The Toro CoTTC +3.97%94 Operating Margin % is 13.69% as of Apr. 2026, which is 7% above its 10-year median of 12.77. 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 3,038 Industrial Products companies, The Toro Co ranks better than 70.8% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. The Toro Co's Operating Income for the
three
months ended in Apr. 2026 was $195 Mil. The Toro Co's Revenue for the
three
months ended in Apr. 2026 was $1,425 Mil. Therefore, The Toro Co's Operating Margin % for the quarter that ended in Apr. 2026 was 13.69%.
Good Sign:
The Toro Co operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for The Toro Co's Operating Margin % or its related term are showing as below:
TTC'
s Operating Margin % Range Over the Past 10 Years
Min: 10.36 Med: 12.77 Max: 14.25
Current: 11.17
TTC's Operating Margin % is ranked better than 70.8% of 3038
companies
in the Industrial Products industry
Industry Median: 6.53
vs TTC: 11.17
The Toro Co's 5-Year Average Operating Margin % Growth Rate was 1.70% per year.
The Toro Co's Operating Income for the
three
months ended in Apr. 2026 was $195 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 was $521 Mil.
The Toro Co (NYSE:TTC) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
The Toro Co Operating Margin % Related Terms
The Toro Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for The Toro Co's Operating 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.
TTC vs TKR, SWK, LECO: Operating Margin % Comparison
For the Tools & Accessories subindustry, The Toro Co's Operating Margin %, along with its competitors' market caps and Operating 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.
The Toro Co Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, The Toro Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where The Toro Co's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
The Toro Co's Operating Margin % for the fiscal year that ended in Oct. 2024 is calculated as
* 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 Operating Margin % of 13.69% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on The Toro Co and its competitors. This is near median its historical median of 12.77. Over the past decade, The Toro Co's Operating Margin % has ranged from 10.36 to 14.25. According to the industry distribution chart, The Toro Co ranks #887 out of 3038 companies in the Industrial Products industry, placing it in the top 29.2%.
Is The Toro Co's Operating Margin % too high?
The Toro Co's current Operating Margin % of 13.69% is near median its 10-year median of 12.77. Over the past 10 years, this metric has ranged from a low of 10.36 to a high of 14.25. The Industrial Products industry median Operating Margin % is 6.53. The Toro Co's value of 13.69% is 109.6% above this industry median. Based on the distribution chart, The Toro Co ranks #887 out of 3038 companies in the Industrial Products industry, which is above 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 Operating Margin % compare to TKR and SWK?
According to the Industrial Products industry distribution chart, The Toro Co ranks #887 out of 3038 companies for Operating Margin %. This puts The Toro Co in the upper half of its industry. The industry median Operating Margin % is 6.53. The Toro Co's value of 13.69% is 109.6% above this benchmark. Historically, The Toro Co's own Operating Margin % has ranged from 10.36 to 14.25 over the past decade. While the company's 10-year median is 12.77 vs. the industry median of 6.53, The Toro Co 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 Operating Margin % for an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.53, based on 3,038 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Toro Co's current Operating Margin % of 13.69% is 109.6% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on The Toro Co and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Toro Co's current Operating Margin % is 13.69%, which is near median its own 10-year median of 12.77. 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 Operating Margin % is 13.69%, which is near median its 10-year median of 12.77 and 109.6% above the Industrial Products industry median of 6.53. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For The Toro Co (TTC), the current Operating Margin % is 13.69% 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:
Operating Margin %: 13.69% (near median its 10-year median of 12.77)
GF Value™: $93.96 vs. price of $94.78 (0.9% above fair value)
Industry Position: 109.6% above the Industrial Products median (#887 of 3038)
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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