Toromont Industries Ltd. Fundamental Analysis
Toromont Industries Ltd. (TIH.TO) shows weak financial fundamentals with a PE ratio of 35.89, profit margin of 9.64%, and ROE of 16.06%. The company generates $5.3B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze TIH.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakTIH.TO struggles to generate sufficient returns from assets.
Valuation Score
WeakTIH.TO trades at a premium to fair value.
Growth Score
ModerateTIH.TO shows steady but slowing expansion.
Financial Health Score
ExcellentTIH.TO maintains a strong and stable balance sheet.
Profitability Score
ModerateTIH.TO maintains healthy but balanced margins.
Key Financial Metrics
Is TIH.TO Expensive or Cheap?
P/E Ratio
TIH.TO trades at 35.89 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TIH.TO's PEG of 8.73 indicates potential overvaluation.
Price to Book
The market values Toromont Industries Ltd. at 5.52 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 17.68 times EBITDA. This signals the market has high growth expectations.
How Well Does TIH.TO Make Money?
Net Profit Margin
For every $100 in sales, Toromont Industries Ltd. keeps $9.64 as profit after all expenses.
Operating Margin
Core operations generate 13.52 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.06 in profit for every $100 of shareholder equity.
ROA
Toromont Industries Ltd. generates $9.46 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Toromont Industries Ltd. produces operating cash flow of $837.19M, showing steady but balanced cash generation.
Free Cash Flow
Toromont Industries Ltd. produces free cash flow of $437.52M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $5.37 in free cash annually.
FCF Yield
TIH.TO converts 2.36% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
35.89
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
8.73
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.47
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.17
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How TIH.TO Stacks Against Its Sector Peers
| Metric | TIH.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 35.89 | 30.42 | Worse (Expensive) |
| ROE | 16.06% | 1208.00% | Weak |
| Net Margin | 9.64% | -20780.00% (disorted) | Weak |
| Debt/Equity | 0.25 | 0.39 | Strong (Low Leverage) |
| Current Ratio | 3.17 | 21.63 | Strong Liquidity |
| ROA | 9.46% | -1316011.00% (disorted) | Weak |
TIH.TO outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Toromont Industries Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure