The Toro Company (TTC) AI Stock Analysis

• Market Cap: $7.48B
• Dividend Yield: 1.96%
• Average Volume (3M): 883.54K
• Price to Earnings (P/E): 23.4
• Beta (1Y): 1.09
• Revenue Growth: 0.78%
• EPS Growth: -13.62%
• Country: US
• Employees: 11,108
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 1.24
• Shares Outstanding: 97,862,144
• 10 Day Avg. Volume: 764,018
• 30 Day Avg. Volume: 883,545
• PEG Ratio: 0.72
• Price to Book (P/B): 5.38
• Price to Sales (P/S): 1.82
• P/FCF Ratio: 17.91
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 1.81
• Enterprise Value/Gross Profit: 5.43
• Enterprise Value/Ebitda: 13.73
• 1Y Price Target: $90.67
• Price Target Upside: 19.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 63 Neutral
• Price Target: $81.00 ▲(7.03% Upside)

The Toro Company's overall stock score reflects solid financial health and operational efficiency, particularly in the Professional segment. However, bearish technical indicators and challenges in the Residential segment weigh on the score. The stock's valuation is moderate, and while there are positive aspects, the mixed earnings call results and declining sales present risks.

Positive Factors

Professional Segment Growth

The growth in the Professional segment indicates strong demand in key areas like underground construction and golf, supporting long-term revenue stability.

Operational Efficiency and Cost Savings

Cost savings from the AMP program enhance operational efficiency, improving profitability and competitive positioning over the long term.

Strong Free Cash Flow

Robust free cash flow generation provides financial flexibility for investments, debt reduction, and shareholder returns, supporting long-term growth.

Negative Factors

Decline in Residential Segment

The significant decline in the Residential segment reflects reduced consumer demand, potentially impacting overall revenue and market share.

Total Company Net Sales Decline

A decline in total net sales suggests challenges in maintaining growth momentum, which could pressure future revenue streams.

Pressure on Overall Margins

Decreased margins due to higher costs and lower sales volume may affect profitability, requiring strategic adjustments to sustain long-term competitiveness.

The Toro Company Business Overview & Revenue Model

Company Description

The Toro Company (TTC) is a leading provider of innovative solutions for the outdoor environment, specializing in turf maintenance, landscape and irrigation products, and snow removal equipment. Founded in 1914, Toro operates in various sectors, including residential, commercial, and professional landscaping, offering a wide range of products such as lawn mowers, irrigation systems, and snow throwers. The company is committed to providing quality products and services that enhance the outdoor experience for customers worldwide.

How the Company Makes Money

The Toro Company generates revenue through multiple streams, primarily from the sale of its core products, which include turf maintenance equipment, irrigation systems, and snow removal machinery. The company serves various markets such as residential customers, commercial landscaping businesses, and agricultural sectors. Key revenue streams include direct sales of equipment to end-users, distribution through a network of dealers and retailers, and service and replacement parts for existing equipment. Additionally, Toro benefits from recurring revenue through maintenance contracts and aftermarket services. Strategic partnerships with distributors and collaborations with landscape professionals also contribute to its market reach and revenue generation, enhancing customer loyalty and driving long-term growth.

The Toro Company Financial Statement Overview

Summary

The Toro Company demonstrates solid financial health with strong cash flow management and low leverage. However, recent declines in revenue growth and profit margins suggest potential operational challenges. The company remains financially stable with efficient equity utilization, but needs to address revenue and profitability pressures to maintain its competitive position.

Income Statement

The Toro Company shows a stable gross profit margin of around 33%, but recent revenue growth has been negative at -0.56% TTM, indicating potential challenges in sales. Net profit margin has decreased to 7.37% TTM from 9.14% in the previous year, reflecting pressure on profitability. EBIT and EBITDA margins have also declined slightly, suggesting operational challenges.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.07 TTM, indicating low leverage and financial stability. Return on equity is strong at 22.55% TTM, though slightly down from previous years, showing efficient use of equity. The equity ratio remains robust, supporting the company's financial health.

Cash Flow

Free cash flow growth is positive at 8.23% TTM, indicating improved cash generation. The operating cash flow to net income ratio is healthy at 0.62, showing good cash conversion. The free cash flow to net income ratio is strong at 0.84, reflecting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.52B	4.58B	4.55B	4.51B	3.96B	3.38B
Gross Profit	1.50B	1.55B	1.58B	1.50B	1.34B	1.19B
EBITDA	594.50M	702.90M	578.40M	697.00M	627.80M	535.84M
Net Income	333.00M	418.90M	329.70M	443.30M	409.90M	329.70M
Balance Sheet
Total Assets	3.52B	3.58B	3.64B	3.56B	2.94B	2.85B
Cash, Cash Equivalents and Short-Term Investments	201.00M	199.50M	193.10M	188.25M	405.61M	479.89M
Total Debt	1.14B	1.04B	1.16B	1.07B	761.28M	873.21M
Total Liabilities	2.11B	2.03B	2.13B	2.20B	1.79B	1.74B
Stockholders Equity	1.41B	1.55B	1.51B	1.35B	1.15B	1.11B
Cash Flow
Free Cash Flow	492.10M	466.40M	157.30M	153.70M	451.50M	461.31M
Operating Cash Flow	589.00M	569.90M	306.80M	297.20M	555.50M	539.37M
Investing Cash Flow	-67.00M	-59.70M	-157.70M	-548.30M	-128.50M	-216.08M
Financing Cash Flow	-542.70M	-505.10M	-147.50M	42.20M	-503.70M	2.35M

The Toro Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 75.68
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTC, the sentiment is Negative. The current price of 75.68 is below the 20-day moving average (MA) of 79.41, below the 50-day MA of 77.25, and below the 200-day MA of 75.78, indicating a bearish trend. The MACD of -0.27 indicates Positive momentum. The RSI at 38.27 is Neutral, neither overbought nor oversold. The STOCH value of 6.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TTC.

The Toro Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNA	78 Outperform	17.71B	18.09	17.50%	2.54%	-0.76%	-2.62%
LECO	78 Outperform	12.89B	26.28	36.45%	1.25%	0.24%	0.05%
RBC	74 Outperform	11.95B	47.72	8.13%	―	5.48%	16.88%
TKR	69 Neutral	5.27B	17.21	9.47%	1.86%	-2.01%	-9.95%
SWK	64 Neutral	11.62B	23.81	4.45%	4.48%	-2.71%	―
TTC	63 Neutral	$7.48B	23.39	21.85%	1.96%	0.78%	-13.62%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

The Toro Company Corporate Events

The Toro Company Appoints New President and COO

On August 7, 2025, The Toro Company appointed Edric C. Funk as President and Chief Operating Officer, effective September 1, 2025. Mr. Funk, who has been with the company since 1996, has held various roles, culminating in his recent position as group vice president of Golf, Grounds, and Irrigation. His new compensation package includes a base salary of $700,000, an increased annual incentive payout target, and a one-time grant of restricted stock units valued at approximately $1,500,000. This leadership change is expected to influence the company’s strategic direction and operational focus.