TOLL BROTHERS INC (TOL) Fundamental Analysis & Valuation

NYSE:TOL • US8894781033

Current stock price

147.36 USD
+0.72 (+0.49%)
At close:
147.12 USD
-0.24 (-0.16%)
After Hours:

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

8

1. TOL Profitability Analysis

1.1 Basic Checks

  • In the past year TOL was profitable.
  • In the past year TOL had a positive cash flow from operations.
  • In the past 5 years TOL has always been profitable.
  • TOL had a positive operating cash flow in each of the past 5 years.
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

  • TOL has a Return On Assets of 9.56%. This is amongst the best in the industry. TOL outperforms 83.33% of its industry peers.
  • TOL has a better Return On Equity (16.41%) than 81.67% of its industry peers.
  • TOL has a better Return On Invested Capital (11.76%) than 86.67% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for TOL is above the industry average of 8.88%.
Industry RankSector Rank
ROA 9.56%
ROE 16.41%
ROIC 11.76%
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

  • The Profit Margin of TOL (12.26%) is better than 93.33% of its industry peers.
  • TOL's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 15.52%, 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 Operating Margin of TOL has grown nicely.
  • Looking at the Gross Margin, with a value of 24.86%, TOL is in line with its industry, outperforming 48.33% of the companies in the same industry.
  • TOL's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 15.52%
PM (TTM) 12.26%
GM 24.86%
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

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. TOL Health Analysis

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.
  • TOL has less shares outstanding than it did 1 year ago.
  • TOL has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, TOL has an improved debt to assets ratio.
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 4.20 indicates that TOL is not in any danger for bankruptcy at the moment.
  • TOL has a better Altman-Z score (4.20) than 73.33% of its industry peers.
  • The Debt to FCF ratio of TOL is 1.87, which is an excellent value as it means it would take TOL, only 1.87 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 1.87, TOL is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
  • A Debt/Equity ratio of 0.32 indicates that TOL is not too dependend on debt financing.
  • With a Debt to Equity ratio value of 0.32, TOL perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.87
Altman-Z 4.2
ROIC/WACC1.23
WACC9.52%
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 3.88 indicates that TOL has no problem at all paying its short term obligations.
  • TOL has a Current ratio of 3.88. This is in the better half of the industry: TOL outperforms 68.33% of its industry peers.
  • A Quick Ratio of 0.43 indicates that TOL may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.43, TOL is doing worse than 90.00% of the companies in the same industry.
  • The current and quick ratio evaluation for TOL is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 3.88
Quick Ratio 0.43
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

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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.
  • TOL shows a small growth in Revenue. In the last year, the Revenue has grown by 4.60%.
  • 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)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.
  • 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-4.55%
EPS Next 2Y3.19%
EPS Next 3Y5.72%
EPS Next 5Y11.92%
Revenue Next Year-2.19%
Revenue Next 2Y1.83%
Revenue Next 3Y2.8%
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.
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

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6

4. TOL Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 10.53 indicates a reasonable valuation of TOL.
  • Based on the Price/Earnings ratio, TOL is valued a bit cheaper than 80.00% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.15. TOL is valued rather cheaply when compared to this.
  • The Price/Forward Earnings ratio is 10.21, which indicates a very decent valuation of TOL.
  • 80.00% of the companies in the same industry are more expensive than TOL, based on the Price/Forward Earnings ratio.
  • TOL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.12.
Industry RankSector Rank
PE 10.53
Fwd PE 10.21
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

  • Based on the Enterprise Value to EBITDA ratio, TOL is valued a bit cheaper than the industry average as 63.33% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, TOL is valued a bit cheaper than 76.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.61
EV/EBITDA 8.47
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

  • TOL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.33
EPS Next 2Y3.19%
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

  • With a yearly dividend of 0.70%, TOL is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 1.29, TOL pays a bit more dividend than its industry peers.
  • With a Dividend Yield of 0.70, TOL pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.7%

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 Years5
Div Non Decr Years8
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

  • 7.08% 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.
DP7.08%
EPS Next 2Y3.19%
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

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TOL Fundamentals: All Metrics, Ratios and Statistics

TOLL BROTHERS INC

NYSE:TOL (4/27/2026, 8:20:44 PM)

After market: 147.12 -0.24 (-0.16%)

