TOLL BROTHERS INC (TOL) Stock Fundamental Analysis
USA - NYSE:TOL - US8894781033 - Common Stock
137.22 USD
+2.21 (+1.64%)
137.22 USD
0 (0%)
Taking everything into account, TOL scores 6 out of 10 in our fundamental rating. TOL was compared to 63 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
TOL had positive earnings in the past year.
TOL had a positive operating cash flow in the past year.
In the past 5 years TOL has always been profitable.
Each year in the past 5 years TOL had a positive operating cash flow.
1.2 Ratios
TOL's Return On Assets of 9.72% is fine compared to the rest of the industry. TOL outperforms 79.37% of its industry peers.
TOL's Return On Equity of 17.36% is fine compared to the rest of the industry. TOL outperforms 77.78% of its industry peers.
TOL has a Return On Invested Capital of 12.34%. This is in the better half of the industry: TOL outperforms 76.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TOL is above the industry average of 10.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.72% | ||
| ROE | 17.36% | ||
| ROIC | 12.34% |
ROA(3y)11.06%
ROA(5y)8.89%
ROE(3y)20.7%
ROE(5y)17.4%
ROIC(3y)13.26%
ROIC(5y)10.59%
1.3 Margins
With an excellent Profit Margin value of 12.95%, TOL belongs to the best of the industry, outperforming 92.06% of the companies in the same industry.
TOL's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 16.72%, TOL belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
TOL's Operating Margin has improved in the last couple of years.
TOL has a Gross Margin of 26.21%. This is comparable to the rest of the industry: TOL outperforms 53.97% of its industry peers.
TOL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.72% | ||
| PM (TTM) | 12.95% | ||
| GM | 26.21% |
OM growth 3Y17.51%
OM growth 5Y14.86%
PM growth 3Y15.15%
PM growth 5Y12.14%
GM growth 3Y8.08%
GM growth 5Y7.34%
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.
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
TOL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.99 indicates that TOL is not in any danger for bankruptcy at the moment.
TOL's Altman-Z score of 3.99 is fine compared to the rest of the industry. TOL outperforms 66.67% of its industry peers.
TOL has a debt to FCF ratio of 3.87. This is a good value and a sign of high solvency as TOL would need 3.87 years to pay back of all of its debts.
The Debt to FCF ratio of TOL (3.87) is better than 66.67% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that TOL is not too dependend on debt financing.
The Debt to Equity ratio of TOL (0.35) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 3.99 |
ROIC/WACC1.38
WACC8.94%
2.3 Liquidity
A Current Ratio of 3.54 indicates that TOL has no problem at all paying its short term obligations.
TOL has a better Current ratio (3.54) than 69.84% of its industry peers.
TOL has a Quick Ratio of 3.54. This is a bad value and indicates that TOL is not financially healthy enough and could expect problems in meeting its short term obligations.
TOL has a worse Quick ratio (0.29) than 92.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.54 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.02% over the past year.
TOL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.96% yearly.
Looking at the last year, TOL shows a small growth in Revenue. The Revenue has grown by 3.26% in the last year.
The Revenue has been growing by 8.47% on average over the past years. This is quite good.
EPS 1Y (TTM)2.02%
EPS 3Y27.67%
EPS 5Y27.96%
EPS Q2Q%3.61%
Revenue 1Y (TTM)3.26%
Revenue growth 3Y7.26%
Revenue growth 5Y8.47%
Sales Q2Q%7.96%
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 9.66% yearly.
Based on estimates for the next years, TOL will show a small growth in Revenue. The Revenue will grow by 6.97% on average per year.
EPS Next Y1.63%
EPS Next 2Y1.34%
EPS Next 3Y4.34%
EPS Next 5Y9.66%
Revenue Next Year1.65%
Revenue Next 2Y0.53%
Revenue Next 3Y1.8%
Revenue Next 5Y6.97%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 10.08 indicates a reasonable valuation of TOL.
Based on the Price/Earnings ratio, TOL is valued a bit cheaper than 68.25% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.32. TOL is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.64, the valuation of TOL can be described as reasonable.
Based on the Price/Forward Earnings ratio, TOL is valued a bit cheaper than the industry average as 73.02% of the companies are valued more expensively.
TOL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.08 | ||
| Fwd PE | 9.64 |
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 68.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.28 | ||
| EV/EBITDA | 8.1 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TOL does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of TOL may justify a higher PE ratio.
PEG (NY)6.19
PEG (5Y)0.36
EPS Next 2Y1.34%
EPS Next 3Y4.34%
5. Dividend
5.1 Amount
With a yearly dividend of 0.73%, TOL is not a good candidate for dividend investing.
TOL's Dividend Yield is a higher than the industry average which is at 2.76.
With a Dividend Yield of 0.73, TOL pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
5.2 History
The dividend of TOL is nicely growing with an annual growth rate of 15.67%!
TOL has been paying a dividend for over 5 years, so it has already some track record.
