Toromont Industries (TIH) AI Stock Analysis

• Market Cap: C$12.00B
• Dividend Yield: 1.38%
• Average Volume (3M): 137.06K
• Price to Earnings (P/E): 24.5
• Beta (1Y): 0.59
• 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: 81,207,130
• 10 Day Avg. Volume: 140,478
• 30 Day Avg. Volume: 137,063
• 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$146.22
• Price Target Upside: -1.08% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 76 Outperform
• Price Target: C$161.00 ▲(8.92% 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

Revenue Growth

Consistent revenue growth in key segments like CIMCO indicates strong market demand and effective execution, supporting long-term business expansion.

Strong Liquidity

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

Increased Backlog

A growing backlog reflects strong demand and future revenue visibility, providing a stable foundation for sustained growth and operational planning.

Negative Factors

Decline in Net Income

A decline in net income can strain profitability and limit reinvestment potential, posing challenges to maintaining growth and shareholder returns.

Higher Expenses

Rising expenses, particularly from acquisitions, can pressure margins and reduce operational efficiency, impacting long-term profitability.

Mining Segment Challenges

Significant declines in the mining segment highlight volatility and dependency issues, potentially affecting overall revenue stability and diversification.

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 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	4.23B	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: 147.82
• 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 147.82 is above the 20-day moving average (MA) of 143.49, above the 50-day MA of 136.85, and above the 200-day MA of 120.61, indicating a bullish trend. The MACD of 2.49 indicates Positive momentum. The RSI at 73.13 is Negative, neither overbought nor oversold. The STOCH value of 93.97 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$12.00B	24.50	16.70%	1.38%	6.99%	-5.58%
WJX	73 Outperform	C$507.72M	14.18	6.93%	5.88%	2.19%	-48.80%
FTT	71 Outperform	C$7.62B	16.31	18.07%	2.00%	2.36%	0.62%
ARE	66 Neutral	C$1.37B	54.13	2.78%	3.19%	20.53%	74.96%
Sector *	64 Neutral	$10.84B	15.28	7.40%	1.99%	2.87%	-14.59%
BBD.A	63 Neutral	C$15.99B	25.36	-23.10%	―	6.69%	64.89%
RUSMF	―	$1.69B	14.49	9.90%	4.01%	―	―

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.