The Toro CoTTC +0.10%91 3-Year ROIIC % is 42.47 as of Oct. 2025, which is 173% above its 10-year median of 15.53. GuruFocus rates TTC with a GF Score™ of 91/100 and a GF Value™ of $94.10 (Fairly Valued). The stock has 6 warning signs investors should review. Among 2,936 Industrial Products companies, The Toro Co ranks better than 85.15% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
The Toro Co's 3-Year ROIIC % for the quarter that ended in Oct. 2025 was 42.47%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for The Toro Co's 3-Year ROIIC % or its related term are showing as below:
TTC's 3-Year ROIIC % is ranked better than 85.15% of 2936
companies
in the Industrial Products industry
Industry Median: 3.425
vs TTC: 42.47
The Toro Co (NYSE:TTC) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
The Toro Co 3-Year ROIIC % Related Terms
The Toro Co 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for The Toro Co's 3-Year ROIIC % 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 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, The Toro Co's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where The Toro Co's 3-Year ROIIC % falls into.
The Toro Co's 3-Year ROIIC % for the quarter that ended in Oct. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 411.0161 (Oct. 2025) - 461.94168 (Oct. 2022) )
/
( 2301.4 (Oct. 2025) - 2421.3 (Oct. 2022) )
=
-50.92558
/
-119.9
=
42.47%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
The Toro Co (TTC) has a 3-Year ROIIC % of 42.47 as of Oct. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on The Toro Co and its competitors. This is 173% above median its historical median of 15.53. According to the industry distribution chart, The Toro Co ranks #436 out of 2936 companies in the Industrial Products industry, placing it in the top 14.9%.
Is The Toro Co's 3-Year ROIIC % too high?
The Toro Co's current 3-Year ROIIC % of 42.47 is 173% above median its 10-year median of 15.53. The Industrial Products industry median 3-Year ROIIC % is 3.43. The Toro Co's value of 42.47 is 1140% above this industry median. Based on the distribution chart, The Toro Co ranks #436 out of 2936 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 3-Year ROIIC % compare to TKR and SWK?
According to the Industrial Products industry distribution chart, The Toro Co ranks #436 out of 2936 companies for 3-Year ROIIC %. This places The Toro Co in the top 15% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 3.43. The Toro Co's value of 42.47 is 1140% above this benchmark. While the company's 10-year median is 15.53 vs. the industry median of 3.43, 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 3-Year ROIIC % for an Industrial Products company?
The median 3-Year ROIIC % among Industrial Products companies is 3.43, based on 2,936 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Toro Co's current 3-Year ROIIC % of 42.47 is 1140% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on The Toro Co and its competitors. For the Industrial Products industry, the median 3-Year ROIIC % is 3.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Toro Co's current 3-Year ROIIC % is 42.47, which is 173% above median its own 10-year median of 15.53. 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 $94.10, compared to a current price of $97.08 — trading 3.2% above its estimated fair value. The current 3-Year ROIIC % is 42.47, which is 173% above median its 10-year median of 15.53 and 1140% above the Industrial Products industry median of 3.43. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For The Toro Co (TTC), the current 3-Year ROIIC % is 42.47 as of Oct. 2025. 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 $97.08 is trading 3.2% above its estimated GF Value™ of $94.10.
GuruFocus considers The Toro Co to be Fairly Valued.
Key valuation signals for TTC:
3-Year ROIIC %: 42.47 (173% above median its 10-year median of 15.53)
GF Value™: $94.10 vs. price of $97.08 (3.2% above fair value)
Industry Position: 1140% above the Industrial Products median (#436 of 2936)
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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