TOLL BROTHERS INC (TOL) Stock Fundamental Analysis
USA - NYSE:TOL - US8894781033 - Common Stock
130.34 USD
-1.55 (-1.18%)
130.34 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to TOL. TOL was compared to 61 industry peers in the Household Durables industry. TOL has an excellent profitability rating, but there are some minor concerns on its financial health. TOL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year TOL was profitable.
TOL had a positive operating cash flow in the past year.
TOL had positive earnings in each of the past 5 years.
TOL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TOL has a better Return On Assets (9.55%) than 80.33% of its industry peers.
With a decent Return On Equity value of 16.99%, TOL is doing good in the industry, outperforming 77.05% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.94%, TOL is in the better half of the industry, outperforming 78.69% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TOL is above the industry average of 9.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.55% | ||
| ROE | 16.99% | ||
| ROIC | 11.94% |
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
TOL's Profit Margin of 12.64% is amongst the best of the industry. TOL outperforms 91.80% of its industry peers.
TOL's Profit Margin has improved in the last couple of years.
TOL has a Operating Margin of 16.27%. This is amongst the best in the industry. TOL outperforms 90.16% of its industry peers.
TOL's Operating Margin has improved in the last couple of years.
TOL has a Gross Margin (25.65%) which 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 | 16.27% | ||
| PM (TTM) | 12.64% | ||
| GM | 25.65% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TOL 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.
The debt/assets ratio for TOL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.99 indicates that TOL is not in any danger for bankruptcy at the moment.
The Altman-Z score of TOL (3.99) is better than 63.93% of its industry peers.
TOL has a debt to FCF ratio of 3.20. This is a good value and a sign of high solvency as TOL would need 3.20 years to pay back of all of its debts.
TOL's Debt to FCF ratio of 3.20 is fine compared to the rest of the industry. TOL outperforms 67.21% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that TOL is not too dependend on debt financing.
TOL has a Debt to Equity ratio (0.36) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 3.99 |
ROIC/WACC1.42
WACC8.39%
2.3 Liquidity
TOL has a Current Ratio of 3.72. This indicates that TOL is financially healthy and has no problem in meeting its short term obligations.
TOL's Current ratio of 3.72 is fine compared to the rest of the industry. TOL outperforms 65.57% of its industry peers.
TOL has a Quick Ratio of 3.72. 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's Quick ratio of 0.35 is on the low side compared to the rest of the industry. TOL is outperformed by 91.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.72 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
TOL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.02%.
The Earnings Per Share has been growing by 27.96% on average over the past years. This is a very strong growth
TOL shows a small growth in Revenue. In the last year, the Revenue has grown by 3.26%.
TOL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.47% yearly.
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
The Earnings Per Share is expected to grow by 9.50% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.97% on average over the next years.
EPS Next Y0.52%
EPS Next 2Y0.73%
EPS Next 3Y3.67%
EPS Next 5Y9.5%
Revenue Next Year1.7%
Revenue Next 2Y0.53%
Revenue Next 3Y1.6%
Revenue Next 5Y6.97%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
With a Price/Earnings ratio of 9.58, the valuation of TOL can be described as very reasonable.
Based on the Price/Earnings ratio, TOL is valued a bit cheaper than 63.93% of the companies in the same industry.
TOL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.89.
A Price/Forward Earnings ratio of 9.27 indicates a reasonable valuation of TOL.
TOL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TOL is cheaper than 72.13% 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 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.58 | ||
| Fwd PE | 9.27 |
4.2 Price Multiples
TOL's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, TOL is valued a bit cheaper than 67.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.68 | ||
| EV/EBITDA | 7.97 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TOL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)18.34
PEG (5Y)0.34
EPS Next 2Y0.73%
EPS Next 3Y3.67%
5. Dividend
5.1 Amount
With a yearly dividend of 0.75%, TOL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.31, TOL pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.75, TOL pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
5.2 History
On average, the dividend of TOL grows each year by 15.67%, which is quite nice.
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
7.01% 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.
