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Toromont Industries

TSX:TIH
Snowflake Description

Proven track record with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TIH
TSX
CA$5B
Market Cap
  1. Home
  2. CA
  3. Capital Goods
Company description

Toromont Industries Ltd. provides specialized capital equipment in Canada, the United States, and internationally. The last earnings update was 30 days ago. More info.


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TIH Share Price and Events
7 Day Returns
-3.3%
TSX:TIH
-2.7%
CA Trade Distributors
-1%
CA Market
1 Year Returns
16.7%
TSX:TIH
3%
CA Trade Distributors
7.9%
CA Market
TIH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Toromont Industries (TIH) -3.3% -2.6% 6% 16.7% 54% 145.5%
CA Trade Distributors -2.7% 0.6% 6.9% 3% 3.4% 22.3%
CA Market -1% 1.1% 1.5% 7.9% 5.5% 15.6%
1 Year Return vs Industry and Market
  • TIH outperformed the Trade Distributors industry which returned 3% over the past year.
  • TIH outperformed the Market in Canada which returned 7.9% over the past year.
Price Volatility
TIH
Industry
5yr Volatility vs Market

TIH Value

 Is Toromont Industries undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Toromont Industries to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Toromont Industries.

TSX:TIH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:TIH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 5.4%
Trade Distributors Unlevered Beta Simply Wall St/ S&P Global 0.94
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.936 (1 + (1- 26.5%) (12.43%))
1.015
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.01
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.44% + (1.015 * 5.44%)
6.96%

Discounted Cash Flow Calculation for TSX:TIH using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Toromont Industries is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:TIH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 6.96%)
2020 220.95 Analyst x4 206.57
2021 295.10 Analyst x2 257.95
2022 366.90 Analyst x1 299.84
2023 419.77 Est @ 14.41% 320.73
2024 463.93 Est @ 10.52% 331.40
2025 500.09 Est @ 7.8% 333.99
2026 529.54 Est @ 5.89% 330.65
2027 553.65 Est @ 4.55% 323.21
2028 573.69 Est @ 3.62% 313.12
2029 590.71 Est @ 2.97% 301.43
Present value of next 10 years cash flows CA$3,018.00
TSX:TIH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$590.71 × (1 + 1.44%) ÷ (6.96% – 1.44%)
CA$10,856.48
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$10,856.48 ÷ (1 + 6.96%)10
CA$5,539.86
TSX:TIH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$3,018.00 + CA$5,539.86
CA$8,557.86
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$8,557.86 / 81.58
CA$104.91
TSX:TIH Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$104.91
Current discount Discount to share price of CA$66.87
= -1 x (CA$66.87 - CA$104.91) / CA$104.91
36.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Toromont Industries is available for.
Intrinsic value
36%
Share price is CA$66.87 vs Future cash flow value of CA$104.91
Current Discount Checks
For Toromont Industries to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Toromont Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Toromont Industries's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Toromont Industries's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Toromont Industries's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:TIH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in CAD CA$3.45
TSX:TIH Share Price ** TSX (2019-12-04) in CAD CA$66.87
Canada Trade Distributors Industry PE Ratio Median Figure of 13 Publicly-Listed Trade Distributors Companies 13.76x
Canada Market PE Ratio Median Figure of 512 Publicly-Listed Companies 14.9x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Toromont Industries.

TSX:TIH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:TIH Share Price ÷ EPS (both in CAD)

= 66.87 ÷ 3.45

19.37x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Toromont Industries is overvalued based on earnings compared to the CA Trade Distributors industry average.
  • Toromont Industries is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does Toromont Industries's expected growth come at a high price?
Raw Data
TSX:TIH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.37x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
10.6%per year
Canada Trade Distributors Industry PEG Ratio Median Figure of 7 Publicly-Listed Trade Distributors Companies 1.06x
Canada Market PEG Ratio Median Figure of 235 Publicly-Listed Companies 1.1x

*Line of best fit is calculated by linear regression .

