TTC Investment Analysis Report & Stock Research, The Toro Company

The Toro Company (TTC)

TTC Stock Report

2-Year Price History

View Larger TTC Chart
NYSE:TTC
$48.35
(3/16 4:00PM)
+0.1%
Open$48.56 Mkt Cap$1.6 Billion
High$48.59 52Wk High$48.37
Low$48.17 52Wk Low$23.42
Volume304,934 Avg Vol 10D257,900

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TTC Revenue

For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at TTC through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 1.21x and 0.72x respectively.

Utilizing this range we can see that TTC’s current Price to Sales per share ratio of 1.06x is somewhat above its historical average. As such, the current Price to Sales ratio suggests a neutral share price forecast. In order for us to become more positive about TTC we would need to see a drop in the Price to Sales ratio of 10% given current sales per share levels in order to return to its historical weighted average.

TTC Cash Earnings

As the old saying goes, "Cash is King!" We look at reported Cash Earnings, but the main emphasis of our analysis involves stripping out non-cash events such as depreciation from our cash earnings analysis. This helps us view the cash flows more clearly. Nevertheless, an analysis of Cash Earnings (both reported and otherwise) is absolutely pivotal to assessing a company's value, and currently TTC is significantly above their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for TTC, the current level of Cash Earnings compared to its historical levels helps identify where TTC is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 14.13 and a historical low Cash Earnings per share ratio of 8.28, an investor can relate where value becomes optimal.

Therefore, at the current price of $47.82 and a Price to Cash Earnings ratio of 15.89, TTC is significantly overvalued. This diminishes the attractiveness of TTC until we see either a significant increase in cash earnings or a decline in price. A decline of the Price to Cash Earnings ratio of 41% is needed just to return to the historical cash earnings multiple.

TTC Dividends

A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.

When reviewing dividend yields for TTC, we compare the historic high and low levels over the past, which is similar to our evaluation of Sales and Cash Earnings per share. Paying a dividend is not necessary for any company, but changes in dividend often can lend clues as to the health of the business. A rising dividend is a strong sign for an established company, as it reflects management's confidence in the company. TTC’s estimated annual dividend is $0.72 resulting in a current dividend yield of 1.51%. The highest dividend yield from TTC over recent history was 3.07% while the lowest dividend yield was 0.34%. TTC is not making us feel all that confident when their current dividend yield is below the historical median by 11.44%.

Peer Comparison

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The Toro Company Industry Grouping

(3/15/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including TTC) 21.13 4.35 » 70.79 1.84 0.61 » 2.55 5.35% 26.22%
*10 year range does not include current year values
Graco Inc. GGG $1.8 Billion $30.43 21.67 6.58 » 22.91 3.15 1.26 » 4.60 -0.87% 49.38%
Baldor Electric Company BEZ $1.6 Billion $34.93 10.83 2.75 » 20.04 1.06 0.25 » 1.57 18.65% 12.02%
The Toro Company TTC $1.6 Billion $48.30 15.89 4.39 » 13.08 1.06 0.30 » 1.29 -1.61% 30.66%
Graftech International Ltd GTI $1.5 Billion $12.85 34.29 1.74 » 200.71 2.38 0.31 » 3.06 -4.92% 36.02%
Simpson Manufacturing, Inc. SSD $1.4 Billion $28.50 32.36 9.54 » 36.01 2.29 1.15 » 2.55 -3.47% 10.32%
General Cable Corp. BGC $1.4 Billion $26.07 6.48 1.14 » 74.25 0.32 0.05 » 0.96 17.35% 23.38%
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9:48A, Dec. 08,2009 TTC $38.25 The Toro Company
Squawk On The Street

TTC News Mentioned on Squawk On The Street Recently

The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to The Toro Company.

Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; TTC has received less coverage from the financial media in business television and blogs. The Toro Company receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals.

“… In the discretionary spending space TORO, they make lawnmowers and sprinkler systems the company had a smaller than expecting trailing loss but forecast very cautious. …”

4:59P, Dec. 07,2009 TTC $39.94 The Toro Company
Bulls & Bears

It's Been a Month or More Since Bulls & Bears Discussed The Toro Company

It's been at least a month since we noticed any major news coverage of TTC, so the story in Bulls & Bears may get the ball rolling.

As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, TTC has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on TTC. The Motley Fool CAPS data suggests that investors believe The Toro Company will beat the market in the foreseeable future.

“… Buy TORO. Ccc, to dig out. > > toby, what do we need to know as we look at the ttc > > i'm not talking about gary as a weatherman. …”

5:17P, Aug. 24,2009 TTC $38.35 The Toro Company
Happy Hour

The Toro Company (TTC) Discussed on Fox Business's Happy Hour

The Toro Company is in the news. Find out how this impacts TTC trading on Ockham Research.

