Latest Ratios: P/E Ratio 29.9x · EV/EBITDA 15.3x · ROE 21.0%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $9.0B | $7.5B | $8.4B | $8.5B | $11.1B | $10.4B | $8.9B | $8.3B | $6.1B | $7.0B | $5.4B |
| Enterprise Value | $9.7B | $8.1B | $9.2B | $9.5B | $12.0B | $10.7B | $9.3B | $8.9B | $6.1B | $7.0B | $5.4B |
| P/E Ratio → | 29.85 | 23.57 | 20.07 | 25.83 | 25.10 | 25.26 | 27.10 | 30.49 | 22.53 | 26.08 | 23.24 |
| P/S Ratio | 2.00 | 1.65 | 1.83 | 1.87 | 2.47 | 2.62 | 2.64 | 2.66 | 2.34 | 2.79 | 2.24 |
| P/B Ratio | 6.50 | 5.13 | 5.41 | 5.63 | 8.24 | 9.00 | 8.00 | 9.70 | 9.15 | 11.33 | 9.75 |
| P/FCF | 15.58 | 12.90 | 18.01 | 54.12 | 72.47 | 22.94 | 19.34 | 34.10 | 22.28 | 23.12 | 16.07 |
| P/OCF | 13.61 | 11.27 | 14.74 | 27.75 | 37.48 | 18.64 | 16.54 | 24.71 | 16.78 | 19.38 | 13.95 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.80 | 2.02 | 2.08 | 2.66 | 2.71 | 2.76 | 2.83 | 2.35 | 2.80 | 2.28 |
| EV / EBITDA | 15.29 | 12.84 | 13.97 | 17.24 | 17.56 | 17.34 | 17.84 | 21.53 | 14.15 | 16.70 | 13.66 |
| EV / EBIT | 19.74 | 19.86 | 16.08 | 20.65 | 20.44 | 20.27 | 21.16 | 25.32 | 15.69 | 18.84 | 15.56 |
| EV / FCF | — | 14.07 | 19.82 | 60.28 | 78.21 | 23.72 | 20.19 | 36.34 | 22.37 | 23.19 | 16.32 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 33.4% | 33.4% | 33.8% | 34.6% | 33.3% | 33.8% | 35.2% | 33.4% | 35.9% | 36.8% | 36.6% |
| Operating Margin | 10.9% | 10.9% | 11.6% | 9.5% | 12.8% | 13.1% | 12.6% | 10.4% | 14.2% | 14.2% | 14.0% |
| Net Profit Margin | 7.0% | 7.0% | 9.1% | 7.2% | 9.8% | 10.4% | 9.8% | 8.7% | 10.4% | 10.7% | 9.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 21.0% | 21.0% | 27.4% | 23.0% | 35.4% | 36.2% | 33.4% | 35.9% | 42.3% | 45.9% | 45.6% |
| ROA | 9.0% | 9.0% | 11.6% | 9.2% | 13.7% | 14.2% | 12.7% | 14.0% | 17.7% | 18.6% | 17.2% |
| ROIC | 16.3% | 16.3% | 16.4% | 13.7% | 23.1% | 25.8% | 21.9% | 23.2% | 42.0% | 42.0% | 37.3% |
| ROCE | 19.1% | 19.1% | 20.1% | 16.6% | 25.6% | 25.9% | 23.9% | 24.9% | 37.1% | 37.5% | 37.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.70 | 0.70 | 0.67 | 0.77 | 0.79 | 0.66 | 0.78 | 0.82 | 0.47 | 0.54 | 0.64 |
| Debt / EBITDA | 1.61 | 1.61 | 1.57 | 2.12 | 1.56 | 1.23 | 1.67 | 1.70 | 0.72 | 0.79 | 0.89 |
| Net Debt / Equity | — | 0.47 | 0.54 | 0.64 | 0.65 | 0.31 | 0.35 | 0.64 | 0.04 | 0.04 | 0.15 |
| Net Debt / EBITDA | 1.07 | 1.07 | 1.27 | 1.76 | 1.29 | 0.58 | 0.75 | 1.33 | 0.05 | 0.05 | 0.20 |
| Debt / FCF | — | 1.18 | 1.80 | 6.17 | 5.74 | 0.79 | 0.85 | 2.25 | 0.09 | 0.07 | 0.24 |
| Interest Coverage | 6.94 | 6.94 | 9.28 | 7.82 | 16.48 | 18.41 | 13.28 | 12.17 | 20.50 | 19.48 | 18.09 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.87 | 1.87 | 1.81 | 1.90 | 1.58 | 1.59 | 1.67 | 1.48 | 1.68 | 1.65 | 1.68 |
| Quick Ratio | 0.86 | 0.86 | 0.74 | 0.75 | 0.59 | 0.80 | 0.91 | 0.62 | 1.01 | 1.02 | 1.02 |
| Cash Ratio | 0.37 | 0.37 | 0.20 | 0.20 | 0.18 | 0.43 | 0.56 | 0.20 | 0.54 | 0.59 | 0.59 |
| Asset Turnover | — | 1.31 | 1.28 | 1.25 | 1.27 | 1.35 | 1.18 | 1.35 | 1.67 | 1.68 | 1.72 |
| Inventory Turnover | 3.26 | 3.26 | 2.92 | 2.74 | 2.86 | 3.55 | 3.36 | 3.21 | 4.68 | 4.82 | 4.94 |
| Days Sales Outstanding | — | 30.61 | 36.61 | 32.66 | 26.90 | 28.60 | 28.21 | 31.26 | 26.93 | 26.67 | 24.91 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.6% | 2.0% | 1.8% | 1.7% | 1.1% | 1.1% | 1.2% | 1.2% | 1.4% | 1.1% | 1.2% |
| Payout Ratio | 47.8% | 47.8% | 35.7% | 43.0% | 28.4% | 27.4% | 32.7% | 35.1% | 31.3% | 28.3% | 28.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.3% | 4.2% | 5.0% | 3.9% | 4.0% | 4.0% | 3.7% | 3.3% | 4.4% | 3.8% | 4.3% |
| FCF Yield | 6.4% | 7.8% | 5.6% | 1.8% | 1.4% | 4.4% | 5.2% | 2.9% | 4.5% | 4.3% | 6.2% |
| Buyback Yield | 3.2% | 3.9% | 2.9% | 0.7% | 1.3% | 2.9% | 0.0% | 0.2% | 2.6% | 2.3% | 2.1% |
| Total Shareholder Yield | 4.8% | 5.9% | 4.7% | 2.4% | 2.4% | 4.0% | 1.2% | 1.4% | 4.0% | 3.4% | 3.3% |
| Shares Outstanding | — | $100M | $104M | $105M | $106M | $108M | $109M | $108M | $109M | $111M | $112M |
Cyclical Dealer Inventory Overhang
