# Toro (TTC.US)

Canonical: https://gigainvestors.com/s/TTC

Analysis as of: 2026-10-16T07:32:35.018Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $100.82 per share; close as of 2026-10-15.

Estimated value: low $59.11 per share, central $73.88 per share, high $86.10 per share. Buy at or below the central value $73.88 per share. Valuation as of 2026-10-16T07:32:35.018Z; scenarios are not confidence intervals.

Expected annual return: 8.1% at the stated quote. About 8.1% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.13×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.14×

- FY2017: 0.14×

- FY2018: 0.14×

- FY2019: 0.10×

- FY2020: 0.13×

- FY2021: 0.13×

- FY2022: 0.13×

- FY2023: 0.09×

- FY2024: 0.12×

- FY2025: 0.11×

### moat: pass

- ROIC, median of available years: 29.9%

- ROIC, second-lowest year: 22.4%

- Typical minus recent gross margin: 0.9 pp

- Typical gross margin (annual median): 34.2%

- Recent gross margin (lower of latest and 3-year median): 33.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.5%

- ROIC including acquisitions, ten-year median: 20.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 53.7%

- FY2017: 62.1%

- FY2018: 55.4%

- FY2019: 26.4%

- FY2020: 31.9%

- FY2021: 39.2%

- FY2022: 28.0%

- FY2023: 17.5%

- FY2024: 22.4%

- FY2025: 24.1%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 1.03×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.0B

- Net income, five-year total: $1.9B

- Return on incremental invested capital: 36.8%

- Working capital / revenue, annual change: 1.2 pp

- Working capital / revenue, change between three-year averages: 10.4 pp

- Working capital / revenue, final three-year average: 22.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 0.93×

- FY2024: 1.06×

- FY2025: 1.19×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 55.4% vs 22.4%

- Per-share earnings: 2.06 to 3.17 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.3%

- Ordinary dilution, 5-year annual growth: -1.7%

- Market cap gain: $2.1B

- Cumulative retained earnings: $910M

- Diluted shares, 10-year annual growth: -1.3%

- Diluted shares, 5-year annual growth: -1.7%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 5.5%

- Per-share value change: $1.10

- Per-share value, starting three-year median: $2.06

- Per-share value, ending three-year median: $3.17

- Buybacks concentrated in cheaper years (correlation): 0.75

- Average buyback yield: 2.1%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $1.3B

- Cumulative net income, 10 years: $3.3B

- ROIC, first three-year median: 55.4%

- ROIC, last three-year median: 22.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: $2.06

- FY2017: $2.41

- FY2018: $2.50

- FY2019: $2.53

- FY2020: $3.03

- FY2021: $3.78

- FY2022: $4.20

- FY2023: $3.13

- FY2024: $4.01

- FY2025: $3.17

### accounting: pass

- Sloan accruals: -10.1%

- Receivables to sales index (DSRI): 0.84×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 2.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.09×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.58×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -11.0%

- FY2017: -6.2%

- FY2018: -5.9%

- FY2019: -2.7%

- FY2020: -7.3%

- FY2021: -5.0%

- FY2022: 4.1%

- FY2023: 0.6%

- FY2024: -4.2%

- FY2025: -10.1%

## Holders

- [Allen Bond](https://gigainvestors.com/JIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 7.2% a year for ten years · "Toro's Shift to Industrial Machinery Supports Revenue, Margin Growth, Oppenheimer Says" (finance.yahoo.com, Sep 2026) · sales -1.6%

Story as of 2026-10-16T09:59:44.068Z; price observation 2026-10-15.

Price needs cash profits to grow 7.2% a year for ten years

- 2025-06-05: Lawnmower Maker Toro Cuts Full-Year Forecasts on 'Anticipated Tariff Impacts' ([finance.yahoo.com](https://finance.yahoo.com/news/lawnmower-maker-toro-cuts-full-140450680.html))

- 2025-09-04: Toro Co (NYSE:TTC) Q3 Earnings Beat Estimates, Revenue Misses Amid Residential Segment Weakness ([chartmill.com](https://www.chartmill.com/news/TTC/Chartmill-33993-Toro-Co-NYSETTC-Q3-Earnings-Beat-Estimates-Revenue-Misses-Amid-Residential-Segment-Weakness))

- 2026-06-04: Toro Co. Again Boosts FY26 Outlook; Stock Up 6.5% - Update ([nasdaq.com](https://www.nasdaq.com/articles/toro-co-again-boosts-fy26-outlook-stock-65-update))

### Sales · FY2024–2025

sales -1.6%; source https://www.sec.gov/Archives/edgar/data/737758/000073775825000115/ttc-20251031.htm; observed 2025-12-17.

