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

FL STOCK WRITE UP

FL (FOOT LOCKER) P/E: 15.2 GAAP DILUTED YO-Y EPS GROWTH LAST QUARTER: $.28 SECTOR: RETAIL TRADE ASSETS-LIABILITIES: 3.39 DIVIDEND: 1.68% According to statisticbrain, Foot Locker was the largest shoe retailer in the United States as of 8/13/2016. Foot Locker posted a 24.5% year-over-year EPS gain in the most recent quarter, meaning its successful business is still growing. The company has a low price-to-earnings multiple and a high rate of growth with solid financials, giving the stock room to climb. While many retail stores have faired poorly due to the recent emergence of Amazon and other online retailers, Foot Locker does not suffer because their services are hard to duplicate online. You can not try on a shoe from Amazon prior to purchasing, for example. For customers who do not need to try on the shoe, either because they have already purchased the same shoe, or have tried on shoes of the same brand, Foot Locker also sells shoes through Amazon. In th...
Post a Comment
Read more

GOOG STOCK WRITE UP

GOOG (ALPHABET INC) P/E: 31.7 GAAP DILUTED EPS GROWTH Q4 '15 to Q4 '16: $.50 SECTOR: TECHNOLOGY SERVICES ASSETS-LIABILITIES: 5.8 DIVIDEND: NONE This stock is a new addition to my portfolio. The price-to-earnings multiple is higher than my target price-to-earnings multiple, but I decided to purchase the stock due to its solid year-over-year EPS growth, positive chart alignment, positive cash flow, ubiquitous market presence, and rapid growth in the technology sector. I believe this stock will head much higher, and that its earnings will keep up with the rapid pace of its growth to ensure its stability. Google became a popular product due to its excellent search engine. As a result of its success, with approximately 80.5% of global market share according to a recent survey, Google has built a strong revenue base through its advertising services. However, Google has taken the challenge of expanding its services beyond the search engine field i...
Post a Comment
Read more