TOLL BROTHERS INC (TOL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TOL - US8894781033 - Common Stock
138.67 USD
-1.79 (-1.27%)
136.6 USD
-2.07 (-1.49%)
Taking everything into account, TOL scores 7 out of 10 in our fundamental rating. TOL was compared to 61 industry peers in the Household Durables industry. While TOL has a great profitability rating, there are some minor concerns on its financial health. TOL is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TOL was profitable.
TOL had a positive operating cash flow in the past year.
TOL had positive earnings in each of the past 5 years.
Of the past 5 years TOL 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.55%, TOL belongs to the top of the industry, outperforming 81.97% of the companies in the same industry.
Looking at the Return On Equity, with a value of 16.99%, TOL is in the better half of the industry, outperforming 75.41% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.99%, TOL belongs to the top of the industry, outperforming 81.97% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TOL is above the industry average of 9.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.55% | ||
| ROE | 16.99% | ||
| ROIC | 11.99% |
ROA(3y)10.66%
ROA(5y)9.94%
ROE(3y)18.98%
ROE(5y)18.83%
ROIC(3y)13.34%
ROIC(5y)12.14%
1.3 Margins
TOL's Profit Margin of 12.64% is amongst the best of the industry. TOL outperforms 91.80% of its industry peers.
In the last couple of years the Profit Margin of TOL has grown nicely.
Looking at the Operating Margin, with a value of 16.27%, TOL belongs to the top of the industry, outperforming 90.16% of the companies in the same industry.
In the last couple of years the Operating Margin of TOL has grown nicely.
TOL has a Gross Margin (25.65%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of TOL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.27% | ||
| PM (TTM) | 12.64% | ||
| GM | 25.65% |
OM growth 3Y4.04%
OM growth 5Y16.3%
PM growth 3Y-0.66%
PM growth 5Y14.22%
GM growth 3Y2.38%
GM growth 5Y5.32%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TOL is creating some value.
TOL has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TOL has less shares outstanding
TOL has a better debt/assets ratio than last year.
2.2 Solvency
TOL has an Altman-Z score of 4.07. This indicates that TOL is financially healthy and has little risk of bankruptcy at the moment.
TOL has a Altman-Z score of 4.07. This is in the better half of the industry: TOL outperforms 65.57% of its industry peers.
TOL has a debt to FCF ratio of 3.20. This is a good value and a sign of high solvency as TOL would need 3.20 years to pay back of all of its debts.
TOL has a better Debt to FCF ratio (3.20) than 67.21% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that TOL is not too dependend on debt financing.
TOL has a Debt to Equity ratio (0.36) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 4.07 |
ROIC/WACC1.34
WACC8.96%
2.3 Liquidity
A Current Ratio of 3.72 indicates that TOL has no problem at all paying its short term obligations.
TOL has a better Current ratio (3.72) than 65.57% of its industry peers.
A Quick Ratio of 0.35 indicates that TOL may have some problems paying its short term obligations.
The Quick ratio of TOL (0.35) is worse than 91.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.72 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The earnings per share for TOL have decreased by -2.16% in the last year.
TOL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.49% yearly.
TOL shows a small growth in Revenue. In the last year, the Revenue has grown by 1.11%.
The Revenue has been growing by 9.15% on average over the past years. This is quite good.
EPS 1Y (TTM)-2.16%
EPS 3Y10.17%
EPS 5Y31.49%
EPS Q2Q%-1.08%
Revenue 1Y (TTM)1.11%
Revenue growth 3Y2.19%
Revenue growth 5Y9.15%
Sales Q2Q%5.01%
3.2 Future
The Earnings Per Share is expected to grow by 11.92% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.05% on average over the next years. This is quite good.
EPS Next Y3.72%
EPS Next 2Y6.72%
EPS Next 3Y7.22%
EPS Next 5Y11.92%
Revenue Next Year-0.63%
Revenue Next 2Y1.55%
Revenue Next 3Y5.71%
Revenue Next 5Y8.05%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.23 indicates a reasonable valuation of TOL.
67.21% of the companies in the same industry are more expensive than TOL, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.43. TOL is valued rather cheaply when compared to this.
TOL is valuated reasonably with a Price/Forward Earnings ratio of 9.86.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TOL indicates a somewhat cheap valuation: TOL is cheaper than 78.69% of the companies listed in the same industry.
TOL is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.66, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.23 | ||
| Fwd PE | 9.86 |
4.2 Price Multiples
TOL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TOL is cheaper than 60.66% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TOL is valued a bit cheaper than 65.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.55 | ||
| EV/EBITDA | 8.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TOL does not grow enough to justify the current Price/Earnings ratio.
TOL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.75
PEG (5Y)0.32
EPS Next 2Y6.72%
EPS Next 3Y7.22%
5. Dividend
5.1 Amount
With a yearly dividend of 0.72%, TOL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.16, TOL pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.72, TOL pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
5.2 History
The dividend of TOL is nicely growing with an annual growth rate of 15.67%!
TOL has been paying a dividend for over 5 years, so it has already some track record.
As TOL did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)15.67%
Div Incr Years4
Div Non Decr Years7
5.3 Sustainability
7.01% of the earnings are spent on dividend by TOL. This is a low number and sustainable payout ratio.
