The Toro Company: The Future Outlook Is Still Murky Despite A Good Earnings Report (Rating Upgrade)
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Dividend Yield Theorist9.56K FollowersFollow5ShareSavePlay(10min)CommentsSummaryThe Toro Company posted a strong Q4 earnings beat, driving a sharp share price rally above $80.TTC's professional segment remains robust, but residential sales and margins have materially declined, highlighting uneven business momentum.Dividend growth continues to slow, with a modest 2.63% increase and a payout ratio now at 45%.My valuation model shows TTC trading well below fair value, but persistent headwinds and a mixed outlook justify a Hold rating. DedMityay/iStock via Getty Images Recap I last covered The Toro Company (TTC) about 2 months ago, shortly following the company's Q3 earnings report. At the time, TTC traded in the range of $75; since my update, the share price has continued to decline, bottomingThis article was written byDividend Yield Theorist9.56K FollowersFollowI have a masters degree in Analytics from Northwestern University and a bachelors degree in Accounting. I have worked in the investment arena for over 10 years starting as an analyst and working my way up to a management role. Dividend investing is a personal hobby and I look forward to sharing my thoughts with the Seeking Alpha community.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.