The Toro CoTTC +3.97%94 ROA % is 15.70% as of Apr. 2026, which is 11% above its 10-year median of 14.10. 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 3,081 Industrial Products companies, The Toro Co ranks better than 85.85% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. The Toro Co's annualizedNet Income for the quarter that ended in Apr. 2026 was $582 Mil.
The Toro Co's average Total Assets over the quarter that ended in Apr. 2026 was $3,705 Mil. Therefore, The Toro Co's annualized ROA % for the quarter that ended in Apr. 2026 was 15.70%.
The historical rank and industry rank for The Toro Co's ROA % or its related term are showing as below:
TTC'
s ROA % Range Over the Past 10 Years
Min: 9.16 Med: 14.1 Max: 18.6
Current: 9.36
During the past 13 years, The Toro Co's highest ROA % was 18.60%. The lowest was 9.16%. And the median was 14.10%.
TTC's ROA % is ranked better than 85.85% of 3081
companies
in the Industrial Products industry
Industry Median: 3.06
vs TTC: 9.36
The Toro Co (NYSE:TTC) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Apr. 2026) net income data. The Revenue data used here is four times the quarterly (Apr. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
The Toro Co ROA % Related Terms
The Toro Co ROA % Historical Data
* Premium members only.
The historical data trend for The Toro Co's ROA % 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.
For the Tools & Accessories subindustry, The Toro Co's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, The Toro Co's ROA % distribution charts can be found below:
* The bar in red indicates where The Toro Co's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
The Toro Co (TTC) has a ROA % of 15.70% as of Apr. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on The Toro Co and its competitors. This is 11% above median its historical median of 14.10. Over the past decade, The Toro Co's ROA % has ranged from 9.16 to 18.60. According to the industry distribution chart, The Toro Co ranks #436 out of 3081 companies in the Industrial Products industry, placing it in the top 14.2%.
Is The Toro Co's ROA % too high?
The Toro Co's current ROA % of 15.70% is 11% above median its 10-year median of 14.10. Over the past 10 years, this metric has ranged from a low of 9.16 to a high of 18.60. The Industrial Products industry median ROA % is 3.06. The Toro Co's value of 15.70% is 413.1% above this industry median. Based on the distribution chart, The Toro Co ranks #436 out of 3081 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 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The Toro Co's ROA % compare to TKR and SWK?
According to the Industrial Products industry distribution chart, The Toro Co ranks #436 out of 3081 companies for ROA %. This places The Toro Co in the top 14% of its industry — outperforming the majority of peers. The industry median ROA % is 3.06. The Toro Co's value of 15.70% is 413.1% above this benchmark. Historically, The Toro Co's own ROA % has ranged from 9.16 to 18.60 over the past decade. While the company's 10-year median is 14.10 vs. the industry median of 3.06, 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 ROA % for an Industrial Products company?
The median ROA % among Industrial Products companies is 3.06, based on 3,081 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Toro Co's current ROA % of 15.70% is 413.1% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on The Toro Co and its competitors. For the Industrial Products industry, the median ROA % is 3.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Toro Co's current ROA % is 15.70%, which is 11% above median its own 10-year median of 14.10. 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 ROA % is 15.70%, which is 11% above median its 10-year median of 14.10 and 413.1% above the Industrial Products industry median of 3.06. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For The Toro Co (TTC), the current ROA % is 15.70% 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:
ROA %: 15.70% (11% above median its 10-year median of 14.10)
GF Value™: $93.96 vs. price of $94.78 (0.9% above fair value)
Industry Position: 413.1% above the Industrial Products median (#436 of 3081)
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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