Toro Co.

Toro sells $4.5B of gear, and the market charges 21.3x earnings for it.

If you own TTC, here’s what you should know about a $4.5B mower business.

ttc

industrials mid cap updated feb 6, 2026
$89.26
market cap ~$9B · 52-week range $62–$91
xvary composite: 68 / 100 · average
our overall rating — combines growth, value, risk, and momentum
Start here if you're new
what it is
Toro makes lawn, snow, irrigation, and golf equipment for homes and businesses.
how it gets paid
Last year Toro made $4.5B in revenue. Commercial mowers and turf equipment was the main engine at $1.8B, or 40% of sales.
why growth slowed
Revenue fell 1.6% last year. The $0.69 EPS print beat $0.65 by 6.15%.
what just happened
$0.69 EPS beat $0.65, while revenue reached $1.0B.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
80/100 earnings predictability — you can trust these numbers
21.3x trailing p/e — priced about right
1.8% dividend yield — cash in your pocket every quarter
25.0% return on capital — every dollar works hard here
xvary composite: 68/100 — average
What they do
Toro makes lawn, snow, irrigation, and golf equipment for homes and businesses.
Toro gets 80% of fiscal 2025 sales from commercial and professional users, versus 20% from homeowners. Your yard order is the 20% slice; the 80% slice comes from buyers who run the gear for work. Toro has 9,227 employees, and its 25.0% return on capital says each invested dollar earns a lot of profit.
industrials mid-cap outdoor-equipment commercial-supply dividend
How they make money
$4.5B annual revenue · their business grew -1.6% last year
Commercial mowers and turf equipment
$1.8B
+7.5%
Golf irrigation and aeration
$1.8B
+7.5%
Homeowner lawn and snow equipment
$0.9B
1.0%
The products that matter
sells landscaping and turf machinery
Professional equipment
roughly 80% of fiscal '25 sales by implication
homeowners are 20% of fiscal '25 sales, so the other roughly 80% is where TTC lives or dies. if professional demand stalls, the whole story slows with it.
core demand
sells homeowner lawn and snow tools
Residential equipment
20% of fiscal '25 sales
this is one-fifth of the business. it matters because consumer demand is usually the first part of outdoor equipment spending to wobble when budgets tighten.
consumer exposure
manufactures and sells equipment and parts
Equipment and parts
$4.5B revenue business
it is the full $4.5B business today. that tells you something important: this is still a hardware company, so margins and replacement demand do most of the heavy lifting.
full business
Key numbers
$4.5B
annual sales
Revenue → the money coming in → $4.5B means Toro is still a big equipment business, not a niche toy maker.
17.0%
operating margin
Operating margin → profit left after running costs → 17.0% means Toro keeps $17 of every $100 sold before interest and taxes.
25.0%
return on capital
Return on capital → profit made on money invested → 25.0% says the business turns each dollar of capital into real earnings.
1.8%
dividend yield
Dividend yield → cash paid to owners versus the stock price → 1.8% means you get paid to wait, but not much.
Financial health
B++
strength
  • balance sheet grade B++ — above average financial health
  • risk rank 3 — safer than 50% of stocks
  • price stability 70 / 100
  • long-term debt $922M (10% of capital)
  • net profit margin 10.4% — keeps 10 cents of every dollar in revenue
  • return on equity 35% — $0.35 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market

You invested $10,000 in TTC 3 years ago → it's now worth $8,540.

The index would have given you $14,770.

same period. same starting point. TTC trailed the market by $6,230.

source: institutional data · total return
What just happened
beat estimates
$0.69 EPS beat $0.65, while revenue reached $1.0B.
Revenue rose 4% vs. prior year, and gross margin was 32.5%. The quarter beat on EPS by 6.15%, which is the kind of small surprise the market still rewards.
$1.0B
revenue
$0.69
eps
32.5%
gross margin
the number that mattered
The $0.69 EPS print beat $0.65 by 6.15%, and that matters because Toro still trades at 21.3x trailing earnings.
source: company earnings report, 2026

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What could go wrong

the #1 risk is tariffs and component cost inflation on outdoor equipment.

∘
med
tariffs and component costs
Imported parts and machinery can squeeze a business that kept just 9.3% of revenue as profit last year.
A 1–3 point gross-margin hit would matter fast in a company earning single-digit net margins.
∘
med
commercial replacement cycles
Homeowners are only 20% of fiscal '25 sales, which means most demand sits with professional and other buyers. If they defer purchases, revenue can stay sluggish for longer than investors expect.
Sales already fell 1.6% last year. Another soft year would make the 21.3x earnings multiple harder to justify.
∘
med
multiple compression
The stock sits at $89, near the top of its $62–$91 range, while the long-range target midpoint is $82. Good businesses still de-rate when expectations outrun growth.
That is about 8% downside to the midpoint without needing a recession to do the damage.
∘
med
cost-savings dependence
Part of the near-term EPS story rests on margin improvement from cost savings rather than obvious revenue acceleration. That works until it stops working.
If savings fade before demand improves, fiscal 2026 EPS expectations of $4.35 get harder to reach.
with 100% of revenue tied to equipment and parts, cost pressure or slower replacement demand hits the full $4.5B revenue base while net margin is only 9.3%.
source: institutional data · regulatory filings · risk analysis
Pay attention to
trend
revenue returns to growth
last year sales fell 1.6%. the cleanest sign the story is improving is simple: positive revenue again.
metric
fy2026 EPS versus $4.35
that estimate is carrying a lot of optimism right now. if earnings slip under it, the valuation argument changes fast.
risk
gross-margin pressure from tariffs
single-digit net margins do not leave much room for cost surprises. watch margin before you watch headlines.
calendar
next earnings update
you want to see whether margin improvement is still outrunning the slow top line. that is the whole near-term setup.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — in human-speak, analysts think TTC can outperform most stocks over the next 12 months.
risk profile
average
stability score 3 — this is neither a bunker stock nor a chaos stock. It sits in the middle.
chart momentum
below average
technical score 4 — the chart says some of the recent good news may already be priced in.
earnings predictability
80 / 100
management usually gives a clear enough roadmap that results do not swing wildly. That is valuable when growth is modest.
source: institutional data
Institutional activity

institutions have been net buying for 2 consecutive quarters — 257 buyers vs. 222 sellers in 3q2025. total institutional holdings: 88.9M shares. net buying for 2 quarters.

source: institutional data · 1q2025-3q2025
source: institutional data
Price targets
3-5 year target range
$55 $108
$89 current price
$82 target midpoint · 8% from current · 3-5yr high: $150 (+70% · 15% ann'l return)
source: institutional data · analyst targets

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