TSX:TIH PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.37x ÷ 10.6%

1.83x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Toromont Industries is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Toromont Industries's assets?
Raw Data
TSX:TIH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in CAD CA$17.72
TSX:TIH Share Price * TSX (2019-12-04) in CAD CA$66.87
Canada Trade Distributors Industry PB Ratio Median Figure of 18 Publicly-Listed Trade Distributors Companies 0.87x
Canada Market PB Ratio Median Figure of 2,314 Publicly-Listed Companies 1.27x
TSX:TIH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:TIH Share Price ÷ Book Value per Share (both in CAD)

= 66.87 ÷ 17.72

3.77x

* Primary Listing of Toromont Industries.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Toromont Industries is overvalued based on assets compared to the CA Trade Distributors industry average.
X
Value checks
We assess Toromont Industries's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Trade Distributors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Trade Distributors industry average (and greater than 0)? (1 check)
  5. Toromont Industries has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

TIH Future Performance

 How is Toromont Industries expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Toromont Industries expected to grow at an attractive rate?
  • Toromont Industries's earnings growth is expected to exceed the low risk savings rate of 1.4%.
Growth vs Market Checks
  • Toromont Industries's earnings growth is positive but not above the Canada market average.
  • Toromont Industries's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:TIH Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:TIH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 10.6%
TSX:TIH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 5.4%
Canada Trade Distributors Industry Earnings Growth Rate Market Cap Weighted Average 15%
Canada Trade Distributors Industry Revenue Growth Rate Market Cap Weighted Average 3%
Canada Market Earnings Growth Rate Market Cap Weighted Average 10.7%
Canada Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:TIH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:TIH Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 4,288 1
2021-12-31 4,105 475 353 3
2020-12-31 3,879 438 328 8
2019-12-31 3,670 338 290 8
2019-12-04
TSX:TIH Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-09-30 3,620 153 281
2019-06-30 3,544 122 270
2019-03-31 3,527 227 260
2018-12-31 3,504 506 252
2018-09-30 3,361 588 226
2018-06-30 3,045 554 207
2018-03-31 2,615 417 180
2017-12-31 2,350 262 176
2017-09-30 2,020 104 162
2017-06-30 1,945 165 161
2017-03-31 1,936 161 159
2016-12-31 1,912 189 156

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Toromont Industries's earnings are expected to grow by 10.6% yearly, however this is not considered high growth (20% yearly).
  • Toromont Industries's revenue is expected to grow by 5.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:TIH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Toromont Industries Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:TIH Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 4.30 4.30 4.30 1.00
2020-12-31 3.92 4.10 3.75 3.00
2019-12-31 3.52 3.52 3.51 2.00
2019-12-04
TSX:TIH Past Financials Data
Date (Data in CAD Millions) EPS *
2019-09-30 3.45
2019-06-30 3.32
2019-03-31 3.20
2018-12-31 3.10
2018-09-30 2.79
2018-06-30 2.57
2018-03-31 2.25
2017-12-31 2.22
2017-09-30 2.07
2017-06-30 2.05
2017-03-31 2.03
2016-12-31 1.99

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Toromont Industries is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Toromont Industries's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Toromont Industries has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

TIH Past Performance

  How has Toromont Industries performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Toromont Industries's growth in the last year to its industry (Trade Distributors).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Toromont Industries's year on year earnings growth rate has been positive over the past 5 years.
  • Toromont Industries's 1-year earnings growth exceeds its 5-year average (24.3% vs 16.2%)
  • Toromont Industries's earnings growth has exceeded the CA Trade Distributors industry average in the past year (24.3% vs -5.2%).
Earnings and Revenue History
Toromont Industries's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Toromont Industries Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:TIH Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 3,619.56 281.24 471.42
2019-06-30 3,544.44 270.25 470.92
2019-03-31 3,527.38 260.47 470.52
2018-12-31 3,504.24 251.98 471.23
2018-09-30 3,360.96 226.22 456.51
2018-06-30 3,045.02 206.88 404.57
2018-03-31 2,614.68 179.73 348.28
2017-12-31 2,350.16 175.97 296.97
2017-09-30 2,019.62 162.36 260.20
2017-06-30 1,945.24 160.65 252.78
2017-03-31 1,936.43 158.60 253.58
2016-12-31 1,912.04 155.75 249.64
2016-09-30 1,891.77 154.62 243.02
2016-06-30 1,887.55 151.71 239.74
2016-03-31 1,849.96 149.70 235.85
2015-12-31 1,802.23 145.67 234.89
2015-09-30 1,795.93 146.93 239.48
2015-06-30 1,757.81 142.24 235.72
2015-03-31 1,688.84 134.70 228.53
2014-12-31 1,660.39 133.20 223.08
2014-09-30 1,602.00 121.94 215.19
2014-06-30 1,632.87 125.39 216.16
2014-03-31 1,592.05 123.81 213.81
2013-12-31 1,593.43 123.03 212.76
2013-09-30 1,617.24 133.27 214.75
2013-06-30 1,533.98 122.25 210.72
2013-03-31 1,538.85 120.35 210.84
2012-12-31 1,507.17 119.47 211.31

