TOLL BROTHERS INC (TOL) Fundamental Analysis & Valuation

NYSE:TOL • US8894781033

Current stock price

131.12 USD
-2.11 (-1.58%)
At close:
130.22 USD
-0.9 (-0.69%)
After Hours:

This TOL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. TOL Profitability Analysis

1.1 Basic Checks

  • TOL had positive earnings in the past year.
  • TOL had a positive operating cash flow in the past year.
  • Each year in the past 5 years TOL has been profitable.
  • In the past 5 years TOL always reported a positive cash flow from operatings.
TOL Yearly Net Income VS EBIT VS OCF VS FCFTOL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

1.2 Ratios

  • With an excellent Return On Assets value of 9.56%, TOL belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
  • The Return On Equity of TOL (16.41%) is better than 80.00% of its industry peers.
  • The Return On Invested Capital of TOL (11.76%) is better than 85.00% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for TOL is above the industry average of 9.21%.
Industry RankSector Rank
ROA 9.56%
ROE 16.41%
ROIC 11.76%
ROA(3y)10.66%
ROA(5y)9.94%
ROE(3y)18.98%
ROE(5y)18.83%
ROIC(3y)13.18%
ROIC(5y)12.04%
TOL Yearly ROA, ROE, ROICTOL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

1.3 Margins

  • The Profit Margin of TOL (12.26%) is better than 91.67% of its industry peers.
  • In the last couple of years the Profit Margin of TOL has grown nicely.
  • With an excellent Operating Margin value of 15.52%, TOL belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
  • In the last couple of years the Operating Margin of TOL has grown nicely.
  • TOL's Gross Margin of 24.86% is in line compared to the rest of the industry. TOL outperforms 48.33% of its industry peers.
  • In the last couple of years the Gross Margin of TOL has grown nicely.
Industry RankSector Rank
OM 15.52%
PM (TTM) 12.26%
GM 24.86%
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%
TOL Yearly Profit, Operating, Gross MarginsTOL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

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8

2. TOL Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TOL 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
  • Compared to 1 year ago, TOL has an improved debt to assets ratio.
TOL Yearly Shares OutstandingTOL Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
TOL Yearly Total Debt VS Total AssetsTOL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B

2.2 Solvency

  • TOL has an Altman-Z score of 4.04. This indicates that TOL is financially healthy and has little risk of bankruptcy at the moment.
  • TOL has a Altman-Z score of 4.04. This is in the better half of the industry: TOL outperforms 71.67% of its industry peers.
  • TOL has a debt to FCF ratio of 1.87. This is a very positive value and a sign of high solvency as it would only need 1.87 years to pay back of all of its debts.
  • TOL has a Debt to FCF ratio of 1.87. This is in the better half of the industry: TOL outperforms 70.00% of its industry peers.
  • A Debt/Equity ratio of 0.32 indicates that TOL is not too dependend on debt financing.
  • TOL has a Debt to Equity ratio of 0.32. This is comparable to the rest of the industry: TOL outperforms 46.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.87
Altman-Z 4.04
ROIC/WACC1.24
WACC9.51%
TOL Yearly LT Debt VS Equity VS FCFTOL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 3.88 indicates that TOL has no problem at all paying its short term obligations.
  • The Current ratio of TOL (3.88) is better than 70.00% of its industry peers.
  • A Quick Ratio of 0.43 indicates that TOL may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.43, TOL is doing worse than 86.67% of the companies in the same industry.
  • TOL does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 3.88
Quick Ratio 0.43
TOL Yearly Current Assets VS Current LiabilitesTOL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. TOL Growth Analysis

3.1 Past

  • TOL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.79%.
  • 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.
  • The Revenue has been growing slightly by 4.60% in the past 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)4.79%
EPS 3Y10.17%
EPS 5Y31.49%
EPS Q2Q%25.14%
Revenue 1Y (TTM)4.6%
Revenue growth 3Y2.19%
Revenue growth 5Y9.15%
Sales Q2Q%0.77%

3.2 Future

  • Based on estimates for the next years, TOL will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.92% on average per year.
  • TOL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.01% yearly.
EPS Next Y-4.71%
EPS Next 2Y2.97%
EPS Next 3Y5.72%
EPS Next 5Y11.92%
Revenue Next Year-2.12%
Revenue Next 2Y1.87%
Revenue Next 3Y2.95%
Revenue Next 5Y8.01%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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.
TOL Yearly Revenue VS EstimatesTOL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 5B 10B 15B
TOL Yearly EPS VS EstimatesTOL Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 5 10 15 20

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7

4. TOL Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 9.37 indicates a reasonable valuation of TOL.
  • 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.
  • TOL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.88.
  • The Price/Forward Earnings ratio is 9.12, which indicates a very decent valuation of TOL.
  • 83.33% of the companies in the same industry are more expensive than TOL, based on the Price/Forward Earnings ratio.
  • TOL is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 9.37
Fwd PE 9.12
TOL Price Earnings VS Forward Price EarningsTOL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 cheaply inside the industry as 83.33% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 8.55
EV/EBITDA 7.62
TOL Per share dataTOL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

4.3 Compensation for Growth

  • TOL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.3
EPS Next 2Y2.97%
EPS Next 3Y5.72%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. TOL Dividend Analysis

5.1 Amount

  • TOL has a yearly dividend return of 0.78%, which is pretty low.
  • Compared to an average industry Dividend Yield of 1.30, TOL pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, TOL's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.78%