DP7.01%
EPS Next 2Y0.73%
EPS Next 3Y3.67%
130.34
-1.55 (-1.18%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners93.35%
Inst Owner Change-2.06%
Ins Owners0.64%
Ins Owner Change-4.5%
Market Cap12.56B
Revenue(TTM)10.88B
Net Income(TTM)1.38B
Analysts77.27
Price Target154.38 (18.44%)
Short Float %3.2%
Short Ratio2.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
Yearly Dividend0.92
Dividend Growth(5Y)15.67%
DP7.01%
Div Incr Years4
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.47%
Min EPS beat(2)2.49%
Max EPS beat(2)22.46%
EPS beat(4)3
Avg EPS beat(4)3.92%
Min EPS beat(4)-15.06%
Max EPS beat(4)22.46%
EPS beat(8)6
Avg EPS beat(8)4.81%
EPS beat(12)10
Avg EPS beat(12)12.79%
EPS beat(16)14
Avg EPS beat(16)12.54%
Revenue beat(2)2
Avg Revenue beat(2)5.14%
Min Revenue beat(2)2.4%
Max Revenue beat(2)7.87%
Revenue beat(4)3
Avg Revenue beat(4)1.94%
Min Revenue beat(4)-4.38%
Max Revenue beat(4)7.87%
Revenue beat(8)6
Avg Revenue beat(8)2.39%
Revenue beat(12)10
Avg Revenue beat(12)5.54%
Revenue beat(16)12
Avg Revenue beat(16)4.9%
PT rev (1m)0.23%
PT rev (3m)6.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.7%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-1.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.54%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.58 | ||
| Fwd PE | 9.27 | ||
| P/S | 1.15 | ||
| P/FCF | 13.68 | ||
| P/OCF | 12.63 | ||
| P/B | 1.55 | ||
| P/tB | 1.55 | ||
| EV/EBITDA | 7.97 |
EPS(TTM)13.61
EY10.44%
EPS(NY)14.06
Fwd EY10.79%
FCF(TTM)9.53
FCFY7.31%
OCF(TTM)10.32
OCFY7.92%
SpS112.85
BVpS84
TBVpS84
PEG (NY)18.34
PEG (5Y)0.34
Graham Number160.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.55% | ||
| ROE | 16.99% | ||
| ROCE | 15.94% | ||
| ROIC | 11.94% | ||
| ROICexc | 12.93% | ||
| ROICexgc | 13.06% | ||
| OM | 16.27% | ||
| PM (TTM) | 12.64% | ||
| GM | 25.65% | ||
| FCFM | 8.44% |
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%
ROICexgc growth 3Y16.35%
ROICexgc 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 Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.2 | ||
| Debt/EBITDA | 1.59 | ||
| Cap/Depr | 88.96% | ||
| Cap/Sales | 0.7% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 53.6% | ||
| Profit Quality | 66.78% | ||
| Current Ratio | 3.72 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 3.99 |
F-Score4
WACC8.39%
ROIC/WACC1.42
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 Y0.52%
EPS Next 2Y0.73%
EPS Next 3Y3.67%
EPS Next 5Y9.5%
Revenue 1Y (TTM)3.26%
Revenue growth 3Y7.26%
Revenue growth 5Y8.47%
Sales Q2Q%7.96%
Revenue Next Year1.7%
Revenue Next 2Y0.53%
Revenue Next 3Y1.6%
Revenue Next 5Y6.97%
EBIT growth 1Y-11.15%
EBIT growth 3Y26.05%
EBIT growth 5Y24.59%
EBIT Next Year-2.58%
EBIT Next 3Y0.4%
EBIT Next 5Y6.5%
FCF growth 1Y-50.07%
FCF growth 3Y-8.84%
FCF growth 5Y21.71%
OCF growth 1Y-47.87%
OCF growth 3Y-8.14%
OCF growth 5Y18.21%
TOLL BROTHERS INC / TOL FAQ
What is the ChartMill fundamental rating of TOLL BROTHERS INC (TOL) stock?
ChartMill assigns a fundamental rating of 6 / 10 to TOL.
What is the valuation status of TOLL BROTHERS INC (TOL) stock?
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 are the PE and PB ratios of TOLL BROTHERS INC (TOL) stock?
The Price/Earnings (PE) ratio for TOLL BROTHERS INC (TOL) is 9.58 and the Price/Book (PB) ratio is 1.55.
How sustainable is the dividend of TOLL BROTHERS INC (TOL) stock?
The dividend rating of TOLL BROTHERS INC (TOL) is 5 / 10 and the dividend payout ratio is 7.01%.