# The Toro Company (TTC) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Industrials / Building Products. Price $93.33, market value $8.8 billion.

## Valuation
- **P/E (trailing): 25.0×** (5-yr avg 22.8×, 3-yr avg 22.4×). The Toro Company trades at 25.0× trailing earnings, close to its own five-year average of 22.8×. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 18.4×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 1.9×**. Each dollar of revenue is priced at 1.9×.
- **Price / book: 6.5×**. The shares trade at 6.5× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **Free-cash-flow yield: 8.1%** (5-yr avg 4.3%). Free cash flow equals 8.1% of the market value, above its five-year average of 4.3%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 4.0%**. The inverse of the P/E: 4.0% of the price is earned each year.

## Profitability
- **Gross margin: 33.4%**. The Toro Company keeps 33.4% of revenue after the direct cost of what it sells.
- **Operating margin: 10.3%**. 10.3% of revenue is left after running the business.
- **Net margin: 7.0%**. 7.0% of each dollar of sales reaches the bottom line.
- **Return on equity: 21.8%**. 21.8% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 16.3%**. Return on all capital, debt included, is 16.3%: comfortably above what that capital costs.
- **Return on assets: 10.6%**. Each dollar of assets produces 10.6% of profit.

## Growth
- **Revenue growth (1 yr): -1.6%** (3-yr -0.0%/yr, 5-yr 5.9%/yr). Revenue fell 1.6% over the last year, against 5.9% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -20.9%** (3-yr -9.0%/yr, 5-yr 0.9%/yr). Earnings per share fell 20.9%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 55.5%/yr**. Free cash flow has compounded at 55.5% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.63**. Debt is 0.63 times equity, moderate leverage.
- **Current ratio: 1.87** (quick 1.87). Current assets cover the next year's liabilities 1.87 times.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 1.67%** ($1.55 per share, trailing). The Toro Company yields 1.67%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 48%** (21% of free cash flow). 48% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 23**. 23 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 8.6%/yr** (1-yr 4.8%). The dividend has grown 8.6% a year over five years.

## Analyst view
- **Analyst consensus: buy** (4 analysts). 4 analysts cover The Toro Company; the consensus is buy, with an average price target of $108.75 (+17% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 18.0%** (YTD 19.6%, 3-mo 7.5%). The shares are up 18.0% over twelve months including dividends.
- **From 52-week high: -11.3%** (38.0% above the low). Trading 11% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 40**. An RSI of 40 is neutral.
- **Beta (1 yr): 0.46** (volatility 26%). Beta of 0.46 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=TTC · Page: https://foliofundamentals.com/stocks/ttc

Not investment advice.