Toromont Industries (TIH) AI Stock Analysis

• Market Cap: C$10.39B
• Dividend Yield: 1.63%
• Average Volume (3M): 131.62K
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.66
• Revenue Growth: 10.93%
• EPS Growth: -3.34%
• Country: CA
• Employees: 7,300
• Sector: Industrials
• Sector Strength: 92
• Industry: Industrial - Distribution
• EPS (TTM): 0.91
• Shares Outstanding: 81,149,666
• 10 Day Avg. Volume: 105,104
• 30 Day Avg. Volume: 131,622
• PEG Ratio: -11.47
• Price to Book (P/B): 3.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 95.26
• 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$127.14
• Price Target Upside: 0.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 76 Outperform
• Price Target: C$140.00 ▲(10.15%Upside)

Toromont Industries exhibits strong financial performance with effective cost management and solid cash flow operations. The earnings call provided insights into strategic growth areas, though profitability challenges were noted. Technical indicators suggest a bullish trend, albeit with overbought risks. Valuation metrics are moderate, balancing income appeal with fair pricing.

Positive Factors

Dividends

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

Financial Performance

Financial performance was better-than-expected in Q4/24, supporting organic and M&A growth to deliver EPS growth.

Revenue Growth

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

Negative Factors

Trade Tariffs

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 a combination of equipment sales, rentals, product support services, and refrigeration system solutions. The Equipment Group generates revenue by selling and renting heavy machinery and power systems, primarily representing Caterpillar products. This segment also provides comprehensive after-sales support, including maintenance, repairs, and parts supply, creating a recurring revenue stream. The CIMCO segment contributes to the company's earnings by offering custom-designed refrigeration systems for industrial and recreational applications, which include installation, maintenance, and repair services. Key factors contributing to Toromont's revenue include robust customer relationships, a wide range of high-quality product offerings, and strategic partnerships with leading equipment manufacturers.

Toromont Industries Financial Statement Overview

Summary

Toromont Industries exhibits strong financial health with consistent revenue growth and effective cost management. Despite a slight decrease in net income, the company maintains a healthy balance sheet with low leverage and strong cash flow management, although free cash flow has recently declined.

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	5.09B	5.02B	4.62B	4.23B	3.89B	3.48B
Gross Profit	1.25B	1.26B	1.24B	1.13B	969.77M	835.75M
EBITDA	915.94M	928.78M	932.65M	802.97M	643.32M	547.82M
Net Income	497.03M	506.52M	534.71M	454.20M	332.71M	254.91M
Balance Sheet
Total Assets	5.18B	4.87B	4.57B	4.18B	3.58B	3.35B
Cash, Cash Equivalents and Short-Term Investments	977.46M	890.82M	1.04B	927.78M	916.83M	591.13M
Total Debt	992.06M	689.72M	682.06M	663.22M	658.12M	662.86M
Total Liabilities	2.20B	1.91B	1.89B	1.86B	1.63B	1.65B
Stockholders Equity	2.97B	2.96B	2.68B	2.33B	1.95B	1.70B
Cash Flow
Free Cash Flow	96.77M	222.71M	241.32M	147.62M	471.52M	305.74M
Operating Cash Flow	336.09M	359.23M	355.79M	216.95M	542.72M	349.03M
Investing Cash Flow	-325.99M	-206.80M	-78.12M	-44.33M	-68.87M	-32.55M
Financing Cash Flow	-16.84M	-303.54M	-164.49M	-162.16M	-148.14M	-90.88M

Toromont Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 127.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 127.1 is above the 20-day moving average (MA) of 122.63, above the 50-day MA of 119.04, and above the 200-day MA of 117.78, indicating a bullish trend. The MACD of 2.18 indicates Negative momentum. The RSI at 73.10 is Negative, neither overbought nor oversold. The STOCH value of 89.52 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
FTT	79 Outperform	C$8.02B	16.84	18.79%	2.02%	6.61%	1.87%
TIH	76 Outperform	C$10.39B	21.07	17.36%	1.63%	10.93%	-3.34%
WJX	73 Outperform	C$499.59M	12.31	8.09%	6.00%	-2.65%	-47.65%
Sector *	67 Neutral	CHF6.79B	26.47	14.57%	2.58%	-2.26%	-28.96%
BBD.A	67 Neutral	C$16.13B	41.23	-23.10%	―	16.31%	4.12%
ARE	55 Neutral	C$1.32B	―	-9.26%	3.64%	1.70%	-154.73%
RUSMF		$1.84B	17.14	9.30%	3.81%	―	―

Toromont Industries Corporate Events

Toromont Industries Elects Board of Directors at Annual Meeting

Toromont Industries Ltd. announced the election of its Board of Directors at the Annual General Meeting of Shareholders, with all nominees from the Management Information Circular being elected. This election reinforces the company’s governance structure, potentially impacting its strategic direction and stakeholder confidence.

Toromont Industries Reports Q1 2025 Financial Results with Revenue Growth Amid Market Challenges

Toromont Industries Ltd. reported a 7% increase in revenue for the first quarter of 2025, reaching $1.1 billion, despite challenges in the market. However, net earnings and operating income saw declines of 11% and 8%, respectively, due to a less favorable sales mix and lower interest income. The Equipment Group experienced growth in new equipment sales and rentals, although used equipment sales and product support revenue were down. CIMCO also showed revenue growth, but overall bookings decreased by 12% due to economic uncertainty affecting customer decisions. The company’s backlog remains healthy at $1.3 billion, although slightly down from the previous year.

Toromont Industries to Announce Q1 2025 Results and Host Annual Meeting

Toromont Industries Ltd. is set to release its first quarter 2025 financial results on April 30, 2025, followed by an annual general meeting of shareholders on May 1, 2025. The announcement will be accompanied by a teleconference and webcast, providing an opportunity for analysts and stakeholders to engage with the company’s leadership. This event is significant for stakeholders as it offers insights into the company’s financial performance and strategic direction.