TOLL BROTHERS INC (TOL) Stock Fundamental Analysis
USA - NYSE:TOL - US8894781033 - Common Stock
135.72 USD
+0.01 (+0.01%)
135.72 USD
0 (0%)
TOL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 61 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 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.
In the past 5 years TOL always reported a positive cash flow from operatings.
1.2 Ratios
TOL has a Return On Assets of 9.55%. This is in the better half of the industry: TOL outperforms 78.69% of its industry peers.
TOL has a Return On Equity of 16.99%. This is in the better half of the industry: TOL outperforms 75.41% of its industry peers.
TOL has a better Return On Invested Capital (11.94%) than 75.41% of its industry peers.
TOL had an Average Return On Invested Capital over the past 3 years of 13.26%. This is above the industry average of 10.36%.
| 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
With an excellent Profit Margin value of 12.64%, TOL belongs to the best of the industry, outperforming 91.80% of the companies in the same industry.
In the last couple of years the Profit Margin of TOL has grown nicely.
Looking at the Operating Margin, with a value of 16.27%, TOL belongs to the top of the industry, outperforming 90.16% of the companies in the same industry.
In the last couple of years the Operating Margin of TOL has grown nicely.
With a Gross Margin value of 25.65%, TOL perfoms like the industry average, outperforming 50.82% of the companies in the same 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
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.
The number of shares outstanding for TOL has been reduced compared to 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 4.03 indicates that TOL is not in any danger for bankruptcy at the moment.
The Altman-Z score of TOL (4.03) is better than 63.93% of its industry peers.
The Debt to FCF ratio of TOL is 3.20, which is a good value as it means it would take TOL, 3.20 years of fcf income to pay off all of its debts.
TOL has a better Debt to FCF ratio (3.20) than 65.57% of its industry peers.
TOL has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
TOL has a Debt to Equity ratio (0.36) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 4.03 |
ROIC/WACC1.35
WACC8.82%
2.3 Liquidity
A Current Ratio of 3.72 indicates that TOL has no problem at all paying its short term obligations.
TOL has a better Current ratio (3.72) than 65.57% of its industry peers.
A Quick Ratio of 0.35 indicates that TOL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.35, TOL is doing worse than 91.80% of the companies in the same industry.
| 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%.
Measured over the past years, TOL shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.96% on average per year.
The Revenue has been growing slightly by 3.26% in the past 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
The Earnings Per Share is expected to grow by 9.50% on average over the next years. This is quite good.
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 Y0.46%
EPS Next 2Y0.76%
EPS Next 3Y3.79%
EPS Next 5Y9.5%
Revenue Next Year1.62%
Revenue Next 2Y0.53%
Revenue Next 3Y1.44%
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.
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
A Price/Earnings ratio of 9.97 indicates a reasonable valuation of TOL.
Based on the Price/Earnings ratio, TOL is valued a bit cheaper than the industry average as 65.57% of the companies are valued more expensively.
TOL is valuated cheaply when we compare the Price/Earnings ratio to 27.69, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.64, the valuation of TOL can be described as reasonable.
TOL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TOL is cheaper than 70.49% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.18, TOL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.97 | ||
| Fwd PE | 9.64 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TOL indicates a somewhat cheap valuation: TOL is cheaper than 70.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.24 | ||
| EV/EBITDA | 8.17 |
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.
TOL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)21.45
PEG (5Y)0.36
EPS Next 2Y0.76%
EPS Next 3Y3.79%
5. Dividend
5.1 Amount
With a yearly dividend of 0.74%, TOL is not a good candidate for dividend investing.
TOL's Dividend Yield is a higher than the industry average which is at 3.06.
Compared to an average S&P500 Dividend Yield of 2.34, TOL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
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.
TOL has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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.
TOL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP7.01%
EPS Next 2Y0.76%
EPS Next 3Y3.79%
135.72
+0.01 (+0.01%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners93.35%
Inst Owner Change-0.04%
Ins Owners0.64%
Ins Owner Change-4.54%
Market Cap13.08B
Analysts79.09
Price Target154.03 (13.49%)
Short Float %3.16%
Short Ratio1.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
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)0.22%
PT rev (3m)7.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.87%
EPS NY rev (1m)-1.15%
EPS NY rev (3m)-1.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.01%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.97 | ||
| Fwd PE | 9.64 | ||
| P/S | 1.2 | ||
| P/FCF | 14.24 | ||
| P/OCF | 13.15 | ||
| P/B | 1.62 | ||
| P/tB | 1.62 | ||
| EV/EBITDA | 8.17 |
EPS(TTM)13.61
EY10.03%
EPS(NY)14.07
Fwd EY10.37%
FCF(TTM)9.53
FCFY7.02%
OCF(TTM)10.32
OCFY7.61%
SpS112.85
BVpS84
TBVpS84
PEG (NY)21.45
PEG (5Y)0.36
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%
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 Turnover0.76
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 | 4.03 |
F-Score4
WACC8.82%
ROIC/WACC1.35
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 Y0.46%
EPS Next 2Y0.76%
EPS Next 3Y3.79%
EPS Next 5Y9.5%
Revenue 1Y (TTM)3.26%
Revenue growth 3Y7.26%
Revenue growth 5Y8.47%
Sales Q2Q%7.96%
Revenue Next Year1.62%
Revenue Next 2Y0.53%
Revenue Next 3Y1.44%
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%