TOLL BROTHERS INC (TOL) Fundamental Analysis & Valuation

NYSE:TOL • US8894781033

143.855 USD
-1.8 (-1.23%)
Last: Mar 11, 2026, 03:41 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This TOL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

7

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 has a great profitability rating, there are some minor concerns on its financial health. TOL is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

8

1. TOL Profitability Analysis

1.1 Basic Checks

  • TOL had positive earnings in the past year.
  • In the past year TOL had a positive cash flow from operations.
  • TOL had positive earnings in each of the past 5 years.
  • Each year in the past 5 years TOL had a positive operating cash flow.
TOL Yearly Net Income VS EBIT VS OCF VS FCFTOL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 9.27%, TOL belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
  • TOL has a Return On Equity of 16.28%. This is in the better half of the industry: TOL outperforms 80.00% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 11.64%, TOL belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
  • TOL had an Average Return On Invested Capital over the past 3 years of 13.18%. This is above the industry average of 9.06%.
Industry RankSector 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%
TOL Yearly ROA, ROE, ROICTOL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

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's Operating Margin of 15.93% is amongst the best of the industry. TOL outperforms 91.67% of its industry peers.
  • TOL's Operating Margin has improved in the last couple of years.
  • The Gross Margin of TOL (25.36%) is comparable to the rest of the industry.
  • TOL's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
TOL Yearly Profit, Operating, Gross MarginsTOL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. TOL Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TOL is creating some value.
  • The number of shares outstanding for TOL has been reduced compared to 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.
TOL Yearly Shares OutstandingTOL Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
TOL Yearly Total Debt VS Total AssetsTOL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B

2.2 Solvency

  • An Altman-Z score of 4.08 indicates that TOL is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 4.08, TOL is in the better half of the industry, outperforming 70.00% 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.
  • TOL has a better Debt to FCF ratio (2.72) than 68.33% of its industry peers.
  • A Debt/Equity ratio of 0.34 indicates that TOL is not too dependend on debt financing.
  • TOL has a Debt to Equity ratio (0.34) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.34
Debt/FCF 2.72
Altman-Z 4.08
ROIC/WACC1.28
WACC9.12%
TOL Yearly LT Debt VS Equity VS FCFTOL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 3.90 indicates that TOL has no problem at all paying its short term obligations.
  • TOL has a better Current ratio (3.90) than 68.33% of its industry peers.
  • 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.
  • Looking at the Quick ratio, with a value of 0.45, TOL is doing worse than 86.67% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 3.9
Quick Ratio 0.45
TOL Yearly Current Assets VS Current LiabilitesTOL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. TOL Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 4.79% over the past year.
  • TOL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.49% yearly.
  • The Revenue has been growing slightly by 4.60% in the past 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)4.79%
EPS 3Y10.17%
EPS 5Y31.49%
EPS Q2Q%25.14%
Revenue 1Y (TTM)4.6%
Revenue growth 3Y2.19%
Revenue growth 5Y9.15%
Sales Q2Q%0.77%

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.
  • 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-4.71%
EPS Next 2Y2.97%
EPS Next 3Y5.72%
EPS Next 5Y11.92%
Revenue Next Year-2.07%
Revenue Next 2Y2.01%
Revenue Next 3Y2.95%
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.
TOL Yearly Revenue VS EstimatesTOL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 5B 10B 15B
TOL Yearly EPS VS EstimatesTOL Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 5 10 15 20

More info and screens

Find the best growth stocksShow best growing peers

6

4. TOL Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 10.28 indicates a reasonable 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 71.67% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.25. TOL is valued rather cheaply when compared to this.
  • With a Price/Forward Earnings ratio of 10.01, the valuation of TOL can be described as very reasonable.
  • TOL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TOL is cheaper than 78.33% 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 24.39.
Industry RankSector Rank
PE 10.28
Fwd PE 10.01
TOL Price Earnings VS Forward Price EarningsTOL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 70.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 13.28
EV/EBITDA 8.38
TOL Per share dataTOL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

4.3 Compensation for Growth

  • The excellent profitability rating of TOL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.33
EPS Next 2Y2.97%
EPS Next 3Y5.72%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. TOL Dividend Analysis

5.1 Amount

  • TOL has a yearly dividend return of 0.67%, which is pretty low.
  • TOL's Dividend Yield is a higher than the industry average which is at 1.24.
  • Compared to an average S&P500 Dividend Yield of 1.82, TOL's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.67%

5.2 History

  • On average, the dividend of TOL grows each year by 18.76%, which is quite nice.
  • TOL has paid a dividend for at least 10 years, which is a reliable track record.
  • As TOL did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)18.76%
Div Incr Years4
Div Non Decr Years7
TOL Yearly Dividends per shareTOL Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8

5.3 Sustainability

  • 7.21% 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.
DP7.21%
EPS Next 2Y2.97%
EPS Next 3Y5.72%
TOL Yearly Income VS Free CF VS DividendTOL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B
TOL Dividend Payout.TOL Dividend Payout, showing the Payout Ratio.TOL Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

TOL Fundamentals: All Metrics, Ratios and Statistics

TOLL BROTHERS INC

NYSE:TOL (3/11/2026, 3:41:58 PM)

143.855

-1.8 (-1.23%)

Chartmill FA Rating
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)02-17
Earnings (Next)05-18
Inst Owners91.52%
Inst Owner Change0.34%
Ins Owners0.58%
Ins Owner Change5.43%
Market Cap13.62B
Revenue(TTM)11.25B
Net Income(TTM)1.35B
Analysts76.52
Price Target173.77 (20.8%)
Short Float %4.1%
Short Ratio3.1
Dividend
Industry RankSector Rank
Dividend Yield 0.67%
Yearly Dividend1
Dividend Growth(5Y)18.76%
DP7.21%
Div Incr Years4
Div Non Decr Years7
Ex-Date01-09
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)10.16%
PT rev (3m)12.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)14.41%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)-8.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.97%
Revenue NY rev (1m)1.48%
Revenue NY rev (3m)-1.27%
Valuation
Industry RankSector Rank
PE 10.28
Fwd PE 10.01
P/S 1.24
P/FCF 13.28
P/OCF 12.25
P/B 1.65
P/tB 1.65
EV/EBITDA 8.38
EPS(TTM)14
EY9.73%
EPS(NY)14.38
Fwd EY9.99%
FCF(TTM)10.84
FCFY7.53%
OCF(TTM)11.75
OCFY8.16%
SpS115.79
BVpS87.33
TBVpS87.33
PEG (NY)N/A
PEG (5Y)0.33
Graham Number165.86
Profitability
Industry RankSector 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 RankSector 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 4.08
F-Score4
WACC9.12%
ROIC/WACC1.28
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)4.79%
EPS 3Y10.17%
EPS 5Y31.49%
EPS Q2Q%25.14%
EPS Next Y-4.71%
EPS Next 2Y2.97%
EPS Next 3Y5.72%
EPS Next 5Y11.92%
Revenue 1Y (TTM)4.6%
Revenue growth 3Y2.19%
Revenue growth 5Y9.15%
Sales Q2Q%0.77%
Revenue Next Year-2.07%
Revenue Next 2Y2.01%
Revenue Next 3Y2.95%
Revenue Next 5Y8.01%
EBIT growth 1Y-14.53%
EBIT growth 3Y5.01%
EBIT growth 5Y26.01%
EBIT Next Year-0.99%
EBIT Next 3Y5.04%
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 10.28 and the Price/Book (PB) ratio is 1.65.


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 -4.71% in the next year.