Toro Story

<div class='circular--portrait' style='background:#4E8BFC;color: #ffffff;font-size:3em;'>TOR</div>
TTC -- USA Stock  

USD 113.38  0.42  0.37%

Toro Company is scheduled to announce its earnings today. The next earnings report is expected on the 3rd of June 2021. Toro Revenue Per Employee is projected to decrease significantly based on the last few years of reporting. The past year's Revenue Per Employee was at 373,136. The current year Earnings before Tax is expected to grow to about 320.9 M, whereas Net Income Per Employee is forecasted to decline to about 27.9 K. As many baby boomers are still indifferent towards industrials space, it makes sense to go over Toro Company as a unique choice for millenniums. Let's try to analyze if Toro shares are reasonably priced going into April.
Published over a month ago
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Will current Toro (NYSE:TTC) debt levels change in two three weeks?
The company has 873.21 M in debt with debt to equity (D/E) ratio of 0.78, which is OK given its current industry classification.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Toro has an asset utilization ratio of 243.6 percent. This suggests that the company is making $2.44 for each dollar of assets. An increasing asset utilization means that Toro Company is more efficient with each dollar of assets it utilizes for everyday operations.
Toro financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Toro, including all of Toro's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Toro assets, the company is considered highly leveraged. Understanding the composition and structure of overall Toro debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding Toro Total Debt

Toro Company liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Toro Company has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Toro balance sheet include debt obligations and money owed to different Toro vendors, workers, and loan providers. Below is the chart of Toro main long-term debt accounts currently reported on its balance sheet.
You can use Toro Company financial leverage analysis tool to get a better grip on understanding its financial position

How important is Toro's Liquidity

Toro financial leverage refers to using borrowed capital as a funding source to finance Toro Company ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Toro financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Toro's total debt and its cash.

Exercise or conversion by Drake Angela C of 369 shares of Toro subject to Rule 16b-3

Legal trades by Toro insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Toro insider trading alert for exercise of restricted stock units by Drake Angela C, VP Construction, on 5th of April 2021. This event was filed by Toro Co with SEC on 2021-04-05. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Detailed Perspective On Toro

Toro Company reported the last year's revenue of 3.38 B. Total Income to common stockholders was 329.7 M with profit before taxes, overhead, and interest of 1.19 B.

Asset Breakdown

590.9 M
Assets Non Current
294.1 M
Current Assets
Total Assets2.77 Billion
Current Assets1.02 Billion
Assets Non Current590.89 Million
Goodwill294.11 Million
Tax Assets51.57 Million

Another small slip for Toro

The mean deviation is down to 0.92 as of today.
As of the 4th of March, Toro has the Coefficient Of Variation of 782.81, semi deviation of 1.05, and Risk Adjusted Performance of 0.1017. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Toro Company, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to interpolate and analyze data for nineteen technical drivers for Toro Company, which can be compared to its competition. Please validate Toro Company information ratio, potential upside, as well as the relationship between the Potential Upside and kurtosis to decide if Toro is priced more or less accurately, providing market reflects its prevalent price of 100.2 per share. Given that Toro Company has jensen alpha of 0.0939, we advise you to double-check Toro Company's current market performance to make sure the company can sustain itself at a future point.

Our Final Takeaway

Whereas some other firms under the tools & accessories industry are still a bit expensive, Toro may offer a potential longer-term growth to investors. To conclude, as of the 4th of March 2021, we believe Toro is currently undervalued. It almost mirrors the market and projects very low odds of distress in the next two years. Our overall 30 days buy-hold-sell recommendation on the company is Strong Buy.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Toro Company. Please refer to our Terms of Use for any information regarding our disclosure principles.

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