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The Toro Company
(NYSE:TTC)
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Rating:74Outperform
Price Target:
$109.00
▲(17.33% Upside)
Action:Reiterated
Date:06/04/26
The score is driven primarily by strong financial performance (robust free cash flow and a substantially improved balance sheet) and constructive earnings-call signals (raised guidance and strong execution). These positives are tempered by weaker technical momentum and a somewhat elevated valuation for the company’s modest recent top-line growth and below-peak margins.
Positive Factors
Strong free cash flow
Consistent high free cash flow (FCF $759M TTM, FCF growth +14.9%) and strong cash conversion provide durable internal funding for capex, R&D, dividends and buybacks. FCF roughly aligns with earnings (~90%), supporting capital allocation flexibility even through cyclical slowdowns.
Negative Factors
Modest revenue growth
Top-line growth is tepid (TTM +2.35%), limiting the company’s ability to scale operating leverage. Durable earnings expansion will therefore depend heavily on productivity, mix shifts to professional markets, and share repurchases rather than broad-based revenue acceleration.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Consistent high free cash flow (FCF $759M TTM, FCF growth +14.9%) and strong cash conversion provide durable internal funding for capex, R&D, dividends and buybacks. FCF roughly aligns with earnings (~90%), supporting capital allocation flexibility even through cyclical slowdowns.
Read all positive factors
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 (TTC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.24B
Dividend Yield1.95%
Average Volume (3M)999.62K
Price to Earnings (P/E)27.9
Beta (1Y)0.91
Revenue Growth2.65%
EPS Growth-11.03%
CountryUS
Employees11,108
SectorIndustrials
Sector Strength72
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)3.48
Shares Outstanding95,229,530
10 Day Avg. Volume1,171,596
30 Day Avg. Volume999,624
Financial Highlights & Ratios
PEG Ratio-1.10
Price to Book (P/B)5.12
Price to Sales (P/S)1.65
P/FCF Ratio12.86
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue2.06
Enterprise Value/Gross Profit6.19
Enterprise Value/Ebitda15.51
Forecast
1Y Price Target
$105.67Price Target Upside13.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)4.59
Revenue Forecast (FY)$4.76B
The Toro Company Business Overview & Revenue Model
Company Description
The Toro Company specializes in the global development, manufacturing, distribution, and sale of a diverse array of equipment for both commercial and home use. Its Professional division supplies a comprehensive suite of turf and landscape maintena...
How the Company Makes Money
TTC primarily makes money by selling equipment, systems, and related parts and services used to create and maintain outdoor spaces. Its main revenue streams are: (1) Professional segment equipment sales—sales of turf, landscape, and specialty cons...
The Toro Company Earnings Call Summary
Earnings Call Date:Jun 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Sep 03, 2026
Earnings Call Sentiment Positive
The call conveyed multiple strong operational and financial achievements — double-digit EPS growth rates, meaningful top-line growth, record operating margin in recent quarters, robust free cash flow and a raised full-year guidance. These positives were balanced against manageable near-term headwinds from tariffs, inflationary input costs, a higher tax rate, and some inventory imbalances and regional softness. Management emphasized that productivity gains from the AMP program and strategic actions have largely offset cost pressures, and the company believes the net impact to the fiscal year is modest.Positive Updates
Top-Line Growth
Second quarter net sales of $1.42 billion, up 8.1% year-over-year (5.7% organically); company raised full-year sales growth guidance to 4.0%–6.5% (from 3.0%–6.5%).
Negative Updates
Tariff and Trade Headwinds
Gross tariff estimate increased to ~$120 million for fiscal 2026; company expects a ~$20 million refund during the fiscal year but notes the tariff run-rate remains elevated and the trade environment is dynamic.
Read all updates
Q2-2026 Updates
Positive
Negative
Top-Line Growth
Second quarter net sales of $1.42 billion, up 8.1% year-over-year (5.7% organically); company raised full-year sales growth guidance to 4.0%–6.5% (from 3.0%–6.5%).
