TOLL BROTHERS INC (TOL) Stock Fundamental Analysis
NYSE:TOL - New York Stock Exchange, Inc. - US8894781033 - Common Stock - Currency: USD
TOL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 67 industry peers in the Household Durables industry. TOL scores excellent on profitability, but there are some minor concerns on its financial health. TOL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
TOL had positive earnings in the past year.
TOL had a positive operating cash flow in the past year.
In the past 5 years TOL has always been profitable.
Each year in the past 5 years TOL had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.75%, TOL belongs to the top of the industry, outperforming 86.15% of the companies in the same industry.
Looking at the Return On Equity, with a value of 20.48%, TOL belongs to the top of the industry, outperforming 83.08% of the companies in the same industry.
With a decent Return On Invested Capital value of 14.49%, TOL is doing good in the industry, outperforming 80.00% of the companies in the same industry.
TOL had an Average Return On Invested Capital over the past 3 years of 13.26%. This is in line with the industry average of 11.99%.
The last Return On Invested Capital (14.49%) for TOL is above the 3 year average (13.26%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.75% | ||
| ROE | 20.48% | ||
| ROIC | 14.49% |
ROA(3y)11.06%
ROA(5y)8.89%
ROE(3y)20.7%
ROE(5y)17.4%
ROIC(3y)13.26%
ROIC(5y)10.59%
1.3 Margins
TOL has a better Profit Margin (14.49%) than 90.77% of its industry peers.
TOL's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 18.85%, TOL belongs to the best of the industry, outperforming 90.77% of the companies in the same industry.
In the last couple of years the Operating Margin of TOL has grown nicely.
Looking at the Gross Margin, with a value of 27.91%, TOL is in line with its industry, outperforming 56.92% of the companies in the same industry.
TOL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.85% | ||
| PM (TTM) | 14.49% | ||
| GM | 27.91% |
OM growth 3Y17.51%
OM growth 5Y14.86%
PM growth 3Y15.15%
PM growth 5Y12.14%
GM growth 3Y8.08%
GM growth 5Y7.34%
2. Health
2.1 Basic Checks
TOL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for TOL has been reduced compared to 1 year ago.
The number of shares outstanding for TOL has been reduced compared to 5 years ago.
The debt/assets ratio for TOL has been reduced compared to a year ago.
2.2 Solvency
TOL has an Altman-Z score of 4.37. This indicates that TOL is financially healthy and has little risk of bankruptcy at the moment.
TOL's Altman-Z score of 4.37 is fine compared to the rest of the industry. TOL outperforms 66.15% of its industry peers.
The Debt to FCF ratio of TOL is 3.02, which is a good value as it means it would take TOL, 3.02 years of fcf income to pay off all of its debts.
TOL's Debt to FCF ratio of 3.02 is fine compared to the rest of the industry. TOL outperforms 66.15% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that TOL is not too dependend on debt financing.
TOL has a Debt to Equity ratio (0.37) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.02 | ||
| Altman-Z | 4.37 |
ROIC/WACC1.68
WACC8.61%
2.3 Liquidity
TOL has a Current Ratio of 4.05. This indicates that TOL is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 4.05, TOL is doing good in the industry, outperforming 70.77% of the companies in the same industry.
A Quick Ratio of 0.58 indicates that TOL may have some problems paying its short term obligations.
TOL has a worse Quick ratio (0.58) than 75.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.05 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
TOL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.86%, which is quite good.
TOL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.96% yearly.
Looking at the last year, TOL shows a quite strong growth in Revenue. The Revenue has grown by 8.52% in the last year.
TOL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.47% yearly.
EPS 1Y (TTM)11.86%
EPS 3Y27.67%
EPS 5Y27.96%
EPS Q2Q%12.65%
Revenue 1Y (TTM)8.52%
Revenue growth 3Y7.26%
Revenue growth 5Y8.47%
Sales Q2Q%12.93%
3.2 Future
Based on estimates for the next years, TOL will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.33% on average per year.
TOL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.95% yearly.
EPS Next Y4.76%
EPS Next 2Y6.92%
EPS Next 3Y7.62%
EPS Next 5Y8.33%
Revenue Next Year3.61%
Revenue Next 2Y5.55%
Revenue Next 3Y5.7%
Revenue Next 5Y6.95%
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
The Price/Earnings ratio is 9.80, which indicates a very decent valuation of TOL.
Based on the Price/Earnings ratio, TOL is valued a bit cheaper than the industry average as 67.69% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.28, TOL is valued rather cheaply.
The Price/Forward Earnings ratio is 9.35, which indicates a very decent valuation of TOL.
TOL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TOL is cheaper than 64.62% of the companies in the same industry.
TOL is valuated cheaply when we compare the Price/Forward Earnings ratio to 91.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.8 | ||
| Fwd PE | 9.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TOL is valued a bit cheaper than 72.31% of the companies in the same industry.
TOL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TOL is cheaper than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.51 | ||
| EV/EBITDA | 7.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TOL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.06
PEG (5Y)0.35
EPS Next 2Y6.92%
EPS Next 3Y7.62%
5. Dividend
5.1 Amount
With a yearly dividend of 0.67%, TOL is not a good candidate for dividend investing.
