TOLL BROTHERS INC (TOL) Stock Fundamental Analysis
NYSE:TOL - New York Stock Exchange, Inc. - US8894781033 - Common Stock - Currency: USD
TOL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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! With these ratings, TOL could be worth investigating further 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.
In the past 5 years TOL has always been profitable.
Each year in the past 5 years TOL had a positive operating cash flow.
1.2 Ratios
TOL's Return On Assets of 11.08% is amongst the best of the industry. TOL outperforms 81.25% of its industry peers.
TOL has a better Return On Equity (19.36%) than 79.69% of its industry peers.
The Return On Invested Capital of TOL (13.82%) is better than 78.13% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TOL is in line with the industry average of 11.93%.
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
With an excellent Profit Margin value of 14.03%, TOL belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
TOL's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 18.19%, TOL belongs to the best 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.
TOL has a Gross Margin (27.42%) which is comparable to the rest of the industry.
TOL's Gross Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, TOL has less shares outstanding
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
TOL has an Altman-Z score of 3.92. This indicates that TOL is financially healthy and has little risk of bankruptcy at the moment.
TOL's Altman-Z score of 3.92 is fine compared to the rest of the industry. TOL outperforms 65.63% of its industry peers.
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.
TOL's Debt to FCF ratio of 3.35 is fine compared to the rest of the industry. TOL outperforms 64.06% 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.35 | ||
| Altman-Z | 3.92 |
ROIC/WACC1.56
WACC8.88%
2.3 Liquidity
TOL has a Current Ratio of 3.83. This indicates that TOL is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.83, TOL is in the better half of the industry, outperforming 70.31% of the companies in the same industry.
A Quick Ratio of 0.29 indicates that TOL may have some problems paying 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
The Earnings Per Share has been growing slightly by 0.07% over the past year.
TOL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.96% yearly.
The Revenue has grown by 8.52% in the past year. This is quite good.
The Revenue has been growing by 8.47% on average over the past years. This is quite good.
EPS 1Y (TTM)0.07%
EPS 3Y27.67%
EPS 5Y27.96%
EPS Q2Q%3.55%
Revenue 1Y (TTM)8.52%
Revenue growth 3Y7.26%
Revenue growth 5Y8.47%
Sales Q2Q%2.25%
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 9.84% on average per year.
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 Y-0.68%
EPS Next 2Y2.76%
EPS Next 3Y5.16%
EPS Next 5Y9.84%
Revenue Next Year1.13%
Revenue Next 2Y2.27%
Revenue Next 3Y2.69%
Revenue Next 5Y7.38%
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 cheaply with a Price/Earnings ratio of 7.70.
TOL's Price/Earnings ratio is a bit cheaper when compared to the industry. TOL is cheaper than 64.06% of the companies in the same industry.
TOL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.91.
TOL is valuated cheaply with a Price/Forward Earnings ratio of 7.10.
Based on the Price/Forward Earnings ratio, TOL is valued a bit cheaper than the industry average as 75.00% 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 21.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.7 | ||
| Fwd PE | 7.1 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TOL indicates a somewhat cheap valuation: TOL is cheaper than 67.19% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TOL is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.47 | ||
| EV/EBITDA | 6.09 |
4.3 Compensation for Growth
The excellent profitability rating of TOL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.28
EPS Next 2Y2.76%
EPS Next 3Y5.16%
5. Dividend
5.1 Amount
With a yearly dividend of 0.96%, TOL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.47, TOL pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.96, TOL pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
5.2 History
The dividend of TOL is nicely growing with an annual growth rate of 15.67%!
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
TOL pays out 6.26% of its income as dividend. This is a sustainable payout ratio.
TOL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP6.26%
EPS Next 2Y2.76%
EPS Next 3Y5.16%
NYSE:TOL (5/23/2025, 2:11:08 PM)
103.845
-0.3 (-0.28%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners90.87%
Inst Owner Change2.37%
Ins Owners0.69%
Ins Owner Change5.7%
Market Cap10.21B
Analysts77.39
Price Target142.6 (37.32%)
Short Float %3.43%
Short Ratio1.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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)-4.67%
PT rev (3m)-11.45%
EPS NQ rev (1m)-1.37%
EPS NQ rev (3m)-16.81%
EPS NY rev (1m)-1.37%
EPS NY rev (3m)-4.58%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-6.45%
Revenue NY rev (1m)-0.92%
Revenue NY rev (3m)-2.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.7 | ||
| Fwd PE | 7.1 | ||
| P/S | 0.95 | ||
| P/FCF | 12.47 | ||
| P/OCF | 11.39 | ||
| P/B | 1.31 | ||
| P/tB | 1.31 | ||
| EV/EBITDA | 6.09 |
EPS(TTM)13.48
EY12.98%
EPS(NY)14.63
Fwd EY14.09%
FCF(TTM)8.33
FCFY8.02%
OCF(TTM)9.12
OCFY8.78%
SpS109.41
BVpS79.28
TBVpS79.28
PEG (NY)N/A
PEG (5Y)0.28
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 | 3.92 |
F-Score5
WACC8.88%
ROIC/WACC1.56
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)0.07%
EPS 3Y27.67%
EPS 5Y27.96%
EPS Q2Q%3.55%
EPS Next Y-0.68%
EPS Next 2Y2.76%
EPS Next 3Y5.16%
EPS Next 5Y9.84%
Revenue 1Y (TTM)8.52%
Revenue growth 3Y7.26%
Revenue growth 5Y8.47%
Sales Q2Q%2.25%
Revenue Next Year1.13%
Revenue Next 2Y2.27%
Revenue Next 3Y2.69%
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%