The Toro Company (TTC): A Bull Case Theory

We came across a bullish thesis on The Toro Company on Stock Analysis Compilation’s Substack. In this article, we will summarize the bulls’ thesis on TTC. The Toro Company’s share was trading at $74.98 as of July 22^nd. TTC’s trailing and forward P/E were 19.28 and 17.04, respectively according to Yahoo Finance.

The Toro Company is a category-defining leader in turf, landscape, and construction markets, built on iconic brands like Toro, Exmark, and Ditch Witch that have earned a reputation for performance, reliability, and innovation. Its powerful brand equity, trusted by professional users such as golf course superintendents and landscape contractors, creates a durable competitive moat reinforced by an unmatched global dealer and distributor network.

This network, providing not just sales but also expert service and support, fosters deep customer relationships and significant switching costs. Toro’s culture of continuous innovation enhances productivity and efficiency, further cementing its indispensable status with professional and residential customers. Management has executed a disciplined growth strategy that blends organic innovation with value-accretive acquisitions, exemplified by the transformational purchase of The Charles Machine Works, which broadened Toro’s reach into the fast-growing underground construction market.

This strategic move positioned the company to benefit from structural demand drivers such as the expansion of fiber optic networks and infrastructure modernization. Underpinned by operational excellence, Toro consistently generates robust free cash flow, reinvesting in R&D to sustain its leadership while maintaining a shareholder-friendly capital allocation strategy.

Its long history of paying and growing dividends underscores a commitment to delivering consistent returns. Combining trusted brands, a dominant distribution ecosystem, and a disciplined management team, Toro has established itself as a best-in-class operator positioned for continued, durable growth, with a business model that supports long-term competitiveness and compounding shareholder value.

Previously we covered a bullish thesis on Snap-on Incorporated (SNA) by William Fleming-Daniels in November 2024, which highlighted its leadership in premium tools, diversified operations, and consistent cash flow supporting dividends and buybacks. The company’s stock price has depreciated by approximately 8.1% since our coverage, as growth slowed. The thesis still stands given resilient end-market demand. Stock Analysis Compilation shares a similar view but emphasizes Toro’s brand-driven moat and dealer network strength.

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Disclosure: None.