1500 stocks and correlated with those dates. Cody: can a guy at home run >> no. Software that I wrote. Rebecca: why would they want he did it for is. >> I have a lot of more stuff i'm not bringing on show but this is fun one. Sandra: I have to ask you about this stock pick, TORO. >> TORO. Sandra: I went to school in went through a lot of it was craziness I can understand one of the hurricanes, first thing needs to be done is cleanup. They do landscaping. >> they do government landscaping that is big part of the revenue. Government buildings need to hire TORO to clean up they do well after I wouldn't buy them buy this past second. Earnings were down because of general decline in after a hurricane they always spike up and do well. Rebecca: that is TORO, campbell's soup. Those are two. What are the other two? >> nucor steel. Nue. Need to build highway, bridges and steel for highways bridges and come from nucor steel. This is very solid play. Cody: sounds like stimulus >> double plays a well. As a stimulus play. Sandra: also had hospital bed maker. >> hirom. Hrc. They are made out of hillenbrand that makes coffins. They make software and patient systems next to the hospital beds. That s a great play after the hurricane.

“… ut this stock pick, TORO. >> TORO. Sandra: I went to school in went through a lot of it was craziness I can understand one of the hurricanes, first thing needs to be done is cleanup. They do landscaping. >> they do government landscaping that is big part of the revenue. Government buildings need to hire TORO to clean up they do well after I wouldn't buy them buy this past second. Earnings were down because of general decline in after a hurricane they always spike up and do well. Rebecca: that is TORO, campbell's soup. Those are two. What are the other two? >> nucor steel. Nue. Need to build highway, bridges and steel for highways bridges and come from nucor steel. This is very solid play. Cody: sounds like stimulus >> double plays a well. As a stimulus play. Sandra: also had hospital bed maker. >> hirom. Hrc. They are made out of hillenbrand that makes coffins. They make software and patient systems next to the hospital beds. That s a great play after the hurricane. …”

9:59A, May. 18,2009 TTC $27.52 The Toro Company
The Opening Bell on Fox Business

The Toro Company (TTC) Discussed on Fox Business's The Opening Bell on Fox Business

The Toro Company is in the news. Find out how this impacts TTC trading on Ockham Research.

Say, I grew up on the cement in manhattan of course I don't know what a lawn mower is. Oh, tj, i'm sorry. We better wrap thisup. >> are we looking at tractor supply or TORO next. >> i'm crying now. >> brian sullivan needs to take the show away. Tj, thank you very much, i'll see you tomorrow. >> thank you.

“… you very much, i'll see you tomorrow. >> thank you. …”

7:17A, May. 15,2009 TTC $27.31 The Toro Company
Squawk Box

The Toro Company (TTC) Discussed on CNBC's Squawk Box

The Toro Company is in the news. Find out how this impacts TTC trading on Ockham Research.

Ceo of six flags getting ready for the big memorial day that's the unofficial start to the summer. These guys are waiting for the crowds already. We'll hop on the old el TORO and get an outlook for the theme parks as these tough economic times.

“… Ceo of six flags getting ready for the big memorial day that's the unofficial start to the summer. These guys are waiting for the crowds already. We'll hop on the old el TORO and get an outlook for the theme parks as these tough economic times. …”

7:56A, Apr. 09,2009 TTC $25.30 The Toro Company
Money For Breakfast

The Toro Company (TTC) Discussed on Fox Business's Money For Breakfast

The Toro Company is in the news. Find out how this impacts TTC trading on Ockham Research.

Year maturities instead of they were very receptive to I must say i'm expecting that we will see a positive result here. Ray TORO great having you on the thank you very much for being coming up, we're going to have much more with ken lewis and get about what might happen in the also what does he think about

“… hat might happen in the also what does he think about …”

6:44P, Feb. 19,2009 TTC $24.02 The Toro Company
Mad Money

The Toro Company (TTC) Discussed on CNBC's Mad Money

The Toro Company is in the news. Find out how this impacts TTC trading on Ockham Research.

How about dane in montana! >> caller: jim, big boo-yahs to you from montana. ? Oh, man, you're in sky country. I'm in dirty sky country. >> caller: TORO. >> you can't buy any of those. You can't buy TORO or fortune brands and you can't buy anything sold in home, is going it's just a fact of life. John in michigan! John! Johnny! >> caller: hey!

“… n home, is going it's just a fact of life. John in michigan! John! Johnny! >> caller: hey! …”

View All The Toro Company Stock News

Key Fundamentals

TTC - The Toro Company Fundamentals
Price (3/16 4:00PM) $48.35
Volume (3/16 4:00PM) 304,934
Last Close Price $48.30
10 Day Average Volume 257,900
13 Week Price Range $37.50 - $48.37
52 Week Price Range $23.42 - $48.37
LTM Revenue $1.5 Billion
 
Shares Outstanding (10/2009) 33.6 Million
Market Capitalization $1.6 Billion
Shares Held By Institutions 36.5 Million
Institutional Holders 221
% Shares Held By Institutions %
Earnings Per Share (EPS) $1.73
P/E Ratio 26.00
Book Value Per Share $9.67
 
Gross Margin 35.90%
Annual Dividend 0.72
Dividend Yield 1.50%
Beta 1.46
Fiscal Year Ends October

About The Toro Company

The Toro Company is considered to operate in the Industrial Goods sector. They specifically operate in the Small Tools & Accessories business segment contained within the Industrial industry.

The Company designs, manufactures, and markets professional turf maintenance equipment and services, turf and agricultural micro-irrigation systems, landscaping equipment, and residential yard and snow removal products.