The Toro Company (TTC) AI Stock Analysis

• Market Cap: $7.68B
• Dividend Yield: 1.95%
• Average Volume (3M): 1.02M
• Price to Earnings (P/E): 24.8
• Beta (1Y): 1.08
• Revenue Growth: -1.53%
• EPS Growth: -21.19%
• Country: US
• Employees: 11,108
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 0.91
• Shares Outstanding: 97,862,144
• 10 Day Avg. Volume: 1,611,343
• 30 Day Avg. Volume: 1,024,379
• PEG Ratio: -1.11
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 1.65
• P/FCF Ratio: 12.86
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 1.78
• Enterprise Value/Gross Profit: 5.33
• Enterprise Value/Ebitda: 13.97
• 1Y Price Target: $87.00
• Price Target Upside: 10.73% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 4.51
• Revenue Forecast (FY): $4.69B

• Rating: 69 Neutral
• Price Target: $88.00 ▲(12.00% Upside)

The Toro Company's overall stock score reflects a stable financial foundation with strong cash flow generation and strategic growth initiatives, such as the acquisition of Tornado Infrastructure. However, challenges in revenue growth, profitability margins, and potential overbought technical indicators temper the outlook. The earnings call provided a positive sentiment, but highlighted ongoing challenges in certain segments.

Positive Factors

Strategic Acquisition

This acquisition enhances Toro's market reach in the industrial equipment sector, positioning it to capture a greater share of the infrastructure market.

Cash Flow Generation

Strong cash flow generation supports operational flexibility and investment in growth initiatives, ensuring long-term financial health.

Professional Segment Growth

Growth in the professional segment indicates robust demand and operational efficiency, contributing positively to overall profitability.

Negative Factors

Decline in Residential Segment Sales

Declining sales in the residential segment suggest challenges in consumer demand, potentially impacting revenue diversification.

Decreased Overall Net Sales

A decrease in overall net sales reflects potential difficulties in maintaining growth momentum, affecting long-term revenue stability.

Impact of Tariffs

Significant tariff costs can erode profit margins and increase operational costs, posing a risk to long-term financial performance.

The Toro Company Business Overview & Revenue Model

Company Description

The Toro Company engages in the designing, manufacturing, marketing, and selling professional and residential equipment worldwide. The company's Professional segment offers turf and landscape equipment products, including sports fields and grounds mowing and maintenance equipment, golf course mowing and maintenance equipment, landscape contractor mowing equipment, landscape creation and renovation equipment, and other maintenance equipment; rental, specialty, and underground construction equipment; and snow and ice management equipment, such as snowplows, brush, snow thrower attachment, salt and sand spreaders, and related parts and accessories for light and medium duty trucks, utility task vehicles, skid steers, and front-end loaders. It also provides irrigation and lighting products that consist of sprinkler heads, electric and hydraulic valves, controllers, computer irrigation central control systems, coupling systems, and ag-irrigation drip tape and hose products, as well as professionally installed landscape lighting products offered through distributors and landscape contractors. This segment sells its products primarily through a network of distributors and dealers to professional users engaged in maintaining golf courses, sports fields, municipal properties, agricultural fields, residential and commercial landscapes, and removing snow and ice, as well as directly to government customers, rental companies, and retailers. Its Residential segment provides walk power mowers, zero-turn riding mowers, snow throwers, replacement parts, and home solution products that include grass and hedge trimmers, leaf blowers, blower-vacuums, chainsaws, string trimmers, hoses, and hose-end retail irrigation products. This segment sells its products to homeowners through a network of distributors and dealers; and home centers, hardware retailers, and mass retailers, as well as online. The Toro Company was founded in 1914 and is headquartered in Bloomington, Minnesota.

How the Company Makes Money

The Toro Company generates revenue primarily through the sale of its wide range of outdoor equipment and services. Key revenue streams include residential and commercial equipment sales, irrigation systems, and snow removal products. The company also earns income from parts and accessories, which contribute to ongoing maintenance and support for their products. Toro has established significant partnerships with distributors, dealers, and retailers, enhancing its market reach and sales capabilities. Seasonal demand for snow removal equipment and summer lawn care products further influences revenue, with peak sales periods aligning with regional weather conditions. Additionally, Toro invests in research and development to innovate and expand its product offerings, which drives customer loyalty and repeat business.

