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The Toro Company
(NYSE:TTC)
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Rating:70Outperform
Price Target:
$103.00
▲(2.64% Upside)
Action:Upgraded
Date:09/06/26
The score is primarily supported by solid financial performance (especially strong cash generation) and a strongly positive earnings update with raised sales/EPS guidance and continued productivity benefits. These strengths are tempered by weak technical momentum (price below key moving averages with soft RSI/MACD) and a valuation that looks on the higher side at ~24.9x earnings, with only a modest dividend yield.
Positive Factors
Strong cash generation
Robust operating and free cash flow demonstrates strong earnings quality and gives Toro meaningful capacity to reinvest, repay obligations, and return capital. High conversion of earnings into cash can support resilience and strategic execution over the next several quarters.
Negative Factors
Higher leverage and declining equity
The increase in leverage and decline in equity indicate a less conservative capital structure, reducing financial flexibility relative to prior years. Higher obligations can constrain future capital allocation and make Toro more sensitive to operating setbacks.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Robust operating and free cash flow demonstrates strong earnings quality and gives Toro meaningful capacity to reinvest, repay obligations, and return capital. High conversion of earnings into cash can support resilience and strategic execution over the next several quarters.
Read all positive factors
The Toro Company Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Breaks down operating profit by business unit, revealing which segments generate margins, where costs are rising, and which parts of the company are most profitable or need operational fixes—important for judging sustainable earnings and capital allocation.
Breaks down operating profit by business unit, revealing which segments generate margins, where costs are rising, and which parts of the company are most profitable or need operational fixes—important for judging sustainable earnings and capital allocation.
Data provided by:
The Fly
The FlyThe Toro Company (TTC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.78B
Dividend Yield1.67%
Average Volume (3M)698.49K
Price to Earnings (P/E)24.7
Beta (1Y)0.89
Revenue Growth5.24%
EPS Growth13.34%
CountryUS
Employees9,227
SectorIndustrials
Sector Strength72
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)3.75
Shares Outstanding94,663,376
10 Day Avg. Volume938,758
30 Day Avg. Volume698,487
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$107.50Price Target Upside7.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)4.63
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
Toro primarily makes money by selling equipment, irrigation products, and related aftermarket offerings across its professional and residential customer bases. Key revenue streams include: (1) Equipment sales to professional customers such as golf...
The Toro Company Earnings Call Summary
Earnings Call Date:Sep 03, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Dec 23, 2026
Earnings Call Sentiment Positive
The call was strongly positive, with broad-based sales growth, improved residential and companywide margins, significant AMP savings, strong cash generation, raised full-year guidance and continued momentum in innovation, golf, and underground construction. The main challenges were a decline in professional segment margin, modestly lower golf shipments, higher costs and tax expense, uncertain IEEPA refund timing, installation constraints and weather- and tariff-related risks.Positive Updates
Strong Third-Quarter Sales and Earnings
Third-quarter net sales increased 8.4% to $1.23 billion, including 6.2% organic growth. Adjusted EPS was $1.33, and adjusted operating earnings increased 11% year over year.
Negative Updates
Golf Shipments Declined Year Over Year
Golf shipments were down modestly year over year against a strong prior-year comparison. After two years of exceptional double-digit growth, the golf business is performing in line with expectations this year.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Third-Quarter Sales and Earnings
Third-quarter net sales increased 8.4% to $1.23 billion, including 6.2% organic growth. Adjusted EPS was $1.33, and adjusted operating earnings increased 11% year over year.
