📊 TTC Key Takeaways
Is Toro Co (TTC) a Good Investment?
TORO maintains solid financial fundamentals with strong free cash flow generation ($265.5M) and manageable leverage (0.74x D/E), but faces significant headwinds with declining revenue (-1.6% YoY) and sharply deteriorating profitability (-24.5% net income decline). The severe margin compression despite modest revenue decline indicates operational pressure in a cyclical industry during an economic downturn, requiring stabilization before improving the outlook.
Toro Co Key Strengths (TTC)
- Strong free cash flow generation of $265.5M with 10.8% FCF margin, exceeding net income and providing financial flexibility
- Healthy gross margins at 33.3% and solid ROE of 15.6% demonstrate operational efficiency and reasonable returns on shareholder capital
- Conservative leverage position with 0.74x debt-to-equity ratio and robust 8.6x interest coverage ratio
TTC Stock Risks: Toro Co Investment Risks
- Severe profitability deterioration with 24.5% YoY decline in net income versus only 1.6% revenue decline indicates significant margin compression or operational challenges
- Quick ratio of 0.74x signals liquidity tightness and suggests heavy reliance on inventory conversion to meet short-term obligations
- Cyclical industry exposure (lawn & garden equipment) makes company vulnerable to prolonged economic slowdowns and consumer spending weakness
Key Metrics to Watch
- Revenue growth trajectory—need return to growth to validate business stabilization
- Operating and net margins—critical to monitor whether margin compression continues or stabilizes
- Free cash flow sustainability—monitor if FCF remains resilient during revenue decline
- Quick ratio and working capital efficiency—assess liquidity management and inventory turns
Toro Co (TTC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Toro Co presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
TTC Profit Margin, ROE & Profitability Analysis
TTC vs Market Sector: How Toro Co Compares
How Toro Co compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Toro Co Stock Overvalued? TTC Valuation Analysis 2026
Based on fundamental analysis, Toro Co has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Toro Co Balance Sheet: TTC Debt, Cash & Liquidity
TTC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Toro Co's revenue has grown significantly by 16% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.13 reflects profitable operations.
TTC Revenue Growth, EPS Growth & YoY Performance
TTC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $1.3B | $136.8M | $1.37 |
| Q1 2026 | $995.0M | $52.8M | $0.52 |
| Q3 2025 | $1.1B | $53.5M | $0.54 |
| Q2 2025 | $1.3B | $136.8M | $1.37 |
| Q1 2025 | $995.0M | $52.8M | $0.52 |
| Q3 2024 | $1.1B | N/A | $-0.14 |
| Q2 2024 | $1.3B | N/A | $1.38 |
| Q1 2024 | $1.0B | N/A | $0.62 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Toro Co Dividends, Buybacks & Capital Allocation
TTC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Toro Co (CIK: 0000737758)
📋 Recent SEC Filings
❓ Frequently Asked Questions about TTC
What is the AI rating for TTC?
Toro Co (TTC) has an AI grade of B with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TTC's key strengths?
Claude: Strong free cash flow generation of $265.5M with 10.8% FCF margin, exceeding net income and providing financial flexibility. Healthy gross margins at 33.3% and solid ROE of 15.6% demonstrate operational efficiency and reasonable returns on shareholder capital.
What are the risks of investing in TTC?
Claude: Severe profitability deterioration with 24.5% YoY decline in net income versus only 1.6% revenue decline indicates significant margin compression or operational challenges. Quick ratio of 0.74x signals liquidity tightness and suggests heavy reliance on inventory conversion to meet short-term obligations.
What is TTC's revenue and growth?
Toro Co reported revenue of $2.5B.
Does TTC pay dividends?
Toro Co pays dividends, with $75.8M distributed to shareholders in the trailing twelve months.
Where can I find TTC SEC filings?
Official SEC filings for Toro Co (CIK: 0000737758) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is TTC's EPS?
Toro Co has a diluted EPS of $2.18.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is TTC's fundamental grade?
Based on our AI fundamental analysis in June 2026, Toro Co has a B grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is TTC stock overvalued or undervalued?
Valuation metrics for TTC: ROE of 15.6% (sector avg: 15%), net margin of 8.7% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
What is TTC's AI grade for 2026?
Our dual AI analysis gives Toro Co a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is TTC's free cash flow?
Toro Co's operating cash flow is $293.5M, with capital expenditures of $28.0M. FCF margin is 10.8%.
How does TTC compare to other Market stocks?
Vs Default sector averages: Net margin 8.7% (avg: 12%), ROE 15.6% (avg: 15%), current ratio 1.56 (avg: 1.8).