TOLL BROTHERS INC (TOL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TOL - US8894781033 - Common Stock
139.12 USD
-0.46 (-0.33%)
138.4 USD
-0.72 (-0.52%)
Overall TOL gets a fundamental rating of 7 out of 10. We evaluated TOL against 60 industry peers in the Household Durables industry. While TOL has a great profitability rating, 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
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.
TOL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.55%, TOL belongs to the top of the industry, outperforming 81.67% of the companies in the same industry.
With a decent Return On Equity value of 16.99%, TOL is doing good in the industry, outperforming 75.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.99%, TOL belongs to the best of the industry, outperforming 81.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TOL is above the industry average of 9.70%.
| 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
With an excellent Profit Margin value of 12.64%, TOL belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
In the last couple of years the Profit Margin of TOL has grown nicely.
TOL has a Operating Margin of 16.27%. This is amongst the best in the industry. TOL outperforms 90.00% of its industry peers.
TOL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 25.65%, TOL is in line with its industry, outperforming 53.33% of the companies in the same industry.
TOL's Gross Margin has improved in the last couple of years.
| 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
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
An Altman-Z score of 4.06 indicates that TOL is not in any danger for bankruptcy at the moment.
The Altman-Z score of TOL (4.06) is better than 70.00% 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's Debt to FCF ratio of 3.20 is fine compared to the rest of the industry. TOL outperforms 65.00% 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 | 4.06 |
ROIC/WACC1.36
WACC8.84%
2.3 Liquidity
A Current Ratio of 3.72 indicates that TOL has no problem at all paying its short term obligations.
TOL's Current ratio of 3.72 is fine compared to the rest of the industry. TOL outperforms 65.00% of its industry peers.
A Quick Ratio of 0.35 indicates that TOL may have some problems paying its short term obligations.
TOL's Quick ratio of 0.35 is on the low side compared to the rest of the industry. TOL is outperformed by 93.33% 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.
Measured over the past years, TOL shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.49% on average per year.
Looking at the last year, TOL shows a small growth in Revenue. The Revenue has grown by 1.11% in the last year.
Measured over the past years, TOL shows a quite strong growth in Revenue. The Revenue has been growing by 9.15% on average per year.
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
Based on estimates for the next years, TOL will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.92% on average per year.
Based on estimates for the next years, TOL will show a quite strong growth in Revenue. The Revenue will grow by 8.01% on average per year.
EPS Next Y-4.78%
EPS Next 2Y2.84%
EPS Next 3Y6.1%
EPS Next 5Y11.92%
Revenue Next Year-3.76%
Revenue Next 2Y1.91%
Revenue Next 3Y3.19%
Revenue Next 5Y8.01%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
The Price/Earnings ratio is 10.26, 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 65.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TOL to the average of the S&P500 Index (26.92), we can say TOL is valued rather cheaply.
TOL is valuated reasonably with a Price/Forward Earnings ratio of 10.77.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TOL indicates a somewhat cheap valuation: TOL is cheaper than 70.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.46, TOL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.26 | ||
| Fwd PE | 10.77 |
4.2 Price Multiples
TOL's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, TOL is valued a bit cheaper than 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.6 | ||
| EV/EBITDA | 8.35 |
4.3 Compensation for Growth
TOL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.33
EPS Next 2Y2.84%
EPS Next 3Y6.1%
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 1.23, 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 2.00.
| 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 2Y2.84%
EPS Next 3Y6.1%
139.12
-0.46 (-0.33%)
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 Change0.12%
Market Cap13.41B
Revenue(TTM)10.97B
Net Income(TTM)1.38B
Analysts77.27
Price Target153.08 (10.03%)
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)-0.84%
PT rev (3m)-0.39%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-0.07%
EPS NY rev (1m)-8.19%
EPS NY rev (3m)-8.24%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)-2.97%
Revenue NY rev (3m)-2.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.26 | ||
| Fwd PE | 10.77 | ||
| P/S | 1.23 | ||
| P/FCF | 14.6 | ||
| P/OCF | 13.48 | ||
| P/B | 1.66 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 8.35 |
EPS(TTM)13.56
EY9.75%
EPS(NY)12.91
Fwd EY9.28%
FCF(TTM)9.53
FCFY6.85%
OCF(TTM)10.32
OCFY7.42%
SpS112.85
BVpS84
TBVpS84
PEG (NY)N/A
PEG (5Y)0.33
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 | 4.06 |
F-Score4
WACC8.84%
ROIC/WACC1.36
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 Y-4.78%
EPS Next 2Y2.84%
EPS Next 3Y6.1%
EPS Next 5Y11.92%
Revenue 1Y (TTM)1.11%
Revenue growth 3Y2.19%
Revenue growth 5Y9.15%
Sales Q2Q%5.01%
Revenue Next Year-3.76%
Revenue Next 2Y1.91%
Revenue Next 3Y3.19%
Revenue Next 5Y8.01%
EBIT growth 1Y-11.15%
EBIT growth 3Y6.32%
EBIT growth 5Y26.95%
EBIT Next Year-0.28%
EBIT Next 3Y6.47%
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 10.26 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%.