One-glance verdict
Undervalued
$175.51 our estimate vs market $100.58
Wall Street consensus: $111.00 (-36.8% lower than our fair-value estimate)
43% below our estimate, below the bear case
Fundamentals snapshot
The Toro Company
TTC · NYQ · Industrials · Tools & Accessories
Current price
$100.58
52-week range
$67.64 - $105.19
Market cap
$9.52B
Balance sheet
Watch
8.31x Adequate
Net debt $902.70M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 5.4% last year.
- Reward Returns 26.4% on equity, ahead of 83% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Stock trades 13.7% above its 5-year average P/E.
What this company does
The Toro Company
The Toro Company makes equipment for taking care of lawns and landscapes, like mowers and sprinkler systems. Most of their sales come from professional users like golf courses and landscaping companies, with another part from homeowners. This matters because their equipment helps keep outdoor spaces looking good, and a lot of their success depends on having efficient ways to get their products to these customers (their supply chain).
How the company got here
The Toro Company started in 1914, initially making tractors for the automotive industry. A pivotal moment came in the 1920s when they shifted focus to the burgeoning lawn care market, recognizing a growing need for specialized equipment. Over the decades, Toro expanded its product line through innovation and strategic acquisitions, becoming a well-known name in both professional landscaping and home gardening. This evolution has positioned Toro as a leader in providing solutions for maintaining turf and managing landscapes.
What it actually does
Toro designs and manufactures a wide range of equipment for maintaining lawns, sports fields, and other green spaces. Think of everything from the powerful mowers you see on golf courses to the sprinklers that water your lawn, and even snow blowers for winter. They serve both professional landscapers and everyday homeowners, aiming to make groundskeeping easier and more efficient.
Professional
This segment is Toro's largest, focusing on equipment and services for commercial customers like golf courses, sports fields, and professional landscaping businesses. They offer heavy-duty mowers, tractors, aerators, and sprayers designed for durability and performance in demanding environments. This part of the business also includes sophisticated irrigation systems and software to manage water usage efficiently, helping professionals maintain large areas of turf with precision. The professional segment is the primary revenue driver for Toro, reflecting the significant investment businesses make in maintaining their grounds.
Residential
The Residential segment caters to homeowners, offering a variety of lawn care equipment for personal use. This includes walk-behind and riding mowers, zero-turn mowers for easier maneuverability, snow blowers, and trimmers. Toro also provides sprinkler systems and related accessories for home gardens and yards. While smaller than the professional segment, it represents a significant portion of Toro's sales, tapping into the consumer market's demand for reliable and user-friendly lawn and snow maintenance tools.
What management is betting on now
Toro's management is focused on expanding its product offerings with an emphasis on innovation and sustainability. They are investing in technologies that improve efficiency for both professional and residential users, such as advanced battery-powered equipment and smarter irrigation systems that conserve water. A key strategy involves growing their presence in adjacent markets, like underground utility and specialty construction equipment, to diversify revenue streams. They also aim to enhance their service and software solutions, recognizing the increasing importance of data and connectivity in equipment management.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$170.60M
FY2025 Q1
$-67.70M
FY2025 Q3
$152.40M
FY2025 Q4
$207.20M
FY2026 Q1
$14.60M
FY2026 Q3
$250.90M
Revenue
$1.42B
Net income
$145.40M
Diluted EPS
1.50
Operating cash flow
$267.40M
Free cash flow
$250.90M
Fetching…
Sources
Revenue
$1.04B
Net income
$67.90M
Diluted EPS
0.69
Operating cash flow
$26.10M
Free cash flow
$14.60M
Fetching…
Sources
Revenue
$1.13B
Net income
$53.50M
Diluted EPS
0.54
Operating cash flow
$225.80M
Free cash flow
$207.20M
Fetching…
Sources
Revenue
$1.32B
Net income
$136.80M
Diluted EPS
1.37
Operating cash flow
$171.70M
Free cash flow
$152.40M
Fetching…
Sources
Revenue
$995.00M
Net income
$52.80M
Diluted EPS
0.52
Operating cash flow
$-48.60M
Free cash flow
$-67.70M
Fetching…
Sources
Revenue
$1.16B
Net income
$119.30M
Diluted EPS
1.14
Operating cash flow
$194.70M
Free cash flow
$170.60M
Fetching…
Sources
Is it cheap or expensive?
Fair value $175.51 vs current price $100.58
Wall Street consensus is the average analyst price target: $111.00 (-36.8% lower than our fair-value estimate).
Our most-likely fair value is $175.51 a share — about 74.5% above today's price of $100.58, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $902.7M. Interest coverage 8.3x.
Net debt
$902.70M
Interest coverage
8.31x
The Toro Company's profit covers its interest bill about 8.3 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
TTC
BASELINE
The Toro Company
Total debt $1.08B Interest coverage 8.31x This is the baseline the peer rows are being compared against.
Total debt $5.21B Interest coverage 2.43x -71% vs TTC Carries about 3.4x less debt cushion than TTC.
Total debt $2.89B Interest coverage 5.68x -32% vs TTC Carries about 1.5x less debt cushion than TTC.
Total debt $2.69B Interest coverage 2.68x -68% vs TTC Carries about 3.1x less debt cushion than TTC.
Total debt $278.86M Interest coverage 10.19x +23% vs TTC Carries about 1.2x more debt cushion than TTC.
Total debt — Interest coverage 3.88x -53% vs TTC Carries about 2.1x less debt cushion than TTC.
What you should know
The case for and against TTC
3 Rewards
1 Risk
Rewards
-
Revenue grew 5.4% last year.
-
Returns 26.4% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 13.7% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
26.89x
Forward P/E
19.72x
P/B
7.12x
P/S
2.00x
EV/EBITDA
15.47x
PEG ratio
1.94x
Profitability
How much profit each dollar creates
Gross margin
33.5%
Operating margin
14.0%
Net margin
7.6%
ROE
26.4%
ROA
9.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.81x
Current ratio
1.58x
Quick ratio
0.64x
Total debt
$1.08B
Total cash
$175.30M
Growth
How the business has been compounding
Revenue TTM
$4.75B
Revenue 5Y CAGR
3.3%
EPS TTM
3.74
EPS 5Y CAGR
-9.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$789.30M
Free CF TTM
$578.30M
FCF margin
12.2%
Dividend
Shareholder payout
Yield
1.6%
Payout ratio
41.4%
Last ex-div date
2026-10-06