The Toro CoTTC +3.97%94 Interest Coverage is 13.18 as of Apr. 2026, which is 18% below its 10-year median of 16.04. GuruFocus rates TTC with a GF Score™ of 94/100 and a GF Value™ of $93.96 (Fairly Valued). The stock has 5 warning signs investors should review. Among 2,329 Industrial Products companies, The Toro Co ranks worse than 61.27% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. The Toro Co's
Operating Income
for the
three
months ended in Apr. 2026 was $195 Mil. The Toro Co's Interest Expense for the
three
months ended in Apr. 2026 was $-15 Mil.
The Toro Co's interest coverage for the quarter that ended in Apr. 2026 was 13.18.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for The Toro Co's Interest Coverage or its related term are showing as below:
TTC'
s Interest Coverage Range Over the Past 10 Years
Min: 8.62 Med: 16.04 Max: 19.54
Current: 9.08
TTC's Interest Coverage is ranked worse than 61.27% of 2329
companies
in the Industrial Products industry
Industry Median: 14.8
vs TTC: 9.08
The Toro Co (NYSE:TTC) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
The Toro Co Interest Coverage Related Terms
The Toro Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for The Toro Co's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
TTC vs TKR, SWK, LECO: Interest Coverage Comparison
For the Tools & Accessories subindustry, The Toro Co's Interest Coverage, along with its competitors' market caps and Interest Coverage 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.
The Toro Co Interest Coverage vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, The Toro Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where The Toro Co's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
The Toro Co (TTC) has a Interest Coverage of 13.18 as of Apr. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on The Toro Co and its competitors. This is 18% below median its historical median of 16.04. Over the past decade, The Toro Co's Interest Coverage has ranged from 8.62 to 19.54. According to the industry distribution chart, The Toro Co ranks #1427 out of 2329 companies in the Industrial Products industry, placing it in the top 61.3%.
Is The Toro Co's Interest Coverage too high?
The Toro Co's current Interest Coverage of 13.18 is 18% below median its 10-year median of 16.04. Over the past 10 years, this metric has ranged from a low of 8.62 to a high of 19.54. The Industrial Products industry median Interest Coverage is 14.80. The Toro Co's value of 13.18 is 10.9% below this industry median. Based on the distribution chart, The Toro Co ranks #1427 out of 2329 companies in the Industrial Products industry, which is below the industry midpoint. Overall, The Toro Co has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The Toro Co's Interest Coverage compare to TKR and SWK?
According to the Industrial Products industry distribution chart, The Toro Co ranks #1427 out of 2329 companies for Interest Coverage. This places The Toro Co in the lower half of its industry. The industry median Interest Coverage is 14.80. The Toro Co's value of 13.18 is 10.9% below this benchmark. Historically, The Toro Co's own Interest Coverage has ranged from 8.62 to 19.54 over the past decade. While the company's 10-year median is 16.04 vs. the industry median of 14.80, The Toro Co has consistently been below 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 Interest Coverage for an Industrial Products company?
The median Interest Coverage among Industrial Products companies is 14.80, based on 2,329 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Toro Co's current Interest Coverage of 13.18 is 10.9% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on The Toro Co and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Toro Co's current Interest Coverage is 13.18, which is 18% below median its own 10-year median of 16.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Toro Co stock overvalued right now?
Based on GuruFocus' analysis, The Toro Co (TTC) is currently considered Fairly Valued. The stock's GF Value™ is $93.96, compared to a current price of $94.78 — trading 0.9% above its estimated fair value. The current Interest Coverage is 13.18, which is 18% below median its 10-year median of 16.04 and 10.9% below the Industrial Products industry median of 14.80. The Toro Co's overall GF Score™ is 94/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For The Toro Co (TTC), the current Interest Coverage is 13.18 as of Apr. 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 The Toro Co (TTC) Overvalued in 2026?
Based on GuruFocus' analysis, The Toro Co stock appears to be overvalued.
The current stock price of $94.78 is trading 0.9% above its estimated GF Value™ of $93.96.
GuruFocus considers The Toro Co to be Fairly Valued.
Key valuation signals for TTC:
Interest Coverage: 13.18 (18% below median its 10-year median of 16.04)
GF Value™: $93.96 vs. price of $94.78 (0.9% above fair value)
Industry Position: 10.9% below the Industrial Products median (#1427 of 2329)
No single metric tells the full story. See the TTC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Toro Co designs, manufactures, markets, and sells professional turf maintenance equipment and services; turf and agricultural irrigation systems; landscaping equipment and lighting products; snow and ice management equipment; construction equipment; and residential yard and snow thrower products. The company operates through Professional and Residential segments, with the Professional segment serving commercial, agricultural, and construction customers and generating the majority of revenue, while the Residential segment focuses on homeowners. Its products are sold through distributors, dealers, retailers, rental centers, and direct channels, with the United States as its primary revenue-generating market.
94GF Score
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