The Toro Company (TTC) Financial Ratios
30 years of historical data (1996–2025) · Industrials · Manufacturing - Tools & Accessories
EV/EBITDA
↓
14.99
-5% vs avg
5yr avg: 15.79
30Y Low4.9·High21.5
P/FCF
↓
15.25
↓-58% vs avg
5yr avg: 36.09
30Y Low6.3·High72.5
P/B Ratio
↓
6.36
-5% vs avg
5yr avg: 6.68
30Y Low1.1·High11.3
ROE
↓
21.0%
↑-26% vs avg
5yr avg: 28.6%
30Y Low2%·High46%
Debt/EBITDA
↑
1.61
↓-0% vs avg
5yr avg: 1.62
30Y Low0.7·High3.0
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
TTC Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
The Toro Company trades at 29.2x earnings, 22% above its 5-year average of 24.0x, sitting at the 93rd percentile of its historical range. Compared to the Industrials sector median P/E of 25.6x, the stock trades at a premium of 14%. On a free-cash-flow basis, the stock trades at 15.3x P/FCF, 58% below the 5-year average of 36.1x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $8.8B | $7.5B | $8.4B | $8.5B | $11.1B | $10.4B | $8.9B | $8.3B | $6.1B | $7.0B | $5.4B |
| Enterprise Value | $9.5B | $8.1B | $9.2B | $9.5B | $12.0B | $10.7B | $9.3B | $8.9B | $6.1B | $7.0B | $5.4B |
| P/E Ratio → | 29.21 | 23.57 | 20.07 | 25.83 | 25.10 | 25.26 | 27.10 | 30.49 | 22.53 | 26.08 | 23.24 |
| P/S Ratio | 1.96 | 1.65 | 1.83 | 1.87 | 2.47 | 2.62 | 2.64 | 2.66 | 2.34 | 2.79 | 2.24 |
| P/B Ratio | 6.36 | 5.13 | 5.41 | 5.63 | 8.24 | 9.00 | 8.00 | 9.70 | 9.15 | 11.33 | 9.75 |
| P/FCF | 15.25 | 12.90 | 18.01 | 54.12 | 72.47 | 22.94 | 19.34 | 34.10 | 22.28 | 23.12 | 16.07 |
| P/OCF | 13.32 | 11.27 | 14.74 | 27.75 | 37.48 | 18.64 | 16.54 | 24.71 | 16.78 | 19.38 | 13.95 |
P/E links to full P/E history page with 30-year chart
TTC EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
The Toro Company's enterprise value stands at 15.0x EBITDA, 5% below its 5-year average of 15.8x. The Industrials sector median is 13.8x, placing the stock at a 8% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.80 | 2.02 | 2.08 | 2.66 | 2.71 | 2.76 | 2.83 | 2.35 | 2.80 | 2.28 |
| EV / EBITDA | 14.99 | 12.84 | 13.97 | 17.24 | 17.56 | 17.34 | 17.84 | 21.53 | 14.15 | 16.70 | 13.66 |
| EV / EBIT | 19.35 | 19.86 | 16.08 | 20.65 | 20.44 | 20.27 | 21.16 | 25.32 | 15.69 | 18.84 | 15.56 |
| EV / FCF | — | 14.07 | 19.82 | 60.28 | 78.21 | 23.72 | 20.19 | 36.34 | 22.37 | 23.19 | 16.32 |
TTC Profitability
Margins and return-on-capital ratios measuring operating efficiency
The Toro Company earns an operating margin of 10.9%, above the Industrials sector average of 4.3%. Operating margins have expanded from 9.5% to 10.9% over the past 3 years, signaling improving operational efficiency. ROE of 21.0% indicates solid capital efficiency, compared to the sector median of 8.2%. ROIC of 16.3% represents solid returns on invested capital versus a sector median of 6.1%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 33.4% | 33.4% | 33.8% | 34.6% | 33.3% | 33.8% | 35.2% | 33.4% | 35.9% | 36.8% | 36.6% |
