Is Toro Stock (TTC) Halal? A Complete Analysis

The Short Answer

The Toro Company stock (TTC) is generally considered halal by most Islamic scholars and Sharia screening criteria. Toro is a designer, manufacturer, and marketer of professional-and-residential turf-maintenance, landscaping, and outdoor-power equipment.

Turf-maintenance, landscaping, irrigation, and outdoor-power-equipment manufacturing are unambiguously permissible at the activity level. The one nuance Muslim investors should review is Toro's dealer-financing joint-venture, alongside routine leverage and interest-income checks.

Sharia Screening Methodology

Islamic scholars use several criteria to screen stocks:

• Business activity screen: Is the company's primary business halal?
• Debt ratio: Total debt / market cap must be under 33%
• Interest income: Interest income / total revenue must be under 5%
• Haram revenue: Revenue from haram sources must be under 5%
• Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)

Toro's Business Activity

Toro operates through reporting segments including:

• Professional: Turf-maintenance-equipment, golf-course-and-grounds equipment, landscape-contractor equipment, rental-and-specialty-construction equipment, and irrigation-and-lighting solutions
• Residential: Walk-power-mowers, riding-mowers, zero-turn-mowers, snow-throwers, and home-solutions products under brands including Toro, Exmark, Ditch Witch, and BOSS

These are general-purpose industrial-and-consumer-durable-equipment businesses — manufacturing and selling physical equipment. This is permissible at the activity level.

Concerns to Be Aware Of

1. Dealer-Financing Joint-Venture

Toro operates Red Iron Acceptance, a financing joint-venture that provides inventory-financing to dealers. Investors should verify that financing-related income and any consolidated financing assets remain within the relevant Sharia financial-screen thresholds at the time of investment.

2. Leverage Profile

Toro operates a moderate-to-low-leverage balance sheet. The debt-to-market-cap ratio should be re-verified against the 33% threshold given Toro's acquisition activity (including Ditch Witch/Charles Machine Works) and share-repurchase program.

3. Minor Interest Income

Minor interest income on cash balances means purification of a small portion of dividends may be advisable.

Financial Ratios (2025)

Based on Toro's most recent financial statements:

• Total Debt / Market Cap: Verify against 33% threshold (moderate leverage) ✅/⚠️
• Interest Income / Revenue: Under 5% — confirm financing-JV treatment ⚠️
• Haram Revenue: Negligible ✅
• Business Activity: Permissible equipment manufacturing ✅

Verdict from Major Screening Agencies

Toro stock is generally screened as compliant (halal) with purification by:

• Zoya App — Compliant with purification ✅
• MSCI Islamic criteria — Generally included ✅
• Most major Sharia advisory boards — Compliant with verification of the financing-JV and leverage ratios ✅

Bottom Line

The Toro Company (TTC) is generally halal with purification for Muslim investors. The core business — turf-maintenance and outdoor power equipment — is unambiguously permissible at the activity level. The main diligence step is to verify that the dealer-financing joint-venture stays within Sharia financial-screen thresholds.

For Muslim investors seeking equipment-manufacturing exposure, TTC sits alongside other halal-screened names like Deere (DE) and AGCO (AGCO).