# Toromont Industries Ltd. (TIH.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Industrials / Trading Companies & Distributors. Price C$198.36, market value C$16.2 billion.

## Valuation
- **P/E (trailing): 31.5×** (5-yr avg 21.2×, 3-yr avg 20.8×). Toromont Industries Ltd. trades at 31.5× trailing earnings, well above its own five-year average of 21.2×: investors are paying up relative to the company's past. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 21.3×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 2.9×**. Each dollar of revenue is priced at 2.9×.
- **Price / book: 4.7×**. The shares trade at 4.7× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 14.7×**. Enterprise value is 14.7× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 3.0%** (5-yr avg 2.7%). Free cash flow equals 3.0% of the market value, in line with its five-year average of 2.7%.
- **Earnings yield: 3.2%**. The inverse of the P/E: 3.2% of the price is earned each year.

## Profitability
- **Gross margin: 26.6%**. Toromont Industries Ltd. keeps 26.6% of revenue after the direct cost of what it sells.
- **Operating margin: 14.3%**. 14.3% of revenue is left after running the business.
- **Net margin: 9.5%**. 9.5% of each dollar of sales reaches the bottom line.
- **Return on equity: 15.1%**. 15.1% on shareholders' equity is solid.
- **Return on invested capital: 19.9%**. Return on all capital, debt included, is 19.9%: comfortably above what that capital costs.
- **Return on assets: 9.4%**. Each dollar of assets produces 9.4% of profit.

## Growth
- **Revenue growth (1 yr): 3.6%** (3-yr 8.1%/yr, 5-yr 8.4%/yr). Revenue grew 3.6% over the last year, against 8.4% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -0.3%** (3-yr 3.8%/yr, 5-yr 14.6%/yr). Earnings per share fell 0.3%, roughly in step with revenue.
- **Free-cash-flow growth (3 yr): 65.1%/yr**. Free cash flow has compounded at 65.1% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.26**. Debt is 0.26 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Toromont Industries Ltd. holds more cash than debt.
- **Interest coverage: 22.2×**. Operating profit covers interest 22.2× over, a safe margin.
- **Current ratio: 2.93** (quick 1.86). Current assets cover the next year's liabilities 2.93 times.
- **Altman Z-score: 7.13**. A Z-score of 7.13 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 1.13%** (C$2.16 per share, trailing). Toromont Industries Ltd. yields 1.13%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 33%** (36% of free cash flow). 33% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 13**. 13 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 10.9%/yr** (1-yr 8.3%). The dividend has compounded at 10.9% a year over five years, doubling roughly every 7 years at that pace.

## Price and momentum
- **Total return (1 yr): 40.4%** (YTD 20.1%, 3-mo -11.0%). The shares are up 40.4% over twelve months including dividends.
- **From 52-week high: -18.5%** (38.9% above the low). Trading 19% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 39**. An RSI of 39 is neutral.
- **Beta (1 yr): 0.80** (volatility 34%). Beta of 0.80 against the S&P/TSX Composite: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=TIH.TO · Page: https://foliofundamentals.com/stocks/tih.to

Not investment advice.