Read all positive updates
Company Guidance
Toro raised full‑year guidance, now calling for sales growth of 4.0%–6.5% (up from 3.0%–6.5%) and adjusted EPS of $4.50–$4.62 (midpoint $4.56), driven by expected professional growth of 5%–7% and roughly flat residential sales; management expects Q3 total company sales to be up mid‑single digits (professional up mid‑single digits, residential up low‑single digits), Q3 adjusted EPS up mid‑single digits, full‑year high‑single‑digit adjusted EPS growth, and free cash flow conversion of at least 120%. Guidance reflects a $120M gross tariff run‑rate (with an anticipated ~$20M refund this fiscal year, ~$8M accrual in Q3), AMP productivity actions targeting $125M run‑rate savings by year‑end, and the flow‑through of the Q2 outperformance (a $0.10 Q2 beat) offset by estimated inflation headwinds of ~$0.16 per share, pricing/productivity tailwinds of ~$0.16, and a tax headwind of ~$0.04 that together produced the $0.06 midpoint lift.The Toro Company Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
86
Very Positive
Cash Flow
83
Very Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.66B | 4.51B | 4.58B | 4.55B | 4.51B | 3.96B |
| Gross Profit | 1.55B | 1.50B | 1.55B | 1.58B | 1.50B | 1.34B |
| EBITDA | 619.70M | 552.80M | 702.90M | 578.40M | 697.00M | 627.80M |
| Net Income | 339.80M | 316.10M | 418.90M | 329.70M | 443.30M | 409.90M |
Balance Sheet | ||||||
| Total Assets | 3.71B | 3.44B | 3.58B | 3.64B | 3.56B | 2.94B |
| Cash, Cash Equivalents and Short-Term Investments | 180.40M | 341.00M | 199.50M | 193.10M | 188.25M | 405.61M |
| Total Debt | 1.14B | 1.04B | 1.04B | 1.16B | 1.07B | 761.28M |
| Total Liabilities | 2.34B | 1.99B | 2.03B | 2.13B | 2.20B | 1.79B |
| Stockholders Equity | 1.37B | 1.45B | 1.55B | 1.51B | 1.35B | 1.15B |
Cash Flow | ||||||
| Free Cash Flow | 759.10M | 578.30M | 466.40M | 157.30M | 153.70M | 451.50M |
| Operating Cash Flow | 832.40M | 662.00M | 569.90M | 306.80M | 297.20M | 555.50M |
| Investing Cash Flow | -263.30M | -77.40M | -59.70M | -157.70M | -548.30M | -128.50M |
| Financing Cash Flow | -440.00M | -446.10M | -505.10M | -147.50M | 42.20M | -503.70M |
The Toro Company Technical Analysis
Positive
92.90
Price Trends
92.32
Positive
94.16
Positive
85.71
Positive
Market Momentum
1.68
Negative
63.49
Neutral
87.82
Negative
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 92.9 is above the 20-day moving average (MA) of 92.66, above the 50-day MA of 92.32, and above the 200-day MA of 85.71, indicating a bullish trend. The MACD of 1.68 indicates Negative momentum. The RSI at 63.49 is Neutral, neither overbought nor oversold. The STOCH value of 87.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $19.13B | 66.22 | 8.90% | ― | 14.34% | 18.07% | |
78 Outperform | $21.35B | 20.94 | 17.48% | 2.52% | 2.99% | 1.23% | |
74 Outperform | $9.24B | 27.90 | 24.05% | 1.95% | 2.65% | -11.03% | |
70 Outperform | $14.16B | 26.42 | 37.29% | 1.22% | 7.72% | 19.51% | |
66 Neutral | $9.67B | 31.48 | 9.77% | 1.61% | 3.31% | -5.18% | |
64 Neutral | $14.29B | 37.66 | 4.12% | 4.42% | -0.06% | 3.45% | |
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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24.85
34.40%
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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.