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The Toro Company

TTC
47
Manufacturing - Tools & Accessories · Industrials
Price
$99.44
+1.65 (+1.69%)
Market Cap
$9.47B
Winston Score
47
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through May 1, 2026
How the score breaks down
Quality
Good
Growth
Weak
Cash Flow
Exceptional
Stability
Good
Valuation
Strong
Dividends
Mixed

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)

Winston Score History

The full picture

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.

Growth Profile

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

Revenue Growth

+8.1% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+10.2% YoY

YoY Growth Rate

Steady EPS 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

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$225M 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 8% 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.

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Quality

Profit per sale
Gross Margin
33.9%
Modest — 33.9% gross margin
Profit after running costs
Operating Margin
13.7%
Healthy — 13.7% operating margin
Return on the money invested
ROCE
18.6%
Strong — 18.6% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth
Sales YoY
+2.5%
Nearly flat sales (+2.5% YoY)
Profit growth
EPS YoY
-11.2%
Earnings shrinking (-11.2% YoY)

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

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
245%
Turns 245% of profit into real cash
Spare cash per sale
FCF Margin
16.3%
Converts sales into free cash efficiently (16.3%)

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

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Stability

What it owes vs what it owns
Debt / Equity
0.74
Moderate — manageable debt (0.74)
Covers its interest
Interest Cover
7.72x
Adequate interest coverage (7.7x)

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

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Valuation

Price vs profit
P/E Ratio (TTM)
28.6x
Growth-priced — P/E 28.6

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

Cheaper or dearer next year
P/E vs Forward
+10.9
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (28.6 → 17.6)

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Dividends

Dividend
Dividend Yield
1.60%
Small dividend — 1.60% yield

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

Dividend record
Dividend Growth
+3.3%
Dividend growing modestly (3.3% YoY)

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