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Toromont Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Toromont Industries used its assets more efficiently than the CA Trade Distributors industry average last year based on Return on Assets.
  • Toromont Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Toromont Industries's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Trade Distributors industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Toromont Industries has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

TIH Health

 How is Toromont Industries's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Toromont Industries's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Toromont Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Toromont Industries's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Toromont Industries's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Toromont Industries Company Filings, last reported 2 months ago.

TSX:TIH Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 1,449.08 645.24 225.72
2019-06-30 1,371.00 645.01 154.45
2019-03-31 1,336.04 644.77 184.17
2018-12-31 1,327.68 645.56 345.43
2018-09-30 1,286.04 646.32 216.89
2018-06-30 1,213.94 745.77 279.72
2018-03-31 1,148.79 745.52 171.22
2017-12-31 1,124.73 895.75 160.51
2017-09-30 962.37 151.05 129.22
2017-06-30 923.82 151.86 120.94
2017-03-31 899.62 151.75 155.58
2016-12-31 885.43 152.53 188.74
2016-09-30 845.71 152.41 110.36
2016-06-30 809.35 153.16 29.30
2016-03-31 781.93 153.05 60.38
2015-12-31 775.28 153.77 66.68
2015-09-30 743.80 303.67 97.36
2015-06-30 707.64 181.03 33.69
2015-03-31 684.90 130.89 42.28
2014-12-31 668.08 131.52 85.96
2014-09-30 634.68 131.38 2.07
2014-06-30 601.22 131.98 25.75
2014-03-31 586.09 131.84 33.25
2013-12-31 576.56 132.42 70.77
2013-09-30 544.30 151.79 3.22
2013-06-30 511.73 170.79 3.47
2013-03-31 487.83 171.13 3.07
2012-12-31 476.58 159.77 2.38
  • Toromont Industries's level of debt (44.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (20.7% vs 44.5% today).
  • Debt is well covered by operating cash flow (23.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 21.9x coverage).
X
Financial health checks
We assess Toromont Industries's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Toromont Industries has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

TIH Dividends

 What is Toromont Industries's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.62%
Current annual income from Toromont Industries dividends. Estimated to be 1.56% next year.
If you bought CA$2,000 of Toromont Industries shares you are expected to receive CA$32 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Toromont Industries's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (2.01%).
  • Toromont Industries's dividend is below the markets top 25% of dividend payers in Canada (5.74%).
Upcoming dividend payment

Purchase Toromont Industries before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:TIH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
Canada Trade Distributors Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 3.1%
Canada Market Average Dividend Yield Market Cap Weighted Average of 331 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:TIH Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31 1.02 2.00
2019-12-31 1.06 2.00
2019-12-04
TSX:TIH Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-11-04 1.080 1.562
2019-05-02 1.080 1.714
2019-02-14 1.080 1.579
2018-11-05 0.920 1.619
2018-04-25 0.920 1.502
2018-02-22 0.920 1.656
2017-11-07 0.760 1.383
2017-04-26 0.760 1.533
2017-02-06 0.760 1.644
2016-11-07 0.720 1.704
2016-07-26 0.720 1.824
2016-04-26 0.720 1.908
2016-03-24 0.720 2.115
2016-02-09 0.720 2.278
2015-07-28 0.680 2.114
2015-04-22 0.680 2.153
2015-02-05 0.680 2.141
2014-10-27 0.600 2.161
2014-07-29 0.600 2.257
2014-04-24 0.600 2.274
2014-02-10 0.600 2.333
2013-11-04 0.520 2.017
2013-07-29 0.520 2.264
2013-04-24 0.520 2.264
2013-02-11 0.520 2.261
2012-10-26 0.480 2.304
2012-07-31 0.480 2.344
2012-04-26 0.480 2.258
2012-03-27 0.480 2.146
2012-02-23 0.480 2.002
2011-10-12 0.440 2.118
2011-08-12 0.440 2.576
2011-04-25 0.400 1.822
2011-02-25 0.640 2.033
2010-10-14 0.640 2.104
2010-08-12 0.640 2.326
2010-04-22 0.600 2.378
2010-02-11 0.600 2.026
2009-10-15 0.600 2.267
2009-07-21 0.600 2.628
2009-04-24 0.600 2.537
2009-02-10 0.600 2.662

