Toromont Industries (TIH) AI Stock Analysis

• Market Cap: C$12.77B
• Dividend Yield: 1.27%
• Average Volume (3M): 166.28K
• Price to Earnings (P/E): 26.3
• Beta (1Y): 0.60
• Revenue Growth: 6.99%
• EPS Growth: -5.58%
• Country: CA
• Employees: 7,300
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 1.53
• Shares Outstanding: 81,367,780
• 10 Day Avg. Volume: 127,018
• 30 Day Avg. Volume: 166,275
• 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$155.00
• Price Target Upside: -3.30% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 77 Outperform
• Price Target: C$182.00 ▲(13.54% Upside)

Toromont Industries' strong financial performance and positive technical indicators are the most significant factors contributing to the score. The valuation suggests potential overvaluation, and mixed earnings call sentiment highlights both opportunities and challenges. The absence of notable corporate events maintains focus on these core aspects.

Positive Factors

Revenue Growth

Consistent revenue growth, particularly in rental and product support, indicates strong demand and effective market positioning, supporting long-term business sustainability.

Strong Liquidity

A robust liquidity position with significant cash reserves enhances financial flexibility, enabling strategic investments and resilience against market fluctuations.

Increased Backlog

A strong and growing backlog reflects sustained demand and provides revenue visibility, supporting future growth and operational planning.

Negative Factors

Decline in Net Income

A decline in net income suggests challenges in maintaining profitability, which could impact financial health if not addressed through cost management or revenue enhancement.

Higher Expenses

Rising expenses, particularly from acquisitions, may pressure margins and require careful management to avoid eroding profitability over time.

Mining Segment Challenges

Significant revenue decline in the mining segment highlights sector-specific volatility, which may affect overall revenue stability if not offset by other segments.

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 generates revenue through multiple key streams. The primary source of income comes from the sale of heavy equipment, particularly Caterpillar products, which are crucial for construction and mining activities. The company also earns significant revenue from its parts and service divisions, providing maintenance, repair, and spare parts for the equipment it sells. Additionally, Toromont's power systems segment, which includes the sale of generators and related services, contributes to its revenue. Strategic partnerships with manufacturers like Caterpillar enhance TIH's offerings and market reach. The company also benefits from its established customer relationships, leading to repeat business and long-term contracts, especially in sectors with ongoing equipment needs.

Toromont Industries Financial Statement Overview

Summary

Toromont Industries exhibits strong financial health with consistent revenue growth, solid profitability margins, and effective cash flow management. The company maintains a stable balance sheet with prudent leverage, although the rising debt levels warrant attention. The robust cash flow growth further strengthens the financial position, making Toromont Industries well-positioned for future growth and stability in the industrial distribution sector.

Income Statement

Toromont Industries demonstrates strong financial performance with a consistent revenue growth rate, highlighted by a 32.6% increase in the TTM period. The company maintains healthy gross and net profit margins, with the TTM gross profit margin at 24.67% and net profit margin at 9.51%. EBIT and EBITDA margins are also robust, indicating efficient operational management. However, there is a slight decline in margins compared to previous periods, which could be a potential area of concern.

Balance Sheet

The balance sheet of Toromont Industries is solid, with a manageable debt-to-equity ratio of 0.33 in the TTM period, reflecting prudent financial leverage. The return on equity is strong at 16.43%, showcasing effective use of shareholder funds. The equity ratio stands at 57.6%, indicating a stable capital structure. However, the increase in total debt over the periods suggests a need for careful monitoring of leverage levels.

Cash Flow

The cash flow position is strong, with a significant free cash flow growth rate of 227.36% in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.45, and the free cash flow to net income ratio is 0.61, both reflecting healthy cash flow management. Despite the positive growth, the operating cash flow coverage ratio is relatively low, suggesting potential liquidity management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.11B	5.02B	4.62B	4.12B	3.89B	3.48B
Gross Profit	1.27B	1.26B	1.24B	1.12B	969.77M	835.75M
EBITDA	892.63M	864.02M	876.31M	772.03M	627.66M	524.86M
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	271.80M	162.19M	180.62M	114.19M	420.68M	253.28M
Operating Cash Flow	628.67M	508.10M	526.99M	388.17M	610.07M	400.09M
Investing Cash Flow	-416.72M	-355.78M	-249.31M	-215.55M	-136.21M	-83.61M
Financing Cash Flow	13.58M	-303.44M	-164.49M	-162.16M	-148.14M	-90.88M

Toromont Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 160.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 160.29 is above the 20-day moving average (MA) of 157.97, above the 50-day MA of 151.02, and above the 200-day MA of 127.40, indicating a bullish trend. The MACD of 2.96 indicates Positive momentum. The RSI at 61.62 is Neutral, neither overbought nor oversold. The STOCH value of 82.51 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	―	C$12.77B	26.35	16.70%	1.27%	6.99%	-5.58%
WJX	―	C$498.64M	13.75	6.93%	5.69%	2.19%	-48.80%
RUS	―	$2.26B	13.95	9.90%	4.03%	5.82%	-15.76%
FTT	―	C$9.77B	20.91	18.07%	1.62%	2.36%	0.62%
ARE	―	C$1.80B	70.80	2.78%	2.77%	20.53%	74.96%
BBD.A	―	C$19.47B	30.85	―	―	6.69%	64.89%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Toromont Industries Corporate Events

Toromont Industries to Release Q3 2025 Financial Results

Toromont Industries Ltd. announced it will release its third quarter 2025 financial results on October 30, 2025, with a subsequent teleconference and webcast scheduled for October 31, 2025. This announcement is significant for stakeholders as it provides an opportunity to gain insights into the company’s financial performance and operational highlights, potentially impacting investor decisions and market positioning.

The most recent analyst rating on (TSE:TIH) stock is a Buy with a C$164.00 price target. To see the full list of analyst forecasts on Toromont Industries stock, see the TSE:TIH Stock Forecast page.

Toromont Industries Earnings Call: Mixed Results Amid Growth and Challenges

The recent earnings call for Toromont Industries Ltd. painted a mixed picture, reflecting both achievements and challenges. While the company reported notable revenue growth, particularly from CIMCO and AVL contributions, it faced hurdles in the mining segment, increased expenses, and a decline in operating income and net earnings. This duality in performance underscores the complex landscape Toromont navigates in the current economic climate.

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.