Toromont Industries Ltd. (TIH) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Wajax Corp.

Gibson Energy, Inc.

ADENTRA, Inc.

Russel Metals, Inc.

Toromont Industries Ltd.

Finning International, Inc.

Taiga Building Products Ltd.

Parkland Corp.

Superior Plus Corp.

Tidewater Midstream And Infrastructure Ltd.

First Hydrogen Corp.

Why is Toromont Industries Ltd. ?

High Management Efficiency with a high ROE of 17.93%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 20.57

Positive results in Jun 26

OPERATING CASH FLOW(Y) Highest at CAD 873.37 MM
DIVIDEND PER SHARE(HY) Highest at CAD 6.94
DIVIDEND PAYOUT RATIO(Y) Highest at 36.68%

With ROE of 15.34%, it has a expensive valuation with a 5.74 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 54.55%, its profits have risen by 1.7% ; the PEG ratio of the company is 25.2

Majority shareholders : FIIs

Market Beating Performance

The stock has generated a return of 54.55% in the last 1 year, much higher than market (S&P/TSX 60) returns of 28.13%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Toromont Industries Ltd. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Toromont Industries Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Toromont Industries Ltd.

56.18%

9.93

33.58%

S&P/TSX 60

28.13%

2.33

12.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.39%

EBIT Growth (5y)

11.30%

EBIT to Interest (avg)

21.69

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.01

Sales to Capital Employed (avg)

1.33

Tax Ratio

27.58%

Dividend Payout Ratio

34.05%

Pledged Shares

Institutional Holding

0.06%

ROCE (avg)

25.90%

ROE (avg)

17.93%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.74

EV to EBIT

26.19

EV to EBITDA

18.18

EV to Capital Employed

6.31

EV to Sales

3.54

PEG Ratio

25.17

Dividend Yield

ROCE (Latest)

24.11%

ROE (Latest)

15.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Bullish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 873.37 MM

DIVIDEND PER SHARE(HY)

Highest at CAD 6.94

DIVIDEND PAYOUT RATIO(Y)

Highest at 36.68%

RAW MATERIAL COST(Y)

Fallen by -9.79% (YoY

CASH AND EQV(HY)

Highest at CAD 2,349.09 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.25 times

NET SALES(Q)

Highest at CAD 1,597.71 MM

-1What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.94 times

Here's what is working for Toromont Industries Ltd.

Operating Cash Flow

Highest at CAD 873.37 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Dividend per share

Highest at CAD 6.94 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Net Sales

Highest at CAD 1,597.71 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Cash and Eqv

Highest at CAD 2,349.09 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 3.25 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend Payout Ratio

Highest at 36.68%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -9.79% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Toromont Industries Ltd.

Debtors Turnover Ratio

Lowest at 6.94 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio