The Toro Company (TTC) AI Stock Analysis

• Market Cap: $7.24B
• Dividend Yield: 2.03%
• Average Volume (3M): 630.31K
• Price to Earnings (P/E): 22.7
• Beta (1Y): 1.12
• Revenue Growth: 0.78%
• EPS Growth: -13.62%
• Country: US
• Employees: 11,108
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 1.24
• Shares Outstanding: 97,862,144
• 10 Day Avg. Volume: 520,268
• 30 Day Avg. Volume: 630,311
• PEG Ratio: 0.72
• Price to Book (P/B): 5.38
• Price to Sales (P/S): 1.82
• P/FCF Ratio: 17.91
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 1.81
• Enterprise Value/Gross Profit: 5.43
• Enterprise Value/Ebitda: 13.73
• 1Y Price Target: $92.60
• Price Target Upside: 24.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 66 Neutral
• Price Target: $82.00 ▲(9.95% Upside)

The Toro Company's overall stock score reflects solid financial health and strong performance in the Professional segment, offset by challenges in the Residential segment and declining net sales. Technical indicators suggest a bearish trend, and valuation metrics indicate moderate pricing. The company's strategic initiatives and cost-saving measures provide some optimism, but operational challenges need addressing to improve the outlook.

Positive Factors

Professional Segment Growth

The growth in the Professional segment indicates strong demand and effective market positioning, contributing positively to the company's revenue and profitability.

Operational Efficiency and Cost Savings

The AMP program's cost savings enhance operational efficiency, reducing expenses and improving margins, which supports long-term financial health.

Strong Free Cash Flow

Robust free cash flow generation provides financial flexibility for investments, debt reduction, and shareholder returns, strengthening the company's balance sheet.

Negative Factors

Decline in Residential Segment

The significant decline in the Residential segment reflects challenges in consumer demand, potentially impacting overall revenue and necessitating strategic adjustments.

Total Company Net Sales Decline

A decline in total net sales suggests potential market challenges and the need for strategic initiatives to drive growth and maintain competitive positioning.

Pressure on Overall Margins

Decreasing margins due to higher costs and lower sales volumes may pressure profitability, requiring cost management and pricing strategies to sustain margins.

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 through multiple streams, primarily from the sale of its core products, which include turf maintenance equipment, irrigation systems, and snow removal machinery. The company serves various markets such as residential customers, commercial landscaping businesses, and agricultural sectors. Key revenue streams include direct sales of equipment to end-users, distribution through a network of dealers and retailers, and service and replacement parts for existing equipment. Additionally, Toro benefits from recurring revenue through maintenance contracts and aftermarket services. Strategic partnerships with distributors and collaborations with landscape professionals also contribute to its market reach and revenue generation, enhancing customer loyalty and driving long-term growth.

The Toro Company Financial Statement Overview

Summary

The Toro Company demonstrates solid financial health with strong cash flow management and low leverage. However, recent declines in revenue growth and profit margins suggest potential operational challenges. The company remains financially stable with efficient equity utilization, but needs to address revenue and profitability pressures to maintain its competitive position.

Income Statement

The Toro Company shows a stable gross profit margin of around 33%, but recent revenue growth has been negative at -0.56% TTM, indicating potential challenges in sales. Net profit margin has decreased to 7.37% TTM from 9.14% in the previous year, reflecting pressure on profitability. EBIT and EBITDA margins have also declined slightly, suggesting operational challenges.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.07 TTM, indicating low leverage and financial stability. Return on equity is strong at 22.55% TTM, though slightly down from previous years, showing efficient use of equity. The equity ratio remains robust, supporting the company's financial health.

