The Toro Company (TTC) AI Stock Analysis

The Toro Company provides outdoor environment solutions across its Professional and Residential segments. The Professional segment offers turf and landscape equipment for sports fields, golf courses, and commercial properties, along with rental and underground construction tools. It also supplies snow and ice management attachments for trucks and utility vehicles, as well as irrigation and landscape lighting products. The Residential segment sells home lawn care equipment, including walk power mowers, zero-turn riding mowers, snow throwers, handheld tools, and retail irrigation products. Founded in 1914, Toro distributes through dealers, mass retailers, hardware stores, rental centers, home centers, and online platforms.

Toro expanded its revenue at a 5-year CAGR of 5.9% from FY2020 to FY2025. Annual revenue grew from $3.96B in FY2021 to $4.51B in FY2022, $4.55B in FY2023, and $4.58B in FY2024, before revenue fell 1.6% to $4.51B in FY2025. Gross margin was 33.4% in FY2025 compared to 33.8% in FY2024, while operating margin was 10.9% and net income was $316.1M. Over the trailing twelve months, revenue totaled $4.75B with a net profit margin of 7.6% and diluted EPS of $3.74. In the latest quarter ended July 31, 2026, quarterly revenue grew 8.4% year-over-year, and quarterly earnings grew 49.8%.

As of July 31, 2026, Toro held $175.3M in cash and short-term investments against total debt of $1.08B, resulting in net debt of $902.7M. Total assets stood at $3.54B and shareholders' equity was $1.34B, yielding a debt-to-equity ratio of 0.81 and a current ratio of 1.58. In FY2025, operating cash flow reached $662.0M, supporting capital expenditures of $83.7M and free cash flow of $578.3M. The company allocated $290.0M to share buybacks and paid $151.1M in dividends during FY2025, helping reduce its share count by 11.1% over five years.

Toro trades at a trailing P/E of 26.9x, above the 24.8x median of its US-listed Industrials peers. Its forward P/E of 17.0x is slightly below the peer median of 17.2x. The stock carries an enterprise value of $10.05B with an EV to EBITDA multiple of 15.1x, compared to the peer median of 13.9x, and a price-to-sales ratio of 2.0x versus the peer median of 1.5x. Over the past year, Toro's return of 38.0% outperformed the S&P 500 (SPY) return of 16.8%, though its 5-year return of 12.0% trailed the index's 83.0% return.

Toro pays a quarterly dividend with an annualized forward payout of $1.56 per share, representing a dividend yield of 1.55%. The company's payout ratio is 34.1%, and it has paid dividends for 43 consecutive years. Over the past five years, dividend growth annualized at 8.6%. The most recent ex-dividend date was October 6, 2026.

Wall Street analysts hold 3 Strong Buy and 3 Hold ratings on Toro, with zero Sell ratings. The mean price target is $111.00, representing a 10.4% upside over the last close of $100.58. For the fiscal year ending October 31, 2026, consensus estimates project revenue of $4.79B and EPS of $4.64, reflecting 10.4% EPS growth. For next fiscal year, 6 analysts anticipate revenue of $5.00B and EPS of $5.10. Toro has delivered 4 EPS beats over the last 4 quarters.

This page is an AI-written research summary of The Toro Company (TTC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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