TOL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP7.01%
EPS Next 2Y6.72%
EPS Next 3Y7.22%
138.67
-1.79 (-1.27%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners91.46%
Inst Owner Change-2.91%
Ins Owners0.66%
Ins Owner Change-1.8%
Market Cap13.37B
Revenue(TTM)10.97B
Net Income(TTM)1.38B
Analysts77.27
Price Target155 (11.78%)
Short Float %3.97%
Short Ratio3.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
Yearly Dividend0.92
Dividend Growth(5Y)15.67%
DP7.01%
Div Incr Years4
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.47%
Min EPS beat(2)2.49%
Max EPS beat(2)22.46%
EPS beat(4)3
Avg EPS beat(4)3.92%
Min EPS beat(4)-15.06%
Max EPS beat(4)22.46%
EPS beat(8)6
Avg EPS beat(8)4.81%
EPS beat(12)10
Avg EPS beat(12)12.79%
EPS beat(16)14
Avg EPS beat(16)12.54%
Revenue beat(2)2
Avg Revenue beat(2)5.14%
Min Revenue beat(2)2.4%
Max Revenue beat(2)7.87%
Revenue beat(4)3
Avg Revenue beat(4)1.94%
Min Revenue beat(4)-4.38%
Max Revenue beat(4)7.87%
Revenue beat(8)6
Avg Revenue beat(8)2.39%
Revenue beat(12)10
Avg Revenue beat(12)5.54%
Revenue beat(16)12
Avg Revenue beat(16)4.9%
PT rev (1m)0.4%
PT rev (3m)0.85%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-0.07%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.2%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.23 | ||
| Fwd PE | 9.86 | ||
| P/S | 1.23 | ||
| P/FCF | 14.55 | ||
| P/OCF | 13.43 | ||
| P/B | 1.65 | ||
| P/tB | 1.65 | ||
| EV/EBITDA | 8.42 |
EPS(TTM)13.56
EY9.78%
EPS(NY)14.06
Fwd EY10.14%
FCF(TTM)9.53
FCFY6.87%
OCF(TTM)10.32
OCFY7.44%
SpS112.85
BVpS84
TBVpS84
PEG (NY)2.75
PEG (5Y)0.32
Graham Number160.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.55% | ||
| ROE | 16.99% | ||
| ROCE | 15.94% | ||
| ROIC | 11.99% | ||
| ROICexc | 12.99% | ||
| ROICexgc | 13.13% | ||
| OM | 16.27% | ||
| PM (TTM) | 12.64% | ||
| GM | 25.65% | ||
| FCFM | 8.44% |
ROA(3y)10.66%
ROA(5y)9.94%
ROE(3y)18.98%
ROE(5y)18.83%
ROIC(3y)13.34%
ROIC(5y)12.14%
ROICexc(3y)15.22%
ROICexc(5y)14.06%
ROICexgc(3y)15.64%
ROICexgc(5y)14.41%
ROCE(3y)17.73%
ROCE(5y)16.13%
ROICexgc growth 3Y0%
ROICexgc growth 5Y21.13%
ROICexc growth 3Y-1.03%
ROICexc growth 5Y20.04%
OM growth 3Y4.04%
OM growth 5Y16.3%
PM growth 3Y-0.66%
PM growth 5Y14.22%
GM growth 3Y2.38%
GM growth 5Y5.32%
F-Score4
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.2 | ||
| Debt/EBITDA | 1.59 | ||
| Cap/Depr | 88.96% | ||
| Cap/Sales | 0.7% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 53.6% | ||
| Profit Quality | 66.78% | ||
| Current Ratio | 3.72 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 4.07 |
F-Score4
WACC8.96%
ROIC/WACC1.34
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.16%
EPS 3Y10.17%
EPS 5Y31.49%
EPS Q2Q%-1.08%
EPS Next Y3.72%
EPS Next 2Y6.72%
EPS Next 3Y7.22%
EPS Next 5Y11.92%
Revenue 1Y (TTM)1.11%
Revenue growth 3Y2.19%
Revenue growth 5Y9.15%
Sales Q2Q%5.01%
Revenue Next Year-0.63%
Revenue Next 2Y1.55%
Revenue Next 3Y5.71%
Revenue Next 5Y8.05%
EBIT growth 1Y-11.15%
EBIT growth 3Y6.32%
EBIT growth 5Y26.95%
EBIT Next Year4.8%
EBIT Next 3Y5.66%
EBIT Next 5Y10.55%
FCF growth 1Y8.71%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y8.25%
OCF growth 3YN/A
OCF growth 5YN/A
TOLL BROTHERS INC / TOL FAQ
What is the ChartMill fundamental rating of TOLL BROTHERS INC (TOL) stock?
ChartMill assigns a fundamental rating of 7 / 10 to TOL.
What is the valuation status of TOLL BROTHERS INC (TOL) stock?
ChartMill assigns a valuation rating of 6 / 10 to TOLL BROTHERS INC (TOL). This can be considered as Fairly Valued.
Can you provide the profitability details for TOLL BROTHERS INC?
TOLL BROTHERS INC (TOL) has a profitability rating of 8 / 10.
What are the PE and PB ratios of TOLL BROTHERS INC (TOL) stock?
The Price/Earnings (PE) ratio for TOLL BROTHERS INC (TOL) is 10.23 and the Price/Book (PB) ratio is 1.65.
How sustainable is the dividend of TOLL BROTHERS INC (TOL) stock?
The dividend rating of TOLL BROTHERS INC (TOL) is 5 / 10 and the dividend payout ratio is 7.01%.