| Operating Margin | 10.9% | 10.9% | 11.6% | 9.5% | 12.8% | 13.1% | 12.6% | 10.4% | 14.2% | 14.2% | 14.0% |
| Net Profit Margin | 7.0% | 7.0% | 9.1% | 7.2% | 9.8% | 10.4% | 9.8% | 8.7% | 10.4% | 10.7% | 9.7% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 21.0% | 21.0% | 27.4% | 23.0% | 35.4% | 36.2% | 33.4% | 35.9% | 42.3% | 45.9% | 45.6% |
| ROA | 9.0% | 9.0% | 11.6% | 9.2% | 13.7% | 14.2% | 12.7% | 14.0% | 17.7% | 18.6% | 17.2% |
| ROIC | 16.3% | 16.3% | 16.4% | 13.7% | 23.1% | 25.8% | 21.9% | 23.2% | 42.0% | 42.0% | 37.3% |
| ROCE | 19.1% | 19.1% | 20.1% | 16.6% | 25.6% | 25.9% | 23.9% | 24.9% | 37.1% | 37.5% | 37.5% |
TTC Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
The Toro Company carries a Debt/EBITDA ratio of 1.6x, which is manageable (50% below the sector average of 3.2x). Net debt stands at $681M ($1.0B total debt minus $341M cash). Interest coverage of 6.9x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.70 | 0.70 | 0.67 | 0.77 | 0.79 | 0.66 | 0.78 | 0.82 | 0.47 | 0.54 | 0.64 |
| Debt / EBITDA | 1.61 | 1.61 | 1.57 | 2.12 | 1.56 | 1.23 | 1.67 | 1.70 | 0.72 | 0.79 | 0.89 |
| Net Debt / Equity | — | 0.47 | 0.54 | 0.64 | 0.65 | 0.31 | 0.35 | 0.64 | 0.04 | 0.04 | 0.15 |
| Net Debt / EBITDA | 1.07 | 1.07 | 1.27 | 1.76 | 1.29 | 0.58 | 0.75 | 1.33 | 0.05 | 0.05 | 0.20 |
| Debt / FCF | — | 1.18 | 1.80 | 6.17 | 5.74 | 0.79 | 0.85 | 2.25 | 0.09 | 0.07 | 0.24 |
| Interest Coverage | 6.94 | 6.94 | 9.28 | 7.82 | 16.48 | 18.41 | 13.28 | 12.17 | 20.50 | 19.48 | 18.09 |
TTC Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.87x means The Toro Company can comfortably meet its short-term obligations, though there is limited excess liquidity. The quick ratio of 0.86x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.87 | 1.87 | 1.81 | 1.90 | 1.58 | 1.59 | 1.67 | 1.48 | 1.68 | 1.65 | 1.68 |
| Quick Ratio | 0.86 | 0.86 | 0.74 | 0.75 | 0.59 | 0.80 | 0.91 | 0.62 | 1.01 | 1.02 | 1.02 |
| Cash Ratio | 0.37 | 0.37 | 0.20 | 0.20 | 0.18 | 0.43 | 0.56 | 0.20 | 0.54 | 0.59 | 0.59 |
| Asset Turnover | — | 1.31 | 1.28 | 1.25 | 1.27 | 1.35 | 1.18 | 1.35 | 1.67 | 1.68 | 1.72 |
| Inventory Turnover | 3.26 | 3.26 | 2.92 | 2.74 | 2.86 | 3.55 | 3.36 | 3.21 | 4.68 | 4.82 | 4.94 |
| Days Sales Outstanding | — | 30.61 | 36.61 | 32.66 | 26.90 | 28.60 | 28.21 | 31.26 | 26.93 | 26.67 | 24.91 |
TTC Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
The Toro Company returns 4.9% to shareholders annually — split between a 1.6% dividend yield and 3.3% buyback yield. A payout ratio of 47.8% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 3.4% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.6% | 2.0% | 1.8% | 1.7% | 1.1% | 1.1% | 1.2% | 1.2% | 1.4% | 1.1% | 1.2% |