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Toromont Industries's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.3x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Toromont Industries's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Toromont Industries afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Toromont Industries has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

TIH Management

 What is the CEO of Toromont Industries's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Scott Medhurst
COMPENSATION CA$3,886,773
AGE 57
TENURE AS CEO 7.8 years
CEO Bio

Mr. Scott J. Medhurst has been the Chief Executive Officer and President of Toromont Industries Ltd. since March 1, 2012. Mr. Medhurst served as the President of Toromont CAT at Toromont Industries Ltd. since September 2004. Mr. Medhurst joined the Ontario Caterpillar dealership in May 1988. He has been a Director of Toromont Industries Ltd. since March 1, 2012. He holds a Bachelor of Science in Forestry Engineering from the University of Toronto.

CEO Compensation
  • Scott's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Scott's remuneration is about average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the Toromont Industries management team in years:

11
Average Tenure
  • The average tenure for the Toromont Industries management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Scott Medhurst

TITLE
CEO, President & Director
COMPENSATION
CA$4M
AGE
57
TENURE
7.8 yrs

Paul Jewer

TITLE
CFO & Executive VP
COMPENSATION
CA$2M
AGE
55
TENURE
14.2 yrs

Michael Cuddy

TITLE
Chief Information Officer & VP
COMPENSATION
CA$1M
TENURE
24.9 yrs

Randy Casson

TITLE
President of Battlefield Equipment Rentals
COMPENSATION
CA$2M
TENURE
18.9 yrs

Dave Malinauskas

TITLE
President of CIMCO Refrigeration
COMPENSATION
CA$862K
TENURE
4.9 yrs

Lynn Korbak

TITLE
General Counsel & Corporate Secretary
TENURE
1.9 yrs
Board of Directors Tenure

Average tenure and age of the Toromont Industries board of directors in years:

6.5
Average Tenure
66.5
Average Age
  • The tenure for the Toromont Industries board of directors is about average.
Board of Directors