147.36

+0.72 (+0.49%)

Chartmill FA Rating
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)02-17
Earnings (Next)05-18
Inst Owners91.6%
Inst Owner Change-0.04%
Ins Owners0.58%
Ins Owner Change5.37%
Market Cap13.96B
Revenue(TTM)11.25B
Net Income(TTM)1.38B
Analysts76.67
Price Target178.02 (20.81%)
Short Float %3.71%
Short Ratio2.81
Dividend
Industry RankSector Rank
Dividend Yield 0.7%
Yearly Dividend1
Dividend Growth(5Y)18.76%
DP7.08%
Div Incr Years5
Div Non Decr Years8
Ex-Date04-10
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.32%
Min EPS beat(2)-7.28%
Max EPS beat(2)2.65%
EPS beat(4)3
Avg EPS beat(4)5.08%
Min EPS beat(4)-7.28%
Max EPS beat(4)22.46%
EPS beat(8)5
Avg EPS beat(8)-0.07%
EPS beat(12)9
Avg EPS beat(12)9.3%
EPS beat(16)13
Avg EPS beat(16)10.58%
Revenue beat(2)1
Avg Revenue beat(2)0.89%
Min Revenue beat(2)-0.8%
Max Revenue beat(2)2.59%
Revenue beat(4)3
Avg Revenue beat(4)3.01%
Min Revenue beat(4)-0.8%
Max Revenue beat(4)7.87%
Revenue beat(8)5
Avg Revenue beat(8)1.57%
Revenue beat(12)9
Avg Revenue beat(12)4.23%
Revenue beat(16)12
Avg Revenue beat(16)4.8%
PT rev (1m)2.44%
PT rev (3m)15.05%
EPS NQ rev (1m)-1.14%
EPS NQ rev (3m)-10.9%
EPS NY rev (1m)0.16%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-1.13%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)1.36%
Valuation
Industry RankSector Rank
PE 10.53
Fwd PE 10.21
P/S 1.24
P/FCF 9.61
P/OCF 9.06
P/B 1.66
P/tB 1.66
EV/EBITDA 8.47
EPS(TTM)14
EY9.5%
EPS(NY)14.44
Fwd EY9.8%
FCF(TTM)15.34
FCFY10.41%
OCF(TTM)16.27
OCFY11.04%
SpS118.82
BVpS88.79
TBVpS88.79
PEG (NY)N/A
PEG (5Y)0.33
Graham Number167.237 (13.49%)
Profitability
Industry RankSector Rank
ROA 9.56%
ROE 16.41%
ROCE 15.62%
ROIC 11.76%
ROICexc 13.17%
ROICexgc 13.39%
OM 15.52%
PM (TTM) 12.26%
GM 24.86%
FCFM 12.91%
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-Score6
Asset Turnover0.78
Health
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.87
Debt/EBITDA 1.49
Cap/Depr 108.1%
Cap/Sales 0.78%
Interest Coverage 250
Cash Conversion 84.27%
Profit Quality 105.29%
Current Ratio 3.88
Quick Ratio 0.43
Altman-Z 4.2
F-Score6
WACC9.52%
ROIC/WACC1.23
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-4.55%
EPS Next 2Y3.19%
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-2.19%
Revenue Next 2Y1.83%
Revenue Next 3Y2.8%
Revenue Next 5Y8.01%
EBIT growth 1Y-10.74%
EBIT growth 3Y5.01%
EBIT growth 5Y26.01%
EBIT Next Year-1.44%
EBIT Next 3Y5.04%
EBIT Next 5Y10.55%
FCF growth 1Y16.18%
FCF growth 3Y3.89%
FCF growth 5Y2.69%
OCF growth 1Y16.95%
OCF growth 3Y4.07%
OCF growth 5Y1.99%

TOLL BROTHERS INC / TOL Fundamental Analysis 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.


Can you provide the profitability details for TOLL BROTHERS INC?

TOLL BROTHERS INC (TOL) has a profitability rating of 8 / 10.


What is the valuation of TOLL BROTHERS INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for TOLL BROTHERS INC (TOL) is 10.53 and the Price/Book (PB) ratio is 1.66.


Can you provide the financial health for TOL stock?

The financial health rating of TOLL BROTHERS INC (TOL) is 8 / 10.