Toromont Industries Ltd. (TMTNY)
Industrials · PNK · US
Fundamentals
Valuation and ratings
Toromont Industries Ltd. trades at USD32.78, close to the USD34.65 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 53 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 36.1 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Toromont Industries Ltd.
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 engages in the supply and rent business; providing product support services for specialized mobile equipment, industrial engines, material handling lift trucks, and heavy equipment rentals; designing and fabricating power generation and storage enclosures; suppling control systems for specialized mobile equipment; and developing distributed generators and combined heat and power projects using Caterpillar engines. This segment serves road building, mining, aggregates, public infrastructure, residential construction, power generation, forestry, on-highway truck engines, industrial, demolition and waste management markets. The CIMCO segment is involved in the design, engineering, fabrication, installation, and after-sale support of refrigeration systems in industrial and recreational markets, as well as supplies thermal management solutions. This segment primarily serves beverage and food processing, cold storage, food distribution, mining, and recreational ice rink sectors. Toromont Industries Ltd. was founded in 1961 and is headquartered in Concord, Canada.
TMTNY passes 2 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Toromont Industries Ltd. (TMTNY) undervalued?
Against our discounted cash flow estimate of USD34.65, TMTNY at USD32.78 is 6% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is TMTNY's P/E ratio?
TMTNY trades at 36.1 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.