TOL's Dividend Yield is a higher than the industry average which is at 2.89.
Compared to an average S&P500 Dividend Yield of 2.27, TOL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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
TOL pays out 5.94% of its income as dividend. This is a sustainable payout ratio.
TOL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP5.94%
EPS Next 2Y6.92%
EPS Next 3Y7.62%
TOLL BROTHERS INC
NYSE:TOL (1/29/2025, 8:04:00 PM)
After market: 135.79 0 (0%)135.79
-1.83 (-1.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners90.96%
Inst Owner Change0.07%
Ins Owners0.52%
Ins Owner Change-3.83%
Market Cap13.58B
Analysts76.52
Price Target163.46 (20.38%)
Short Float %2.67%
Short Ratio1.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend0.92
Dividend Growth(5Y)15.67%
DP5.94%
Div Incr Years4
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.6%
Min EPS beat(2)5.65%
Max EPS beat(2)7.56%
EPS beat(4)3
Avg EPS beat(4)4.77%
Min EPS beat(4)-19.17%
Max EPS beat(4)25.07%
EPS beat(8)7
Avg EPS beat(8)15.72%
EPS beat(12)11
Avg EPS beat(12)14.2%
EPS beat(16)15
Avg EPS beat(16)18.46%
Revenue beat(2)1
Avg Revenue beat(2)1.89%
Min Revenue beat(2)-0.37%
Max Revenue beat(2)4.14%
Revenue beat(4)3
Avg Revenue beat(4)2.52%
Min Revenue beat(4)-0.37%
Max Revenue beat(4)4.14%
Revenue beat(8)7
Avg Revenue beat(8)5.88%
Revenue beat(12)9
Avg Revenue beat(12)5.83%
Revenue beat(16)12
Avg Revenue beat(16)6.1%
PT rev (1m)-0.34%
PT rev (3m)2.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.92%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.09%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.8 | ||
| Fwd PE | 9.35 | ||
| P/S | 1.25 | ||
| P/FCF | 14.51 | ||
| P/OCF | 13.45 | ||
| P/B | 1.77 | ||
| P/tB | 1.77 | ||
| EV/EBITDA | 7.11 |
EPS(TTM)13.86
EY10.21%
EPS(NY)14.52
Fwd EY10.69%
FCF(TTM)9.36
FCFY6.89%
OCF(TTM)10.1
OCFY7.44%
SpS108.42
BVpS76.68
TBVpS76.68
PEG (NY)2.06
PEG (5Y)0.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.75% | ||
| ROE | 20.48% | ||
| ROCE | 19.34% | ||
| ROIC | 14.49% | ||
| ROICexc | 16.52% | ||
| ROICexgc | 16.73% | ||
| OM | 18.85% | ||
| PM (TTM) | 14.49% | ||
| GM | 27.91% | ||
| FCFM | 8.63% |
ROA(3y)11.06%
ROA(5y)8.89%
ROE(3y)20.7%
ROE(5y)17.4%
ROIC(3y)13.26%
ROIC(5y)10.59%
ROICexc(3y)15.3%
ROICexc(5y)12.36%
ROICexgc(3y)15.57%
ROICexgc(5y)12.57%
ROCE(3y)17.71%
ROCE(5y)14.14%
ROICexcg growth 3Y16.35%
ROICexcg growth 5Y20.45%
ROICexc growth 3Y16.42%
ROICexc growth 5Y20.38%
OM growth 3Y17.51%
OM growth 5Y14.86%
PM growth 3Y15.15%
PM growth 5Y12.14%
GM growth 3Y8.08%
GM growth 5Y7.34%
F-Score8
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.02 | ||
| Debt/EBITDA | 1.33 | ||
| Cap/Depr | 90.69% | ||
| Cap/Sales | 0.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 47.52% | ||
| Profit Quality | 59.61% | ||
| Current Ratio | 4.05 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 4.37 |
F-Score8
WACC8.61%
ROIC/WACC1.68
Cap/Depr(3y)93.15%
Cap/Depr(5y)105.24%
Cap/Sales(3y)0.7%
Cap/Sales(5y)0.88%
Profit Quality(3y)72.56%
Profit Quality(5y)113.39%
High Growth Momentum
Growth
EPS 1Y (TTM)11.86%
EPS 3Y27.67%
EPS 5Y27.96%
EPS Q2Q%12.65%
EPS Next Y4.76%
EPS Next 2Y6.92%
EPS Next 3Y7.62%
EPS Next 5Y8.33%
Revenue 1Y (TTM)8.52%
Revenue growth 3Y7.26%
Revenue growth 5Y8.47%
Sales Q2Q%12.93%
Revenue Next Year3.61%
Revenue Next 2Y5.55%
Revenue Next 3Y5.7%
Revenue Next 5Y6.95%
EBIT growth 1Y18.54%
EBIT growth 3Y26.05%
EBIT growth 5Y24.59%
EBIT Next Year2.63%
EBIT Next 3Y6.27%
EBIT Next 5Y5.62%
FCF growth 1Y-21.53%
FCF growth 3Y-8.84%
FCF growth 5Y21.71%
OCF growth 1Y-20.24%
OCF growth 3Y-8.14%
OCF growth 5Y18.21%