This is a step-by-step stock review to answer the question, is Toro (TTC) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Toro (TTC) stock a good buy?
1.Toro Corp Company History
- Founded in 1914: Toro was established in Bloomington, Minnesota, originally as a manufacturer of engines for farm tractors.
- First Mower in 1919: Toro introduced its first power mower, marking the beginning of its focus on turf maintenance equipment.
- Golf Course Innovations: By the 1920s, Toro had become a leader in providing specialized equipment for golf courses, a market it continues to dominate.
- Post-War Expansion: After World War II, Toro expanded into residential lawn care, launching the iconic rotary mower and snow blower products.
- Acquisitions and Growth: Over the decades, Toro expanded its product line through strategic acquisitions, including irrigation systems and landscape maintenance equipment, making it a comprehensive provider of outdoor solutions.
- Sustainability Commitment: Toro has been at the forefront of sustainable practices, developing water-efficient irrigation systems and environmentally friendly products.
- Global Presence: Today, Toro is a global leader in turf and landscape maintenance, snow and ice management, and irrigation systems, serving residential, commercial, and agricultural markets from its headquarters in Bloomington, Minnesota.
2. MOS (Margin Of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: Watch
- Score: 50
- MOS: 1%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Toro makes money:
- Lawn and Garden Equipment: Toro makes money by selling a wide range of lawnmowers, snow blowers, and other gardening equipment to homeowners and professionals.
- Irrigation Systems: The company generates revenue from irrigation solutions for landscapes, golf courses, and agricultural fields, including sprinklers and smart controllers.
- Golf Course Equipment: Toro profits by providing specialized turf maintenance equipment for golf courses, including mowers, sprayers, and aerators.
- Landscape Contractor Products: The company sells products like trenchers, stump grinders, and compact utility loaders to landscape contractors.
- Snow and Ice Management: Toro earns money by selling snow removal equipment, including snow blowers and plows, especially in colder regions.
- Parts and Accessories: The company profits from selling replacement parts, attachments, and accessories for its equipment.
- Aftermarket Services: Toro generates additional revenue through maintenance, repair, and support services for its products, ensuring longevity and performance.
- Lely Group
- The Charles Machine Works, Inc.
- Aqua-Turf International
- The Toro Company’s acquisition of Alamo Group’s lawn and garden businesses
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Toro stacks up against other companies.
- RBC Bearings Incorporated.(RBCP) – 67
- Snap-on Incorporated.(SNA) – 67
- RBC Bearings Incorporated.(RBC) – 61
- The Timken Company.(TKR) – 56
- The Toro Company.(TTC) – 50
- Stanley Black & Decker, Inc.(SWK) – 50
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- CEO Appointment: Richard M. Olson became CEO of Toro in 2011, leading the company through significant growth and innovation.
- Strategic Acquisitions: Under his leadership, Toro acquired several key companies, including The Charles Machine Works, enhancing its product offerings and market reach.
- Expansion into New Markets: Olson spearheaded Toro’s expansion into new markets, including golf and landscape solutions, strengthening its position in the global market.
- Innovation and Product Development: He promoted investment in new technologies, leading to the development of advanced irrigation systems and environmentally friendly products.
- Strong Financial Performance: Olson’s leadership saw Toro achieving strong financial performance, with significant revenue growth and increased profitability.
- Sustainability Initiatives: He championed sustainability, driving initiatives that improved the company’s environmental impact and promoted water and energy-efficient products.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Toro (TTC) is 61/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Toro (TTC) stock a good buy?
Some of the top questions investors can have is Toro (TTC) stock a good buy or should I buy Toro (TTC) stock?
Toro is a solid investment due to its strong market presence and diversified product range in lawn and garden equipment, irrigation systems, and outdoor solutions. The company has a proven track record of innovation and growth, exemplified by strategic acquisitions like The Charles Machine Works, which expanded its capabilities in landscape and turf maintenance.
Toro’s focus on sustainability and environmentally friendly products aligns with increasing consumer demand for efficient and eco-conscious solutions. The company’s strong financial performance, consistent revenue growth, and global market reach further enhance its investment appeal.
However, potential investors should be aware of seasonal demand fluctuations and competitive pressures in the outdoor equipment market. Despite these risks, Toro’s robust product lineup, strategic acquisitions, and commitment to innovation make it a compelling investment choice for those seeking stability and growth in the outdoor solutions sector.
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To truly know if Toro is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
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The Summary, Score, and MOS of this stock may have changed since the posting of this review. Please login to Tykr to see up-to-date information.