- FY2016: $2.4B 

- FY2017: $2.5B 

- FY2018: $2.6B 

- FY2019: $3.1B 

- FY2020: $3.4B 

- FY2021: $4.0B 

- FY2022: $4.5B 

- FY2023: $4.6B 

- FY2024: $4.6B 

- FY2025: $4.5B 

### Gross margin · FY2025

gross margin 33.4%; source https://www.sec.gov/Archives/edgar/data/737758/000073775825000115/ttc-20251031.htm; observed 2025-12-17.

- FY2016: 36.6% 

- FY2017: 36.8% 

- FY2018: 35.9% 

- FY2019: 33.4% 

- FY2020: 35.2% 

- FY2021: 33.8% 

- FY2022: 33.3% 

- FY2023: 34.6% 

- FY2024: 33.8% 

- FY2025: 33.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in tools & accessories; annual sales are USD 4.5 billion.

- Source: https://www.sec.gov/Archives/edgar/data/737758/000073775825000115/ttc-20251031.htm (filed 2025-12-17); FY2025: revenue 4510400000; grossProfit 1504800000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TTC.US: The Toro Company provides professional turf maintenance equipment and services. It operates through Professional and Residential segments. It offers riding and walking mowers, greens rollers, all-wheel drive articulating tractors, turf sprayer, utility vehicles, aeration, bunker maintenance, and other turf equipment; sprinkler heads, controllers, turf sensors, valves, and operating software; and riding rotary and reel mowers and attachments, infield grooming equipment, multipurpose vehicles, debris management products, all-wheel drive articulating tractors, sidewalk snow and ice solution vehicles, and related attachments and accessories. The company also provides zero-turn radius riding mowers, walk behind and stand-on mowers, turf application and renovation, tree care, horizontal directional drills, and drilling guidance and support equipment; walk and ride trenchers, vacuum excavators, utility locators and inspection systems, pipe rehabilitation, and replacement solutions; drive chucks and sub savers, drill pipe, starter rods and quick connects, bits and blades, rock tools, reamers, and swivels; and snow removal and ice management solutions. In addition, it offers rotors, sprinkler bodies and nozzles, valves, drip tubing and subsurface irrigation, and electric control devices; wired and wireless rain, freeze, climate, and soil sensors; drip tape, polyethylene tubing, drip line, emitters, filters, fitting, and software related solutions; stand-on skid steers, walk-behind trenchers, stump grinders, material handlers, and other concrete construction equipment; walk power and zero-turn riding mowers, and snow throwers; and grass and hedge trimmers, blower-vacuums, chainsaws, edgers, cultivators, string mowers, and related parts and accessories. The company sells its products through distributors, dealers, mass retailers, hardware retailers, equipment rental and home centers, and online. The company was founded in 1914 and is headquartered in Bloomington, Minnesota.

### Why customers stay

Margins ranged from 33.4% to 34.6% during 2023–25; it earns 29.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2023: grossProfit / revenue = 34.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2024: grossProfit / revenue = 33.8%.

- Source: https://www.sec.gov/Archives/edgar/data/737758/000073775825000115/ttc-20251031.htm (filed 2025-12-17); FY2025: grossProfit / revenue = 33.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); 10-year return on capital observations [[2016,0.5365991972090498],[2017,0.6206609435202228],[2018,0.5537877160291426],[2019,0.26421053785525894],[2020,0.3185500333312326],[2021,0.3917119825862543],[2022,0.27990007706106895],[2023,0.17465212226404597],[2024,0.224178560874746],[2025,0.24142758032803208]]; median 0.2992250551961508. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 33% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/737758/000073775825000115/ttc-20251031.htm (filed 2025-12-17); Gross margin observations: [[2021,0.33803919587837156],[2022,0.3332668837353534],[2023,0.346481595361504]]; range within 2 percentage points.

