Attractive stocks have exceptional fundamentals. In the case of The Toro Company (NYSE:TTC), there’s is a financially-healthy , dividend-paying company with a a strong track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Toro here.
Excellent balance sheet established dividend payer
Over the past few years, TTC has demonstrated a proven ability to generate robust returns of 41% Unsurprisingly, TTC surpassed the Machinery industry return of 13%, which gives us more confidence of the company’s capacity to drive earnings going forward. TTC’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. TTC’s has produced operating cash levels of 1.17x total debt over the past year, which implies that TTC’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Income investors would also be happy to know that TTC is a great dividend company, with a current yield standing at 1.6%. TTC has also been regularly increasing its dividend payments to shareholders over the past decade.
For Toro, I’ve put together three important factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for TTC’s future growth? Take a look at our free research report of analyst consensus for TTC’s outlook.
- Valuation: What is TTC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether TTC is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TTC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.