TOLL BROTHERS INC (TOL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TOL - US8894781033 - Common Stock
148.88 USD
+3.5 (+2.41%)
TOL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals 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
In the past year TOL was profitable.
TOL had a positive operating cash flow in the past year.
Each year in the past 5 years TOL has been profitable.
In the past 5 years TOL always reported a positive cash flow from operatings.
1.2 Ratios
TOL has a better Return On Assets (9.27%) than 81.67% of its industry peers.
TOL has a Return On Equity of 16.28%. This is in the better half of the industry: TOL outperforms 73.33% of its industry peers.
The Return On Invested Capital of TOL (11.64%) is better than 76.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TOL is above the industry average of 9.73%.
| 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's Profit Margin of 12.28% is amongst the best of the industry. TOL outperforms 91.67% of its industry peers.
In the last couple of years the Profit Margin of TOL has grown nicely.
TOL has a Operating Margin of 15.93%. This is amongst the best in the industry. TOL outperforms 90.00% of its industry peers.
In the last couple of years the Operating Margin of TOL has grown nicely.
With a Gross Margin value of 25.36%, TOL perfoms like the industry average, outperforming 51.67% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TOL is still creating some value.
TOL has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TOL has less shares outstanding
The debt/assets ratio for TOL has been reduced compared to a year ago.
2.2 Solvency
TOL has an Altman-Z score of 4.10. 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 4.10, TOL is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
TOL has a debt to FCF ratio of 2.72. This is a good value and a sign of high solvency as TOL would need 2.72 years to pay back of all of its debts.
TOL has a better Debt to FCF ratio (2.72) than 66.67% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that TOL is not too dependend on debt financing.
The Debt to Equity ratio of TOL (0.34) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.72 | ||
| Altman-Z | 4.1 |
ROIC/WACC1.31
WACC8.88%
2.3 Liquidity
A Current Ratio of 3.90 indicates that TOL has no problem at all paying 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.
A Quick Ratio of 0.45 indicates that TOL may have some problems paying its short term obligations.
With a Quick ratio value of 0.45, TOL is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| 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.
The Earnings Per Share has been growing by 31.49% on average over the past years. This is a very strong growth
Looking at the last year, TOL shows a small growth in Revenue. The Revenue has grown by 1.11% in the last year.
TOL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.15% yearly.
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
TOL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.92% yearly.
TOL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.01% yearly.
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.
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 10.98, which indicates a very decent valuation of TOL.
Compared to the rest of the industry, the Price/Earnings ratio of TOL indicates a somewhat cheap valuation: TOL is cheaper than 68.33% of the companies listed in the same industry.
TOL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.19.
With a Price/Forward Earnings ratio of 11.53, the valuation of TOL can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TOL indicates a somewhat cheap valuation: TOL is cheaper than 75.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.92, TOL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.98 | ||
| Fwd PE | 11.53 |
4.2 Price Multiples
TOL's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, TOL is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.98 | ||
| EV/EBITDA | 8.49 |
4.3 Compensation for Growth
The excellent profitability rating of TOL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.35
EPS Next 2Y2.84%
EPS Next 3Y6.1%
5. Dividend
5.1 Amount
With a yearly dividend of 0.74%, TOL is not a good candidate for dividend investing.
TOL's Dividend Yield is a higher than the industry average which is at 1.19.
With a Dividend Yield of 0.74, TOL pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
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
TOL pays out 7.21% of its income as dividend. This is a sustainable payout ratio.
