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Toromont Industries Ltd
TSX:TIH

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Toromont Industries Ltd Logo
Toromont Industries Ltd
TSX:TIH
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Price: 129.63 CAD 0.93% Market Closed
Updated: Mar 28, 2024

Intrinsic Value

Toromont Industries Ltd. engages in the distribution of construction equipment, power systems, and refrigeration systems. [ Read More ]

The intrinsic value of one TIH stock under the Base Case scenario is 95.59 CAD. Compared to the current market price of 129.63 CAD, Toromont Industries Ltd is Overvalued by 26%.

Key Points:
TIH Intrinsic Value
Base Case
95.59 CAD
Overvaluation 26%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation Backtest
Toromont Industries Ltd

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Fundamental Analysis

Year-end Growth Amidst Strategic Challenges
2023-Q4 Earnings Call

Year-end Growth Amidst Strategic Challenges

The company reported a successful year with key financial indicators showing positive trends, despite some operational challenges. Operating income grew 12%, driven by a 2% quarterly and 13% annual increase in revenue, with lower selling and administrative expenses. Bookings surged 53% for the quarter and 14% for the year, with notable demand in the construction sector. Even as the backlog decreased by 7%, a robust 90% is anticipated to be delivered in 2024. The firm exhibited prudent financial management, evidenced by an 11.6% dividend increase and share repurchases under the NCIB program. Strong inventory levels and over $1 billion in cash reserves demonstrate preparedness for managing economic uncertainties. With a focused growth strategy, the company remains committed to serving customers and delivering stakeholder value in a complex business environment.

Financials

Balance Sheet Decomposition
Toromont Industries Ltd

Current Assets 2.8B
Cash & Short-Term Investments 1B
Receivables 627.2m
Other Current Assets 1.1B
Non-Current Assets 1.8B
PP&E 1.2B
Intangibles 470.1m
Other Non-Current Assets 69.7m
Current Liabilities 1.1B
Accounts Payable 654.7m
Other Current Liabilities 411.4m
Non-Current Liabilities 821.9m
Long-Term Debt 672.9m
Other Non-Current Liabilities 149.1m
Efficiency

Earnings Waterfall
Toromont Industries Ltd

Revenue
4.6B CAD
Cost of Revenue
-3.4B CAD
Gross Profit
1.2B CAD
Operating Expenses
-540.7m CAD
Operating Income
704.2m CAD
Other Expenses
-169.5m CAD
Net Income
534.7m CAD

Free Cash Flow Analysis
Toromont Industries Ltd

Last Value
3-Years Average
FCF Margin
Conversion Rate
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Fundamental Scores

TIH Profitability Score
Profitability Due Diligence

Toromont Industries Ltd's profitability score is 59/100. The higher the profitability score, the more profitable the company is.

Positive 3-Year Average ROE
Positive Gross Profit
Positive 3-Year Average ROIC
Positive Free Cash Flow
59/100
Profitability
Score

Toromont Industries Ltd's profitability score is 59/100. The higher the profitability score, the more profitable the company is.

TIH Solvency Score
Solvency Due Diligence

Toromont Industries Ltd's solvency score is 86/100. The higher the solvency score, the more solvent the company is.

High Interest Coverage
High Altman Z-Score
Low D/E
Short-Term Solvency
86/100
Solvency
Score

Toromont Industries Ltd's solvency score is 86/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

TIH Price Targets Summary
Toromont Industries Ltd

Wall Street analysts forecast TIH stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for TIH is 138.83 CAD with a low forecast of 131.3 CAD and a high forecast of 149.1 CAD.

Lowest
Price Target
131.3 CAD
1% Upside
Average
Price Target
138.83 CAD
7% Upside
Highest
Price Target
149.1 CAD
15% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Shareholder Return

TIH Price
Toromont Industries Ltd

1M 1M
+3%
6M 6M
+17%
1Y 1Y
+21%
3Y 3Y
+40%
5Y 5Y
+102%
10Y 10Y
+492%
Annual Price Range
129.63
52w Low
102.71
52w High
130.7
Price Metrics
Average Annual Return 12.48%
Standard Deviation of Annual Returns 20.13%
Max Drawdown -25%
Shares Statistics
Market Capitalization 10.7B CAD
Shares Outstanding 82 297 341
Percentage of Shares Shorted 0.45%

TIH Return Decomposition
Main factors of price return

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Company Profile

Toromont Industries Ltd Logo
Toromont Industries Ltd

Country

Canada

Industry

Trading Companies & Distributors

Market Cap

10.7B CAD

Dividend Yield

1.48%

Description

Toromont Industries Ltd. engages in the distribution of construction equipment, power systems, and refrigeration systems. The company is headquartered in Concord, Ontario and currently employs 6,400 full-time employees. The firm operates in two segments: the Equipment Group and CIMCO. The firm's Equipment Group segment is involved in the supply of specialized mobile equipment and industrial engines. The company consists of businesses, including Toromont Cat, Battlefield-The Cat Rental Store, Toromont Material Handling, AgWest, SITECH and Toromont Energy. Its customer base includes infrastructure-related activities, mining, residential and commercial construction, power generation, aggregates, waste management, steel, forestry and agriculture. The CIMCO segment is involved in the design, engineering, fabrication, installation and product support services for industrial and recreational refrigeration systems.

Contact

ONTARIO
Concord
3131 Highway 7 West, P.0. Box 5511
+14166675662.0
http://www.toromont.com/

IPO

1980-03-17

Employees

6 400

Officers

CEO, President & Director
Mr. Michael Stanley Howie McMillan
Chief Information Officer & VP
Mr. Michael P. Cuddy
President of Toromont Cat Construction Division
Mr. Miles Sean Ryan Gregg
President of Toromont Cat Mining Division
Mr. William Harvey
Executive VP & CFO
Mr. John Marshall Doolittle
General Counsel & Corporate Secretary
Ms. Lynn M. Korbak
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Vice President of Human Resources
Ms. Isabelle Leclerc
Chief Operating Officer - Toromont Cat
Mr. Joel Couture
President of CIMCO Refrigeration
Mr. David Alan Malinauskas
President of Battlefield Equipment Rentals
Mr. Colin Goheen
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See Also

Discover More
What is the Intrinsic Value of one TIH stock?

The intrinsic value of one TIH stock under the Base Case scenario is 95.59 CAD.

Is TIH stock undervalued or overvalued?

Compared to the current market price of 129.63 CAD, Toromont Industries Ltd is Overvalued by 26%.