 | -484K | 0 | 0 | 0 | 133M | 0 | 81M | 81M |
| Returns on Capital | |||||||||||||
| ROIC | 41.1% | 35.2% | 35.5% | 43.3% | 41.8% | 26.3% | 25.1% | 30.8% | 25.7% | 15.7% | 18.8% | 16.0% | 15.1% |
| ROE | 45.3% | 46.3% | 45.6% | 45.9% | 42.3% | 35.9% | 33.4% | 36.2% | 35.4% | 23.0% | 27.4% | 21.0% | 23.3% |
| ROA | 15.8% | 16.2% | 17.2% | 18.6% | 17.7% | 14.0% | 12.7% | 14.2% | 13.7% | 9.2% | 11.6% | 9.0% | 8.9% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 182M | 250M | 384M | 361M | 365M | 337M | 539M | 556M | 297M | 307M | 570M | 662M | 737M |
| Free Cash Flow | 111M | 193M | 334M | 302M | 275M | 244M | 461M | 452M | 154M | 157M | 466M | 578M | 661M |
| Owner Earnings | 118M | 176M | 310M | 282M | 291M | 236M | 428M | 434M | 166M | 168M | 419M | 500M | 1.5B |
| CapEx | 71M | 56M | 51M | 58M | 90M | 93M | 78M | 104M | 144M | 150M | 104M | 84M | 76M |
| Maint. CapEx | 53M | 63M | 64M | 65M | 61M | 88M | 96M | 99M | 109M | 119M | 128M | 143M | -774M |
| Growth CapEx | 18M | 0 | 0 | 0 | 29M | 5.2M | 0 | 4.7M | 35M | 30M | 0 | 0 | 850M |
| D&A | 53M | 63M | 64M | 65M | 61M | 88M | 96M | 99M | 109M | 119M | 128M | 143M | -774M |
| CapEx/OCF | 39.0% | 23.8% | 13.2% | 16.2% | 24.7% | 27.5% | 14.5% | 18.7% | 48.3% | 48.7% | 18.2% | 12.6% | 10.3% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 45M | 56M | 66M | 76M | 85M | 96M | 108M | 112M | 126M | 142M | 150M | 151M | 151M |
| Dividend Yield | 1.5% | 1.7% | 0.8% | 1.2% | 1.4% | 1.5% | 1.5% | 1.1% | 1.4% | 1.4% | 1.7% | 2.0% | 1.7% |
| Share Buybacks | 103M | 106M | 110M | 159M | 160M | 20M | 0 | 302M | 140M | 60M | 246M | 290M | 285M |
| Buyback Yield | 3.4% | 2.9% | 2.4% | 2.5% | 3.0% | 0.3% | N/A | 3.1% | 1.3% | 0.7% | 3.0% | 3.9% | 3.1% |
| Stock-Based Comp | 11M | 11M | 11M | 14M | 12M | 13M | 15M | 22M | 22M | 19M | 23M | 19M | 21M |
| Debt Repayment | 130M | 7.2M | 24M | 19M | 20M | 511M | 546M | 370M | 400M | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | 60M | 252M | 77M | 22M | 23M | 549M | 311M | 286M | 803M | 838M | 722M | 581M | 883M |
| Cash & Equiv. | 315M | 126M | 274M | 310M | 289M | 152M | 480M | 406M | 188M | 193M | 200M | 341M | 189M |
| Long-Term Debt | 347M | 355M | 328M | 306M | 313M | 621M | 691M | 691M | 991M | 1.0B | 912M | 922M | 1.1B |
| Debt/Equity | 0.92 | 0.82 | 0.64 | 0.54 | 0.47 | 0.82 | 0.71 | 0.60 | 0.73 | 0.68 | 0.59 | 0.63 | 0.76 |
| Interest Coverage | 17.1 | 15.9 | 17.3 | 18.6 | 19.5 | 11.3 | 12.9 | 18.1 | 16.1 | 7.3 | 8.6 | 6.9 | 7.2 |
| Equity | 409M | 462M | 550M | 617M | 669M | 860M | 1.1B | 1.2B | 1.4B | 1.5B | 1.6B | 1.5B | 1.4B |
