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Toro (TTC)

The Toro Company is a leading worldwide provider of innovative solutions for the outdoor environment including turf and landscape maintenance, snow and ice management, underground utility construction, rental and specialty construction, and irrigation and outdoor lighting solutions. With sales of $3.4 billion in fiscal 2020, The Toro Company's global presence extends to more than 125 countries through a family of brands that includes Toro, Ditch Witch, Exmark, BOSS Snowplow, Ventrac, American Augers, Subsite Electronics, HammerHead, Trencor, Unique Lighting Systems, Irritrol, Hayter, Pope, Perrot, Lawn-Boy and Radius HDD. Through constant innovation and caring relationships built on trust and integrity, The Toro Company and its family of brands have built a legacy of excellence by helping customers work on golf courses, sports fields, construction sites, public green spaces, commercial and residential properties and agricultural operations.

Company profile

Ticker
TTC
Exchange
CEO
Richard Olson
Employees
Incorporated
Location
Fiscal year end
Graze ...
SEC CIK
Subsidiaries
Anvil Land and Properties, Inc. • Bureau Commercial Marketing SAS • DW/TXS Construction Equipment (Beijing) Co., Ltd. • Exmark Manufacturing Company Incorporated • Georgia Equipment Specialists, LLC • Hahn Equipment Co. • Hayter Holdings Limited • Irritrol Systems Europe Productions S.r.l. • Irritrol Systems Europe S.r.l. • Lawn-Boy, Inc. ...
IRS number
410580470

TTC stock data

Analyst ratings and price targets

Last 3 months

Calendar

2 Jun 22
11 Aug 22
31 Oct 22
Quarter (USD) Apr 22 Jan 22 Oct 21 Jul 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Oct 21 Oct 20 Oct 19 Oct 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 263.23M 263.23M 263.23M 263.23M 263.23M 263.23M
Cash burn (monthly) (no burn) 19.53M (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) n/a 67.16M n/a n/a n/a n/a
Cash remaining n/a 196.07M n/a n/a n/a n/a
Runway (months of cash) n/a 10.0 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
1 Aug 22 Margeaux King RSU Common Stock Grant Acquire A No No 0 12,330 0 12,330
30 Jun 22 Olson Richard M Common Stock Sell Dispose S No No 76.33 12,600 961.76K 9,575.461
30 Jun 22 Olson Richard M Common Stock Option exercise Acquire M No No 21.03 12,600 264.98K 22,175.461
30 Jun 22 Olson Richard M NQSO Common Stock Option exercise Dispose M No No 21.03 12,600 264.98K 0
30 Jun 22 Gregory S Janey Common Stock Sell Dispose S No No 75.65 2,200 166.43K 2,704.002
30 Jun 22 Gregory S Janey Common Stock Option exercise Acquire M No No 21.03 2,200 46.27K 4,904.002
30 Jun 22 Gregory S Janey NQSO Common Stock Option exercise Dispose M No No 21.03 2,200 46.27K 0
29 Jun 22 Daryn A Walters Common Stock Sell Dispose S No No 76.68 1,670.336 128.08K 0
83.5% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 430 463 -7.1%
Opened positions 49 64 -23.4%
Closed positions 82 63 +30.2%
Increased positions 138 131 +5.3%
Reduced positions 162 171 -5.3%
13F shares Current Prev Q Change
Total value 7.47B 8.55B -12.6%
Total shares 87.32M 85.6M +2.0%
Total puts 28.5K 34.2K -16.7%
Total calls 67.2K 85.7K -21.6%
Total put/call ratio 0.4 0.4 +6.3%
Largest owners Shares Value Change
Vanguard 10.24M $875.34M -3.1%
BLK Blackrock 8.91M $761.76M +0.0%
Select Equity 5.27M $450.5M +13.9%
TROW T. Rowe Price 4.53M $387.04M -27.5%
Victory Capital Management 3.62M $309.62M +16.6%
Kayne Anderson Rudnick Investment Management 3.43M $293.15M -2.2%
STT State Street 2.86M $244.92M +2.8%
Mairs & Power 2.86M $244.45M +5.0%
Champlain Investment Partners 2.76M $235.93M +4.4%
JPM JPMorgan Chase & Co. 2.75M $235.47M +31.6%
Largest transactions Shares Bought/sold Change
Durable Capital Partners 1.76M +1.76M NEW
TROW T. Rowe Price 4.53M -1.72M -27.5%
Norges Bank 0 -956.56K EXIT
First Trust Advisors 932.87K +719.2K +336.6%
JPM JPMorgan Chase & Co. 2.75M +661.59K +31.6%
Select Equity 5.27M +642.7K +13.9%
Nordea Investment Management Ab 1.9M +519.71K +37.5%
Victory Capital Management 3.62M +514.97K +16.6%
ArrowMark Colorado 467.04K +467.04K NEW
AMP Ameriprise Financial 239.36K -435.72K -64.5%

