Toromont IndustriesTMTNF +8.13%89 Gross Margin % is 25.84% as of Mar. 2026, which is 4% above its 10-year median of 24.80. GuruFocus rates TMTNF with a GF Score™ of 89/100 and a GF Value™ of $101.47 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 154 Industrial Distribution companies, Toromont Industries ranks better than 53.25% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Toromont Industries had a gross margin of 25.84% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Toromont Industries Gross Margin % Related Terms
Toromont Industries Gross Margin % Historical Data
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The historical data trend for Toromont Industries's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TMTNF vs GWW, FAST, FERG: Gross Margin % Comparison
For the Industrial Distribution subindustry, Toromont Industries's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Toromont Industries Gross Margin % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Toromont Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Toromont Industries's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Toromont Industries (TMTNF) has a Gross Margin % of 25.84% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Toromont Industries and its competitors. This is near median its historical median of 24.80. Over the past decade, Toromont Industries' Gross Margin % has ranged from 23.66 to 27.18. According to the industry distribution chart, Toromont Industries ranks #72 out of 154 companies in the Industrial Distribution industry, placing it in the top 46.8%.
Is Toromont Industries' Gross Margin % too high?
Toromont Industries' current Gross Margin % of 25.84% is near median its 10-year median of 24.80. Over the past 10 years, this metric has ranged from a low of 23.66 to a high of 27.18. The Industrial Distribution industry median Gross Margin % is 24.30. Toromont Industries' value of 25.84% is 6.4% above this industry median. Based on the distribution chart, Toromont Industries ranks #72 out of 154 companies in the Industrial Distribution industry, which is above the industry midpoint. Overall, Toromont Industries has a GF Score™ of 89/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Toromont Industries' Gross Margin % compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Toromont Industries ranks #72 out of 154 companies for Gross Margin %. This puts Toromont Industries in the upper half of its industry. The industry median Gross Margin % is 24.30. Toromont Industries' value of 25.84% is 6.4% above this benchmark. Historically, Toromont Industries' own Gross Margin % has ranged from 23.66 to 27.18 over the past decade. While the company's 10-year median is 24.80 vs. the industry median of 24.30, Toromont Industries has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Industrial Distribution company?
The median Gross Margin % among Industrial Distribution companies is 24.30, based on 154 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Toromont Industries's current Gross Margin % of 25.84% is 6.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Toromont Industries and its competitors. For the Industrial Distribution industry, the median Gross Margin % is 24.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Toromont Industries's current Gross Margin % is 25.84%, which is near median its own 10-year median of 24.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Toromont Industries stock overvalued right now?
Based on GuruFocus' analysis, Toromont Industries (TMTNF) is currently considered Significantly Overvalued. The stock's GF Value™ is $101.47, compared to a current price of $169.25 — trading 66.8% above its estimated fair value. The current Gross Margin % is 25.84%, which is near median its 10-year median of 24.80 and 6.4% above the Industrial Distribution industry median of 24.30. Toromont Industries' overall GF Score™ is 89/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Toromont Industries (TMTNF), the current Gross Margin % is 25.84% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Toromont Industries (TMTNF) Overvalued in 2026?
Based on GuruFocus' analysis, Toromont Industries stock appears to be overvalued.
The current stock price of $169.25 is trading 66.8% above its estimated GF Value™ of $101.47.
GuruFocus considers Toromont Industries to be Significantly Overvalued.
Key valuation signals for TMTNF:
Gross Margin %: 25.84% (near median its 10-year median of 24.80)
GF Value™: $101.47 vs. price of $169.25 (66.8% above fair value)
Industry Position: 6.4% above the Industrial Distribution median (#72 of 154)
No single metric tells the full story. See the TMTNF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Toromont Industries Ltd is a Canadian industrial company. The company operates two business segments: Equipment Group and CIMCO. The larger segment by revenue, Equipment Group supplies and rents mobile and stationary machines used in road building, mining, aggregates, public infrastructure, residential construction, power generation, agriculture, forestry, truck engines, industrial, demolition, and waste management. CIMCO offers solutions for the design, engineering, fabrication, and installation of industrial and recreational refrigeration systems. The company operates majorly in Canada and derives a smaller portion of sales from the United States of America and other regions.
89GF Score
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