| Total Assets | 1.2B | 1.3B | 1.4B | 1.5B | 1.6B | 2.3B | 2.9B | 2.9B | 3.6B | 3.6B | 3.6B | 3.4B | 3.7B |
| Total Liabilities | 784M | 838M | 835M | 877M | 902M | 1.5B | 1.7B | 1.8B | 2.2B | 2.1B | 2.0B | 2.0B | 20M |
| Intangibles | 24M | 119M | 108M | 104M | 106M | 352M | 408M | 420M | 586M | 540M | 499M | 390M | 446M |
| Retained Earnings | 369M | 383M | 480M | 534M | 587M | 785M | 1.0B | 1.1B | 1.3B | 1.4B | 1.5B | 1.4B | 1.3B |
| Working Capital | 424M | 229M | 315M | 338M | 362M | 366M | 572M | 552M | 612M | 850M | 789M | 793M | 708M |
| Current Assets | 824M | 673M | 779M | 860M | 895M | 1.1B | 1.4B | 1.5B | 1.7B | 1.8B | 1.8B | 1.7B | 1.7B |
| Current Liabilities | 400M | 444M | 464M | 522M | 533M | 757M | 856M | 937M | 1.1B | 949M | 976M | 912M | 1.0B |
| Per Share Data | |||||||||||||
| EPS | 1.56 | 1.84 | 1.03 | 2.41 | 2.50 | 2.53 | 3.03 | 3.78 | 4.20 | 3.13 | 4.01 | 3.17 | 3.37 |
| Owner EPS | 1.06 | 1.60 | 1.38 | 2.54 | 2.68 | 2.18 | 3.94 | 4.01 | 1.58 | 1.60 | 4.01 | 5.02 | 15.37 |
| Book Value | 3.67 | 4.22 | 2.45 | 5.56 | 6.15 | 7.94 | 10.25 | 10.62 | 12.81 | 14.34 | 14.86 | 14.57 | 14.64 |
| Cash Flow/Share | 1.64 | 2.28 | 1.71 | 3.25 | 3.35 | 3.12 | 4.96 | 5.12 | 2.82 | 2.91 | 5.46 | 6.64 | -4.57 |
| Dividends/Share | 0.40 | 0.51 | 0.30 | 0.70 | 0.80 | 0.90 | 1.00 | 1.05 | 1.20 | 1.36 | 1.44 | 1.52 | 1.56 |
| Shares Out. | 111.5M | 109.5M | 224.3M | 111.1M | 108.8M | 108.3M | 108.8M | 108.4M | 105.5M | 105.3M | 104.5M | 99.7M | 96.9M |
| Valuation | |||||||||||||
| P/E Ratio | 17.2 | 18.4 | 20.2 | 23.5 | 19.7 | 26.7 | 25.0 | 23.5 | 24.1 | 24.9 | 19.9 | 23.5 | 27.8 |
| P/FCF | 26.0 | 18.6 | 27.9 | 20.8 | 19.5 | 30.0 | 17.8 | 21.3 | 69.5 | 52.2 | 17.8 | 12.8 | 13.8 |
| EV/EBIT | 10.4 | 12.8 | 13.4 | 17.0 | 14.4 | 24.5 | 20.3 | 19.1 | 19.9 | 21.0 | 17.0 | 19.5 | 23.8 |
| Price/Book | 7.3 | 8.0 | 8.5 | 10.2 | 8.0 | 8.5 | 7.4 | 8.4 | 7.9 | 5.4 | 5.4 | 5.1 | 6.4 |
| Price/Sales | 1.4 | 1.4 | 1.7 | 2.4 | 2.3 | 2.1 | 2.2 | 2.6 | 2.0 | 2.3 | 2.0 | 1.7 | 2.0 |
| FCF Yield | 3.7% | 5.2% | 7.2% | 4.8% | 5.1% | 3.3% | 5.6% | 4.7% | 1.4% | 1.9% | 5.6% | 7.8% | 7.3% |
| Market Cap | 3.0B | 3.7B | 4.7B | 6.3B | 5.4B | 7.3B | 8.2B | 9.6B | 10.7B | 8.2B | 8.3B | 7.4B | 9.1B |
| Avg. Price | 26.30 | 29.04 | 36.99 | 54.98 | 54.95 | 60.76 | 68.11 | 95.40 | 84.34 | 98.09 | 86.03 | 75.74 | 93.76 |
| Year-End Price | 25.97 | 32.78 | 41.54 | 56.64 | 49.31 | 67.62 | 75.65 | 88.84 | 101.14 | 78.02 | 79.64 | 74.39 | 93.76 |
TORO CO passes 5 of 9 quality checks, suggesting mixed fundamentals.
