QualityDipStocks / Consumer Discretionary · Tools/Hardware
Toro Company TTC
Outside our quality screen, so we don’t track its dips. It’s at its 52-week high.
Outside our quality screen, trading near our fair value estimate, 11% over its Market Value.
- Fair value est.
- $117.93+9%
- Market Value
- $97.00price +11%
- Off 52-wk high
- at the high
- Risk vs market
- Lowbeta 0.37
5 bullish · 5 bearish See why
Key levels
Every level vs today’s $107.96
- 52-wk lowlowest close, 1 year$67.99−37.0%
- Market Valueavg paid since Sep 3$97.00−10.2%
- 52-wk highhighest close, 1 year$107.96at the price
- PriceFri Oct 30 close$107.96you are here
- Fair value est.base case$117.93+9.2%
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 3.0% ±2 points. Bear = 10.5% and 1.0%; bull = 8.5% and 5.0% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price sits inside the range.
What the price implies To be worth today’s price, TTC’s free cash flow would need to grow about 1% a year for five years; our estimate uses 3%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much TTC moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Moves much less than the market, but its own price swings are 2.0× the S&P 500’s (it moves on its own news).
- Beta vs S&P 500
- 0.37
- Volatility
- 26% vs 13% SPY
- Correlation SPY
- 0.19
- Correlation QQQ
- 0.10
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
ValuationFree-cash-flow yield of 6.9% (price / FCF 14.5×): $712M of free cash in the last 12 months.
Cash returnsFree cash flow grew 45% over the last 12 months vs the 12 months before.
Cash returnsShare count down 3.4% in a year: $358M of buybacks over 12 months.
ProfitabilityReturn on equity of 26% over the last 12 months.
ProfitabilityReturn on invested capital of 18%, above the 9.5% discount rate our DCF uses.
Top bearish points 5 of 5
GrowthDiluted EPS fell 21% to $3.17 in FY2025.
GrowthSales grew only −0.0% a year from FY2022 to FY2025.
ValuationP/E of 28.4× vs a 20.9× median for the 169 Consumer Discretionary companies we cover.
ValuationEV/EBITDA of 17.5×, above the 12.8× median for the 113 Consumer Discretionary companies we cover.
ValuationTrades 11.3% above its Market Value of $97.00, the average price paid since the Sep 3 filing.
Who’s talking about it
Notable investors, executives, analysts and public figures on Toro Company in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Consumer Discretionary
All fundamentals
P/E 28.4 · FCF yield 6.9% · ROE 26%
Valuation
- P/E
- 28.4×Consumer Discretionary median 20.9×
- Price / FCF
- 14.5×
- FCF yield
- 6.9%
- EV / EBITDA
- 17.5×
- Price / sales
- 2.17×
- Price / book
- 7.72×
- Market cap
- $10.3Bprice × diluted shares
- Enterprise value
- $11.1B
Growth
- Revenue, 12 months
- $4.8B
- Sales growth, 12 months
- +5.2%vs the 12 months before
- Sales growth, 3 yrs
- −0.0%/yrfrom FY2022
- Diluted EPS, 12 months
- $3.74
- EPS growth, last FY
- −20.9%
- Net income, 12 months
- $363M
- Net income growth
- +9%12 months vs before
Profitability
- Gross margin
- 33.4%
- Operating margin
- 10.3%
- Net margin
- 7.6%
- FCF margin
- 15.0%
- Return on equity
- 26%
- Return on invested capital
- 18%
Balance sheet
- Cash & short-term inv.
- $175M
- Total debt
- $962M
- Net cash
- −$787M
- Debt / equity
- 0.72×
- Interest coverage
- 8.7×operating income / interest
Cash flow & returns
- Free cash flow, 12 months
- $712M
- FCF growth, 12 months
- +45%
- Dividend yield
- 1.45%$150M paid
- Payout ratio
- 41%
- Buybacks, 12 months
- $358M3.5% of market cap
- Share count, 1 year
- −3.4%diluted shares vs a year ago
- Stock-based comp
- $22M
Trailing 12 months to Jul 31, 2026; balance sheet at Jul 31, 2026. From Toro Company’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $117.93 · MV $97.00 · FCF value $161.41
Assumes 3.0% growth for 5 years (revenue grew -0.0% a year FY22–FY25; floored at 3%), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $7.44 a share (trailing 12 months to Jul 31, 2026), from the 10-Q filed Sep 3, 2026.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
Momentum & 52-week range
RSI 77 · 5 days +2.5%
The business
FCF $0.6B · Sales +8%
- Free cash flow, 12 months$0.6B
- Free-cash-flow yield6.0%
- Free-cash-flow margin13%
- Gross margin34%
- Operating margin14%
- Return on invested capital23%
- Return on equity26%
- Sales growth (latest quarter vs year-ago quarter)+8%
- Net debt / EBITDA1.3×
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
TTC is outside our quality screen
One text when a published rule fires on one of the 333 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.