Robert Ogilvie

TITLE
Independent Chairman
COMPENSATION
CA$325K
AGE
74
TENURE
6.7 yrs

Scott Medhurst

TITLE
CEO, President & Director
COMPENSATION
CA$4M
AGE
57
TENURE
7.8 yrs

Wayne Hill

TITLE
Independent Director
COMPENSATION
CA$170K
AGE
73
TENURE
31.9 yrs

Rob Franklin

TITLE
Independent Director
COMPENSATION
CA$165K
AGE
72
TENURE
25.9 yrs

Jeffrey Chisholm

TITLE
Independent Director
COMPENSATION
CA$161K
AGE
70
TENURE
8.9 yrs

Cathy Cranston

TITLE
Independent Director
COMPENSATION
CA$156K
AGE
60
TENURE
6.4 yrs

Katherine Rethy

TITLE
Independent Director
COMPENSATION
CA$167K
AGE
63
TENURE
6.4 yrs

Jim Gill

TITLE
Independent Director
COMPENSATION
CA$158K
AGE
70
TENURE
4.1 yrs

Richard Roy

TITLE
Independent Director
COMPENSATION
CA$23K
AGE
63
TENURE
1.1 yrs

Peter Blake

TITLE
Corporate Director
AGE
57
TENURE
0.6 yrs
Who owns this company?
Recent Insider Trading
  • Toromont Industries individual insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
21. Nov 19 Buy Lynn Korbak Individual 21. Nov 19 21. Nov 19 25 CA$68.50 CA$1,713
12. Nov 19 Sell Michael Cuddy Individual 11. Nov 19 11. Nov 19 -10,000 CA$70.79 CA$-707,135
27. Aug 19 Buy Lynn Korbak Individual 26. Aug 19 26. Aug 19 4,016 CA$62.50 CA$250,995
31. Jul 19 Sell Forusons Holdings Inc Company 30. Jul 19 30. Jul 19 -5,000 CA$66.28 CA$-331,400
04. Jun 19 Buy Peter Blake Individual 30. May 19 30. May 19 400 CA$59.50 CA$23,800
29. May 19 Buy David Malinauskas Individual 27. May 19 27. May 19 257 CA$61.33 CA$15,753
07. May 19 Buy Lynn Korbak Individual 07. May 19 07. May 19 663 CA$63.95 CA$41,705
22. Mar 19 Buy Lynn Korbak Individual 20. Mar 19 20. Mar 19 14 CA$66.85 CA$935
08. Mar 19 Sell Robert Franklin Individual 06. Mar 19 06. Mar 19 -2,500 CA$69.37 CA$-173,172
25. Feb 19 Buy Richard Roy Individual 25. Feb 19 25. Feb 19 3,000 CA$69.60 CA$208,667
25. Feb 19 Sell Robert Ogilvie Individual 20. Feb 19 20. Feb 19 -18,900 CA$69.00 CA$-1,301,807
X
Management checks
We assess Toromont Industries's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Toromont Industries has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

TIH News

Simply Wall St News

Interested In Toromont Industries Ltd. (TSE:TIH)’s Upcoming 0.4% Dividend? You Have 4 Days Left

Toromont Industries's next dividend payment will be CA$0.27 per share, on the back of last year when the company paid a total of CA$1.08 to shareholders. … Check out our latest analysis for Toromont Industries Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. … While Toromont Industries's dividends were covered by the company's reported profits, cash is somewhat more important, so it's not great to see that the company didn't generate enough cash to pay its dividend.

Simply Wall St -

The General Counsel & Corporate Secretary of Toromont Industries Ltd. (TSE:TIH), Lynn Korbak, Just Bought 134.4% More Shares

View our latest analysis for Toromont Industries The Last 12 Months Of Insider Transactions At Toromont Industries In the last twelve months, the biggest single sale by an insider was when the Chairman, Robert Ogilvie, sold CA$1.3m worth of shares at a price of CA$69.00 per share. … TSX:TIH Recent Insider Trading, August 30th 2019 Insider Ownership of Toromont Industries I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. … The recent buying by an insider, along with high insider ownership, suggest that Toromont Industries insiders are fairly aligned, and optimistic.

Simply Wall St -

Have Investors Priced In Toromont Industries Ltd.'s (TSE:TIH) Growth?

Looking at Toromont Industries Ltd.’s (TSE:TIH) fundamentals some investors are wondering if its last closing price of CA$61.49 represents a good value for money for this high growth stock. … However, to be able to properly assess the value of a high-growth stock such as Toromont Industries, we must incorporate its earnings growth in our valuation. … A PE ratio of 18.52x and expected year-on-year earnings growth of 10% give Toromont Industries a higher PEG ratio of 1.82x.

Simply Wall St -

Toromont Industries Ltd. (TSE:TIH) Is Yielding 1.7% - But Is It A Buy?

TSX:TIH Historical Dividend Yield, August 10th 2019 Payout ratios Dividends are usually paid out of company earnings. … Toromont Industries paid out less in dividends than it reported in profits, but unfortunately it didn't generate enough free cash flow to cover the dividend. … Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Toromont Industries has grown its earnings per share at 16% per annum over the past five years.

Simply Wall St -

Does Toromont Industries Ltd.'s (TSE:TIH) CEO Salary Reflect Performance?

