TTC Stock Analysis — The Toro Company
Sector: Industrials
AI Verdict
TTC trades at a fair price for the growth on offer, but the moat in turf equipment distribution needs to deliver on the 38.9% earnings growth to justify the multiple.
Competitive Moat
Toro dominates the professional and residential turf equipment market through deep dealer relationships and a wide service network, making it hard for new entrants to compete on distribution and support. Its specialized product lineup for golf courses, municipalities, and large property owners creates customer stickiness and recurring replacement cycles.
Summary
A sharp drop in forward P/E to 19.7x with 38.9% forecasted EPS growth makes TTC's valuation reset stand out.
Where It Stands
TTC trades at 19.7x next year's earnings versus the industrials sector median of 20x, with forward EPS growth of 38.9% and a trailing P/E of 27.4x reflecting a recent rerating.
Key Metrics
- Trailing P/E: 27.4x
- Forward P/E: 19.7x
- PEG Ratio: 0.70
- Earnings Growth: +0.4%
- Revenue Growth: -0.0%
- Dividend Yield: 0.02%
- 52-Week High: $105.19
- 52-Week Low: $67.04
Analyst Consensus
6 Buy · 4 Hold · 0 Sell (10 analysts)
Bull Case
Analysts expect 38.9% EPS growth next year, so the 19.7x forward P/E is cheap for the growth you're getting if execution holds.
Bear Case
If the multiple reverts to the sector median of 20x but growth stalls, the 27.4x trailing P/E leaves room for further compression.
Catalyst to Watch
Watch quarterly earnings for confirmation that the expected 38.9% EPS growth is materializing, as any miss could trigger a valuation reset.