Cash Flow

Free cash flow growth is positive at 8.23% TTM, indicating improved cash generation. The operating cash flow to net income ratio is healthy at 0.62, showing good cash conversion. The free cash flow to net income ratio is strong at 0.84, reflecting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.52B	4.58B	4.55B	4.51B	3.96B	3.38B
Gross Profit	1.50B	1.55B	1.58B	1.50B	1.34B	1.19B
EBITDA	594.50M	702.90M	578.40M	697.00M	627.80M	535.84M
Net Income	333.00M	418.90M	329.70M	443.30M	409.90M	329.70M
Balance Sheet
Total Assets	3.52B	3.58B	3.64B	3.56B	2.94B	2.85B
Cash, Cash Equivalents and Short-Term Investments	201.00M	199.50M	193.10M	188.25M	405.61M	479.89M
Total Debt	1.14B	1.04B	1.16B	1.07B	761.28M	873.21M
Total Liabilities	2.11B	2.03B	2.13B	2.20B	1.79B	1.74B
Stockholders Equity	1.41B	1.55B	1.51B	1.35B	1.15B	1.11B
Cash Flow
Free Cash Flow	492.10M	466.40M	157.30M	153.70M	451.50M	461.31M
Operating Cash Flow	589.00M	569.90M	306.80M	297.20M	555.50M	539.37M
Investing Cash Flow	-67.00M	-59.70M	-157.70M	-548.30M	-128.50M	-216.08M
Financing Cash Flow	-542.70M	-505.10M	-147.50M	42.20M	-503.70M	2.35M

The Toro Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 74.58
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 74.58 is below the 20-day moving average (MA) of 75.11, below the 50-day MA of 77.31, and below the 200-day MA of 74.74, indicating a neutral trend. The MACD of -0.74 indicates Negative momentum. The RSI at 46.06 is Neutral, neither overbought nor oversold. The STOCH value of 59.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TTC.

The Toro Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RBC	78 Outperform	$12.38B	49.54	8.56%	―	5.48%	16.88%
LECO	78 Outperform	$13.37B	27.24	37.35%	1.24%	0.24%	0.05%
SNA	75 Outperform	$17.84B	18.17	17.96%	2.47%	0.24%	-1.85%
TKR	72 Outperform	$5.38B	17.58	10.52%	1.78%	-2.01%	-9.95%
TTC	66 Neutral	$7.24B	22.67	21.85%	2.03%	0.78%	-13.62%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SWK	57 Neutral	$10.72B	22.32	5.38%	4.67%	-2.71%	―

The Toro Company Corporate Events

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 most recent analyst rating on (TTC) stock is a Hold with a $90.00 price target. To see the full list of analyst forecasts on The Toro Company stock, see the TTC Stock Forecast page.

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.

The most recent analyst rating on (TTC) stock is a Hold with a $81.00 price target. To see the full list of analyst forecasts on The Toro Company stock, see the TTC Stock Forecast page.

The Toro Company VP Amy Dahl Announces Departure

On September 17, 2025, Amy Dahl, Vice President of International at The Toro Company, announced her departure effective September 30, 2025, to pursue other interests. Her departure was amicable and not due to any disagreements with the company’s operations, policies, or practices.

The most recent analyst rating on (TTC) stock is a Buy with a $90.00 price target. To see the full list of analyst forecasts on The Toro Company stock, see the TTC Stock Forecast page.

Toro Company Earnings Call: Mixed Results Amidst Growth

The Toro Company’s recent earnings call presented a mixed sentiment, reflecting both strengths and challenges. The company showcased robust growth in its Professional segment and significant cost savings through its AMP program, alongside strong free cash flow, indicating a solid operational stance. However, these positives were balanced by difficulties in the Residential segment, a decline in total net sales, and a notable non-cash impairment charge, painting a picture of mixed results overall.

Toro Company Reports Strong Professional Segment Growth

The Toro Company is a global leader in providing solutions for the outdoor environment, including turf and landscape maintenance, snow and ice management, and underground utility construction, with a presence in over 125 countries.

The Toro Company Appoints New President and COO

On August 7, 2025, The Toro Company appointed Edric C. Funk as President and Chief Operating Officer, effective September 1, 2025. Mr. Funk, who has been with the company since 1996, has held various roles, culminating in his recent position as group vice president of Golf, Grounds, and Irrigation. His new compensation package includes a base salary of $700,000, an increased annual incentive payout target, and a one-time grant of restricted stock units valued at approximately $1,500,000. This leadership change is expected to influence the company’s strategic direction and operational focus.

The most recent analyst rating on (TTC) stock is a Hold with a $88.00 price target. To see the full list of analyst forecasts on The Toro Company stock, see the TTC Stock Forecast page.