The dividend of TOL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP7.21%
EPS Next 2Y2.84%
EPS Next 3Y6.1%
NYSE:TOL (1/12/2026, 12:32:01 PM)
148.88
+3.5 (+2.41%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners92.34%
Inst Owner Change0.14%
Ins Owners0.74%
Ins Owner Change0.12%
Market Cap14.35B
Revenue(TTM)10.97B
Net Income(TTM)1.35B
Analysts77.39
Price Target153.08 (2.82%)
Short Float %3.9%
Short Ratio3.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
Yearly Dividend1
Dividend Growth(5Y)18.76%
DP7.21%
Div Incr Years4
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.4%
Min EPS beat(2)-7.28%
Max EPS beat(2)2.49%
EPS beat(4)2
Avg EPS beat(4)0.65%
Min EPS beat(4)-15.06%
Max EPS beat(4)22.46%
EPS beat(8)5
Avg EPS beat(8)2.73%
EPS beat(12)9
Avg EPS beat(12)10.71%
EPS beat(16)13
Avg EPS beat(16)10.83%
Revenue beat(2)2
Avg Revenue beat(2)2.5%
Min Revenue beat(2)2.4%
Max Revenue beat(2)2.59%
Revenue beat(4)3
Avg Revenue beat(4)2.12%
Min Revenue beat(4)-4.38%
Max Revenue beat(4)7.87%
Revenue beat(8)6
Avg Revenue beat(8)2.03%
Revenue beat(12)10
Avg Revenue beat(12)4.43%
Revenue beat(16)12
Avg Revenue beat(16)4.76%
PT rev (1m)-1.23%
PT rev (3m)-0.61%
EPS NQ rev (1m)12.86%
EPS NQ rev (3m)10.6%
EPS NY rev (1m)-8.19%
EPS NY rev (3m)-8.24%
Revenue NQ rev (1m)0.7%
Revenue NQ rev (3m)0.97%
Revenue NY rev (1m)-2.97%
Revenue NY rev (3m)-2.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.98 | ||
| Fwd PE | 11.53 | ||
| P/S | 1.31 | ||
| P/FCF | 13.98 | ||
| P/OCF | 12.9 | ||
| P/B | 1.73 | ||
| P/tB | 1.73 | ||
| EV/EBITDA | 8.49 |
EPS(TTM)13.56
EY9.11%
EPS(NY)12.91
Fwd EY8.67%
FCF(TTM)10.65
FCFY7.15%
OCF(TTM)11.54
OCFY7.75%
SpS113.79
BVpS85.81
TBVpS85.81
PEG (NY)N/A
PEG (5Y)0.35
Graham Number161.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.27% | ||
| ROE | 16.28% | ||
| ROCE | 15.47% | ||
| ROIC | 11.64% | ||
| ROICexc | 13.1% | ||
| ROICexgc | 13.32% | ||
| OM | 15.93% | ||
| PM (TTM) | 12.28% | ||
| GM | 25.36% | ||
| FCFM | 9.36% |
ROA(3y)10.66%
ROA(5y)9.94%
ROE(3y)18.98%
ROE(5y)18.83%
ROIC(3y)13.18%
ROIC(5y)12.04%
ROICexc(3y)15.03%
ROICexc(5y)13.94%
ROICexgc(3y)15.48%
ROICexgc(5y)14.32%
ROCE(3y)17.51%
ROCE(5y)16%
ROICexgc growth 3Y-2.72%
ROICexgc growth 5Y19.15%
ROICexc growth 3Y-2.42%
ROICexc growth 5Y19.03%
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%
F-Score4
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.72 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 105.01% | ||
| Cap/Sales | 0.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.8% | ||
| Profit Quality | 76.21% | ||
| Current Ratio | 3.9 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 4.1 |
F-Score4
WACC8.88%
ROIC/WACC1.31
Cap/Depr(3y)97.04%
Cap/Depr(5y)94.43%
Cap/Sales(3y)0.73%
Cap/Sales(5y)0.73%
Profit Quality(3y)74.27%
Profit Quality(5y)88.43%
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-14.53%
EBIT growth 3Y5.01%
EBIT growth 5Y26.01%
EBIT Next Year-0.28%
EBIT Next 3Y6.47%
EBIT Next 5Y10.55%
FCF growth 1Y9.58%
FCF growth 3Y3.89%
FCF growth 5Y2.69%
OCF growth 1Y10.12%
OCF growth 3Y4.07%
OCF growth 5Y1.99%
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 10.98 and the Price/Book (PB) ratio is 1.73.
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.