Our viewpoint on Toro (USA Stocks:TTC) and Newell Brands (USA Stocks:NWL)?

TTC Stock  USD 113.69  0.46  0.40%   
As many rational traders are trying to avoid machinery space, it makes sense to go over Toro Co a little further and understand how it stands against Newell Brands and other similar entities. We are going to analyze some of the competitive aspects of both Toro and Newell.
Published over a month ago
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By analyzing existing basic indicators between Toro and Newell, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Newell with a short position in Toro. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
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 134.86 percent. This suggests that the company is making $1.35 for each dollar of assets. An increasing asset utilization means that Toro Co is more efficient with each dollar of assets it utilizes for everyday operations.

How important is Toro's Liquidity

Toro financial leverage refers to using borrowed capital as a funding source to finance Toro Co 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.

How does Toro utilize its cash?

To perform a cash flow analysis of Toro, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Toro is receiving and how much cash it distributes out in a given period. The Toro cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Toro Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 499.92 Million

Toro exotic insider transaction detected

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 general transaction of common stock by Wolfe Stephen P, VP Finance CFO, on 9th of January 2023. This event was filed by Toro Co with SEC on 2010-06-18. 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

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me take a closer look at Toro revenue. Based on the latest financial disclosure, Toro Co reported 3.96 B of revenue. This is 13.18% higher than that of the Machinery sector and 19.86% higher than that of the Industrials industry. The revenue for all United States stocks is 58.03% higher than that of Toro. As for Newell Brands we see revenue of 10.59 B, which is 220.53% higher than that of the Industrials

Toro3.96 Billion
Sector3.3 Billion
Newell10.59 Billion
3.3 B
10.6 B

Possible January recoup of Toro?

Current market risk adjusted performance is at 0.39. Toro Co has relatively low volatility with skewness of 0.3 and kurtosis of -0.23. However, we advise all investors to independently investigate Toro Co to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Toro's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Toro's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Take On Toro

Whereas some companies within the tools & accessories industry are still a little expensive, even after the recent corrections, Toro may offer a potential longer-term growth to investors. While some investors may not share our view, we believe that right now is not a good time to increase your holdings in Toro. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Toro.

Editorial Staff

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 Aina Ster do not own shares of Toro Co. Please refer to our Terms of Use for any information regarding our disclosure principles.

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