TOLL BROTHERS INC (TOL)
US8894781033 - Common Stock
We assign a fundamental rating of 7 out of 10 to TOL. TOL was compared to 64 industry peers in the Household Durables industry. While TOL belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TOL is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, TOL could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
TOL had positive earnings in the past year.
In the past year TOL had a positive cash flow from operations.
TOL had positive earnings in each of the past 5 years.
In the past 5 years TOL always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.54%, TOL belongs to the top of the industry, outperforming 85.48% of the companies in the same industry.
TOL has a Return On Equity of 20.79%. This is amongst the best in the industry. TOL outperforms 82.26% of its industry peers.
The Return On Invested Capital of TOL (14.50%) is better than 80.65% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TOL is in line with the industry average of 10.82%.
The 3 year average ROIC (11.30%) for TOL is below the current ROIC(14.50%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.54% | ||
| ROE | 20.79% | ||
| ROIC | 14.5% |
ROA(3y)9.55%
ROA(5y)7.63%
ROE(3y)19.12%
ROE(5y)15.63%
ROIC(3y)11.3%
ROIC(5y)8.83%
1.3 Margins
TOL's Profit Margin of 14.63% is amongst the best of the industry. TOL outperforms 90.32% of its industry peers.
In the last couple of years the Profit Margin of TOL has grown nicely.
TOL's Operating Margin of 18.91% is amongst the best of the industry. TOL outperforms 91.94% of its industry peers.
TOL's Operating Margin has improved in the last couple of years.
TOL has a Gross Margin of 27.97%. This is comparable to the rest of the industry: TOL outperforms 58.06% of its industry peers.
TOL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.91% | ||
| PM (TTM) | 14.63% | ||
| GM | 27.97% |
OM growth 3Y30.47%
OM growth 5Y9.42%
PM growth 3Y29.54%
PM growth 5Y5.56%
GM growth 3Y9.57%
GM growth 5Y5.07%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TOL is still creating some value.
Compared to 1 year ago, TOL has less shares outstanding
TOL has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TOL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.38 indicates that TOL is not in any danger for bankruptcy at the moment.
TOL has a Altman-Z score of 4.38. This is in the better half of the industry: TOL outperforms 62.90% of its industry peers.
TOL has a debt to FCF ratio of 3.34. This is a good value and a sign of high solvency as TOL would need 3.34 years to pay back of all of its debts.
TOL's Debt to FCF ratio of 3.34 is fine compared to the rest of the industry. TOL outperforms 64.52% of its industry peers.
TOL has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of TOL (0.38) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 4.38 |
ROIC/WACC1.61
WACC8.99%
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 66.13% of its industry peers.
A Quick Ratio of 0.38 indicates that TOL may have some problems paying its short term obligations.
TOL's Quick ratio of 0.38 is on the low side compared to the rest of the industry. TOL is outperformed by 91.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.72 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
TOL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.77%.
Measured over the past years, TOL shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.45% on average per year.
TOL shows a decrease in Revenue. In the last year, the revenue decreased by -1.44%.
Measured over the past years, TOL shows a small growth in Revenue. The Revenue has been growing by 6.95% on average per year.
EPS 1Y (TTM)2.77%
EPS 3Y53.14%
EPS 5Y21.45%
EPS Q2Q%-3.49%
Revenue 1Y (TTM)-1.44%
Revenue growth 3Y12.19%
Revenue growth 5Y6.95%
Sales Q2Q%1.99%
3.2 Future
The Earnings Per Share is expected to grow by 9.21% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.32% on average over the next years. This is quite good.
EPS Next Y19.98%
EPS Next 2Y9.17%
EPS Next 3Y8.49%
EPS Next 5Y9.21%
Revenue Next Year9.47%
Revenue Next 2Y6.28%
Revenue Next 3Y5.69%
Revenue Next 5Y8.32%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.42, the valuation of TOL can be described as reasonable.
62.90% of the companies in the same industry are more expensive than TOL, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TOL to the average of the S&P500 Index (28.96), we can say TOL is valued rather cheaply.
The Price/Forward Earnings ratio is 10.32, which indicates a very decent valuation of TOL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TOL indicates a somewhat cheap valuation: TOL is cheaper than 67.74% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of TOL to the average of the S&P500 Index (23.82), we can say TOL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.42 | ||
| Fwd PE | 10.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TOL is valued a bit cheaper than 64.52% of the companies in the same industry.
66.13% of the companies in the same industry are more expensive than TOL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.21 | ||
| EV/EBITDA | 8.34 |
4.3 Compensation for Growth
TOL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TOL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.57
PEG (5Y)0.53
EPS Next 2Y9.17%
EPS Next 3Y8.49%
5. Dividend
5.1 Amount
With a yearly dividend of 0.60%, TOL is not a good candidate for dividend investing.
TOL's Dividend Yield is comparable with the industry average which is at 2.47.
With a Dividend Yield of 0.60, TOL pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
5.2 History
On average, the dividend of TOL grows each year by 15.91%, which is quite nice.
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)15.91%
Div Incr Years3
Div Non Decr Years6
5.3 Sustainability
5.99% of the earnings are spent on dividend by TOL. This is a low number and sustainable payout ratio.
The dividend of TOL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP5.99%
EPS Next 2Y9.17%
EPS Next 3Y8.49%
TOLL BROTHERS INC
NYSE:TOL (11/21/2024, 8:04:00 PM)
After market: 152.36 0 (0%)152.36
+0.45 (+0.3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap15.38B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.42 | ||
| Fwd PE | 10.32 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.57
PEG (5Y)0.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.54% | ||
| ROE | 20.79% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.91% | ||
| PM (TTM) | 14.63% | ||
| GM | 27.97% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.72 | ||
| Quick Ratio | 0.38 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)2.77%
EPS 3Y53.14%
EPS 5Y
EPS Q2Q%
EPS Next Y19.98%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.44%
Revenue growth 3Y12.19%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y