Toromont Industries (TIH) AI Stock Analysis

• Market Cap: C$11.61B
• Dividend Yield: 1.4%
• Average Volume (3M): 139.26K
• Price to Earnings (P/E): 24.0
• Beta (1Y): 0.63
• Revenue Growth: 6.99%
• EPS Growth: -5.58%
• Country: CA
• Employees: 7,300
• Sector: Industrials
• Sector Strength: 83
• Industry: Industrial - Distribution
• EPS (TTM): 1.53
• Shares Outstanding: 81,173,580
• 10 Day Avg. Volume: 123,316
• 30 Day Avg. Volume: 139,260
• PEG Ratio: -3.74
• Price to Book (P/B): 3.15
• Price to Sales (P/S): 1.86
• P/FCF Ratio: 41.85
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$144.38
• Price Target Upside: 0.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 76 Outperform
• Price Target: C$161.00 ▲(12.60% Upside)

Toromont Industries' strong financial performance and positive technical indicators are the primary drivers of its overall score. While the company shows robust revenue growth and effective cash flow management, the high P/E ratio and mixed earnings call sentiment introduce some caution. The technical analysis indicates positive momentum, but potential overbought conditions suggest careful monitoring. Overall, the stock is well-positioned but faces valuation and operational challenges.

Positive Factors

Acquisitions and Investments

Improving visibility into EPS growth resuming due to growth aspirations from recent acquisitions and significant resources for investments.

Company Momentum

CIMCO appears to be gaining momentum with revenues increasing 23% y/y due to stronger packages revenue.

Dividend Increase

The quarterly dividend was increased 8% to $0.52/sh.

Financial Performance

Strong underlying financial performance with EPS growth set to re-accelerate.

Negative Factors

Trade Relations

The potential for tariffs between the US and Canada is an overhang and could impact customer capex decisions.

Toromont Industries Business Overview & Revenue Model

Company Description

Toromont Industries Ltd. provides specialized capital equipment in Canada, the United States, and internationally. It operates in two segments, Equipment Group and CIMCO. The Equipment Group segment engages in the sale, rental, and service of mobile equipment for Caterpillar and other manufacturers; sale, rental, and service of engines used in various applications, including industrial, commercial, marine, on-highway trucks, and power generation; and sale of complementary and related products, parts, and services. This segment serves building, mining, aggregates, public infrastructure, residential construction, power generation, marine, agriculture, forestry, on-highway truck engines, industrial, demolition, and waste management markets. The CIMCO segment is involved in the design, engineering, fabrication, installation, and after-sale support of refrigeration systems in industrial and recreational markets. This segment primarily serves beverage and food processing, cold storage, food distribution, mining, and recreational ice rink sectors. Toromont Industries Ltd. was founded in 1961 and is based in Concord, Canada.

How the Company Makes Money

Toromont Industries makes money through the sale and rental of heavy equipment and power systems in its Equipment Group segment. This includes revenue from new and used equipment sales, rental services, and maintenance and repair services. The company also generates substantial income from its after-market services, which include parts sales and field service work. In the CIMCO segment, Toromont earns revenue from the design, manufacture, and installation of industrial and recreational refrigeration systems, along with ongoing maintenance and support services. Strategic partnerships with leading equipment manufacturers, such as Caterpillar, provide a strong foundation for equipment sales and support, contributing significantly to Toromont's revenue.

Toromont Industries Financial Statement Overview

Summary

Toromont Industries demonstrates strong financial health with consistent revenue growth, effective cost management, and low leverage. However, the decrease in net income and free cash flow poses potential challenges.

Income Statement

Toromont Industries has shown consistent revenue growth over the years, with a 20.5% increase from 2020 to 2024. The gross profit margin remains strong at 24.5% for TTM (Trailing-Twelve-Months). EBIT and EBITDA margins are robust at 13.0% and 18.0%, respectively, indicating effective cost management and operational efficiency. However, a slight decrease in net income from the previous year suggests potential challenges in maintaining profitability.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.33, reflecting low leverage. Return on equity is satisfactory at 16.7% for TTM, displaying effective utilization of equity. The equity ratio is strong at 57.4%, indicating a stable financial structure. However, a notable increase in total debt could pose future financial risks if not managed properly.

