📊 TTC Key Takeaways
Is Toro Co (TTC) a Good Investment?
Toro Co faces significant operational deterioration with net income declining 24.5% YoY despite stable revenue, indicating margin compression and inefficient cost management. Combined with extremely poor capital efficiency (ROE 4.8%, ROA 1.8%), weak free cash flow generation (1.4% margin), and concerning interest coverage of only 2.6x, the company demonstrates deteriorating fundamentals that warrant investor caution.
Why Buy Toro Co Stock? TTC Key Strengths
- Revenue relatively stable at 1.0B with only 1.6% decline, indicating retained market position
- Healthy current ratio of 1.69x demonstrates adequate short-term liquidity
- Gross margin of 32.5% suggests reasonable underlying production economics in core business
TTC Stock Risks: Toro Co Investment Risks
- Net income collapsed 24.5% YoY while revenue declined only 1.6%, indicating severe operating inefficiency and margin compression
- Exceptionally low capital returns (ROE 4.8%, ROA 1.8%) show the business generates minimal value from deployed capital
- Weak free cash flow (1.4% margin on 1.0B revenue) with interest coverage of only 2.6x leaves limited cushion for debt service or investment
- Quick ratio of 0.73x indicates dependence on inventory conversion for liquidity, risking stress if sales further deteriorate
Key Metrics to Watch
- Operating margin trend and gross profit dollars to identify whether margin compression persists or stabilizes
- Free cash flow and operating cash flow conversion to assess whether business can fund obligations and growth
- Interest expense coverage ratio and debt levels as the company's leverage becomes more concerning with declining profitability
Toro Co (TTC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.4% FCF margin may limit capital allocation flexibility.
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 shows some fundamental concerns 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 |
|---|---|---|---|
| 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 |
| Q3 2023 | $1.1B | N/A | $-0.14 |
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 rating of SELL with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TTC's key strengths?
Claude: Revenue relatively stable at 1.0B with only 1.6% decline, indicating retained market position. Healthy current ratio of 1.69x demonstrates adequate short-term liquidity.
What are the risks of investing in TTC?
Claude: Net income collapsed 24.5% YoY while revenue declined only 1.6%, indicating severe operating inefficiency and margin compression. Exceptionally low capital returns (ROE 4.8%, ROA 1.8%) show the business generates minimal value from deployed capital.
What is TTC's revenue and growth?
Toro Co reported revenue of $1.0B.
Does TTC pay dividends?
Toro Co pays dividends, with $38.3M 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 $0.69.
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 rating reflects both perspectives for balanced insights.
Is TTC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Toro Co has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is TTC stock overvalued or undervalued?
Valuation metrics for TTC: ROE of 4.8% (sector avg: 15%), net margin of 6.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy TTC stock in 2026?
Our dual AI analysis gives Toro Co a combined SELL rating 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 $26.1M, with capital expenditures of $11.5M. FCF margin is 1.4%.
How does TTC compare to other Market stocks?
Vs Default sector averages: Net margin 6.6% (avg: 12%), ROE 4.8% (avg: 15%), current ratio 1.69 (avg: 1.8).