The Toro Co (TTC, Financial) has experienced a notable uptick in its stock performance, with a market capitalization now standing at $10.27 billion. The current price of TTC's stock is $98.93, reflecting a 6.99% gain over the past week and an 11.44% gain over the past three months. When compared to the GF Value of $126.26, The Toro Co is currently considered modestly undervalued, a consistent valuation from three months prior when the GF Value was $127.42. This suggests that the stock may still have room to grow to reach its intrinsic value as defined by GuruFocus.com.
Introduction to The Toro Co
The Toro Co, operating within the industrial products industry, is a leading manufacturer of turf maintenance and landscaping equipment. The company's diverse product range includes riding mowers, walk-behind mowers, irrigation systems, and snow plowers. The Toro Co's products are essential for professionals in turf and landscape maintenance, particularly for sports fields and golf courses. The company's primary market is the United States, and it operates through Professional and Residential segments. 
Assessing Toro's Profitability
The Toro Co boasts a Profitability Rank of 9 out of 10, indicating a strong likelihood of continued profitability. The company's operating margin stands at 13.45%, which is higher than 78.47% of 2,907 companies in the same industry. Additionally, TTC's return on equity (ROE) is an impressive 26.47%, surpassing 93.69% of its peers. The return on assets (ROA) and return on invested capital (ROIC) are also robust at 10.48% and 21.33%, respectively, outperforming the majority of competitors. The Toro Co has maintained profitability for the past decade, a testament to its financial stability and operational efficiency. 
Growth Trajectory of The Toro Co
The Toro Co's Growth Rank is a perfect 10 out of 10, reflecting its strong revenue and earnings growth. The company has achieved a 13.80% 3-year and 5-year revenue growth rate per share, outpacing 69.19% and 80.63% of companies, respectively. The 3-year EPS without NRI growth rate is 11.90%, and the 5-year rate is 11.20%, both of which are higher than the industry median. These growth metrics underscore The Toro Co's ability to expand its business and increase shareholder value consistently. 
Investor Confidence in The Toro Co
Notable investors have shown confidence in The Toro Co, with Mairs and Power (Trades, Portfolio) holding 3,206,648 shares, representing 3.09% of the company's shares. Jim Simons (Trades, Portfolio) and Mario Gabelli (Trades, Portfolio) also have significant stakes, with 240,400 shares (0.23%) and 58,900 shares (0.06%), respectively. These holdings reflect a vote of confidence from seasoned investors, suggesting a positive outlook on the company's future performance.
Competitive Landscape
When compared to its competitors, The Toro Co holds its ground with a market cap of $10.27 billion. RBC Bearings Inc (RBC, Financial) has a market cap of $8 billion, while Lincoln Electric Holdings Inc (LECO, Financial) stands at $12.32 billion, and The Timken Co (TKR, Financial) at $5.61 billion. The Toro Co's strong market position is supported by its consistent profitability and growth, which are competitive within the industry.
Conclusion
In summary, The Toro Co's stock performance has been impressive, with significant gains over the past quarter. The company's profitability and growth are robust, as evidenced by its high Profitability and Growth Ranks. The confidence shown by significant holders further bolsters the positive outlook for TTC. When compared to its industry competitors, The Toro Co demonstrates a competitive edge, making it an attractive option for value investors seeking growth and stability in the industrial products sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
