Stock fact sheet · data as of
The Toro Company (TTC): fair value, margin of safety and Wheel Score
Industrials · Manufacturing - Tools & Accessories · United States · Defensive
Is TTC undervalued?
At 98.26 (close of 16 Oct 2026), TTC trades 36% over the GLS average fair value of 72.41, with 2 of 9 models above the price. The stock earns none of the Wheel Score's Value points at this price. That is a statement about price against trailing fundamentals, not about the company's prospects - the Wall Street View and the Growth tab on the Quote page carry the forward numbers.
There is a wide gap between DDM (22.95) and 10 Cap (175.16). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files TTC under Defensive: a low beta, a dividend and positive earnings.
Nine valuation models for TTC
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 78.62 | -20% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 34.72 | -65% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 77.50 | -21% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 23.41 | -76% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 29.13 | -70% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 175.16 | +78% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 167.82 | +71% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 22.95 | -77% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 42.40 | -57% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -2.96 | -103% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 117.50 | +20% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
The Toro Company scores 8 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. On durability TTC scores 7.1/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are high - ROIC 12.7%, ROE 21.8%, ROA 9.2% - with debt at 0.72 times equity and a free-cash-flow yield of 7.6%.
The dividend yield is 1.59% at a payout ratio of 41%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Equipment Products And Services 90%, Irrigation 10% (quarter Q3 FY2026).
Institutional ownership scores 10/10, insider activity 4/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 8 / 9 | ROIC | 12.7% |
|---|---|---|---|
| GLS Moat | 7.1 / 10 | ROE | 21.8% |
| Debt / equity | 0.72 | ROA | 9.2% |
| Free-cash-flow yield | 7.6% | Payout ratio | 41% |
| Institutions | 10 / 10 | Insiders · Congress | 4 · 5 / 10 |
Wheel Score 56: Fair
A Wheel Score of 56 puts The Toro Company in the Fair band - below the 70 the Sunday Scan requires. Value 0/25, Health 18/20, Moat 11/15, Premium 12/20 and Stability 16/20; the weakest part is Value (0/25).
Implied volatility is 27% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (12 of 20 points). Chain open interest is 2,394 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 421k shares a day on a market cap of $9.3B, with a beta of 0.67 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 16 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -36% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 11 / 15 | moat 7.1/10 | |
| Premium | 12 / 20 | implied volatility 27% | |
| Stability | 16 / 20 | 421k shares/day, $9.3B cap, beta 0.67 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 16 Dec 2026, 61 days away - outside the window of a 30-45-day put sold today.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Manufacturing - Tools & Accessories
The 11 companies below are the closest to The Toro Company by market cap within the Manufacturing - Tools & Accessories industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| TKR The Timken Company | 112.32 | 78.67 | -43% | 63Fair | $7.8B |
| SWK Stanley Black & Decker, Inc. | 90.29 | 132.49 | +32% | 86Prime | $13.6B |
| LECO Lincoln Electric Holdings, Inc. | 260.24 | 167.87 | -55% | 65Good | $14.2B |
| RBC RBC Bearings Incorporated | 498.54 | 203.15 | -145% | 60Fair | $15.8B |
| SNA Snap-on Incorporated | 363.51 | 303.10 | -20% | 55Fair | $18.8B |
| KMT Kennametal Inc. | 30.99 | 37.77 | +18% | 75Good | $2.4B |
| HLMN Hillman Solutions Corp. | 7.26 | 7.85 | +8% | 73Good | $1.4B |
| QEPC Q.E.P. Co., Inc. | 55.98 | 134.90 | +59% | 39No options | $167M |
| EML The Eastern Company | 25.04 | 22.51 | -11% | 31No options | $151M |
| DMFG Decker Manufacturing Corporation | 57.10 | 206.15 | +72% | 39No options | $50M |
| ILAG Intelligent Living Application Group Inc. | 2.85 | - | - | 20No options | $6M |
Screen the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about TTC
Is TTC undervalued right now?
No: at 98.26 the stock trades 36% above the GLS average fair value of 72.41 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of TTC and what does it mean?
TTC scores 56 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for TTC?
72.41 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does The Toro Company report earnings next?
The next earnings report is due on 16 Dec 2026, 61 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does TTC have listed options, and how liquid are they?
Yes. The nightly snapshot found 192 listed contracts with 2,394 open interest across all expiries and implied volatility of 27% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.