| Payout Ratio | 47.8% | 47.8% | 35.7% | 43.0% | 28.4% | 27.4% | 32.7% | 35.1% | 31.3% | 28.3% | 28.5% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.4% | 4.2% | 5.0% | 3.9% | 4.0% | 4.0% | 3.7% | 3.3% | 4.4% | 3.8% | 4.3% |
| FCF Yield | 6.6% | 7.8% | 5.6% | 1.8% | 1.4% | 4.4% | 5.2% | 2.9% | 4.5% | 4.3% | 6.2% |
| Buyback Yield | 3.3% | 3.9% | 2.9% | 0.7% | 1.3% | 2.9% | 0.0% | 0.2% | 2.6% | 2.3% | 2.1% |
| Total Shareholder Yield | 4.9% | 5.9% | 4.7% | 2.4% | 2.4% | 4.0% | 1.2% | 1.4% | 4.0% | 3.4% | 3.3% |
| Shares Outstanding | — | $100M | $104M | $105M | $106M | $108M | $109M | $108M | $109M | $111M | $112M |
Peer Comparison
Compare TTC with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 TTCYou | $9B | 29.2 | 15.0 | 15.3 | 33.4% | 10.9% | 21.0% | 16.3% | 1.6 |
 DE | $159B | 31.9 | 20.2 | 49.2 | 36.5% | 18.8% | 20.5% | 7.8% | 6.0 |
 AGCO | $8B | 11.7 | 9.8 | 11.1 | 24.8% | 6.9% | 16.9% | 8.3% | 2.6 |
 MTW | $473M | 65.8 | 8.0 | — | 18.1% | 2.6% | 1.1% | 3.9% | 4.8 |
 LNN | $1B | 17.6 | 10.4 | 13.8 | 31.2% | 13.0% | 14.6% | 15.7% | 1.3 |
 ASTE | $1B | 33.4 | 15.1 | 60.0 | 26.5% | 4.6% | 5.9% | 6.2% | 3.1 |
 SWK | $13B | 32.7 | 12.4 | 19.6 | 29.9% | 7.6% | 4.5% | 5.8% | 3.8 |
 TTI | $1B | 461.3 | 16.6 | 70.9 | 25.4% | 9.4% | 1.1% | 9.5% | 2.7 |
 GNRC | $16B | 103.8 | 35.9 | 61.1 | 38.3% | 6.9% | 6.2% | 5.9% | 2.8 |
 HBB | $274M | 10.5 | 6.3 | 24.9 | 25.7% | 6.0% | 15.2% | 14.0% | 1.0 |
 DXPE | $3B | 32.4 | 15.6 | 49.9 | 31.5% | 8.8% | 19.3% | 12.5% | 4.6 |
| Industrials Median | — | 25.6 | 13.8 | 20.0 | 32.0% | 4.3% | 8.2% | 6.1% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
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TTC — Frequently Asked Questions
Quick answers to the most common questions about buying TTC stock.
What is The Toro Company's P/E ratio?
The Toro Company's current P/E ratio is 29.2x. The historical average is 21.1x. This places it at the 93th percentile of its historical range.
What is The Toro Company's EV/EBITDA?
The Toro Company's current EV/EBITDA is 15.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.1x.
What is The Toro Company's ROE?
The Toro Company's return on equity (ROE) is 21.0%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 29.6%.
Is TTC stock overvalued?
Based on historical data, The Toro Company is trading at a P/E of 29.2x. This is at the 93th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is The Toro Company's dividend yield?
The Toro Company's current dividend yield is 1.63% with a payout ratio of 47.8%.
What are The Toro Company's profit margins?
The Toro Company has 33.4% gross margin and 10.9% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does The Toro Company have?
The Toro Company's Debt/EBITDA ratio is 1.6x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.