Financial report summary

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Competition
United BreweriesDSG Global
Risks
  • Our net sales and earnings have been and could continue to be adversely affected by economic conditions and outlook in the locations in which we conduct business.
  • COVID-19 materially adversely impacted portions of our business, financial condition and operating results and such impact will likely continue and could continue to be material.
  • If we are unable to continue to enhance existing products and develop and market new products that respond to customer needs and preferences and achieve market acceptance, including by incorporating new, emerging, and/or disruptive technologies that may become preferred by our customers, demand for our products may decrease, and our net sales, which have historically benefited from the introduction of new products, may be adversely affected.
  • Disruption and/or shortages in the availability of commodities, components, parts, or accessories used in our products has, and could continue to, adversely affect our business.
  • Weather conditions, including conditions exacerbated by global climate change, have previously impacted, and may continue to impact, demand for some of our products and/or cause disruptions in our operations, including as a result of disruption in our supply chain, which may adversely affect our net sales or our operating results.
  • Our Professional segment includes a variety of products that depend on certain and varied factors.
  • Our Residential segment net sales depend on consumers buying our Residential segment products at dealers, mass retailers, and home centers; the amount of product placement at mass retailers and home centers; consumer confidence and spending levels; changing buying patterns of customers; and the impact of significant sales or promotional events.
  • Changes in our product mix between reportable segments and/or within a reportable segment could adversely impact our financial performance, including profit margins and net earnings.
  • We face intense competition in all of our product lines with numerous manufacturers and we may fail to compete effectively against competitors' actions, which could harm our business and operating results.
  • Increases in the cost of commodities, components, parts, and accessories that we purchase and/or increases in our other costs of doing business, have, and could continue to, adversely affect our profit margins and businesses.
  • Any inability to cost-effectively expand existing facilities, open and manage new or acquired facilities, move production between manufacturing facilities, and/or any disruption at or near any of our facilities or other operations, or those of our suppliers, distribution channel customers, mass retailers, or home centers where our products are sold has and could continue to adversely affect our business and operating results.
  • Any failure by us, or our suppliers or distribution channel partners, to hire and/or retain a labor force to adequately staff manufacturing operations, perform service or warranty work, or other necessary activities or allow employees to adequately and safely perform their jobs, could adversely affect our business, operating results, and reputation.
  • If we underestimate or overestimate demand for our products and do not maintain appropriate inventory levels, our net sales and/or working capital could be negatively impacted.
  • Our business and operating results are subject to the inventory management decisions of our distribution channel customers.
  • Changes in composition of, financial viability of, and the relationships with, our distribution channel customers could negatively impact our business and operating results.
  • Any material change in the availability or terms of credit offered to our customers by our floor plan arrangements, challenges or delays in transferring new distributors and dealers from any business we might acquire or otherwise to available floor plan platforms, any termination or disruption of our floor plan arrangements, or any delay in securing replacement credit sources could adversely affect our net sales and operating results.
  • If our information systems, software, or information security practices or those of our business partners or third-party service providers fail to adequately perform and/or protect sensitive or confidential information, or if we, our business partners, or third-party service providers experience an interruption in the operation of such systems, software, or practices, our business, reputation, financial condition, and operating results could be adversely affected.
  • A portion of our consolidated net sales is generated outside of the U.S., and we intend to continue to look for opportunities to expand our international operations. Our international operations require significant management attention and financial resources, expose us to difficulties presented by international economic, political, legal, regulatory, accounting, and business factors, and may not be successful or produce desired levels of net sales.
  • We are renovating and expanding certain office, manufacturing, and other facilities and could experience disruptions to our operations in connection with such efforts.
  • Future acquisitions and alliances, strong customer relations, and new joint ventures, investments, and partnerships could be risky and may harm our business, reputation, financial condition, and operating results.
  • Failure to successfully complete divestitures or other restructuring activities could negatively affect our operations.
