TOLL BROTHERS INC (TOL) Stock Fundamental Analysis
NYSE:TOL - New York Stock Exchange, Inc. - US8894781033 - Common Stock - Currency: USD
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. TOL has an excellent profitability rating, but there are some minor concerns on its financial health. TOL scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes TOL very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year TOL was profitable.
In the past year TOL had a positive cash flow from operations.
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
The Return On Assets of TOL (11.08%) is better than 81.25% of its industry peers.
With a decent Return On Equity value of 19.36%, TOL is doing good in the industry, outperforming 79.69% of the companies in the same industry.
TOL has a better Return On Invested Capital (13.82%) than 78.13% 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 12.29%.
The 3 year average ROIC (13.26%) for TOL is below the current ROIC(13.82%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.08% | ||
| ROE | 19.36% | ||
| ROIC | 13.82% |
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
TOL has a Profit Margin of 14.03%. This is amongst the best in the industry. TOL outperforms 90.63% of its industry peers.
In the last couple of years the Profit Margin of TOL has grown nicely.
Looking at the Operating Margin, with a value of 18.19%, TOL belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
In the last couple of years the Operating Margin of TOL has grown nicely.
Looking at the Gross Margin, with a value of 27.42%, TOL is in line with its industry, outperforming 56.25% 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 | 18.19% | ||
| PM (TTM) | 14.03% | ||
| GM | 27.42% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TOL 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.
Compared to 1 year ago, TOL has an improved debt to assets ratio.
2.2 Solvency
TOL has an Altman-Z score of 3.90. This indicates that TOL is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.90, TOL is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
The Debt to FCF ratio of TOL is 3.35, which is a good value as it means it would take TOL, 3.35 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TOL (3.35) is better than 62.50% of its industry peers.
TOL has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
TOL has a Debt to Equity ratio (0.35) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.35 | ||
| Altman-Z | 3.9 |
ROIC/WACC1.69
WACC8.17%
2.3 Liquidity
A Current Ratio of 3.83 indicates that TOL has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.83, TOL is doing good in the industry, outperforming 71.88% of the companies in the same industry.
TOL has a Quick Ratio of 3.83. This is a bad value and indicates that TOL is not financially healthy enough and could expect problems in meeting its short term obligations.
TOL has a Quick ratio of 0.29. This is amonst the worse of the industry: TOL underperforms 90.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.83 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
TOL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.25%.
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.
Looking at the last year, TOL shows a small growth in Revenue. The Revenue has grown by 5.86% in the last year.
TOL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.47% yearly.
EPS 1Y (TTM)3.25%
EPS 3Y27.67%
EPS 5Y27.96%
EPS Q2Q%-22.22%
Revenue 1Y (TTM)5.86%
Revenue growth 3Y7.26%
Revenue growth 5Y8.47%
Sales Q2Q%-4.71%
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 9.84% yearly.
Based on estimates for the next years, TOL will show a small growth in Revenue. The Revenue will grow by 7.38% on average per year.
EPS Next Y0.7%
EPS Next 2Y4.6%
EPS Next 3Y5.96%
EPS Next 5Y9.84%
Revenue Next Year1.25%
Revenue Next 2Y2.33%
Revenue Next 3Y2.81%
Revenue Next 5Y7.38%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.56 indicates a rather cheap valuation of TOL.
65.63% of the companies in the same industry are more expensive than TOL, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.88. TOL is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 6.66, the valuation of TOL can be described as very cheap.
Based on the Price/Forward Earnings ratio, TOL is valued a bit cheaper than the industry average as 79.69% of the companies are valued more expensively.
TOL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.56 | ||
| Fwd PE | 6.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TOL is valued a bit cheaper than 65.63% of the companies in the same industry.
TOL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TOL is cheaper than 71.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.26 | ||
| EV/EBITDA | 5.98 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of TOL may justify a higher PE ratio.
PEG (NY)10.76
PEG (5Y)0.27
EPS Next 2Y4.6%
EPS Next 3Y5.96%
5. Dividend
5.1 Amount
With a yearly dividend of 0.99%, TOL is not a good candidate for dividend investing.
The stock price of TOL dropped by -25.73% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.61, TOL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, TOL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
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.
