Toromont Industries Ltd. (TIH.TO) stock analysis

In our weekly check, Toromont Industries Ltd. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 4, red flags: 1.

About Toromont Industries Ltd.

Toromont Industries Ltd. is an Industrials company (Industrial - Distribution) based in Canada, listed on TSX as TIH.TO.

What our checks show for TIH.TO

Red flags

• Recovering from its deepest fall took about 3.4 years.

Warning signs

• The net margin is only 9.3%: little room if costs rise.
• The price is 31.2 times earnings (P/E): the market already pays for a lot of future growth.
• The stock has fallen as much as 52% from a peak. Would you have held through that?
• Thinly traded (about 312 thousand shares a day): buying and selling can move the price.

Strengths

• Debt is low: 0.25x equity.
• Operating profit covers interest 22.2 times over.
• The gross margin is 26.6% and has risen by 1.7 points: pricing power is holding.
• Operating cash flow is 1.58x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 21.8% a year over the next years.
• Analysts expect the net margin to improve by 2.9 points from today's 9.3%.

Next earnings report: 2026-11-02

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Questions

What grade does Toromont Industries Ltd. (TIH.TO) have?

In our weekly check, Toromont Industries Ltd. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 4, red flags: 1. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of TIH.TO stock?

This week's biggest flags for Toromont Industries Ltd.: Slow recovery after falls, Thin margins, High P/E. In total 5 of 25 checks show a warning or a red flag.

What does Toromont Industries Ltd. do?

Toromont Industries Ltd. is an Industrials company (Industrial - Distribution) based in Canada, listed on TSX as TIH.TO.

When does Toromont Industries Ltd. report earnings next?

The next earnings report is expected on 2026-11-02. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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