The Toro Company (TTC)
NYSE:TTC
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The Toro Company
(NYSE:TTC)
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Rating:75Outperform
Price Target:
$106.00
▲(14.10% Upside)
Action:ReiteratedDate:03/20/26
TTC scores well on financial quality (strong cash generation and a conservative balance sheet) and is supported by a positive earnings-call update with raised FY2026 guidance and improving free-cash-flow outlook. Offsetting factors are weaker near-term technical momentum and a relatively rich valuation (P/E ~33) with only a modest dividend yield.
Positive Factors
Strong free cash flow
Toro's high trailing‑twelve‑month free cash flow and ~90% FCF-to-net-income conversion indicate durable cash generation. That cash funds capex, dividends, buybacks and selective M&A, supports balance sheet resilience through seasonal cycles, and underpins long-term strategic optionality.
Negative Factors
Flat revenue trajectory
Trailing revenue stagnation and a slight recent annual decline suggest mature end markets and limited organic growth. Persistent flat top-line constrains the ability to expand operating leverage and requires either sustained product innovation or accretive M&A to drive meaningful long-term earnings growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Toro's high trailing‑twelve‑month free cash flow and ~90% FCF-to-net-income conversion indicate durable cash generation. That cash funds capex, dividends, buybacks and selective M&A, supports balance sheet resilience through seasonal cycles, and underpins long-term strategic optionality.
Read all positive factors
The Toro Company (TTC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.09B
Dividend Yield1.95%
Average Volume (3M)836.82K
Price to Earnings (P/E)33.0
Beta (1Y)0.98
Revenue Growth-0.47%
EPS Growth-14.81%
CountryUS
Employees11,108
SectorIndustrials
Sector Strength72
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)0.74
Shares Outstanding96,932,940
10 Day Avg. Volume680,865
30 Day Avg. Volume836,819
Financial Highlights & Ratios
PEG Ratio-1.11
Price to Book (P/B)5.12
Price to Sales (P/S)1.65
P/FCF Ratio12.86
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue1.99
Enterprise Value/Gross Profit6.02
Enterprise Value/Ebitda15.52
Forecast
1Y Price Target
$102.50Price Target Upside10.33% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)4.55
Revenue Forecast (FY)$4.72B
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...
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 a...
The Toro Company Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Tracks profit after operating costs for each segment, revealing where the company is most efficient and where margins are under pressure. Helps investors see whether revenue growth is translating into real earnings and where cost or pricing issues could affect profitability.
Tracks profit after operating costs for each segment, revealing where the company is most efficient and where margins are under pressure. Helps investors see whether revenue growth is translating into real earnings and where cost or pricing issues could affect profitability.
Data provided by:
The Fly
The FlyThe Toro Company Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jun 04, 2026
Earnings Call Sentiment Positive
The call was broadly positive: Toro delivered revenue and EPS beats, improved margins, meaningful AMP savings ($95M toward a $125M goal), stronger free cash flow and inventory metrics, executed a strategic acquisition (Tornado), launched new products, and raised full-year sales and EPS guidance. Offsets include ongoing material/manufacturing cost pressure, some international softness, residential variability, and high M&A valuations. On balance, the operational beats, cash generation, cost-savings progress, and upgraded guidance outweigh the manageable headwinds.Positive Updates
Consolidated Revenue Growth
Consolidated net sales of $1.04 billion, up 4.2% year-over-year, driven by stronger-than-expected demand across Professional and Residential segments.
Negative Updates
Cost Pressure from Materials and Manufacturing
Higher material and manufacturing costs (and tariffs) remain a headwind; management is relying on AMP productivity gains and net price realization to moderate and offset these pressures.
Read all updates
Q1-2026 Updates
Positive
Negative
Consolidated Revenue Growth
Consolidated net sales of $1.04 billion, up 4.2% year-over-year, driven by stronger-than-expected demand across Professional and Residential segments.