5.2 History

  • The dividend of TOL is nicely growing with an annual growth rate of 18.76%!
  • TOL has been paying a dividend for at least 10 years, so it has 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
TOL Yearly Dividends per shareTOL Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8

5.3 Sustainability

  • 7.08% 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.
DP7.08%
EPS Next 2Y2.97%
EPS Next 3Y5.72%
TOL Yearly Income VS Free CF VS DividendTOL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B
TOL Dividend Payout.TOL Dividend Payout, showing the Payout Ratio.TOL Dividend Payout.PayoutRetained Earnings

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TOL Fundamentals: All Metrics, Ratios and Statistics

TOLL BROTHERS INC

NYSE:TOL (3/27/2026, 8:04:00 PM)

After market: 130.22 -0.9 (-0.69%)

131.12

-2.11 (-1.58%)

Chartmill FA Rating
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)02-17
Earnings (Next)05-18
Inst Owners91.52%
Inst Owner Change0.36%
Ins Owners0.58%
Ins Owner Change5.43%
Market Cap12.42B
Revenue(TTM)11.25B
Net Income(TTM)1.38B
Analysts76.52
Price Target178.09 (35.82%)
Short Float %3.61%
Short Ratio2.67
Dividend
Industry RankSector Rank
Dividend Yield 0.78%
Yearly Dividend1
Dividend Growth(5Y)18.76%
DP7.08%
Div Incr Years4
Div Non Decr Years7
Ex-Date01-09
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.32%
Min EPS beat(2)-7.28%
Max EPS beat(2)2.65%
EPS beat(4)3
Avg EPS beat(4)5.08%
Min EPS beat(4)-7.28%
Max EPS beat(4)22.46%
EPS beat(8)5
Avg EPS beat(8)-0.07%
EPS beat(12)9
Avg EPS beat(12)9.3%
EPS beat(16)13
Avg EPS beat(16)10.58%
Revenue beat(2)1
Avg Revenue beat(2)0.89%
Min Revenue beat(2)-0.8%
Max Revenue beat(2)2.59%
Revenue beat(4)3
Avg Revenue beat(4)3.01%
Min Revenue beat(4)-0.8%
Max Revenue beat(4)7.87%
Revenue beat(8)5
Avg Revenue beat(8)1.57%
Revenue beat(12)9
Avg Revenue beat(12)4.23%
Revenue beat(16)12
Avg Revenue beat(16)4.8%
PT rev (1m)2.48%
PT rev (3m)16.33%
EPS NQ rev (1m)-1.25%
EPS NQ rev (3m)-9.81%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)0.07%
Revenue NQ rev (1m)-0.69%
Revenue NQ rev (3m)-1.21%
Revenue NY rev (1m)1.43%
Revenue NY rev (3m)1.7%
Valuation
Industry RankSector Rank
PE 9.37
Fwd PE 9.12
P/S 1.1
P/FCF 8.55
P/OCF 8.06
P/B 1.48
P/tB 1.48
EV/EBITDA 7.62
EPS(TTM)14
EY10.68%
EPS(NY)14.38
Fwd EY10.97%
FCF(TTM)15.34
FCFY11.7%
OCF(TTM)16.27
OCFY12.4%
SpS118.82
BVpS88.79
TBVpS88.79
PEG (NY)N/A
PEG (5Y)0.3
Graham Number167.24
Profitability
Industry RankSector Rank
ROA 9.56%
ROE 16.41%
ROCE 15.62%
ROIC 11.76%
ROICexc 13.17%
ROICexgc 13.39%
OM 15.52%
PM (TTM) 12.26%
GM 24.86%
FCFM 12.91%
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-Score6
Asset Turnover0.78
Health
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.87
Debt/EBITDA 1.49
Cap/Depr 108.1%
Cap/Sales 0.78%
Interest Coverage 250
Cash Conversion 84.27%
Profit Quality 105.29%
Current Ratio 3.88
Quick Ratio 0.43
Altman-Z 4.04
F-Score6
WACC9.51%
ROIC/WACC1.24
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)4.79%
EPS 3Y10.17%
EPS 5Y31.49%
EPS Q2Q%25.14%
EPS Next Y-4.71%
EPS Next 2Y2.97%
EPS Next 3Y5.72%
EPS Next 5Y11.92%
Revenue 1Y (TTM)4.6%
Revenue growth 3Y2.19%
Revenue growth 5Y9.15%
Sales Q2Q%0.77%
Revenue Next Year-2.12%
Revenue Next 2Y1.87%
Revenue Next 3Y2.95%
Revenue Next 5Y8.01%
EBIT growth 1Y-10.74%
EBIT growth 3Y5.01%
EBIT growth 5Y26.01%
EBIT Next Year-0.99%
EBIT Next 3Y5.04%
EBIT Next 5Y10.55%
FCF growth 1Y16.18%
FCF growth 3Y3.89%
FCF growth 5Y2.69%
OCF growth 1Y16.95%
OCF growth 3Y4.07%
OCF growth 5Y1.99%

TOLL BROTHERS INC / TOL Fundamental Analysis 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 7 / 10 to TOLL BROTHERS INC (TOL). This can be considered as Undervalued.


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 9.37 and the Price/Book (PB) ratio is 1.48.


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 -4.71% in the next year.