TOLL BROTHERS INC (TOL)
US8894781033 - Common Stock
We assign a fundamental rating of 7 out of 10 to TOL. TOL was compared to 68 industry peers in the Household Durables industry. TOL scores excellent on profitability, but there are some minor concerns on its financial health. TOL is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make TOL suitable for value investing!
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's Return On Assets of 11.34% is amongst the best of the industry. TOL outperforms 82.09% of its industry peers.
With an excellent Return On Equity value of 20.23%, TOL belongs to the best of the industry, outperforming 82.09% of the companies in the same industry.
TOL's Return On Invested Capital of 13.82% is amongst the best of the industry. TOL outperforms 88.06% of its industry peers.
TOL had an Average Return On Invested Capital over the past 3 years of 11.30%. This is in line with the industry average of 10.06%.
The last Return On Invested Capital (13.82%) for TOL is above the 3 year average (11.30%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.34% | ||
| ROE | 20.23% | ||
| ROIC | 13.82% |
ROA(3y)9.55%
ROA(5y)7.63%
ROE(3y)19.12%
ROE(5y)15.63%
ROIC(3y)11.3%
ROIC(5y)8.83%
1.3 Margins
TOL has a Profit Margin of 13.97%. This is amongst the best in the industry. TOL outperforms 89.55% of its industry peers.
In the last couple of years the Profit Margin of TOL has grown nicely.
TOL has a better Operating Margin (17.79%) than 91.04% of its industry peers.
TOL's Operating Margin has improved in the last couple of years.
TOL has a Gross Margin (26.92%) 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 | 17.79% | ||
| PM (TTM) | 13.97% | ||
| GM | 26.92% |
OM growth 3Y30.47%
OM growth 5Y9.42%
PM growth 3Y29.54%
PM growth 5Y5.56%
GM growth 3Y9.57%
GM growth 5Y5.07%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TOL is still 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.
Compared to 1 year ago, TOL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.18 indicates that TOL is not in any danger for bankruptcy at the moment.
TOL has a better Altman-Z score (4.18) than 70.15% of its industry peers.
The Debt to FCF ratio of TOL is 2.18, which is a good value as it means it would take TOL, 2.18 years of fcf income to pay off all of its debts.
TOL's Debt to FCF ratio of 2.18 is fine compared to the rest of the industry. TOL outperforms 65.67% of its industry peers.
A Debt/Equity ratio of 0.39 indicates that TOL is not too dependend on debt financing.
TOL has a Debt to Equity ratio (0.39) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 2.18 | ||
| Altman-Z | 4.18 |
ROIC/WACC1.33
WACC10.41%
2.3 Liquidity
TOL has a Current Ratio of 3.97. This indicates that TOL is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of TOL (3.97) is better than 70.15% of its industry peers.
A Quick Ratio of 0.43 indicates that TOL may have some problems paying its short term obligations.
TOL has a worse Quick ratio (0.43) than 94.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.97 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
TOL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.08%, which is quite impressive.
The Earnings Per Share has been growing by 21.45% on average over the past years. This is a very strong growth
TOL shows a decrease in Revenue. In the last year, the revenue decreased by -0.99%.
TOL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.95% yearly.
EPS 1Y (TTM)22.08%
EPS 3Y53.14%
EPS 5Y21.45%
EPS growth Q2Q32.35%
Revenue 1Y (TTM)-0.99%
Revenue growth 3Y12.19%
Revenue growth 5Y6.95%
Revenue growth Q2Q9.42%
3.2 Future
The Earnings Per Share is expected to grow by 2.17% on average over the next years.
TOL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.46% yearly.
EPS Next Y11.93%
EPS Next 2Y5.82%
EPS Next 3Y6.92%
EPS Next 5Y2.17%
Revenue Next Year3.37%
Revenue Next 2Y5.29%
Revenue Next 3Y5.81%
Revenue Next 5Y2.46%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.07, the valuation of TOL can be described as reasonable.
TOL's Price/Earnings ratio is rather cheap when compared to the industry. TOL is cheaper than 80.60% of the companies in the same industry.
When comparing the Price/Earnings ratio of TOL to the average of the S&P500 Index (25.20), we can say TOL is valued rather cheaply.
TOL is valuated reasonably with a Price/Forward Earnings ratio of 8.46.
86.57% of the companies in the same industry are more expensive than TOL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TOL to the average of the S&P500 Index (21.63), we can say TOL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.07 | ||
| Fwd PE | 8.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TOL is valued a bit cheaper than 68.66% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TOL is valued a bit cheaper than the industry average as 65.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.78 | ||
| EV/EBITDA | 7.6 |
4.3 Compensation for Growth
TOL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TOL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.76
PEG (5Y)0.42
EPS Next 2Y5.82%
EPS Next 3Y6.92%
5. Dividend
5.1 Amount
With a yearly dividend of 0.81%, TOL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.32, TOL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, TOL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
5.2 History
On average, the dividend of TOL grows each year by 15.91%, 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)15.91%
Div Incr Years3
Div Non Decr Years6
5.3 Sustainability
TOL pays out 6.44% of its income as dividend. This is a sustainable payout ratio.
The dividend of TOL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP6.44%
EPS Next 2Y5.82%
EPS Next 3Y6.92%
TOLL BROTHERS INC
NYSE:TOL (4/25/2024, 7:04:00 PM)
After market: 117.57 +0.21 (+0.18%)117.36
-1.34 (-1.13%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.23B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
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EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.07 | ||
| Fwd PE | 8.46 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.76
PEG (5Y)0.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.34% | ||
| ROE | 20.23% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.79% | ||
| PM (TTM) | 13.97% | ||
| GM | 26.92% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.97 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)22.08%
EPS 3Y53.14%
EPS 5Y
EPS growth Q2Q
EPS Next Y11.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.99%
Revenue growth 3Y12.19%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y