The Toro Company

TTC

Manufacturing - Tools & Accessories · Industrials

Price

$94.42

-1.49 (-1.55%)

Market Cap

$8.99B

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Share count falling — buybacks

−8.0% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 108.5M (2021) → 99.8M (2025)

The Toro Company makes outdoor maintenance equipment. Its main products include lawn mowers, snow blowers, irrigation systems, and underground construction equipment. It sells to homeowners, golf courses, sports fields, municipalities, and professional landscapers — and it owns well-known brands like Toro and Dingo.

The company earns money by selling equipment and replacement parts, with some revenue from financing. It operates mainly in North America but also sells in Europe, Australia, and other international markets. Its competitive position comes from strong brand recognition, a wide dealer network, and deep relationships with professional customers who tend to be repeat buyers. The main risk is that its business is sensitive to weather patterns and economic slowdowns — when budgets tighten, customers delay buying new equipment — while a key growth driver is continued expansion in underground construction tools, which serve the growing demand for utility and broadband infrastructure installation.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+4.3% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+32.7% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$0/ year

↓ Declining (-100% vs prior year)

0.0% of revenue

Below sector average (4%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

0.4%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

$189M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

The Toro Company is growing revenue at 4% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

32.5%

Modest — 32.5% gross margin

Operating Margin

8.7%

Modest — 8.7% operating margin

ROCE

5.9%

Weak — 5.9% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Growth

Sales YoY

-0.5%

Shrinking sales (-0.5% YoY)

EPS YoY

-15.2%

Earnings shrinking (-15.2% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Cash Flow

Cash Conversion

222%

Turns 222% of profit into real cash

FCF Margin

14.5%

Converts sales into free cash efficiently (14.5%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Stability

Debt / Equity

0.08

Conservative — low debt load (0.08)

Interest Cover

7.24x

Adequate interest coverage (7.2x)

Interest coverage between 3 and 8. Profits cover interest several times over.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Valuation

P/E Ratio (TTM)

28.3x

Growth-priced — P/E 28.3

P/E above the market average. People are paying up for expected growth.

P/E vs Forward

+11.7

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (28.3 → 16.5)

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Dividends

Dividend Yield

1.67%

Small dividend — 1.67% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

+3.3%

Dividend growing modestly (3.3% YoY)

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

🔒 See full fundamentals and if they are improving or declining — click here for your free trial now.

Start free trial