The Toro CoTTC +0.42%91 Return-on-Tangible-Equity is 160.51% as of Apr. 2026, which is 53% above its 10-year median of 104.93. GuruFocus rates TTC with a GF Score™ of 91/100 and a GF Value™ of $94.07 (Fairly Valued). The stock has 6 warning signs investors should review. Among 2,971 Industrial Products companies, The Toro Co ranks better than 95.76% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. The Toro Co's annualized net income for the quarter that ended in Apr. 2026 was $582 Mil. The Toro Co's average shareholder tangible equity for the quarter that ended in Apr. 2026 was $362 Mil. Therefore, The Toro Co's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was 160.51%.
The historical rank and industry rank for The Toro Co's Return-on-Tangible-Equity or its related term are showing as below:
TTC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 52.03 Med: 104.93 Max: 180.2
Current: 69.72
During the past 13 years, The Toro Co's highest Return-on-Tangible-Equity was 180.20%. The lowest was 52.03%. And the median was 104.93%.
TTC's Return-on-Tangible-Equity is ranked better than 95.76% of 2971
companies
in the Industrial Products industry
Industry Median: 6.72
vs TTC: 69.72
The Toro Co (NYSE:TTC) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
The Toro Co Return-on-Tangible-Equity Related Terms
The Toro Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for The Toro Co's Return-on-Tangible-Equity 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: Return-on-Tangible-Equity Comparison
For the Tools & Accessories subindustry, The Toro Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, The Toro Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where The Toro Co's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Apr. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 160.51% mean?
The Toro Co (TTC) has a Return-on-Tangible-Equity of 160.51% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on The Toro Co and its competitors. This is 53% above median its historical median of 104.93. Over the past decade, The Toro Co's Return-on-Tangible-Equity has ranged from 52.03 to 180.20. According to the industry distribution chart, The Toro Co ranks #126 out of 2971 companies in the Industrial Products industry, placing it in the top 4.2%.
Is The Toro Co's Return-on-Tangible-Equity too high?
The Toro Co's current Return-on-Tangible-Equity of 160.51% is 53% above median its 10-year median of 104.93. Over the past 10 years, this metric has ranged from a low of 52.03 to a high of 180.20. The Industrial Products industry median Return-on-Tangible-Equity is 6.72. The Toro Co's value of 160.51% is 2288.5% above this industry median. Based on the distribution chart, The Toro Co ranks #126 out of 2971 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, The Toro Co has a GF Score™ of 91/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The Toro Co's Return-on-Tangible-Equity compare to TKR and SWK?
According to the Industrial Products industry distribution chart, The Toro Co ranks #126 out of 2971 companies for Return-on-Tangible-Equity. This places The Toro Co in the top 4% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.72. The Toro Co's value of 160.51% is 2288.5% above this benchmark. Historically, The Toro Co's own Return-on-Tangible-Equity has ranged from 52.03 to 180.20 over the past decade. While the company's 10-year median is 104.93 vs. the industry median of 6.72, 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 Return-on-Tangible-Equity for an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.72, based on 2,971 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Toro Co's current Return-on-Tangible-Equity of 160.51% is 2288.5% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on The Toro Co and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Toro Co's current Return-on-Tangible-Equity is 160.51%, which is 53% above median its own 10-year median of 104.93. 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 $94.07, compared to a current price of $97.39 — trading 3.5% above its estimated fair value. The current Return-on-Tangible-Equity is 160.51%, which is 53% above median its 10-year median of 104.93 and 2288.5% above the Industrial Products industry median of 6.72. The Toro Co's overall GF Score™ is 91/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For The Toro Co (TTC), the current Return-on-Tangible-Equity is 160.51% 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 $97.39 is trading 3.5% above its estimated GF Value™ of $94.07.
GuruFocus considers The Toro Co to be Fairly Valued.
Key valuation signals for TTC:
Return-on-Tangible-Equity: 160.51% (53% above median its 10-year median of 104.93)
GF Value™: $94.07 vs. price of $97.39 (3.5% above fair value)
Industry Position: 2288.5% above the Industrial Products median (#126 of 2971)
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.
91GF Score
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