### Where the cash goes

Reinvests 1.1% of cash earnings; earns 36.8% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2016: growth capex 0; upkeep 50723000; cash acquisitions 0; owner earnings 244368000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2017: growth capex 0; upkeep 58276000; cash acquisitions 24181000; owner earnings 274427000. Growth capex plus acquisitions / owner earnings = 0.0881145076832819.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2018: growth capex 10869181.50554949; upkeep 79254818.49445051; cash acquisitions 31202000; owner earnings 253961181.5055495. Growth capex plus acquisitions / owner earnings = 0.16565989044522603.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2019: growth capex 5183000; upkeep 87698000; cash acquisitions 697471000; owner earnings 273983000. Growth capex plus acquisitions / owner earnings = 2.5645897738180836.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2020: growth capex 0; upkeep 78068000; cash acquisitions 138225000; owner earnings 347248000. Growth capex plus acquisitions / owner earnings = 0.39805844814081004.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2021: growth capex 4712000; upkeep 99300000; cash acquisitions 24900000; owner earnings 409900000. Growth capex plus acquisitions / owner earnings = 0.07224201024640156.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2022: growth capex 34678000; upkeep 108800000; cash acquisitions 402400000; owner earnings 443300000. Growth capex plus acquisitions / owner earnings = 0.9859643582224228.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2023: growth capex 5799508.506009728; upkeep 143700491.49399027; cash acquisitions 21000000; owner earnings 305199508.5060097. Growth capex plus acquisitions / owner earnings = 0.08780980230668366.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2024: growth capex 0; upkeep 103500000; cash acquisitions 800000; owner earnings 443600000. Growth capex plus acquisitions / owner earnings = 0.0018034265103697023.

- Source: https://www.sec.gov/Archives/edgar/data/737758/000073775825000115/ttc-20251031.htm (filed 2025-12-17); FY2025: growth capex 0; upkeep 83700000; cash acquisitions 4200000; owner earnings 375300000. Growth capex plus acquisitions / owner earnings = 0.011191047162270184.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); Incremental return on capital 0.3678907391812418, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); Dividend observations: [[2016,65890000],[2017,75758000],[2018,85031000],[2019,96133000],[2020,107698000],[2021,112440000],[2022,125709000],[2023,141900000],[2024,149500000],[2025,151100000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/737758/000073775825000115/ttc-20251031.htm (filed 2025-12-17); FY2025: cash repurchases 290000000 USD.

### Are managers owners

Insiders own 1.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TTC.US SharesStats.PercentInsiders = 1.687 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 7.2% yearly over ten years; actual growth was 7.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); Ten-year compound average after fade. Initial solved rate 0.09044120956003188. Price 100.82; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.8355445143330338 → FY2025 3.7605210420841684. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $47.88 per share

