TOLL BROTHERS INC (TOL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TOL - US8894781033 - Common Stock
146.68 USD
-2.36 (-1.58%)
140 USD
-6.68 (-4.55%)
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 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.
- 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
- Looking at the Return On Assets, with a value of 9.27%, TOL belongs to the top of the industry, outperforming 81.67% of the companies in the same industry.
- 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.
- TOL had an Average Return On Invested Capital over the past 3 years of 13.18%. This 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's Profit Margin of 12.28% is amongst the best of the industry. TOL outperforms 91.67% of its industry peers.
- TOL's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 15.93%, TOL belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of TOL has grown nicely.
- The Gross Margin of TOL (25.36%) is comparable to the rest of the 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.
- 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
- Compared to 1 year ago, TOL has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.11 indicates that TOL is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 4.11, TOL is doing good in the industry, outperforming 65.00% 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.
- 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 | 4.11 |
ROIC/WACC1.26
WACC9.22%
2.3 Liquidity
- A Current Ratio of 3.90 indicates that TOL has no problem at all paying its short term obligations.
- TOL's Current ratio of 3.90 is fine compared to the rest of the industry. TOL outperforms 68.33% of its industry peers.
- A Quick Ratio of 0.45 indicates that TOL may have some problems paying 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
- TOL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.16%.
- The Earnings Per Share has been growing by 31.49% on average over the past years. This is a very strong growth
- The Revenue has been growing slightly by 1.11% 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)-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
- The Earnings Per Share is expected to grow by 11.92% on average over the next years. This is quite good.
- 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
- Based on the Price/Earnings ratio of 10.82, the valuation of TOL can be described as reasonable.
- Based on the Price/Earnings ratio, TOL is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.38. TOL is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 11.36, which indicates a very decent valuation of TOL.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TOL indicates a somewhat cheap valuation: TOL is cheaper than 76.67% of the companies listed 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 24.29.
| 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.
- 70.00% of the companies in the same industry are more expensive than TOL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.78 | ||
| EV/EBITDA | 8.56 |
4.3 Compensation for Growth
- The excellent profitability rating of TOL 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
- 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 1.16.
- Compared to an average S&P500 Dividend Yield of 1.84, TOL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector 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
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 2Y2.84%
EPS Next 3Y6.1%
146.68
-2.36 (-1.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)12-08 2025-12-08/amc
Earnings (Next)02-16 2026-02-16/amc
Inst Owners92.34%
Inst Owner Change0.13%
Ins Owners0.74%
Ins Owner Change0.31%
Market Cap14.14B
Revenue(TTM)10.97B
Net Income(TTM)1.35B
Analysts77.39
Price Target154.74 (5.49%)
Short Float %3.97%
Short Ratio3.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend1
Dividend Growth(5Y)18.76%
DP7.21%
Div Incr Years4
Div Non Decr Years7
Ex-Date01-09 2026-01-09 (0.25)
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)-0.16%
PT rev (3m)0.46%
EPS NQ rev (1m)3.57%
EPS NQ rev (3m)12.12%
EPS NY rev (1m)-8.19%
EPS NY rev (3m)-8.24%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)0.92%
Revenue NY rev (1m)-3.01%
Revenue NY rev (3m)-3.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 11.36 | ||
| P/S | 1.29 | ||
| P/FCF | 13.78 | ||
| P/OCF | 12.71 | ||
| P/B | 1.71 | ||
| P/tB | 1.71 | ||
| EV/EBITDA | 8.56 |
EPS(TTM)13.56
EY9.24%
EPS(NY)12.91
Fwd EY8.8%
FCF(TTM)10.65
FCFY7.26%
OCF(TTM)11.54
OCFY7.87%
SpS113.79
BVpS85.81
TBVpS85.81
PEG (NY)N/A
PEG (5Y)0.34
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 | 4.11 |
F-Score4
WACC9.22%
ROIC/WACC1.26
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-3.79%
Revenue Next 2Y1.87%
Revenue Next 3Y2.93%
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 10.82 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.