The Toro Company Financial Statement Overview

Summary

The Toro Company shows a stable financial foundation with strong cash flow generation. However, declining revenue growth and profitability margins highlight potential operational challenges. The balance sheet shows improved leverage, but the decrease in return on equity suggests a need for strategic focus on enhancing shareholder returns.

Income Statement

The Toro Company shows a mixed performance in its income statement. The gross profit margin has been relatively stable, but the net profit margin has seen a decline from previous years. Revenue growth has been negative in the most recent year, indicating potential challenges in maintaining sales momentum. The EBIT and EBITDA margins have also decreased, suggesting pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio has improved slightly, indicating better leverage management. However, the return on equity has decreased, which could be a concern for investors. The equity ratio remains stable, showing a balanced asset structure.

Cash Flow

Cash flow analysis reveals a positive trend with an increase in free cash flow growth. The operating cash flow to net income ratio is strong, indicating efficient cash generation relative to net income. However, the free cash flow to net income ratio has slightly decreased, suggesting a need for careful cash management.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.51B	4.58B	4.55B	4.51B	3.96B
Gross Profit	1.50B	1.55B	1.58B	1.50B	1.34B
EBITDA	552.80M	702.90M	578.40M	697.00M	627.80M
Net Income	316.10M	418.90M	329.70M	443.30M	409.90M
Balance Sheet
Total Assets	3.44B	3.58B	3.64B	3.56B	2.94B
Cash, Cash Equivalents and Short-Term Investments	341.00M	199.50M	193.10M	188.25M	405.61M
Total Debt	1.02B	1.04B	1.16B	1.07B	761.28M
Total Liabilities	1.99B	2.03B	2.13B	2.20B	1.79B
Stockholders Equity	1.45B	1.55B	1.51B	1.35B	1.15B
Cash Flow
Free Cash Flow	578.30M	466.40M	157.30M	153.70M	451.50M
Operating Cash Flow	662.00M	569.90M	306.80M	297.20M	555.50M
Investing Cash Flow	-77.40M	-59.70M	-157.70M	-548.30M	-128.50M
Financing Cash Flow	-446.10M	-505.10M	-147.50M	42.20M	-503.70M

The Toro Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 78.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTC, the sentiment is Positive. The current price of 78.57 is above the 20-day moving average (MA) of 73.03, above the 50-day MA of 72.76, and above the 200-day MA of 72.93, indicating a bullish trend. The MACD of 1.74 indicates Negative momentum. The RSI at 65.29 is Neutral, neither overbought nor oversold. The STOCH value of 71.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$18.20B	18.45	17.96%	2.52%	0.24%	-1.85%
LECO	77 Outperform	$13.45B	26.29	38.11%	1.22%	3.27%	10.89%
RBC	77 Outperform	$14.54B	55.77	8.54%	―	8.27%	19.06%
TKR	76 Outperform	$6.01B	20.37	9.80%	1.61%	-1.01%	-12.13%
TTC	69 Neutral	$7.68B	24.81	21.04%	1.95%	-1.53%	-21.19%
SWK	68 Neutral	$11.65B	25.83	4.92%	4.42%	-1.40%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

The Toro Company Corporate Events

The Toro Company Acquires Tornado Infrastructure Equipment

On December 8, 2025, The Toro Company completed its acquisition of Tornado Infrastructure Equipment Ltd., a manufacturer of vacuum trucks and industrial equipment solutions based in Calgary, Alberta. This strategic acquisition, valued at CAD $279 million, enhances Toro’s market reach in the underground construction and energy markets, positioning it to capture a greater share of the rapidly growing infrastructure space. The acquisition is expected to be neutral to adjusted earnings per share in the first year and increasingly accretive thereafter, with anticipated cost synergies of $3 million USD over three years.

The Toro Company to Acquire Tornado Infrastructure

On October 6, 2025, The Toro Company announced an agreement to acquire Tornado Infrastructure Equipment Ltd., a manufacturer of vacuum trucks and industrial equipment solutions, for CAD $279 million. The acquisition is expected to close in the first quarter of fiscal 2026, subject to shareholder and regulatory approvals, and will see Tornado become a wholly-owned subsidiary of Toro, enhancing its market position in the industrial equipment sector.

The Toro Company Enters Note Purchase Agreement

On September 30, 2025, The Toro Company entered into a Note Purchase Agreement with several purchasers. This agreement involves the issuance of a 5.27% Senior Note due on September 20, 2032, which could impact the company’s financial strategy and stakeholder interests.