Toro Company has achieved four consecutive earnings beats with excellent free cash flow conversion of 197% and a strong Piotroski score, but the stock offers only 5% upside to analyst targets and the reward-to-risk profile does not yet meet the bar for adding a new position.
Thesis pillars
- Free Cash Flow Conversion→Stable
- Earnings Beat Streak↑Improving
- Thin Upside Asymmetry↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Dec 17, 2025
Toro Company (The) (TTC) Stock Analysis
Industrials · Tools & Accessories
Hold if already holding. Not a fresh buy at $107.38, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Near 52-week high (0.4% away).
Toro Company designs and manufactures outdoor maintenance equipment across two segments: Professional (turf maintenance, snow and ice management, underground construction, irrigation) at 80.3% of fiscal 2025 net sales and Residential at 19.0%, distributed through dealers,... Read more
Hold if already holding. Not a fresh buy at $107.38, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Near 52-week high (0.4% away). Chart setup: No clear chart pattern; technical signals are mixed. Multiple concerning factors. Consider reducing position. | News modifier +1 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Score 5.7/10, moderate confidence.
Passes 7/8 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 47d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
About Toro Company (The)
About Toro Company (The)
The Toro Company splits its fiscal 2025 net sales between its Professional segment at 80.3%, serving golf courses, sports fields, municipalities, landscaping contractors, and construction companies, and its Residential segment at 19.0%, targeting homeowners with mowers, snow throwers, and yard tools. International net sales represented 19.5% of consolidated net sales in fiscal 2025, spanning manufacturing in eight countries and sales offices across ten. In December 2025, Toro acquired Tornado Infrastructure Equipment of Calgary, Alberta for CAD $279.3 million, broadening its underground construction portfolio.
The Professional segment drives the vast majority of revenue through original equipment sales distributed via a network of distributors and dealers, as well as directly to government customers and rental companies, under brands including Toro, Ditch Witch, eXmark, Ventrac, BOSS, Spartan, and American Augers. The Residential segment sells Toro-branded mowers, snow throwers, and yard tools primarily through mass retailers and home centers. The company generates additional revenue from separately priced extended warranty coverage on select products. The cost structure faces exposure to steel, aluminum, petroleum-based resins, copper, rubber, and engines. Tariffs on certain engines imported from China have been a recurring headwind. Toro has historically partially offset commodity cost increases through selective pricing adjustments and Lean manufacturing productivity initiatives, though these measures have not consistently neutralized margin compression during periods of elevated material costs.
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Single-source supplier dependence is the most explicitly quantified supply chain risk in the 10-K: certain components are sourced from specific suppliers with no practical short-term alternatives, a configuration that has caused actual availability disruptions in recent fiscal years when those suppliers could not meet production requirements and substitutes could not be found in time. The underlying exposure is compounded by antidumping and countervailing duty petitions on certain engines imported from China, specifically flagged as an ongoing cost headwind. The company's manufacturing footprint across eight countries provides geographic flexibility in final assembly but that flexibility does not extend to inputs sourced from single-supplier relationships, creating a structural vulnerability that geographic diversification cannot fully offset.
See also: Industrials · Tools & Accessories
From Toro Company (The)'s most recent 10-K filing, extracted June 16, 2026.
Recent developments
updated 2026-10-30Recent Developments — Toro Company (The)
Latest news
- NEWS The Toro Company (TTC) Reports Earnings Tomorrow: What To Expect - Yahoo Finance — Yahoo Finance neutral
- NEWS The Toro Company (TTC) Reports Earnings Tomorrow: What To Expect - StockStory — StockStory neutral
- NEWS The Toro Company (TTC) Reports Earnings Tomorrow: What To Expect - TradingView — TradingView neutral
- NEWS The Toro Company (TTC) Reports Earnings Tomorrow: What To Expect - The Globe and Mail — The Globe and Mail neutral
- NEWS The Toro Company (TTC) Reports Earnings Tomorrow: What To Expect - FinancialContent — FinancialContent neutral
Generated 2026-10-30T11:22:46Z.
Upcoming dated catalysts
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Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
2 floor-breakers
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $107.38, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Near 52-week high (0.4% away). Chart setup: No clear chart pattern; technical signals are mixed. Multiple concerning factors. Consider reducing position. | News modifier +1 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Analyst target $96.57 reached (−10.1%), stop $102.66 (−4.6%), A.R:R -0.9:1. Score 5.7/10, moderate confidence.
Analyst target $96.57 reached (−10.1% from $107.38); no take-profit level is published. Analyst target $96.57 reached (−10.1%), stop $102.66 (−4.6%), A.R:R -0.9:1. Stop-loss: $102.66.
Analyst target reached - limited upside remaining; Near 52-week high (0.4% away); Sector modifier (Industrials): -0.7.
Toro Company (The) trades at a P/E of 28.7 (forward 21.1). TrendMatrix value score: 4.8/10. Verdict: Hold.
11 analysts cover TTC with a consensus score of 3.8/5. Average price target: $111.
What does Toro Company (The) do?Toro Company designs and manufactures outdoor maintenance equipment across two segments: Professional (turf...
Toro Company designs and manufactures outdoor maintenance equipment across two segments: Professional (turf maintenance, snow and ice management, underground construction, irrigation) at 80.3% of fiscal 2025 net sales and Residential at 19.0%, distributed through dealers, distributors, mass retailers, and direct channels globally. International net sales represented 19.5% of fiscal 2025 consolidated net sales; in December 2025, Toro acquired Tornado Infrastructure Equipment of Calgary, Alberta for CAD $279.3 million.