Toro Company (The)
Find Ratings ReportsTORO CO's gross profit margin for the first quarter of its fiscal year 2024 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its subsector. TORO CO has weak liquidity. Currently, the Quick Ratio is 0.75 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 7.18% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q1 FY24 | Q1 FY23 |
---|---|---|
Net Sales ($mil) | 1001.9 | 1148.84 |
EBITDA ($mil) | 123.2 | 165.16 |
EBIT ($mil) | 92.5 | 136.87 |
Net Income ($mil) | 64.9 | 106.86 |
Balance Sheet | Q1 FY24 | Q1 FY23 |
---|---|---|
Cash & Equiv. ($mil) | 198.5 | 174.04 |
Total Assets ($mil) | 3801.1 | 3654.95 |
Total Debt ($mil) | 1313.8 | 1167.66 |
Equity ($mil) | 1547.9 | 1444.17 |
Profitability | Q1 FY24 | Q1 FY23 |
---|---|---|
Gross Profit Margin | 37.45 | 36.94 |
EBITDA Margin | 12.29 | 14.37 |
Operating Margin | 9.23 | 11.91 |
Sales Turnover | 1.16 | 1.29 |
Return on Assets | 7.56 | 13.15 |
Return on Equity | 18.59 | 33.29 |
Debt | Q1 FY24 | Q1 FY23 |
---|---|---|
Current Ratio | 2.13 | 1.78 |
Debt/Capital | 0.46 | 0.45 |
Interest Expense | 16.2 | 14.12 |
Interest Coverage | 5.71 | 9.69 |
Share Data | Q1 FY24 | Q1 FY23 |
---|---|---|
Shares outstanding (mil) | 103.84 | 104.28 |
Div / share | 0.36 | 0.34 |
EPS | 0.62 | 1.01 |
Book value / share | 14.91 | 13.85 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 831558.0 | 659528.0 |
BUY. The current P/E ratio indicates a discount compared to an average of 34.89 for the Machinery Manufacturing subsector and a premium compared to the S&P 500 average of 27.95. Conducting a second comparison, its price-to-book ratio of 5.93 indicates a premium versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 15.81. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, TORO CO proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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TTC 32.26 | Peers 34.89 | TTC 32.42 | Peers 35.56 | |||||||||||||||||||||
Average. An average P/E ratio can signify an subsector neutral price for a stock and an average growth expectation. TTC is trading at a valuation on par with its peers. |
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. TTC is trading at a valuation on par to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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TTC 18.61 | Peers 25.65 | TTC 0.86 | Peers 5.15 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. TTC is trading at a discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. TTC trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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TTC 5.93 | Peers 15.81 | TTC -39.92 | Peers 20.44 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. TTC is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, TTC is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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TTC 2.08 | Peers 8.34 | TTC -6.87 | Peers 14.92 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. TTC is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. TTC significantly trails its peers on the basis of sales growth. |
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