Is the business good?
How good a business is TTC?
The Toro Company earns 16% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
16%
Return on invested capital · cost of capital 9.0% · 6.8 points above what the capital costs: growth creates value
- Operating margin
- 9.4%
Operating margin · Tools & Accessories median 11% · 12 months to Q2 2026
- Cash conversion
- 2.23×
Cash conversion · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −3.0%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 13% |
| FY2021 | 13% |
| FY2022 | 13% |
| FY2023 | 9.5% |
| FY2024 | 12% |
| FY2025 | 9.1% |
Details›
- Gross margin12 months to Q2 2026
- 33%
- Operating margin12 months to Q2 2026
- 9.4%
- Net margin12 months to Q2 2026
- 7.3%
- Free cash flow margin
- 16%
- Revenue, trailing twelve months
- $4.66B
- Free cash flow, trailing twelve months
- $759M
- Net income, trailing twelve months
- $340M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 16%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Tools & Accessories
Ranks #2 of 8 by Smart Score