TOLL BROTHERS INC (TOL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TOL - US8894781033 - Common Stock
139.83 USD
-0.68 (-0.48%)
139.77 USD
-0.06 (-0.04%)
TOL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 61 industry peers in the Household Durables industry. TOL has an excellent profitability rating, but there are some minor concerns on its financial health. TOL has a correct valuation and a medium 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.
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
TOL has a Return On Assets of 9.55%. This is amongst the best in the industry. TOL outperforms 81.97% of its industry peers.
With a decent Return On Equity value of 16.99%, TOL is doing good in the industry, outperforming 75.41% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.94%, TOL is in the better half of the industry, outperforming 78.69% 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 9.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.55% | ||
| ROE | 16.99% | ||
| ROIC | 11.94% |
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
Looking at the Profit Margin, with a value of 12.64%, TOL belongs to the top of the industry, outperforming 91.80% of the companies in the same industry.
TOL's Profit Margin has improved in the last couple of years.
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.
TOL's Operating Margin has improved in the last couple of years.
TOL has a Gross Margin of 25.65%. This is comparable to the rest of the industry: TOL outperforms 52.46% of its industry peers.
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 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.
TOL has less shares outstanding than it did 5 years ago.
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's Altman-Z score of 4.07 is fine compared to the rest of the industry. TOL outperforms 63.93% 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.
With a decent Debt to FCF ratio value of 3.20, TOL is doing good in the industry, outperforming 67.21% of the companies in the same industry.
TOL has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
TOL has a Debt to Equity ratio of 0.36. This is comparable to the rest of the industry: TOL outperforms 45.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 4.07 |
ROIC/WACC1.44
WACC8.29%
2.3 Liquidity
TOL has a Current Ratio of 3.72. This indicates that TOL is financially healthy and has no problem in meeting its short term obligations.
TOL's Current ratio of 3.72 is fine compared to the rest of the industry. TOL outperforms 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
TOL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.02%.
TOL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.96% yearly.
The Revenue has been growing slightly by 3.26% in the past 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)2.02%
EPS 3Y27.67%
EPS 5Y27.96%
EPS Q2Q%3.61%
Revenue 1Y (TTM)3.26%
Revenue growth 3Y7.26%
Revenue growth 5Y8.47%
Sales Q2Q%7.96%
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 9.50% on average per year.
TOL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.97% yearly.
EPS Next Y0.52%
EPS Next 2Y0.73%
EPS Next 3Y3.67%
EPS Next 5Y9.5%
Revenue Next Year1.7%
Revenue Next 2Y0.53%
Revenue Next 3Y1.6%
Revenue Next 5Y6.97%
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.
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 10.27 indicates a reasonable valuation of TOL.
65.57% of the companies in the same industry are more expensive than TOL, based on the Price/Earnings ratio.
TOL is valuated cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.94, which indicates a very decent valuation of TOL.
Based on the Price/Forward Earnings ratio, TOL is valued a bit cheaper than the industry average as 78.69% of the companies are valued more expensively.
TOL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.27 | ||
| Fwd PE | 9.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TOL is valued a bit cheaper than the industry average as 60.66% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TOL is valued a bit cheaper than 67.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.68 | ||
| EV/EBITDA | 8.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of TOL may justify a higher PE ratio.
PEG (NY)19.68
PEG (5Y)0.37
EPS Next 2Y0.73%
EPS Next 3Y3.67%
5. Dividend
5.1 Amount
TOL has a yearly dividend return of 0.79%, which is pretty low.
Compared to an average industry Dividend Yield of 3.26, TOL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, TOL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
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.
The dividend of TOL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP7.01%
EPS Next 2Y0.73%
EPS Next 3Y3.67%
139.83
-0.68 (-0.48%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners93.35%
Inst Owner Change-2.91%
Ins Owners0.64%
Ins Owner Change-4.5%
Market Cap13.48B
Revenue(TTM)10.88B
Net Income(TTM)1.38B
Analysts77.27
Price Target154.38 (10.41%)
Short Float %3.45%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
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)0.23%
PT rev (3m)2.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.82%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-1.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.54%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.27 | ||
| Fwd PE | 9.94 | ||
| P/S | 1.24 | ||
| P/FCF | 14.68 | ||
| P/OCF | 13.55 | ||
| P/B | 1.66 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 8.42 |
EPS(TTM)13.61
EY9.73%
EPS(NY)14.06
Fwd EY10.06%
FCF(TTM)9.53
FCFY6.81%
OCF(TTM)10.32
OCFY7.38%
SpS112.85
BVpS84
TBVpS84
PEG (NY)19.68
PEG (5Y)0.37
Graham Number160.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.55% | ||
| ROE | 16.99% | ||
| ROCE | 15.94% | ||
| ROIC | 11.94% | ||
| ROICexc | 12.93% | ||
| ROICexgc | 13.06% | ||
| OM | 16.27% | ||
| PM (TTM) | 12.64% | ||
| GM | 25.65% | ||
| FCFM | 8.44% |
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%
ROICexgc growth 3Y16.35%
ROICexgc 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-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
WACC8.29%
ROIC/WACC1.44
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)2.02%
EPS 3Y27.67%
EPS 5Y27.96%
EPS Q2Q%3.61%
EPS Next Y0.52%
EPS Next 2Y0.73%
EPS Next 3Y3.67%
EPS Next 5Y9.5%
Revenue 1Y (TTM)3.26%
Revenue growth 3Y7.26%
Revenue growth 5Y8.47%
Sales Q2Q%7.96%
Revenue Next Year1.7%
Revenue Next 2Y0.53%
Revenue Next 3Y1.6%
Revenue Next 5Y6.97%
EBIT growth 1Y-11.15%
EBIT growth 3Y26.05%
EBIT growth 5Y24.59%
EBIT Next Year-2.58%
EBIT Next 3Y0.4%
EBIT Next 5Y6.5%
FCF growth 1Y-50.07%
FCF growth 3Y-8.84%
FCF growth 5Y21.71%
OCF growth 1Y-47.87%
OCF growth 3Y-8.14%
OCF growth 5Y18.21%
TOLL BROTHERS INC / TOL FAQ
What is the ChartMill fundamental rating of TOLL BROTHERS INC (TOL) stock?
ChartMill assigns a fundamental rating of 6 / 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 10.27 and the Price/Book (PB) ratio is 1.66.
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%.