As TOL did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)15.67%
Div Incr Years4
Div Non Decr Years7
5.3 Sustainability
TOL pays out 6.91% of its income as dividend. This is a sustainable payout ratio.
TOL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP6.91%
EPS Next 2Y1.34%
EPS Next 3Y4.34%
137.22
+2.21 (+1.64%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners93.35%
Inst Owner Change-2.35%
Ins Owners0.64%
Ins Owner Change-4.54%
Market Cap13.23B
Analysts79.09
Price Target153.69 (12%)
Short Float %3.42%
Short Ratio1.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
Yearly Dividend0.92
Dividend Growth(5Y)15.67%
DP6.91%
Div Incr Years4
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.7%
Min EPS beat(2)-15.06%
Max EPS beat(2)22.46%
EPS beat(4)3
Avg EPS beat(4)5.19%
Min EPS beat(4)-15.06%
Max EPS beat(4)22.46%
EPS beat(8)6
Avg EPS beat(8)8.23%
EPS beat(12)10
Avg EPS beat(12)12.69%
EPS beat(16)14
Avg EPS beat(16)13.65%
Revenue beat(2)1
Avg Revenue beat(2)1.75%
Min Revenue beat(2)-4.38%
Max Revenue beat(2)7.87%
Revenue beat(4)2
Avg Revenue beat(4)1.24%
Min Revenue beat(4)-4.38%
Max Revenue beat(4)7.87%
Revenue beat(8)6
Avg Revenue beat(8)3.37%
Revenue beat(12)9
Avg Revenue beat(12)5.25%
Revenue beat(16)11
Avg Revenue beat(16)4.74%
PT rev (1m)6.3%
PT rev (3m)10.03%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)0.23%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.22%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)-0.52%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.08 | ||
| Fwd PE | 9.64 | ||
| P/S | 1.24 | ||
| P/FCF | 18.28 | ||
| P/OCF | 16.53 | ||
| P/B | 1.66 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 8.1 |
EPS(TTM)13.61
EY9.92%
EPS(NY)14.24
Fwd EY10.37%
FCF(TTM)7.51
FCFY5.47%
OCF(TTM)8.3
OCFY6.05%
SpS110.6
BVpS82.47
TBVpS82.47
PEG (NY)6.19
PEG (5Y)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.72% | ||
| ROE | 17.36% | ||
| ROCE | 16.48% | ||
| ROIC | 12.34% | ||
| ROICexc | 13.18% | ||
| ROICexgc | 13.32% | ||
| OM | 16.72% | ||
| PM (TTM) | 12.95% | ||
| GM | 26.21% | ||
| FCFM | 6.79% |
ROA(3y)11.06%
ROA(5y)8.89%
ROE(3y)20.7%
ROE(5y)17.4%
ROIC(3y)13.26%
ROIC(5y)10.59%
ROICexc(3y)15.3%
ROICexc(5y)12.36%
ROICexgc(3y)15.57%
ROICexgc(5y)12.57%
ROCE(3y)17.71%
ROCE(5y)14.14%
ROICexcg growth 3Y16.35%
ROICexcg growth 5Y20.45%
ROICexc growth 3Y16.42%
ROICexc growth 5Y20.38%
OM growth 3Y17.51%
OM growth 5Y14.86%
PM growth 3Y15.15%
PM growth 5Y12.14%
GM growth 3Y8.08%
GM growth 5Y7.34%
F-Score4
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.87 | ||
| Debt/EBITDA | 1.5 | ||
| Cap/Depr | 91.65% | ||
| Cap/Sales | 0.72% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 42.87% | ||
| Profit Quality | 52.41% | ||
| Current Ratio | 3.54 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | 3.99 |
F-Score4
WACC8.94%
ROIC/WACC1.38
Cap/Depr(3y)93.15%
Cap/Depr(5y)105.24%
Cap/Sales(3y)0.7%
Cap/Sales(5y)0.88%
Profit Quality(3y)72.56%
Profit Quality(5y)113.39%
High Growth Momentum
Growth
EPS 1Y (TTM)2.02%
EPS 3Y27.67%
EPS 5Y27.96%
EPS Q2Q%3.61%
EPS Next Y1.63%
EPS Next 2Y1.34%
EPS Next 3Y4.34%
EPS Next 5Y9.66%
Revenue 1Y (TTM)3.26%
Revenue growth 3Y7.26%
Revenue growth 5Y8.47%
Sales Q2Q%7.96%
Revenue Next Year1.65%
Revenue Next 2Y0.53%
Revenue Next 3Y1.8%
Revenue Next 5Y6.97%
EBIT growth 1Y-11.15%
EBIT growth 3Y26.05%
EBIT growth 5Y24.59%
EBIT Next Year-1.8%
EBIT Next 3Y1.88%
EBIT Next 5Y6.6%
FCF growth 1Y-42.83%
FCF growth 3Y-8.84%
FCF growth 5Y21.71%
OCF growth 1Y-40.17%
OCF growth 3Y-8.14%
OCF growth 5Y18.21%