- 2016-11: $52.93 per share

- 2016-12: $55.95 per share

- 2017-01: $58.93 per share

- 2017-02: $60.21 per share

- 2017-03: $62.46 per share

- 2017-04: $64.92 per share

- 2017-05: $68.49 per share

- 2017-06: $69.29 per share

- 2017-07: $71.09 per share

- 2017-08: $61.68 per share

- 2017-09: $62.06 per share

- 2017-10: $62.85 per share

- 2017-11: $65.25 per share

- 2017-12: $65.23 per share

- 2018-01: $65.65 per share

- 2018-02: $63.57 per share

- 2018-03: $62.45 per share

- 2018-04: $58.39 per share

- 2018-05: $58.00 per share

- 2018-06: $60.25 per share

- 2018-07: $60.19 per share

- 2018-08: $60.79 per share

- 2018-09: $59.97 per share

- 2018-10: $56.33 per share

- 2018-11: $61.99 per share

- 2018-12: $55.88 per share

- 2019-01: $59.50 per share

- 2019-02: $68.58 per share

- 2019-03: $68.84 per share

- 2019-04: $73.15 per share

- 2019-05: $65.16 per share

- 2019-06: $66.90 per share

- 2019-07: $72.82 per share

- 2019-08: $72.01 per share

- 2019-09: $73.30 per share

- 2019-10: $77.13 per share

- 2019-11: $78.18 per share

- 2019-12: $79.67 per share

- 2020-01: $80.02 per share

- 2020-02: $71.43 per share

- 2020-03: $65.09 per share

- 2020-04: $63.81 per share

- 2020-05: $71.07 per share

- 2020-06: $66.34 per share

- 2020-07: $71.35 per share

- 2020-08: $75.28 per share

- 2020-09: $83.95 per share

- 2020-10: $82.10 per share

- 2020-11: $90.71 per share

- 2020-12: $94.84 per share

- 2021-01: $94.25 per share

- 2021-02: $100.77 per share

- 2021-03: $103.14 per share

- 2021-04: $114.60 per share

- 2021-05: $111.09 per share

- 2021-06: $109.88 per share

- 2021-07: $113.74 per share

- 2021-08: $109.94 per share

- 2021-09: $97.41 per share

- 2021-10: $95.47 per share

- 2021-11: $100.56 per share

- 2021-12: $99.91 per share

- 2022-01: $96.58 per share

- 2022-02: $93.81 per share

- 2022-03: $85.49 per share

- 2022-04: $80.13 per share

- 2022-05: $82.49 per share

- 2022-06: $75.79 per share

- 2022-07: $85.99 per share

- 2022-08: $82.93 per share

- 2022-09: $86.48 per share

- 2022-10: $105.43 per share

- 2022-11: $110.99 per share

- 2022-12: $113.20 per share

- 2023-01: $111.52 per share

- 2023-02: $110.44 per share

- 2023-03: $111.16 per share

- 2023-04: $104.26 per share

- 2023-05: $97.83 per share

- 2023-06: $101.65 per share

- 2023-07: $101.65 per share

- 2023-08: $102.32 per share

- 2023-09: $83.10 per share

- 2023-10: $80.84 per share

- 2023-11: $83.00 per share

- 2023-12: $95.99 per share

- 2024-01: $92.48 per share

- 2024-02: $92.31 per share

- 2024-03: $91.63 per share

- 2024-04: $87.59 per share

- 2024-05: $80.19 per share

- 2024-06: $93.51 per share

- 2024-07: $95.73 per share

- 2024-08: $92.60 per share

- 2024-09: $86.73 per share

- 2024-10: $80.48 per share

- 2024-11: $87.08 per share

- 2024-12: $80.10 per share

- 2025-01: $83.27 per share

- 2025-02: $80.21 per share

- 2025-03: $72.75 per share

- 2025-04: $68.28 per share

- 2025-05: $75.78 per share

- 2025-06: $70.68 per share

- 2025-07: $74.25 per share

- 2025-08: $81.06 per share

- 2025-09: $76.20 per share

- 2025-10: $74.73 per share

- 2025-11: $69.74 per share

- 2025-12: $78.72 per share

- 2026-01: $91.50 per share

- 2026-02: $98.86 per share

- 2026-03: $93.44 per share

- 2026-04: $95.17 per share

- 2026-05: $89.88 per share

- 2026-06: $97.42 per share

- 2026-07: $91.87 per share

- 2026-08: $97.81 per share

- 2026-09: $96.42 per share

- 2026-10: $100.82 per share

## Annual estimated value (USD per share)

- FY2016: low $25.22 per share, central $34.42 per share, high $40.03 per share

- FY2017: low $29.46 per share, central $40.01 per share, high $46.53 per share

- FY2018: low $31.86 per share, central $40.01 per share, high $46.40 per share

- FY2019: low $41.71 per share, central $60.46 per share, high $70.93 per share

- FY2020: low $49.92 per share, central $71.08 per share, high $82.88 per share

- FY2021: low $57.47 per share, central $82.45 per share, high $96.39 per share

- FY2022: low $61.88 per share, central $89.85 per share, high $105.45 per share

- FY2023: low $61.85 per share, central $88.66 per share, high $104.00 per share

- FY2024: low $63.63 per share, central $92.35 per share, high $108.37 per share

- FY2025: low $50.32 per share, central $56.91 per share, high $65.68 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/737758/000073775825000115/ttc-20251031.htm); period 2025-10-31, filed 2025-12-17.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.