Operating Margin

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Price: 89.79 USD -0.77% Market Closed

Market Cap: $8.8B

10.9%

Declining

by 0.6%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

10.9%

Operating Income

$491m

Revenue

$4.5B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

10.9%

Operating Income

$491m

Revenue

$4.5B

Peer Comparison

Country		Company	Market Cap	Operating Margin
US		Toro Co NYSE:TTC	8.8B USD	Loading...
US		Deere & Co NYSE:DE	139.1B USD	Loading...
UK		CNH Industrial NV MIL:CNHI	14.6B EUR	Loading...
JP		Kubota Corp TSE:6326	2.7T JPY	Loading...
US		AGCO Corp NYSE:AGCO	8.5B USD	Loading...
IN		Captain Polyplast Ltd BSE:536974	510.1B INR	Loading...
IN		Escorts Kubota Ltd NSE:ESCORTS	385.1B INR	Loading...
SE		Husqvarna AB STO:HUSQ B	26.3B SEK	Loading...
CN	F	First Tractor Co Ltd SSE:601038	16.4B CNY	Loading...
IT		Comer Industries SpA MIL:COM	1.5B EUR	Loading...
CN	X	Xinjiang Machinery Research Institute Co Ltd SZSE:300159	10.8B CNY	Loading...

Market Distribution

Min	-4 087 900%
30th Percentile	-5.1%
Median	6%
70th Percentile	14.8%
Max	1 032 600%

Other Profitability Ratios

Toro Co
Glance View

Economic Moat

None

Market Cap

8.8B USD

Industry

Machinery

The Toro Company, established over a century ago, has grown from its modest beginnings supplying engines for farm tractors to becoming a powerhouse in the outdoor power solutions industry. Headquartered in Bloomington, Minnesota, this venerable institution has carved out a formidable niche through a diversified portfolio that caters to a broad spectrum of customers, including homeowners, professional contractors, and golf courses worldwide. Toro's prowess lies in its ability to innovate and adapt, consistently delivering reliable, efficient machinery and irrigation products. The company's commitment to environmental sustainability is also evident in its focus on developing eco-friendly technologies, ranging from water management solutions to energy-efficient tools. Toro’s revenue is generated primarily through the sale of its products, which include lawnmowers, snow blowers, landscape equipment, and irrigation systems. What sets Toro apart in the competitive marketplace is its robust distribution network, which spans more than 90 countries. This strategic reach not only ensures constant engagement with its customer base but also provides a steady stream of income. By maintaining a strong focus on after-sales service, Toro strengthens customer loyalty, ensuring repeat business and enhancing brand credibility. This integrative approach ensures that as the seasons change, so too do the company's offerings, all while maintaining an unwavering focus on quality and innovation to drive profitability.

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TTC Intrinsic Value

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What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Toro Co
NYSE:TTC

Peer Comparison

Market Distribution

Other Profitability Ratios

Toro Co
Glance View

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Toro Co NYSE:TTC