Read all positive updates
Company Guidance
Management raised its fiscal 2026 outlook to total company net sales growth of 3.0%–6.5% (Professional net sales mid‑single digits; Residential flat to down 3%), and now expects full‑year adjusted EPS of $4.40–$4.60, with Professional adjusted operating margin of 18.5%–19.5% and Residential margin of 6.5%–8.5%; assumptions include a slightly higher-than‑historic 1%–2% net realized price, higher adjusted gross and operating margins, interest expense of ~$60M, an adjusted effective tax rate of ~21%, capex of $90M–$100M, Tornado contributing about 2% inorganic growth (roughly $100M of sales annually), and an improved free cash‑flow conversion rate of at least 120%. For Q2 they expect mid‑single‑digit total company net sales growth (mid‑single digits in both segments), Professional margin similar to last year, Residential margin approaching double digits, and mid‑single‑digit adjusted EPS growth.The Toro Company Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
83
Very Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.55B | 4.51B | 4.58B | 4.55B | 4.51B | 3.96B |
| Gross Profit | 1.51B | 1.50B | 1.55B | 1.58B | 1.50B | 1.34B |
| EBITDA | 584.00M | 552.80M | 702.90M | 578.40M | 697.00M | 627.80M |
| Net Income | 331.20M | 316.10M | 418.90M | 329.70M | 443.30M | 409.90M |
Balance Sheet | ||||||
| Total Assets | 3.70B | 3.44B | 3.58B | 3.64B | 3.56B | 2.94B |
| Cash, Cash Equivalents and Short-Term Investments | 189.00M | 341.00M | 199.50M | 193.10M | 188.25M | 405.61M |
| Total Debt | 112.10M | 1.02B | 1.04B | 1.16B | 1.07B | 761.28M |
| Total Liabilities | 2.28B | 1.99B | 2.03B | 2.13B | 2.20B | 1.79B |
| Stockholders Equity | 1.42B | 1.45B | 1.55B | 1.51B | 1.35B | 1.15B |
Cash Flow | ||||||
| Free Cash Flow | 660.60M | 578.30M | 466.40M | 157.30M | 153.70M | 451.50M |
| Operating Cash Flow | 736.70M | 662.00M | 569.90M | 306.80M | 297.20M | 555.50M |
| Investing Cash Flow | -268.70M | -77.40M | -59.70M | -157.70M | -548.30M | -128.50M |
| Financing Cash Flow | -465.60M | -446.10M | -505.10M | -147.50M | 42.20M | -503.70M |
The Toro Company Technical Analysis
Neutral
92.90
Price Trends
96.54
Negative
88.50
Positive
81.58
Positive
Market Momentum
-0.21
Positive
43.18
Neutral
19.02
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTC, the sentiment is Neutral. The current price of 92.9 is below the 20-day moving average (MA) of 94.30, below the 50-day MA of 96.54, and above the 200-day MA of 81.58, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 43.18 is Neutral, neither overbought nor oversold. The STOCH value of 19.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TTC.
The Toro Company Risk Analysis
The Toro Company disclosed 35 risk factors in its most recent earnings report. The Toro Company reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
The Toro Company Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $18.48B | 53.36 | 8.53% | ― | 11.06% | 16.37% | |
79 Outperform | $19.60B | 19.20 | 17.48% | 2.52% | 2.99% | 1.23% | |
75 Outperform | $9.09B | 33.02 | 23.00% | 1.95% | -0.47% | -14.81% | |
72 Outperform | $7.43B | 20.35 | 9.35% | 1.61% | 0.19% | -17.71% | |
68 Neutral | $14.12B | 25.51 | 37.15% | 1.22% | 5.52% | 14.15% | |
64 Neutral | $11.78B | 28.82 | 4.47% | 4.42% | -1.53% | 39.81% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
TTC
The Toro Company
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The Toro Company Corporate Events
Business Operations and StrategyShareholder Meetings
Toro Company Stockholders Approve 2026 Equity and Incentive Plans
Positive
Mar 20, 2026
On March 17, 2026, The Toro Company stockholders approved a new 2026 Equity Plan that replaces the 2022 Equity and Incentive Plan for future grants, authorizing up to 3.65 million new shares plus certain carryover shares for a broad mix of stock-b...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.