Toromont Industries (TSX:TIH) GF Value Rank : 6 (As of May. 11, 2024)

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What is Toromont Industries GF Value Rank?

Toromont Industries has the GF Value Rank of 6.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Toromont Industries's GF Value Rank

For the Industrial Distribution subindustry, Toromont Industries's GF Value Rank, along with its competitors' market caps and GF Value Rank 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's GF Value Rank Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Toromont Industries's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Toromont Industries's GF Value Rank falls into.

Toromont Industries GF Value Rank Related Terms

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Toromont Industries (TSX:TIH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Distribution » Toromont Industries Ltd (TSX:TIH) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

TMTNF:USA 14T:Germany

Address

3131 Highway 7 West, P.O. Box 5511, Concord, ON, CAN, L4K 1B7

Website

https://www.toromont.com

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 includes a Caterpillar dealership and rental operation of construction equipment. 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.

Executives

Jennifer Cochrane	Senior Officer
Miles Sean Ryan Gregg	Senior Officer
Mike Cuddy	Senior Officer
David Allan Malinauskas	Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)

Toromont Industries (TSX:TIH) Headlines

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