Cash Flow

Toromont Industries demonstrates strong cash flow management, with operating cash flow exceeding net income, indicating solid cash generation capabilities. Free cash flow saw a significant decline by 56.6% from the previous year, which could impact future investments and dividend policies. The free cash flow to net income ratio remains healthy, suggesting sustainable operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.11B	5.02B	4.62B	4.23B	3.89B	3.48B
Gross Profit	1.26B	1.26B	1.24B	1.13B	969.77M	835.75M
EBITDA	947.01M	928.78M	932.65M	802.97M	643.32M	547.82M
Net Income	486.03M	506.52M	534.71M	454.20M	332.71M	254.91M
Balance Sheet
Total Assets	5.22B	4.87B	4.57B	4.18B	3.58B	3.35B
Cash, Cash Equivalents and Short-Term Investments	1.03B	890.82M	1.04B	927.78M	916.83M	591.13M
Total Debt	991.41M	689.72M	682.06M	670.92M	665.92M	672.06M
Total Liabilities	2.21B	1.91B	1.89B	1.86B	1.63B	1.65B
Stockholders Equity	3.01B	2.96B	2.68B	2.33B	1.95B	1.70B
Cash Flow
Free Cash Flow	316.77M	222.71M	241.32M	147.62M	471.52M	305.74M
Operating Cash Flow	517.03M	359.23M	355.79M	216.95M	542.72M	349.03M
Investing Cash Flow	-302.09M	-206.80M	-78.12M	-44.33M	-68.87M	-32.55M
Financing Cash Flow	10.59M	-303.54M	-164.49M	-162.16M	-148.14M	-90.88M

Toromont Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 142.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TIH, the sentiment is Positive. The current price of 142.99 is above the 20-day moving average (MA) of 140.00, above the 50-day MA of 130.69, and above the 200-day MA of 119.05, indicating a bullish trend. The MACD of 3.64 indicates Positive momentum. The RSI at 70.23 is Negative, neither overbought nor oversold. The STOCH value of 81.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TIH.

Toromont Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIH	76 Outperform	C$11.61B	24.01	16.70%	1.40%	6.99%	-5.58%
WJX	73 Outperform	C$495.04M	13.82	6.93%	6.08%	2.19%	-48.80%
RUS	72 Outperform	$2.32B	14.32	9.90%	4.13%	5.82%	-15.76%
FTT	69 Neutral	C$7.61B	16.22	18.07%	2.03%	2.36%	0.62%
ARE	68 Neutral	C$1.27B	49.93	2.78%	3.79%	20.53%	74.96%
BBD.A	63 Neutral	C$16.40B	25.78	-23.10%	―	6.69%	64.89%
Sector *	58 Neutral	HK$13.91B	4.82	-3.70%	5.62%	2.15%	-62.33%

Toromont Industries Corporate Events

Toromont Industries Reports Q2 2025 Results with Revenue Growth Amid Earnings Decline

Toromont Industries Ltd. reported a slight increase in revenue for the second quarter of 2025, driven by strong performance in the Equipment Group and CIMCO divisions. Despite a 1% revenue increase, net earnings fell by 8% due to higher expenses and reduced interest income. The company continues to face challenges in the mining segment but sees growth in construction and power. The acquisition of AVL Manufacturing has contributed to the order backlog, and the company is investing in workforce expansion to support future growth.

The most recent analyst rating on (TSE:TIH) stock is a Hold with a C$122.00 price target. To see the full list of analyst forecasts on Toromont Industries stock, see the TSE:TIH Stock Forecast page.

Toromont Industries to Release Q2 2025 Financial Results

Toromont Industries Ltd. is set to announce its second quarter 2025 financial results on July 29, 2025. A teleconference and audio webcast will be held on July 30, 2025, to discuss these results and operating highlights, featuring addresses by key executives. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and operational strategies, potentially impacting its industry positioning and investor relations.

The most recent analyst rating on (TSE:TIH) stock is a Hold with a C$122.00 price target. To see the full list of analyst forecasts on Toromont Industries stock, see the TSE:TIH Stock Forecast page.