Toromont IndustriesTMTNF +8.13%89 ROE % is 11.19% as of Mar. 2026, which is 39% below its 10-year median of 18.49. GuruFocus rates TMTNF with a GF Score™ of 89/100 and a GF Value™ of $101.47 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 156 Industrial Distribution companies, Toromont Industries ranks better than 82.05% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Toromont Industries ROE % Related Terms
Toromont Industries ROE % Historical Data
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The historical data trend for Toromont Industries's ROE % 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 Industrial Distribution subindustry, Toromont Industries's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Toromont Industries's ROE % distribution charts can be found below:
* The bar in red indicates where Toromont Industries's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Toromont Industries (TMTNF) has a ROE % of 11.19% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Toromont Industries and its competitors. This is 39% below median its historical median of 18.49. Over the past decade, Toromont Industries' ROE % has ranged from 15.77 to 21.35. According to the industry distribution chart, Toromont Industries ranks #28 out of 156 companies in the Industrial Distribution industry, placing it in the top 17.9%.
Is Toromont Industries' ROE % too high?
Toromont Industries' current ROE % of 11.19% is 39% below median its 10-year median of 18.49. Over the past 10 years, this metric has ranged from a low of 15.77 to a high of 21.35. The Industrial Distribution industry median ROE % is 7.24. Toromont Industries' value of 11.19% is 54.7% above this industry median. Based on the distribution chart, Toromont Industries ranks #28 out of 156 companies in the Industrial Distribution industry, which is in the top quartile — a strong position relative to peers. Overall, Toromont Industries has a GF Score™ of 89/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Toromont Industries' ROE % compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Toromont Industries ranks #28 out of 156 companies for ROE %. This places Toromont Industries in the top 18% of its industry — outperforming the majority of peers. The industry median ROE % is 7.24. Toromont Industries' value of 11.19% is 54.7% above this benchmark. Historically, Toromont Industries' own ROE % has ranged from 15.77 to 21.35 over the past decade. While the company's 10-year median is 18.49 vs. the industry median of 7.24, Toromont Industries 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 ROE % for an Industrial Distribution company?
The median ROE % among Industrial Distribution companies is 7.24, based on 156 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Toromont Industries's current ROE % of 11.19% is 54.7% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Toromont Industries and its competitors. For the Industrial Distribution industry, the median ROE % is 7.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Toromont Industries's current ROE % is 11.19%, which is 39% below median its own 10-year median of 18.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Toromont Industries stock overvalued right now?
Based on GuruFocus' analysis, Toromont Industries (TMTNF) is currently considered Significantly Overvalued. The stock's GF Value™ is $101.47, compared to a current price of $169.25 — trading 66.8% above its estimated fair value. The current ROE % is 11.19%, which is 39% below median its 10-year median of 18.49 and 54.7% above the Industrial Distribution industry median of 7.24. Toromont Industries' overall GF Score™ is 89/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Toromont Industries (TMTNF), the current ROE % is 11.19% as of Mar. 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 Toromont Industries (TMTNF) Overvalued in 2026?
Based on GuruFocus' analysis, Toromont Industries stock appears to be overvalued.
The current stock price of $169.25 is trading 66.8% above its estimated GF Value™ of $101.47.
GuruFocus considers Toromont Industries to be Significantly Overvalued.
Key valuation signals for TMTNF:
ROE %: 11.19% (39% below median its 10-year median of 18.49)
GF Value™: $101.47 vs. price of $169.25 (66.8% above fair value)
Industry Position: 54.7% above the Industrial Distribution median (#28 of 156)
No single metric tells the full story. See the TMTNF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 supplies and rents mobile and stationary machines used in road building, mining, aggregates, public infrastructure, residential construction, power generation, agriculture, forestry, truck engines, industrial, demolition, and waste management. 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 and other regions.
89GF Score
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