TOLL BROTHERS INC (TOL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TOL - US8894781033 - Common Stock
146.66 USD
-0.9 (-0.61%)
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 belongs to the best of the industry regarding profitability, 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
- TOL had positive earnings in the past year.
- TOL had a positive operating cash flow in the past year.
- 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
- TOL's Return On Assets of 9.27% is amongst the best of the industry. TOL outperforms 81.67% of its industry peers.
- TOL has a better Return On Equity (16.28%) than 73.33% of its industry peers.
- With a decent Return On Invested Capital value of 11.64%, TOL is doing good in the industry, outperforming 76.67% 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 9.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.27% | ||
| ROE | 16.28% | ||
| ROIC | 11.64% |
ROA(3y)10.66%
ROA(5y)9.94%
ROE(3y)18.98%
ROE(5y)18.83%
ROIC(3y)13.18%
ROIC(5y)12.04%
1.3 Margins
- TOL has a better Profit Margin (12.28%) than 91.67% of its industry peers.
- TOL's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 15.93%, TOL belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
- TOL's Operating Margin has improved in the last couple of years.
- TOL has a Gross Margin (25.36%) which is in line with its industry peers.
- In the last couple of years the Gross Margin of TOL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.93% | ||
| PM (TTM) | 12.28% | ||
| GM | 25.36% |
OM growth 3Y2.76%
OM growth 5Y15.45%
PM growth 3Y-0.66%
PM growth 5Y14.22%
GM growth 3Y1.58%
GM growth 5Y4.83%
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.
- 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
- TOL has an Altman-Z score of 4.12. This indicates that TOL is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.12, TOL is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- The Debt to FCF ratio of TOL is 2.72, which is a good value as it means it would take TOL, 2.72 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.72, TOL is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- TOL has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
- TOL has a Debt to Equity ratio (0.34) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.72 | ||
| Altman-Z | 4.12 |
ROIC/WACC1.26
WACC9.24%
2.3 Liquidity
- TOL has a Current Ratio of 3.90. This indicates that TOL is financially healthy and has no problem in meeting its short term obligations.
- With a decent Current ratio value of 3.90, TOL is doing good in the industry, outperforming 68.33% of the companies in the same industry.
- TOL has a Quick Ratio of 3.90. This is a bad value and indicates that TOL is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of TOL (0.45) is worse than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.9 | ||
| Quick Ratio | 0.45 |
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.
- 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
- 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.
- The Revenue is expected to grow by 8.01% on average over the next years. This is quite good.
EPS Next Y-4.78%
EPS Next 2Y2.84%
EPS Next 3Y6.1%
EPS Next 5Y11.92%
Revenue Next Year-3.79%
Revenue Next 2Y1.87%
Revenue Next 3Y2.93%
Revenue Next 5Y8.01%
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
- TOL is valuated reasonably with a Price/Earnings ratio of 10.82.
- Based on the Price/Earnings ratio, TOL is valued a bit cheaper than 68.33% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.30, TOL is valued rather cheaply.
- TOL is valuated reasonably with a Price/Forward Earnings ratio of 11.36.
- Based on the Price/Forward Earnings ratio, TOL is valued a bit cheaper than 75.00% of the companies in the same industry.
- TOL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 11.36 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TOL is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, TOL is valued a bit cheaper than the industry average as 68.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.77 | ||
| EV/EBITDA | 8.61 |
4.3 Compensation for Growth
- TOL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y2.84%
EPS Next 3Y6.1%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.67%, 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.
- Compared to an average S&P500 Dividend Yield of 1.82, 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 18.76%!
- TOL has paid a dividend for at least 10 years, which is a reliable track record.
- TOL has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)18.76%
Div Incr Years4
Div Non Decr Years7
5.3 Sustainability
- 7.21% 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.
DP7.21%
EPS Next 2Y2.84%
EPS Next 3Y6.1%
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.
Can you provide the valuation status for TOLL BROTHERS INC?
ChartMill assigns a valuation rating of 6 / 10 to TOLL BROTHERS INC (TOL). This can be considered as Fairly Valued.
How profitable is TOLL BROTHERS INC (TOL) stock?
TOLL BROTHERS INC (TOL) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for TOL stock?
The Price/Earnings (PE) ratio for TOLL BROTHERS INC (TOL) is 10.82 and the Price/Book (PB) ratio is 1.71.
What is the earnings growth outlook for TOLL BROTHERS INC?
The Earnings per Share (EPS) of TOLL BROTHERS INC (TOL) is expected to decline by -4.78% in the next year.