As TOL did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)15.67%
Div Incr Years4
Div Non Decr Years7
5.3 Sustainability
6.26% of the earnings are spent on dividend by TOL. This is a low number and sustainable payout ratio.
The dividend of TOL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP6.26%
EPS Next 2Y4.6%
EPS Next 3Y5.96%
NYSE:TOL (5/1/2025, 2:36:28 PM)
100.96
+0.09 (+0.09%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners90.87%
Inst Owner Change-0.14%
Ins Owners0.69%
Ins Owner Change5.7%
Market Cap10.04B
Analysts77.39
Price Target142.6 (41.24%)
Short Float %3.62%
Short Ratio1.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Yearly Dividend0.92
Dividend Growth(5Y)15.67%
DP6.26%
Div Incr Years4
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.63%
Min EPS beat(2)-15.06%
Max EPS beat(2)5.79%
EPS beat(4)2
Avg EPS beat(4)-5.22%
Min EPS beat(4)-19.17%
Max EPS beat(4)7.56%
EPS beat(8)6
Avg EPS beat(8)11.41%
EPS beat(12)10
Avg EPS beat(12)12.41%
EPS beat(16)14
Avg EPS beat(16)13.77%
Revenue beat(2)1
Avg Revenue beat(2)-1.27%
Min Revenue beat(2)-4.38%
Max Revenue beat(2)1.84%
Revenue beat(4)2
Avg Revenue beat(4)0.14%
Min Revenue beat(4)-4.38%
Max Revenue beat(4)3.44%
Revenue beat(8)6
Avg Revenue beat(8)4.84%
Revenue beat(12)9
Avg Revenue beat(12)5.39%
Revenue beat(16)11
Avg Revenue beat(16)4.77%
PT rev (1m)-4.9%
PT rev (3m)-12.76%
EPS NQ rev (1m)-0.37%
EPS NQ rev (3m)-18.06%
EPS NY rev (1m)-0.59%
EPS NY rev (3m)-3.87%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)-5.8%
Revenue NY rev (1m)-1.07%
Revenue NY rev (3m)-2.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.56 | ||
| Fwd PE | 6.66 | ||
| P/S | 0.93 | ||
| P/FCF | 12.26 | ||
| P/OCF | 11.2 | ||
| P/B | 1.29 | ||
| P/tB | 1.29 | ||
| EV/EBITDA | 5.98 |
EPS(TTM)13.36
EY13.23%
EPS(NY)15.16
Fwd EY15.02%
FCF(TTM)8.24
FCFY8.16%
OCF(TTM)9.01
OCFY8.93%
SpS108.19
BVpS78.4
TBVpS78.4
PEG (NY)10.76
PEG (5Y)0.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.08% | ||
| ROE | 19.36% | ||
| ROCE | 18.45% | ||
| ROIC | 13.82% | ||
| ROICexc | 14.61% | ||
| ROICexgc | 14.78% | ||
| OM | 18.19% | ||
| PM (TTM) | 14.03% | ||
| GM | 27.42% | ||
| FCFM | 7.61% |
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-Score5
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.35 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | 94.12% | ||
| Cap/Sales | 0.72% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 43.95% | ||
| Profit Quality | 54.26% | ||
| Current Ratio | 3.83 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | 3.9 |
F-Score5
WACC8.17%
ROIC/WACC1.69
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)3.25%
EPS 3Y27.67%
EPS 5Y27.96%
EPS Q2Q%-22.22%
EPS Next Y0.7%
EPS Next 2Y4.6%
EPS Next 3Y5.96%
EPS Next 5Y9.84%
Revenue 1Y (TTM)5.86%
Revenue growth 3Y7.26%
Revenue growth 5Y8.47%
Sales Q2Q%-4.71%
Revenue Next Year1.25%
Revenue Next 2Y2.33%
Revenue Next 3Y2.81%
Revenue Next 5Y7.38%
EBIT growth 1Y8.26%
EBIT growth 3Y26.05%
EBIT growth 5Y24.59%
EBIT Next Year-1.51%
EBIT Next 3Y4.03%
EBIT Next 5Y7.06%
FCF growth 1Y-2.13%
FCF growth 3Y-8.84%
FCF growth 5Y21.71%
OCF growth 1Y-1.47%
OCF growth 3Y-8.14%
OCF growth 5Y18.21%