TOLL BROTHERS INC (TOL) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:TOL • US8894781033
150.48 USD
+4.02 (+2.74%)
At close: Feb 4, 2026
151.7 USD
+1.22 (+0.81%)
After Hours: 2/4/2026, 8:04:00 PM
We assign a fundamental rating of 7 out of 10 to TOL. TOL was compared to 60 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- TOL had positive earnings in the past year.
- In the past year TOL had a positive cash flow from operations.
- Each year in the past 5 years TOL has been profitable.
- TOL had a positive operating cash flow in each of the past 5 years.
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 Return On Equity of 16.28%. This is in the better half of the industry: TOL outperforms 76.67% of its industry peers.
- The Return On Invested Capital of TOL (11.64%) is better than 81.67% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for TOL is above the industry average of 9.41%.
| 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
- TOL's Profit Margin of 12.28% is amongst the best of the industry. TOL outperforms 91.67% of its industry peers.
- In the last couple of years the Profit Margin of TOL has grown nicely.
- 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.
- TOL has a Gross Margin (25.36%) which is in line with its industry peers.
- 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.
- The number of shares outstanding for TOL has been reduced compared to 1 year ago.
- The number of shares outstanding for TOL has been reduced compared to 5 years ago.
- TOL has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.11 indicates that TOL is not in any danger for bankruptcy at the moment.
- The Altman-Z score of TOL (4.11) is better than 70.00% of its industry peers.
- The Debt to FCF ratio of TOL is 2.72, which is a good value as it means it would take TOL, 2.72 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 2.72, TOL is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- A Debt/Equity ratio of 0.34 indicates that TOL is not too dependend on debt financing.
- TOL has a Debt to Equity ratio (0.34) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.72 | ||
| Altman-Z | 4.11 |
ROIC/WACC1.26
WACC9.22%
2.3 Liquidity
- A Current Ratio of 3.90 indicates that TOL has no problem at all paying 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 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.9 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
- TOL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.16%.
- The Earnings Per Share has been growing by 31.49% on average over the past years. This is a very strong growth
- Looking at the last year, TOL shows a small growth in Revenue. The Revenue has grown by 1.11% in the last year.
- The Revenue has been growing by 9.15% on average over the past years. This is quite good.
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.
- The Revenue is expected to grow by 8.01% on average over the next years. This is quite good.
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
- With a Price/Earnings ratio of 11.10, the valuation of TOL can be described as very reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of TOL indicates a somewhat cheap valuation: TOL is cheaper than 73.33% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.25. TOL is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 11.61, the valuation of TOL can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, TOL is valued a bit cheaper than the industry average as 78.33% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of TOL to the average of the S&P500 Index (27.50), we can say TOL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.1 | ||
| Fwd PE | 11.61 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as TOL.
- Based on the Price/Free Cash Flow ratio, TOL is valued a bit cheaper than 68.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.13 | ||
| EV/EBITDA | 8.55 |
4.3 Compensation for Growth
- The excellent profitability rating of TOL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.35
EPS Next 2Y3.31%
EPS Next 3Y6.02%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.68%, TOL is not a good candidate for dividend investing.
- TOL's Dividend Yield is a higher than the industry average which is at 1.21.
- With a Dividend Yield of 0.68, TOL pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
5.2 History
- The dividend of TOL is nicely growing with an annual growth rate of 18.76%!
- 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%
150.48
+4.02 (+2.74%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)12-08 2025-12-08/amc
Earnings (Next)02-17 2026-02-17/amc
Inst Owners92.34%
Inst Owner Change-2.09%
Ins Owners0.74%
Ins Owner Change1.2%
Market Cap14.50B
Revenue(TTM)10.97B
Net Income(TTM)1.35B
Analysts77.39
Price Target154.74 (2.83%)
Short Float %4.05%
Short Ratio3.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend1
Dividend Growth(5Y)18.76%
DP7.21%
Div Incr Years4
Div Non Decr Years7
Ex-Date01-09 2026-01-09 (0.25)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.4%
Min EPS beat(2)-7.28%
Max EPS beat(2)2.49%
EPS beat(4)2
Avg EPS beat(4)0.65%
Min EPS beat(4)-15.06%
Max EPS beat(4)22.46%
EPS beat(8)5
Avg EPS beat(8)2.73%
EPS beat(12)9
Avg EPS beat(12)10.71%
EPS beat(16)13
Avg EPS beat(16)10.83%
Revenue beat(2)2
Avg Revenue beat(2)2.5%
Min Revenue beat(2)2.4%
Max Revenue beat(2)2.59%
Revenue beat(4)3
Avg Revenue beat(4)2.12%
Min Revenue beat(4)-4.38%
Max Revenue beat(4)7.87%
Revenue beat(8)6
Avg Revenue beat(8)2.03%
Revenue beat(12)10
Avg Revenue beat(12)4.43%
Revenue beat(16)12
Avg Revenue beat(16)4.76%
PT rev (1m)1.08%
PT rev (3m)0.23%
EPS NQ rev (1m)1.37%
EPS NQ rev (3m)12.78%
EPS NY rev (1m)0.42%
EPS NY rev (3m)-7.88%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)1.25%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)-2.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.1 | ||
| Fwd PE | 11.61 | ||
| P/S | 1.32 | ||
| P/FCF | 14.13 | ||
| P/OCF | 13.04 | ||
| P/B | 1.75 | ||
| P/tB | 1.75 | ||
| EV/EBITDA | 8.55 |
EPS(TTM)13.56
EY9.01%
EPS(NY)12.97
Fwd EY8.62%
FCF(TTM)10.65
FCFY7.08%
OCF(TTM)11.54
OCFY7.67%
SpS113.79
BVpS85.81
TBVpS85.81
PEG (NY)N/A
PEG (5Y)0.35
Graham Number161.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.27% | ||
| ROE | 16.28% | ||
| ROCE | 15.47% | ||
| ROIC | 11.64% | ||
| ROICexc | 13.1% | ||
| ROICexgc | 13.32% | ||
| OM | 15.93% | ||
| PM (TTM) | 12.28% | ||
| GM | 25.36% | ||
| FCFM | 9.36% |
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-Score4
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.72 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 105.01% | ||
| Cap/Sales | 0.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.8% | ||
| Profit Quality | 76.21% | ||
| Current Ratio | 3.9 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 4.11 |
F-Score4
WACC9.22%
ROIC/WACC1.26
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)-2.16%
EPS 3Y10.17%
EPS 5Y31.49%
EPS Q2Q%-1.08%
EPS Next Y-4.38%
EPS Next 2Y3.31%
EPS Next 3Y6.02%
EPS Next 5Y11.92%
Revenue 1Y (TTM)1.11%
Revenue growth 3Y2.19%
Revenue growth 5Y9.15%
Sales Q2Q%5.01%
Revenue Next Year-3.5%
Revenue Next 2Y2.02%
Revenue Next 3Y3.22%
Revenue Next 5Y8.01%
EBIT growth 1Y-14.53%
EBIT growth 3Y5.01%
EBIT growth 5Y26.01%
EBIT Next Year-0.99%
EBIT Next 3Y5.69%
EBIT Next 5Y10.55%
FCF growth 1Y9.58%
FCF growth 3Y3.89%
FCF growth 5Y2.69%
OCF growth 1Y10.12%
OCF growth 3Y4.07%
OCF growth 5Y1.99%
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 11.1 and the Price/Book (PB) ratio is 1.75.
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.