Stock Price & Analysis

Buy TTC stock as it shows potential for growth with strong Q1 results and a reaffirmed FY25 outlook, despite mixed analyst ratings.

The Toro Company (TTC) stock is predicted to trade around $92 in 2025, reflecting a balance between analyst expectations and company performance. The stock is expected to range between $84 and $100, driven by strong Q1 earnings and a reaffirmed FY25 outlook, though tempered by residential segment challenges and a Neutral rating from Baird.

The S1 support level for TTC Stock is $72.37 ,The R1 resistant level for TTC Stock is $79.2.

As of the end of day on 2025-03-17, the price of TTC Stock was $73.7.

The target price for TTC Stock according to analyst rating is 93.00, with the highest price target at 100.00 and the lowest at 84.00. Analysts have a Moderate Buy rating on TTC Stock overall.

The market cap of TTC is $7.3B.

Analysis and Insights

To determine if Toro Co (TTC) is overvalued, we analyze its financial performance, valuation metrics, and market sentiment.

Financial Performance:

• Revenue: TTC reported $1.076 billion in annual revenue for 2024, with Q4 revenue at $1.076 billion, showing stability but minimal growth.
• Net Income: Q4 net income was $89.9 million, with an annual net income of $399.2 million, indicating consistent profitability.
• Gross Profit: Q4 gross profit was $349 million, with a gross margin of 34.4%, reflecting stable profitability.

Valuation Metrics:

• P/E Ratio: TTC's P/E ratio is higher than industry averages, suggesting potential overvaluation.
• ROE: 19.23% indicates efficient equity use.
• Current Ratio: 2.13 shows strong short-term liquidity.
• Debt/Equity: 0.76 reflects manageable debt levels.

Market Sentiment:

• Analyst Ratings: Mixed sentiment with a price target range of $84 to $100, indicating uncertainty.
• Q1 2025 Results: Revenue missed expectations, but EPS exceeded estimates. The professional segment grew, while residential declined.

Conclusion:

TTC's high P/E ratio and mixed analyst sentiment suggest caution. While not significantly overvalued, investors should monitor cost management and growth targets.

{RATING:symbol=TTC.N, type=0}

The Toro Company designs, manufactures, markets and sells professional turf maintenance equipment and services; turf irrigation systems; landscaping equipment and lighting products; snow and ice management products; agricultural irrigation (ag-irrigation) systems; rental, specialty and underground construction equipment, and residential yard and snow thrower products. The Company operates through two segments: Professional and Residential. The Professional segment consists of turf and landscape equipment; rental, specialty, and underground construction equipment; snow and ice management equipment, and irrigation and lighting products. The Residential segment consists of consists of walk power mowers, zero-turn riding mowers, snow throwers, replacement parts, and home solutions products, including grass trimmers, hedge trimmers, leaf blowers, blower-vacuums, chainsaws, string trimmers, and underground, hose, and hose-end retail irrigation products sold in Australia and New Zealand.

The Toro Company (TTC) stock is predicted to reach $120 by 2030, driven by strong demand in professional turf maintenance and irrigation segments. The company's focus on innovation and cost savings positions it well for long-term growth. Analysts expect continued expansion in its core markets to support this price target.

TTC has a total of 10706 employees.