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↓Deteriorating
- 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· older than 90 days
Toro Company (The) (TTC) Stock Analysis
Industrials · Tools & Accessories
Sell if holding. Analyst target reached at $107.49 — A.R:R is negative (-0.9) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Near 52-week high (3.0% 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
Sell if holding. Analyst target reached at $107.49 — A.R:R is negative (-0.9) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Near 52-week high (3.0% away). Chart setup: No clear chart pattern; technical signals are mixed. Score 5.8/10, moderate confidence.
Passes 6/7 gates (positive momentum, clean insider activity, no SEC red flags, earnings proximity 42d 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 Nov 3, 2026Recent Developments — Toro Company (The)
Latest news
- NEWS Titan Technology Corp. Appoints New Chief Financial Officer — fiscal.ai Nov 3, 2026 neutral
- NEWS The Toro Company Appoints Neal M. Lackritz as Chief Technology Officer — fiscal.ai Oct 20, 2026 neutral
- NEWS This HCA Healthcare Analyst Begins Coverage On A Bullish Note; Here Are Top 5 Initiations For Wednesday — benzinga Sep 23, 2026 positive
- NEWS Oppenheimer Initiates Coverage On Toro with Outperform Rating, Announces Price Target of $120 — benzinga Sep 23, 2026 positive
- NEWS DA Davidson Maintains Buy on Toro, Lowers Price Target to $115 — benzinga Sep 4, 2026 neutral
Latest item Nov 3, 2026 · Generated 2026-11-05T11:44:09Z.
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
1 floor-breaker
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $107.49 — A.R:R is negative (-0.9) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Near 52-week high (3.0% away). Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $102.59. Score 5.8/10, moderate confidence.
Analyst target $96.57 reached (−10.2% from $107.49); no take-profit level is published. Prior stop was $102.59. Stop-loss: $102.59.
Analyst target reached - limited upside remaining; Near 52-week high (3.0% 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: Sell.
11 analysts rate TTC, with a consensus score of 3.8/5. 5 analysts publish price targets averaging $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.