TTC's one year PEG ratio, measuring expected growth in earnings next year relative to current common stock price is 231.71 -- higher than 86.58% of US-listed equities with positive expected earnings growth.
TTC's went public 32.95 years ago, making it older than 89.93% of listed US stocks we're tracking.
Of note is the ratio of Toro Co's sales and general administrative expense to its total operating expenses; 87.98% of US stocks have a lower such ratio.
If you're looking for stocks that are quantitatively similar to Toro Co, a group of peers worth examining would be SNA, AAP, RPM, HSIC, and NDSN.
Toro Company is a worldwide provider of innovative solutions for the outdoor environment including turf, snow and ground engaging equipment, and irrigation and outdoor lighting solutions. The company was founded in 1914 and is based in Bloomington, Minnesota.
TTC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Toro Co. To summarize, we found that Toro Co ranked in the 37th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Toro Co ended up being:
The company's balance sheet shows it gets 91% of its capital from equity, and 9% of its capital from debt. Its equity weight surpasses that of 80.39% of free cash flow generating stocks in the Industrials sector.
The business' balance sheet reveals debt to be 9% of the company's capital (with equity being the remaining amount). Approximately just 23.17% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
TTC's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 36.85% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Toro Co? See NVT, LSTR, WCN, WM, and XYL.
Residential Does Well, But Professional Segment Holds Back The Company I reviewed The Toro Company (TTC) last quarter, rating it Neutral with the stock trading at $73.47 at the time. It was not a Buy at that level because sales declines in the larger and higher-margin Professional segment were more...