TOLL BROTHERS INC (TOL) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:TOL • US8894781033
144.49 USD
-2.58 (-1.75%)
At close: Jan 30, 2026
144.291 USD
-0.2 (-0.14%)
After Hours: 1/30/2026, 8:21:38 PM
Taking everything into account, TOL scores 7 out of 10 in our fundamental rating. TOL was compared to 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.
- 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.
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 76.67% of its industry peers.
- The Return On Invested Capital of TOL (11.64%) is better than 81.67% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TOL is above the industry average of 9.52%.
| 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
- Looking at the Profit Margin, with a value of 12.28%, TOL belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
- TOL's Profit Margin has improved in the last couple of years.
- 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.
- 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 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
- 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.
2.2 Solvency
- TOL has an Altman-Z score of 4.09. This indicates that TOL is financially healthy and has little risk of bankruptcy at the moment.
- TOL's Altman-Z score of 4.09 is fine compared to the rest of the industry. TOL outperforms 68.33% of its industry peers.
- 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.
- 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 | 4.09 |
ROIC/WACC1.26
WACC9.22%
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.
- Looking at the Current ratio, with a value of 3.90, TOL is in the better half of 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.
- 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 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.
- 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.
- 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-4.38%
EPS Next 2Y3.31%
EPS Next 3Y6.02%
EPS Next 5Y11.92%
Revenue Next Year-3.5%
Revenue Next 2Y2.02%
Revenue Next 3Y3.22%
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.
- 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
- TOL is valuated reasonably with a Price/Earnings ratio of 10.66.
- 70.00% of the companies in the same industry are more expensive than TOL, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of TOL to the average of the S&P500 Index (28.32), we can say TOL is valued rather cheaply.
- TOL is valuated reasonably with a Price/Forward Earnings ratio of 11.14.
- Based on the Price/Forward Earnings ratio, TOL is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
- TOL is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.66 | ||
| Fwd PE | 11.14 |
4.2 Price Multiples
- TOL's Enterprise Value to EBITDA is on the same level as the industry average.
- TOL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TOL is cheaper than 68.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.57 | ||
| EV/EBITDA | 8.45 |
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 2Y3.31%
EPS Next 3Y6.02%
5. Dividend
5.1 Amount
- TOL has a yearly dividend return of 0.68%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.22, TOL pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, TOL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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.
- 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 2Y3.31%
EPS Next 3Y6.02%
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 10.66 and the Price/Book (PB) ratio is 1.68.
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 -4.38% in the next year.