About TORO CO
The Toro Company engages in the designing, manufacturing, marketing, and selling professional and residential equipment worldwide. The company's Professional segment offers turf and landscape equipment products, including sports fields and grounds mowing and maintenance equipment, golf course mowing and maintenance equipment, landscape contractor mowing equipment, landscape creation and renovation equipment, and other maintenance equipment; rental, specialty, and underground construction equipment; and snow and ice management equipment, such as snowplows, brush, snow thrower attachment, salt and sand spreaders, and related parts and accessories for light and medium duty trucks, utility task vehicles, skid steers, and front-end loaders. It also provides irrigation and lighting products that consist of sprinkler heads, electric and hydraulic valves, controllers, computer irrigation central control systems, coupling systems, and ag-irrigation drip tape and hose products, as well as professionally installed landscape lighting products offered through distributors and landscape contractors. This segment sells its products primarily through a network of distributors and dealers to professional users engaged in maintaining golf courses, sports fields, municipal properties, agricultural fields, residential and commercial landscapes, and removing snow and ice, as well as directly to government customers, rental companies, and retailers.
Its Residential segment provides walk power mowers, zero-turn riding mowers, snow throwers, replacement parts, and home solution products that include grass and hedge trimmers, leaf blowers, blower-vacuums, chainsaws, string trimmers, hoses, and hose-end retail irrigation products. This segment sells its products to homeowners through a network of distributors and dealers; and home centers, hardware retailers, and mass retailers, as well as online. The Toro Company was founded in 1914 and is headquartered in Bloomington, Minnesota.
TTC operates in the Manufacturing | Machinery | headquartered in Bloomington, Minnesota | approximately 11,300 employees | led by CEO Richard M. Olson.
$7.2 billion 33.6x P/E 5.1x P/B 17.1x EV/EBITDA 15.0% ROE -2.0% rev. growth 2.0% yield
TORO CO earns a Buy rating from our quantitative model with a composite score of 73/100, ranking #43 among 7,333 U.S. stocks. The model sees a stock with an above-average factor profile — not without risks, but with enough quantitative support to warrant a constructive outlook.
The strongest dimension is value at 91/100, which places TTC in the top 9 percent of all stocks on this measure. quality at 88/100 provides secondary support. No single factor falls below the average threshold, which is a constructive sign.
Within the Manufacturing sector, TTC ranks 23rd out of 50 peers, placing it in the 54th percentile. At $7.2 billion, the company is a mid-cap name with room to grow.
Quality Analysis
TORO CO's quality score of 88/100 places it among the top profitability performers in the market. The quality factor evaluates margins, return on equity, return on assets, and earnings consistency — the fundamental building blocks of a durable business.
Return on equity of 15.0% exceeds the sector median of -2.0%. Gross margins of 34.0% are competitive for the sector. Operating margins of 6.0% sit above the 3.0% sector average.
Net margins of 5.0% are positive but thin, leaving limited margin for error.
Valuation Assessment
A value score of 91/100 puts TTC in the top 9 percent of all stocks on cheapness — suggesting the market is significantly underpricing the company's fundamentals. Key valuation metrics include a P/E ratio of 33.6x, an EV/EBITDA of 17.1x, a price-to-book of 5.1x, a price-to-sales of 1.6x. Deep value scores like this historically correlate with above-average forward returns, though they can also reflect legitimate concerns about business quality that the value factor does not capture.
Momentum & Timing
A momentum score of 64/100 shows TTC is trending above average, with its stock price outperforming the majority of the market. This is not explosive, meme-stock-style momentum — it is the gradual, fundamental-driven kind that tends to persist.
Revenue growth of -2.0% is declining, which makes the momentum signal more precarious. A beta of 0.57 means TORO CO moves with less volatility than the market, which can be attractive for risk-conscious investors.
Our entry timing model currently signals Favorable, which warrants caution despite the price trend.
Risk Factors
No investment comes without risks, and honest analysis requires flagging them clearly:
- Leverage risk. A debt-to-equity ratio of 73.00 indicates significant leverage. In a rising rate environment or economic downturn, high debt loads can amplify losses and strain cash flow. Investors should monitor the company's ability to service its obligations.
- Model limitations. Quantitative models measure what is measurable — financial ratios, price trends, leverage — but cannot capture qualitative factors like management quality, competitive positioning, or pending litigation. This analysis should be supplemented with fundamental due diligence.
- Market regime risk. Factor-based strategies perform differently across market regimes. The current factor exposures that support TORO CO's rating may become headwinds if the macro environment shifts — for example, if interest rates move sharply or if sector rotation accelerates.
Bottom Line
TORO CO earns a Buy rating with a composite score of 73/100 and 4 out of 5 stars, ranking #43 among 7,333 stocks. The factor profile is constructive — not without blemishes, but with enough quantitative support to position TTC above the majority of the market.
Explore the full TTC analysis page for interactive factor breakdowns, or view the complete stock rankings.
Analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.