First, this article will compare CEO compensation with compensation at similar sized companies. … View our latest analysis for Toromont Industries How Does Scott Medhurst's Compensation Compare With Similar Sized Companies? … I think that the total shareholder return of 75%, over three years, would leave most Toromont Industries Ltd.

Simply Wall St -

Does Toromont Industries Ltd.'s (TSE:TIH) Recent Track Record Look Strong?

Measuring Toromont Industries Ltd.'s (TSE:TIH) track record of past performance is a valuable exercise for investors. … Check out our latest analysis for Toromont Industries Were TIH's earnings stronger than its past performances and the industry? … I suggest you continue to research Toromont Industries to get a more holistic view of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for TIH’s future growth?

Simply Wall St -

If You Had Bought Toromont Industries (TSE:TIH) Stock Five Years Ago, You Could Pocket A 148% Gain Today

(TSE:TIH) which saw its share price drive 148% higher over five years. … Over half a decade, Toromont Industries managed to grow its earnings per share at 15% a year. … As it happens, Toromont Industries's TSR for the last 5 years was 172%, which exceeds the share price return mentioned earlier.

Simply Wall St -

Does Toromont Industries (TSE:TIH) Have A Healthy Balance Sheet?

TSX:TIH Historical Debt, July 3rd 2019 How Healthy Is Toromont Industries's Balance Sheet? … Zooming in on the latest balance sheet data, we can see that Toromont Industries had liabilities of CA$1.05b due within 12 months and liabilities of CA$818.9m due beyond that. … Either way, since Toromont Industries does have more debt than cash, it's worth keeping an eye on its balance sheet.

Simply Wall St -

What Type Of Shareholder Owns Toromont Industries Ltd.'s (TSE:TIH)?

See our latest analysis for Toromont Industries TSX:TIH Ownership Summary, June 26th 2019 What Does The Institutional Ownership Tell Us About Toromont Industries? … We can see that Toromont Industries does have institutional investors; and they hold 35% of the stock. … General Public Ownership The general public, who are mostly retail investors, collectively hold 62% of Toromont Industries shares.

Simply Wall St -

What Does Toromont Industries Ltd.'s (TSE:TIH) P/E Ratio Tell You?

We'll look at Toromont Industries Ltd.'s (TSE:TIH) P/E ratio and reflect on what it tells us about the company's share price. … Check out our latest analysis for Toromont Industries How Do I Calculate A Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Toromont Industries: P/E of 18.89 = CA$60.5 ÷ CA$3.2 (Based on the year to March 2019.) Is A High P/E Ratio Good?

Simply Wall St -

TIH Company Info

Description

Toromont Industries Ltd. provides specialized capital equipment in Canada, the United States, and internationally. It operates in two segments, Equipment Group and CIMCO. The Equipment Group segment is involved in the sale, rental, and service of mobile equipment for Caterpillar and other manufacturers; sale, rental, and service of engines used in various applications, including industrial, commercial, marine, on-highway trucks, and power generation; and sale of complementary and related products, parts, and services. This segment serves road building, mining, aggregates, public infrastructure, residential construction, power generation, marine, agriculture, forestry, on-highway truck engines, industrial, demolition, and waste management sectors. The CIMCO segment is involved in the design, engineering, fabrication, installation, and after-sale support of refrigeration systems in industrial and recreational markets. Toromont Industries Ltd. was founded in 1961 and is based in Concord, Canada.

Details
Name: Toromont Industries Ltd.
TIH
Exchange: TSX
Founded: 1961
CA$5,451,665,135
81,575,118
Website: http://www.toromont.com
Address: Toromont Industries Ltd.
3131 Highway 7 West,
PO Box 5511,
Concord,
Ontario, L4K 1B7,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX TIH Common Shares The Toronto Stock Exchange CA CAD 06. Jan 1976
OTCPK TMTN.F Common Shares Pink Sheets LLC US USD 06. Jan 1976
DB 14T Common Shares Deutsche Boerse AG DE EUR 06. Jan 1976
Number of employees
Current staff
Staff numbers
6,000
Toromont Industries employees.
Industry
Trading Companies and Distributors
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/04 23:49
End of day share price update: 2019/12/04 00:00
Last estimates confirmation: 2019/11/27
Last earnings filing: 2019/11/04
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.