TORO CO trades at 16.4x trailing earnings, compared to its 15-year median P/E of 23.5x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 10.4x vs a median of 21.1x. The company's 5-year average ROIC is 21.4% with a gross margin of 33.8%. Total shareholder yield (dividends + buybacks) is 4.8%. At current prices, the estimated annualized return to fair value is -0.2%.
TORO CO (TTC) has a net profit margin of 7.0%. This is a modest margin.
TORO CO (TTC) generated $578 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
TORO CO (TTC) has a debt-to-equity ratio of 0.63. This indicates moderate leverage.
TORO CO (TTC) reported earnings per share (EPS) of $3.17 in its most recent fiscal year.
TORO CO (TTC) has a return on equity (ROE) of 21.0%. This indicates the company generates strong returns for shareholders.
TORO CO (TTC) has a 5-year average gross margin of 33.8%. This indicates decent pricing power.
The Ledger Terminal provides 15 years of financial data for TORO CO (TTC), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
TORO CO (TTC) has a book value per share of $14.57, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects the Professional segment to drive mid-single-digit growth in fiscal 2026, with particular strength in underground construction, golf and grounds, and snow and ice management businesses, supported by multi-year secular growth trends and record golf participation. The Residential segment is expected to remain challenged by consumer confidence and inflation pressures, though management has improved its outlook to approximately flat for the full year after strong first-half performance. The company is raising its full-year adjusted EPS guidance to $4.50–$4.62, reflecting outperformance in the first half of 2026 and confidence in delivering strong results despite a dynamic external environment, while continuing to execute on its AMP operational excellence initiative targeting $125 million in run-rate savings by the end of 2026. Management remains cautious about macro factors including tariff impacts and inflation but is positioned to capitalize on continued strong demand in professional markets and the long pipeline of irrigation and underground construction projects ahead.
Based on recent SEC filings and earnings calls, TORO CO (TTC) has provided the following forward guidance: Net sales growth: 4%-6.5% (FY2026); Professional segment net sales growth: 5%-7% (FY2026); Residential segment net sales growth: approximately flat (FY2026); Q3 FY2026 total company net sales growth: mid-single digits (Q3 FY2026); Q3 FY2026 professional segment net sales growth: mid-single digits (Q3 FY2026), plus 4 additional metrics.
Residential segment net sales growth (FY2026): “After a strong second quarter, the outlook for full-year residential sales growth have improved, and we expect it to be about flat even as consumer confidence and inflation continue to be challenging.”
Q3 FY2026 total company net sales growth (Q3 FY2026): “For the third quarter, we expect total company sales to be up mid-single digits.”
Q3 FY2026 professional segment net sales growth (Q3 FY2026): “We expect professional to be up mid-single digits”
Q3 FY2026 residential segment net sales growth (Q3 FY2026): “and residential to be up low single digits.”
Q3 FY2026 adjusted EPS growth (Q3 FY2026): “we expect third quarter total company adjusted EPS up mid-single digits.”
Free cash flow conversion (FY2026): “For the full year, we now expect high single-digit adjusted EPS growth and free cash flow conversion of at least 120%.”
No recent press releases.