Read all positive updates
Company Guidance
The company raised full-year 2026 net sales guidance to the range of 6.3% to 6.6%, from the prior range of 4% to 6.5%, with professional net sales expected to be up mid-single digits and residential net sales approximately flat; adjusted EPS guidance is now between $4.60 to $4.65, from $4.50 to $4.62, with the midpoint increasing from $4.56 to $4.63. Implied fourth quarter guidance puts net sales between 3.9% and 5.1% and adjusted EPS between $0.93 and $0.98, including $7 million of anticipated IEEPA refunds versus the previously expected $12 million, with $5 million classified as outside of Phase 2 and refund timing uncertain. AMP is expected to achieve $125 million in run rate savings by year-end, with a productivity pipeline expected to continue in the future; the company is not ready to guide yet for F '27 but cited 8% to 10% kind of near-term growth expectations for EPS, continued margin expansion, residential returning to double-digit profitability, and tariffs not having a meaningful impact next year.The Toro Company Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
62
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.75B | 4.51B | 4.58B | 4.55B | 4.51B | 3.96B |
| Gross Profit | 1.59B | 1.50B | 1.55B | 1.58B | 1.50B | 1.34B |
| EBITDA | 663.70M | 552.80M | 702.90M | 578.40M | 697.00M | 627.80M |
| Net Income | 363.30M | 316.10M | 418.90M | 329.70M | 443.30M | 409.90M |
Balance Sheet | ||||||
| Total Assets | 3.54B | 3.44B | 3.58B | 3.64B | 3.56B | 2.94B |
| Cash, Cash Equivalents and Short-Term Investments | 175.30M | 341.00M | 199.50M | 193.10M | 188.25M | 405.61M |
| Total Debt | 1.08B | 1.04B | 1.04B | 1.16B | 1.07B | 761.28M |
| Total Liabilities | 2.20B | 1.99B | 2.03B | 2.13B | 2.20B | 1.79B |
| Stockholders Equity | 1.34B | 1.45B | 1.55B | 1.51B | 1.35B | 1.15B |
Cash Flow | ||||||
| Free Cash Flow | 711.50M | 578.30M | 466.40M | 157.30M | 153.70M | 451.50M |
| Operating Cash Flow | 789.30M | 662.00M | 569.90M | 306.80M | 297.20M | 555.50M |
| Investing Cash Flow | -276.50M | -77.40M | -59.70M | -157.70M | -548.30M | -128.50M |
| Financing Cash Flow | -410.90M | -446.10M | -505.10M | -147.50M | 42.20M | -503.70M |
The Toro Company Technical Analysis
Negative
100.35
Price Trends
95.98
Negative
94.09
Negative
91.10
Positive
Market Momentum
-0.61
Positive
39.22
Neutral
31.79
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 100.35 is above the 20-day moving average (MA) of 97.21, above the 50-day MA of 95.98, and above the 200-day MA of 91.10, indicating a neutral trend. The MACD of -0.61 indicates Positive momentum. The RSI at 39.22 is Neutral, neither overbought nor oversold. The STOCH value of 31.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $19.39B | 18.85 | 17.41% | 2.60% | 4.02% | 4.39% | |
70 Outperform | $8.78B | 24.73 | 26.06% | 1.67% | 5.24% | 13.34% | |
69 Neutral | $13.48B | 21.87 | 6.90% | 3.73% | 0.57% | 29.85% | |
68 Neutral | $13.68B | 25.06 | 37.21% | 1.23% | 9.14% | 12.52% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $2.22B | 6.56 | 24.79% | 2.72% | 19.82% | 272.31% | |
55 Neutral | $1.36B | 32.00 | 3.36% | ― | 6.47% | 89.75% |
* Industrials Sector Average
TTC
The Toro Company
92.72
14.91
19.15%
KMT
Kennametal
29.44
9.18
45.31%
LECO
Lincoln Electric Holdings
253.06
16.95
7.18%
SNA
Snap-on
375.44
50.65
15.59%
SWK
Stanley Black & Decker
89.24
14.86
19.98%
HLMN
Hillman Solutions
6.98
-2.73
-28.12%
The Toro Company Corporate Events
Business Operations and StrategyExecutive/Board Changes
Toro Company Announces CEO Succession and Board Expansion
Positive
Jul 22, 2026
On July 22, 2026, The Toro Company announced that its board had elected President and Chief Operating Officer Edric C. Funk as President and Chief Executive Officer, effective November 1, 2026, and appointed him to the board of directors, expandin...
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.