The Toro Company (TTC) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

The Toro Company (TTC) Industrial Operations Profile

The Toro Company, founded in 1914, is a global leader in designing, manufacturing, and marketing turf maintenance equipment, irrigation solutions, and snow/ice management tools for professional and residential customers. With a broad distribution network, Toro serves diverse markets, including golf courses, sports fields, and residential landscapes.

What Is the Investment Thesis for TTC?

The Toro Company presents a notable research candidate due to its established market position, diversified product portfolio, and consistent financial performance. With a market capitalization of $8.83B and a P/E ratio of 24.73, Toro demonstrates financial stability. A key value driver is the company's strong brand reputation and extensive distribution network, allowing it to maintain a significant market share in both the professional and residential segments. Growth catalysts include ongoing investments in product innovation and expansion into new markets, particularly in the irrigation and snow/ice management sectors. However, potential risks include fluctuations in raw material costs and increased competition from other manufacturers. The company's beta of 0.81 suggests lower volatility compared to the overall market.

Based on FMP financials and quantitative analysis

TTC Key Highlights

Market Cap of $8.83B indicates a strong market valuation and investor confidence.

• P/E Ratio of 24.73 reflects investor expectations of future earnings growth.
• Profit Margin of 7.3% demonstrates the company's ability to generate profit from its revenue.
• Gross Margin of 33.1% showcases efficient cost management in production and sales.
• Dividend Yield of 1.61% provides a steady income stream for investors, enhancing the stock's attractiveness.

Who Are TTC's Competitors?

TTC is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are TTC's Key Strengths?

Strong brand recognition and reputation.

• Extensive distribution network.
• Diversified product portfolio.
• Commitment to innovation and quality.

What Are TTC's Weaknesses?

Dependence on seasonal demand.

• Exposure to fluctuations in raw material costs.
• Limited presence in emerging markets.
• Vulnerability to economic downturns.

What Could Drive TTC Stock Higher?

Continued investment in research and development to drive product innovation.

• Expansion into new geographic markets, particularly in Asia and Latin America.
• Strategic acquisitions to expand market share and product offerings.
• Launch of new electric-powered equipment in the residential segment in Q3 2026.
• Introduction of smart irrigation solutions for agricultural applications in Q4 2026.

What Are the Key Risks for TTC?

Fluctuations in raw material costs, such as steel and aluminum.

• Increased competition from other manufacturers in the turf maintenance industry.
• Economic downturns affecting consumer spending on residential equipment.
• Dependence on seasonal demand for turf maintenance and snow/ice management equipment.
• Changes in government regulations related to emissions and environmental standards.

What Are the Growth Opportunities for TTC?

• Expansion in Irrigation Solutions: The global irrigation equipment market is projected to reach $16.2 billion by 2027, driven by increasing water scarcity and the need for efficient irrigation systems in agriculture and landscaping. Toro can capitalize on this trend by expanding its irrigation product line and targeting new markets, particularly in regions facing water challenges. This includes drip irrigation and smart irrigation technologies.
• Growth in Snow and Ice Management: The snow and ice management equipment market is expected to grow, driven by increasing demand for snow removal services in urban areas and commercial properties. Toro can leverage its existing product line and distribution network to capture a larger share of this market, offering innovative solutions such as electric-powered snow throwers and salt spreaders. This includes expanding into new geographic regions with heavy snowfall.
• Residential Segment Growth: The residential segment presents a significant growth opportunity for Toro, driven by increasing homeownership and the demand for lawn care and maintenance equipment. Toro can expand its product line to include more innovative and user-friendly products, such as robotic lawn mowers and battery-powered equipment. This includes targeting younger homeowners and offering online sales channels.
• Strategic Acquisitions: Strategic acquisitions can provide Toro with access to new technologies, markets, and product lines. By acquiring companies with complementary products or technologies, Toro can expand its market share and enhance its competitive position. Potential targets include companies specializing in smart irrigation, electric-powered equipment, or robotic lawn care.
• International Expansion: Expanding into new international markets, particularly in Asia and Latin America, can drive significant growth for Toro. These regions offer large and growing markets for turf maintenance, irrigation, and snow/ice management equipment. Toro can establish a presence in these markets through partnerships, acquisitions, or direct investment. This includes adapting products to meet local needs and preferences.

What Are TTC's Competitive Advantages?

