Flyover Stock: The Toro Company (TTC)

This month's company is going through a challenging period but is supported by a strong culture and loyal relationships

In my post “How Systems, Culture, and Loyalty Enable Compounding” I discussed how these three factors can work together to help companies navigate challenging periods and consistently create shareholder value.

This month’s Flyover Stock profile company is going through one of those challenging periods and has the culture and loyal employee base to come through stronger on the other side.

Executive summary

• Long-term business-to-business customer relationships, some over 100 years old

• A well-respected corporate culture known for its integrity and long-tenured, loyal employees

• Earnings are currently depressed, but the replacement cycle is set to turn in the coming years as products purchased during COVID-era come due for major repair

• Will stand to benefit from government-funded infrastructure investments in North America

• Investing aggressively in R&D for next-generation products

• Seven sell-side analysts (none from large banks)

On a forward basis, the stock is trading below its 10-year average EV/Sales, EV/EBITDA, and P/E, making it an attractive name to consider - especially if you think it can overcome recent headwinds.

Let’s take a closer look.