  • Increased scrutiny from the public, investors, and others regarding our environmental, social, and governance ("ESG") practices could impact our reputation.
  • We may be required to incur impairment and other charges resulting from the impairment of goodwill, indefinite-lived intangible assets, or long-lived assets recorded in connection with business combinations and asset acquisitions.
  • Fluctuations in foreign currency exchange rates have affected our operating results and could continue to result in declines in our reported net sales and net earnings.
  • We are subject to counterparty risk in our credit arrangements and the terms of our credit arrangements and the indentures governing our senior notes and debentures could limit our ability to conduct our business, take advantage of business opportunities and respond to changing business, market, and economic conditions.
  • If we do not comply with the terms of our credit arrangements and indentures, our credit arrangements could be terminated and any amounts outstanding pursuant to our credit arrangements and indentures could become due and payable.
  • A downgrade in our credit ratings could increase our cost of funding and/or adversely affect our access to capital markets or the availability of funding from a variety of lenders.
  • The expected phase out of LIBOR could impact the interest rates paid on our variable rate indebtedness and cause our interest expense to increase.
  • Changes in accounting or tax standards and policies and/or assumptions utilized in determining accounting or tax estimates could adversely affect our financial statements, including our operating results and financial condition.
  • Our patents, trademarks, and contractual provisions may be insufficient to protect our proprietary rights and intellectual
  • property from others who may sell similar products and our products may infringe the valid proprietary rights of others.
  • Our company, business, properties, and products are subject to laws, rules, policies, and regulations, with which compliance may require us to incur expenses, or modify our products or operations, and non-compliance may result in harm to our reputation and/or expose us to penalties.
  • Climate change legislation, regulations, accords, mitigation efforts, or other legislation may adversely impact our operations and could impact the competitive landscape within our markets and affect demand for our products.
  • The costs of complying with the various environmental laws related to our ownership and/or lease of real property, such as clean-up costs and liabilities that may be associated with certain hazardous waste disposal activities, could adversely affect our financial condition and operating results.
  • We are subject to product quality issues, product liability claims, and other litigation from time to time that could adversely affect our business, reputation, operating results, or financial condition.
  • We operate in many different jurisdictions and we could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act ("FCPA") and similar worldwide anti-corruption laws.
  • We may not achieve our financial projections or other business initiatives in the time periods that we anticipate, or at all, which could have an adverse effect on our business, operating results, and financial condition.
  • If we are unable to retain our executive officers or other key employees, attract and retain other qualified employees, or successfully implement executive officer, key employee or other leadership or employee transitions, we may not be able to meet strategic objectives and our business could suffer.
Management Discussion
  • During the second quarter of fiscal 2022, we continued to experience strong customer order demand across both our Professional segment and Residential segments. For both the second quarter and year-to-date periods of fiscal 2022, we realized favorable impacts to both our net sales and gross margin as a result of continued net price realization across our product lines compared to the same periods in fiscal 2021. While the strong demand environment and favorable net price realization positively impacted our results of operations, we continued to experience headwinds associated with inflation and supply availability that adversely impacted our gross margins for the second quarter of fiscal 2022. Inflationary cost pressures on commodity and component parts and freight, as well as manufacturing inefficiencies caused by supply availability, all drove margins lower during the second quarter of fiscal 2022 as compared to the second quarter of fiscal 2021. Additionally, we continued to experience significant supply chain disruption during the second quarter of fiscal 2022 as compared to the second quarter of fiscal 2021, which resulted in challenging conditions for sourcing adequate amounts of certain commodity and component parts inventory and, in certain cases, limited the ability of our suppliers to meet our commodity and component parts demand requirements. We intend to continue our historical practice of prudently managing expenses and adjusting production levels as needed to align with anticipated sales volumes and availability of commodity and component parts inventories, while also prioritizing our productivity initiatives and other investments that support long-term sustainable growth across our businesses. However, given our current expectation of continuing supply chain disruptions, our ability to effectively and efficiently adjust production levels as needed may be limited.

Content analysis

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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. junior Avg
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