According to current market data, TTC trades at a trailing P/E of 30.55, which sits at a notable premium to peers like AGCO, suggesting investors are pricing in the company's specialized professional turf and underground utility market leadership despite recent volatility in top-line growth metrics.
The valuation appears to hinge on the market's perception of TTC as a high-quality compounder rather than a cyclical industrial manufacturer. However, with a forward P/E of 21.03, the market anticipates a significant earnings recovery, which may be optimistic given the ongoing inventory normalization and the potential for margin compression in the residential segment.
Based on reported financial statements, TTC's ROIC has fluctuated between 2.0% and 8.0% over the last ten quarters, indicating that the company's ability to generate returns on invested capital is highly sensitive to seasonal demand cycles and the integration costs of recent strategic acquisitions.
The decline in ROIC during 2025 suggests that the company is struggling to maintain historical efficiency levels as it navigates a transition toward battery-electric platforms. Investors should monitor whether the recent recovery to 8.0% in 2026Q2 represents a sustainable trend or merely a temporary rebound from depressed inventory-heavy periods.
As reported in recent filings, the cash conversion cycle has remained elevated, peaking at 143 days in 2024Q1 and settling at 78 days in 2026Q2, which highlights the significant burden of managing dealer inventory levels and the inherent seasonality of the professional turf equipment business model.
The high days inventory outstanding (DIO) of 92 days in the most recent quarter suggests that the company continues to carry substantial stock, which may necessitate further promotional activity to clear. This inefficiency in working capital management appears to be a structural headwind that limits the company's overall asset turnover.
According to the balance sheet data, TTC's debt-to-EBITDA ratio has shown significant volatility, ranging from 0.91 to 11.77 over the last ten quarters, reflecting the company's tactical use of credit facilities to manage working capital requirements during periods of fluctuating demand and inventory accumulation.
While the interest coverage ratio of 13.39 in 2026Q2 suggests that debt service remains comfortable, the wide swings in leverage indicate that the company is not maintaining a static capital structure. This approach warrants caution, as it suggests that the balance sheet is being used as a shock absorber for operational volatility.
The P/E ratio is frequently misapplied to TTC, as it obscures the company's underlying cash-generating capacity which is often distorted by non-cash inventory adjustments and seasonal working capital swings that do not reflect the true economic earnings power of the professional and residential segments.
Analysts should prioritize EV/EBITDA or P/FCF to better account for the company's debt-heavy working capital management and the capital-intensive nature of its manufacturing operations. Relying solely on P/E risks ignoring the impact of dealer floorplan financing and inventory obsolescence provisions that can artificially inflate or deflate reported net income.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying TTC stock.
The Toro Company's current P/E ratio is 29.9x. The historical average is 21.1x. This places it at the 93th percentile of its historical range.
The Toro Company's current EV/EBITDA is 15.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.1x.
The Toro Company's return on equity (ROE) is 21.0%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 29.6%.
Based on historical data, The Toro Company is trading at a P/E of 29.9x. This is at the 93th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
The Toro Company's current dividend yield is 1.60% with a payout ratio of 47.8%.
The Toro Company has 33.4% gross margin and 10.9% operating margin. Operating margin between 10-20% is typical for established companies.
The Toro Company's Debt/EBITDA ratio is 1.6x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.