MeritValue

TORO CO

TTCdata completeness 100%18 fiscal years on file
The thesis, from the filings

TORO CO earns about 14% on invested capital, comfortably above its ~9% cost of capital, and has bought back 8% of its shares over 5 years — the marks of a durable business run for its owners. The estimate methods put fair value between $42.56 and $54.99 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$3.96B1$4.51B2$4.55B3$4.58B3$4.51B3
Net income$409.9M4$443.3M5$329.7M6$418.9M6$316.1M6
Operating cash flow$555.5M7$297.2M8$306.8M9$569.9M9$662M9
Capital expenditure$104M10$143.5M11$149.5M12$103.5M12$83.7M12
Free cash flow (derived)$451.5M7$153.7M8$157.3M9$466.4M9$578.3M9
Total debt$1.38B13$1.98B14$2.06B15$1.84B16$1.84B16
Cash & equivalents$405.6M17$188.2M18$193.1M18$199.5M18$341M18
Diluted shares108.5M105.6M105.3M104.4M99.8M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$145.62
your share of equity
Profit it earned you last year
$31.67
Free cash flow it threw off
$57.95
Debt you’d be carrying
$184.67

10 shares is a claim on $145.62 of net worth that earned you $31.67 and generated $57.95 of cash last year, against $184.67 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
14% avg · 5y
FY21 20%FY22 15%FY23 11%FY24 13%FY25 11%

It earned about 14% on invested capital against a ~9% cost of capital — comfortably above the cost of funding, a moderate advantage.

seeing a moat in the numbers →
Management signal · capital allocation
−8% shares · 5y

Share count is down 8% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has risen 33% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $42.56 and $54.99 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$51.93
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth1.1%
  • fcfBase$466.4M
DCF · Growth Exit 5Y
$54.99
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth1.1%
  • fcfBase$466.4M
Earnings Power Value
$42.56
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$409.9M
  • growthAssumed0.0%
Graham Number
$32.23
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years1.1%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $54.99
The three cases
Bear0.0%$51.72
Base1.1%$54.99
Bull6.1%$71.81

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 1.1%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-10-31 · accession 0000737758-23-000034 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-10-31 · accession 0000737758-24-000087 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-10-31 · accession 0000737758-25-000115 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-10-31 · accession 0000737758-23-000034 (NetIncomeLoss)
  5. 10-K · period ending 2022-10-31 · accession 0000737758-24-000087 (NetIncomeLoss)
  6. 10-K · period ending 2023-10-31 · accession 0000737758-25-000115 (NetIncomeLoss)
  7. 10-K · period ending 2021-10-31 · accession 0000737758-23-000034 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-10-31 · accession 0000737758-24-000087 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-10-31 · accession 0000737758-25-000115 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-10-31 · accession 0000737758-23-000034 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-10-31 · accession 0000737758-24-000087 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-10-31 · accession 0000737758-25-000115 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-10-31 · accession 0000737758-22-000039 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2022-10-31 · accession 0000737758-23-000034 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2023-10-31 · accession 0000737758-24-000087 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2024-10-31 · accession 0000737758-25-000115 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2021-10-31 · accession 0000737758-24-000087 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  18. 10-K · period ending 2022-10-31 · accession 0000737758-25-000115 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)