TOLL BROTHERS INC (TOL)
US8894781033 - Common Stock
Taking everything into account, TOL scores 6 out of 10 in our fundamental rating. TOL was compared to 64 industry peers in the Household Durables industry. While TOL has a great profitability rating, 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! This makes TOL very considerable for value investing!
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
With an excellent Return On Assets value of 11.54%, TOL belongs to the best of the industry, outperforming 82.26% of the companies in the same industry.
TOL has a better Return On Equity (20.79%) than 80.65% of its industry peers.
TOL has a Return On Invested Capital of 14.50%. This is in the better half of the industry: TOL outperforms 79.03% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TOL is in line with the industry average of 10.85%.
The last Return On Invested Capital (14.50%) for TOL is above the 3 year average (11.30%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.54% | ||
| ROE | 20.79% | ||
| ROIC | 14.5% |
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's Profit Margin of 14.63% is amongst the best of the industry. TOL outperforms 90.32% of its industry peers.
TOL's Profit Margin has improved in the last couple of years.
TOL's Operating Margin of 18.91% is amongst the best of the industry. TOL outperforms 91.94% of its industry peers.
In the last couple of years the Operating Margin of TOL has grown nicely.
With a Gross Margin value of 27.97%, TOL perfoms like the industry average, outperforming 58.06% 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 | 18.91% | ||
| PM (TTM) | 14.63% | ||
| GM | 27.97% |
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.
Compared to 5 years ago, TOL has less shares outstanding
The debt/assets ratio for TOL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.36 indicates that TOL is not in any danger for bankruptcy at the moment.
TOL has a Altman-Z score of 4.36. This is in the better half of the industry: TOL outperforms 66.13% of its industry peers.
TOL has a debt to FCF ratio of 3.34. This is a good value and a sign of high solvency as TOL would need 3.34 years to pay back of all of its debts.
TOL has a better Debt to FCF ratio (3.34) than 66.13% of its industry peers.
A Debt/Equity ratio of 0.38 indicates that TOL is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.38, TOL perfoms like the industry average, outperforming 48.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 4.36 |
ROIC/WACC1.66
WACC8.72%
2.3 Liquidity
A Current Ratio of 3.72 indicates that TOL has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.72, TOL is doing good in the industry, outperforming 64.52% of the companies in the same industry.
A Quick Ratio of 0.38 indicates that TOL may have some problems paying its short term obligations.
With a Quick ratio value of 0.38, TOL is not doing good in the industry: 93.55% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.72 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
TOL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.77%.
Measured over the past years, TOL shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.45% on average per year.
TOL shows a decrease in Revenue. In the last year, the revenue decreased by -1.44%.
The Revenue has been growing slightly by 6.95% on average over the past years.
EPS 1Y (TTM)2.77%
EPS 3Y53.14%
EPS 5Y21.45%
EPS Q2Q%-3.49%
Revenue 1Y (TTM)-1.44%
Revenue growth 3Y12.19%
Revenue growth 5Y6.95%
Sales Q2Q%1.99%
3.2 Future
The Earnings Per Share is expected to grow by 9.21% on average over the next years. This is quite good.
TOL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.32% yearly.
EPS Next Y19.59%
EPS Next 2Y9.22%
EPS Next 3Y8.54%
EPS Next 5Y9.21%
Revenue Next Year9.06%
Revenue Next 2Y6.32%
Revenue Next 3Y5.76%
Revenue Next 5Y8.32%
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.
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
TOL is valuated reasonably with a Price/Earnings ratio of 11.52.
Based on the Price/Earnings ratio, TOL is valued a bit cheaper than 66.13% of the companies in the same industry.
TOL is valuated cheaply when we compare the Price/Earnings ratio to 31.73, which is the current average of the S&P500 Index.
TOL is valuated reasonably with a Price/Forward Earnings ratio of 10.40.
66.13% of the companies in the same industry are more expensive than TOL, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, TOL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.52 | ||
| Fwd PE | 10.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TOL is valued a bit cheaper than the industry average as 75.81% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TOL is valued a bit cheaper than 69.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.36 | ||
| EV/EBITDA | 8.24 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of TOL may justify a higher PE ratio.
PEG (NY)0.59
PEG (5Y)0.54
EPS Next 2Y9.22%
EPS Next 3Y8.54%
5. Dividend
5.1 Amount
TOL has a yearly dividend return of 0.62%, which is pretty low.
TOL's Dividend Yield is a higher than the industry average which is at 2.45.
Compared to an average S&P500 Dividend Yield of 2.22, TOL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
5.2 History
The dividend of TOL is nicely growing with an annual growth rate of 15.91%!
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)15.91%
Div Incr Years3
Div Non Decr Years6
5.3 Sustainability
TOL pays out 5.99% 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.
DP5.99%
EPS Next 2Y9.22%
EPS Next 3Y8.54%
TOLL BROTHERS INC
NYSE:TOL (10/14/2024, 8:04:00 PM)
After market: 153.64 0 (0%)153.64
+3.78 (+2.52%)
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 Cap15.51B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.52 | ||
| Fwd PE | 10.4 | ||
| 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)0.59
PEG (5Y)0.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.54% | ||
| ROE | 20.79% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.91% | ||
| PM (TTM) | 14.63% | ||
| GM | 27.97% | ||
| 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 Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.72 | ||
| Quick Ratio | 0.38 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)2.77%
EPS 3Y53.14%
EPS 5Y
EPS Q2Q%
EPS Next Y19.59%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.44%
Revenue growth 3Y12.19%
Revenue growth 5Y
Sales 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