Skip to main content

TTC STOCK WRITE UP


TTC (THE TORO COMPANY)

  • P/E: 31.6
  • GAAP DILUTED YEAR-OVER-YEAR EPS GROWTH LAST QUARTER: $.06
  • SECTOR: PRODUCER MANUFACTURING
  • ASSETS-LIABILITIES: 2.8
  • DIVIDEND: 1.05%

TTC is the symbol for Toro, a manufacturer of lawnmowers, irrigation and lighting systems, and other tools for residential and professional landscaping. They utilize high-quality products and deliver them in a reliable package to their customers. Toro reports 5/25/17, and will attempt to demonstrate business growth in line with expectations.
In the most recent quarter, Toro reported a 6% boost in revenue and an increase in operating costs by just under 6%. The company utilized some of its 35% increase in cash to repurchase stock. Inventories and receivables were cut on a year-over-year basis, signifying that the company is fulfilling orders more rapidly. Professional services make up the bulk of the company's revenue at approximately 80%. While residential revenue decreased on a year-over-year basis, the professional services increased.
Richard Olson is Toro's CEO, newly appointed 11/1/16. He has been with the company since 1986 as an engineer. He has a BS and an MBA. On 11/3/16, Toro acquired a German irrigation products brand based to expand international exposure. I know from my experience in landscaping that Toro makes reliable equipment utilizing high-quality Briggs and Stratton motors. The company has a good reputation in the industry, and if Richard Olson can keep up quality while expanding the business, consensus expectations will rise. Analysts have a median PT of $61.5, while the share price has risen nearly 20% since the beginning of 2017, and 50% since 5/2016.
Toro has a P/E of approximately 32, higher than its chief competitor John Deere at 27. While Deere has reported shrinking revenues in recent years, Toro's revenue is growing. Should its growth rate remain constant over 2017, it will be trading at around 30 p/e. Given that the company is growing, share price has risen with the expectation of continued growth, and if its competitor trades at 27 with its decline in revenue, then expectations may continue to drive Toro higher. When the company reports 5/25/17, it will attempt to confirm the thesis that the company is increasing its revenue through virtue of its reliable, and high-performing products.








Labels:

Comments

Post a Comment

Popular posts from this blog

CTAS STOCK WRITE UP

CTAS (CINTAS CORPORATION) P/E: 26.8 GAAP DILUTED YEAR-OVER-YEAR EPS GROWTH LAST QUARTER: $.02 SECTOR: CONSUMER SERVICES ASSETS-LIABILITIES: 2.09 DIVIDEND: 1.06% CTAS is a company providing uniforms to major companies. They report 7/20/17 after the market close. The company is profitable, and has acquired smaller businesses to grow its revenue, while selling a paper-shredding company it had previously acquired. The company has more cash than debt. Inventories increased by 9%, and revenue increased by 5.3%. Income before taxes grew 2.5%, and $642,000 in losses from discontinued operations and a $9 million acquisition expense reduced the profit improvement to just under 2%. The majority of revenue is derived from uniform rental services. According to wikinvest, CTAS has 30% of market share for uniform rentals due to its commitment to providing specialized products to fit customer needs. Cintas was founded as The Acme Industrial Laundry Company in 19
5 comments
Read more

ISRG STOCK WRITE UP

ISRG (INTUITIVE SURGICAL INC) P/E: 48 GAAP DILUTED YEAR-OVER-YEAR EPS GROWTH LAST QUARTER: $1.13 SECTOR: HEALTH TECHNOLOGY ASSETS-LIABILITIES: 7.05 DIVIDEND: none ISRG is the ticker for Intuitive Surgical Inc, a company endeavoring in the manufacture and distribution of robotic surgical devices. The company recently gained FDA approval for a lower-cost device. They have a clean balance sheet with a history of upside surprises against earnings expectations, and report again 7/20/17. Revenues increased nearly 14%, while EPS increased 32% compared to the Q1 '16 results. While liabilities decreased on a year-over-year basis, assets decreased by a larger margin. R&D spending increased 36%, and administrative costs rose 16%. Taxes were cut in half, although the revenues increased, due to modified accounting principles, and tax benefits for the employee share-based compensation.. The ratio of assets-liabilities decreased from 9.14 to 7.05, which is
1 comment
Read more

PXD STOCK WRITE UP

 PXD (PIONEER NATURAL RESOURCES) P/E: N/A GAAP DILUTED Y-O-Y EPS GROWTH LAST QUARTER: $.67 SECTOR: ENERGY MINERALS ASSETS-LIABILITIES: 1.58 DIVIDEND: .04% Pioneer Natural Resources has recently made the jaw-dropping switch from negative EPS to positive with its last quarter. Situated in the largest oil-producing region in the US, the company is utilizing its good fortune to produce profits. The company has a good balance sheet, a wealth of resources, and a business model which has afforded it growth. This last quarter does not mark the first occasion on which Pioneer has posted a profit. In 2014, and 2012, Pioneer posted a positive EPS for the full year. While the 2016 oil and gas revenues have grown from 2015, the 2014 and 2012 levels were higher. The company's revenue from oil and gas is largely based on market prices. In order to mitigate the market volatility, Pioneer has made efforts to reduce their cost of production, according to their earnin
1 comment
Read more