• Strong brand reputation and customer loyalty.
• Extensive distribution network.
• Diversified product portfolio.
• Commitment to innovation and quality.
• Established market position in the turf maintenance industry.

What Does TTC Do?

The Toro Company, established in 1914 and headquartered in Bloomington, Minnesota, has evolved into a global leader in the design, manufacture, and marketing of professional and residential equipment. Originally producing engines for tractors, the company quickly adapted to meet the growing demand for turf maintenance equipment, particularly for golf courses. Over the decades, Toro expanded its product portfolio to include a comprehensive range of turf and landscape equipment, irrigation solutions, and snow/ice management tools. The company operates through two primary segments: Professional and Residential. The Professional segment serves golf courses, sports fields, municipal properties, and commercial landscapes, offering products such as mowers, aerators, sprayers, and irrigation systems. The Residential segment caters to homeowners with walk power mowers, zero-turn riding mowers, snow throwers, and a variety of home solution products like trimmers and leaf blowers. Toro's products are sold through a network of distributors, dealers, home centers, hardware retailers, and mass retailers, as well as online. Toro's commitment to innovation and quality has solidified its position as a trusted brand in the turf and landscape maintenance industry. The company continues to invest in research and development to create new products and technologies that meet the evolving needs of its customers. With a global presence and a diverse product line, The Toro Company is well-positioned for continued growth and success.

What Products and Services Does TTC Offer?

• Designs and manufactures turf maintenance equipment.
• Produces irrigation solutions for agriculture and landscaping.
• Offers snow and ice management tools for residential and commercial use.
• Provides rental and specialty construction equipment.
• Sells replacement parts and accessories for its products.
• Distributes products through a network of dealers, retailers, and online channels.

How Does TTC Make Money?

• Manufacturing and selling turf maintenance equipment.
• Providing irrigation solutions and related services.
• Offering snow and ice management equipment.
• Generating revenue through equipment sales, parts, and accessories.
• Distributing products through a network of dealers, retailers, and online channels.

What Industry Does TTC Operate In?

The Toro Company operates within the manufacturing industry, specifically focusing on tools and accessories for turf maintenance, irrigation, and snow/ice management. The industry is characterized by steady growth, driven by increasing demand for outdoor equipment in both residential and commercial sectors. The competitive landscape includes companies like AGCO Corporation and The Timken Company (TKR), which offer similar products and services. Toro's strong brand reputation and extensive distribution network provide a competitive edge in this market.

Who Are TTC's Key Customers?

• Golf courses and sports fields.
• Municipalities and government agencies.
• Residential homeowners.
• Commercial landscapers.
• Rental companies.

The Toro Company (TTC) Valuation Context

Valued at $8.83B, TTC is classified as a mid-cap stock. Analyst price targets span from $115.00 to $115.00, with a consensus of $115.00. At the current price of $92.72, that implies approximately 24% upside potential. Relative to its peer group, TTC's quantitative score of 81/100 is above the peer average of 63/100.

TTC Revenue & Earnings Trend

In Q3 FY2026, TTC generated $1.23B in top-line revenue, marking a sequential decrease of 14.0%. The company recorded net income of $77.0M, with diluted EPS of $0.81. Quarter-over-quarter revenue has been mixed, typical for a mid-cap company operating in Industrials. Across the four most recent quarters, TTC averaged $0.93 in diluted EPS.

Company Profile

The Toro Company operates in the Manufacturing - Tools & Accessories industry within the Industrials sector. It is headquartered in Bloomington, US. The company is led by CEO Richard Olson. TTC has traded publicly since 1980.

Return on equity for The Toro Company stands at 26.1%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 10.3%, showing how much profit it generates from its asset base. TTC trades at a trailing price-to-earnings ratio of 24.73, below the Industrials sector average of ~28.00x. Its free cash flow yield is 8.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.58 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 4.1%, the inverse of the P/E and a quick read on earnings relative to price.

The Toro Company's Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 5.03 places it in the safe zone, indicating low near-term bankruptcy risk.

The Toro Company has beaten Wall Street's EPS estimate in 7 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 4.0% above estimates on average.

Over the past six months, The Toro Company insiders filed 35 SEC Form 4 transactions — 25 sales and 10 purchases. On net that is roughly 25K shares disposed (about $947K), a signal worth weighing alongside the fundamentals.

TTC Financials

TTC Latest News

TTC Analyst Consensus

TTC MoonshotScore

What Investors Ask About The Toro Company (TTC) — Industrials

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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